EARNINGS
Tangram Enterprise Solutions Reports a Fourth Quarter Profit Driven By Its Fourth
Consecutive Quarter of Revenue Growth
BusinessWire, Tuesday, January 27, 1998 at 12:52
CARY, N.C.--(BUSINESS WIRE)--Jan. 27, 1998--Tangram Enterprise
Solutions, Inc. (NASDAQ:TESI), a North Carolina-based software
development company specializing in enterprise-wide asset tracking
software management solutions, today announced a return to
profitability for the fourth quarter ended December 31, 1997.
The company also reported record revenues of $4.4 million for the
quarter ended December 31, 1997. Net earnings and the record
revenues were driven by a 112% increase in licenses and product
revenues over the comparable 1996 quarter.
The Company reported net earnings of $129,000, or $0.01 per share
on a diluted basis, for the fourth quarter of 1997 as compared to a
net loss of $125,000, or ($0.01) per share, for the same period in
1996. Revenues for the quarter grew 61% to a record $4.4 million,
compared with revenues of $2.8 million for the fourth quarter of
1996. Revenues for the year grew 26% to a record $14.1 million,
compared with revenues of $11.1 million for the year 1996.
Commenting on the results, John N. Nelli, Tangram's Chief
Financial Officer, stated, "Our fourth quarter return to
profitability was ahead of our projections. We are especially
pleased that we were able to deliver 100% of the revenue gain from
the previous quarter to the bottom line, reversing a third quarter
loss of $740,000. The current period ended December represents our
fourth consecutive quarter of revenue growth, posting a 17% increase
over revenues delivered in the third quarter that ended September 30,
1997."
According to W. Christopher Jesse, Tangram's CEO and President,
"During 1997, Tangram accomplished many of its strategic objectives.
Specifically, Tangram was able to establish a new market-asset
tracking, sign a list of prestigious resellers, validate the strength
of the product via sales to several major customers, and build
substantial mind share among industry analysts, the press, strategic
technology partners and channel partners." Jesse continued,
"Organizations are increasingly adopting the asset tracking standard
as defined by our market leading software, Asset Insight.
In 1998, Tangram will continue to leverage our market leadership
into the Year 2000 arena. In order for organizations to address Year
2000 issues, they must know what distributed information technology
assets they have, where these assets are located, and the speed and
direction of asset changes. Asset Insight is the leading asset
tracking solution that addresses this critical first step toward Year
2000 compliance."
For more than a decade, Tangram Enterprise Solutions, Inc., has
provided state-of-the-art information technology asset tracking and
electronic software distribution solutions to major organizations
throughout the world. Tangram's product lines support the leading
industry-standard client/server and local area network environments,
as well as all major connectivity options, including the Internet and
other TCP/IP communications protocols.
Tangram is a member of the Safeguard Scientifics, Inc.,
partnership of companies headquartered in Wayne, Pennsylvania.
Safeguard Scientifics, Inc. (NYSE:SFE), the New York Stock Exchange
listed strategic information systems company, supports
technology-driven growth companies with an emphasis on information
systems markets.
*T
TANGRAM
Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Dec. 31 Year ended Dec. 31
1997 1996 1997 1996
Net revenues:
Licenses and Product $2,803 $1,321 $ 7,968 $ 5,955
Services 1,639 1,433 6,106 5,187
Total net revenues 4,442 2,754 14,074 11,142
Cost of revenues 802 1,106 3,483 3,703
Gross profit 3,640 1,648 10,591 7,439
Operating expenses:
Sales and marketing 1,994 956 6,545 4,068
General and
administrative 707 618 3,211 2,428
Research and
development 771 202 3,192 1,228
Total operating
expenses 3,472 1,776 12,948 7,724
Earnings (loss) from
operations 168 (128) (2,357) (285)
Other(expense) income (39) 3 (155) 32
Earnings (loss) before
income taxes 129 (125) (2,512) (253)
Provision for income
taxes - - - -
Net earnings (loss) $129 $(125) $(2,512) $ (253)
Earning (loss) per
common share: Basic $0.01 $(0.01) $ (0.16) $ (0.02)
Diluted $0.01 $(0.01) $ (0.16) $ (0.02)
Weighted average number of common shares outstanding:
Basic 15,664 15,358 15,631 14,811
Diluted/a 17,302 15,358 15,631 14,811
/a: Weighted average number of common shares outstanding on a
diluted basis for the three month period ended December 31, 1996 and
the years ended December 31, 1997 and 1996 does not include common
stock equivalents because the effect of inclusion of the exercise of
stock options would be to reduce the loss per common share.
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