Here it is folks, lets see what today brings.
FOR: GEAC COMPUTER CORPORATION LIMITED
TSE SYMBOL: GAC
DECEMBER 16, 1997
Geac Achieves Record Revenues and Income
MARKHAM, ONTARIO--Geac continued its strong operating results,
achieving record revenues and income in the Second Quarter of
Fiscal 1998. Revenues for the Second Quarter of Fiscal 1998 were
$158.8 million, compared to $50.6 million in the previous year's
Second Quarter. Net income for the Quarter was $40.1 million
($0.67 per share), compared to $8.1 million ($0.14 per share) in
the prior year. Revenue for the first six months of the year was
$304.4 million, up significantly from the $102.1 million reported
in the prior year. Net income for the six month period was $70.9
million ($1.20 per share) compared to $16.7 million ($0.29 per
share) reported in the same period last year.
Geac's shares were split two for one effective October 31, 1997.
Per share earnings amounts quoted above have been restated to
reflect the increased number of common shares.
Service and support revenue was $88.9 million in the Second
Quarter, up slightly from $87.8 million in the First Quarter of
this year. This reflects, in part, the effectiveness of Geac's
customer support and retention programs. System sales and related
services were $69.4 million in the Second Quarter, up
substantially from $57.0 million in the First Quarter of this
year. Management is encouraged by the more than 20 percent
quarter over quarter growth in variable revenue, mainly new sales
- a positive result of increased R&D spending and Geac's recent
emphasis on growing the sales force.
William G. Nelson, Chairman, President and CEO of Geac, said "The
end of Q2 marks a full year since the acquisition of Dun &
Bradstreet Software. Six months of culture and value focused
restructuring were required, resulting in substantially improved
margins by Q1 this year. The DBS business generated more than
$100 million net cash in its first 12 months, indicating that Geac
can expect to meet its normal target for acquisitions of a cash
return on the purchase price ($256 million in this case) within
three or four years."
During the Second Quarter, Geac acquired all of the outstanding
shares of DDN Holdings Northern Ltd. and its subsidiaries
(operating as the AMS Group). The AMS Group is a premier computer
services provider in Northern Ontario and this acquisition
enhances Geac's coverage and portfolio of service offerings.
It is with a sense of loss and sadness we report that Donald C.
(Ben) Webster, a director since 1987, passed away on December 13,
1997. Mr. Webster was for many years the Chairman of the Board
and the key to the revitalization of Geac as reflected in the
progress over the past ten years.
Geac Computer Corporation Limited delivers and supports total
computer solutions, including complete mission-critical
client/server applications to various cross-industry and vertical
markets worldwide. Geac product and service information is
available on the World Wide Web at geac.com, or through
the Internet Email at solution @geac.com. Geac is a publicly
traded company with its common shares listed on the Toronto Stock
Exchange (Symbol-GAC).
/T/
Geac Computer Corporation Limited
Financial Highlights
In million of dollars, except per share amounts
2nd Quarter 6 months YTD
1998 1997 1998 1997
Revenues 158.8 50.6 304.4 102.1
Net Income 40.1 8.1 70.9 16.7
Basic Earnings per Share 0.67 0.14 1.20 0.29
Fully Diluted Earnings per Share 0.63 0.14 1.11 0.28 |
