Good Third Quarter Results
Wednesday January 28, 4:58 pm Eastern Time
Company Press Release
SOURCE: Novadigm, Inc.
Novadigm Announces Third-Quarter '98 Results
Revenues Increase by 27 Percent; Licensing Growth Drives Increase
MAHWAH, N.J., Jan. 28 /PRNewswire/ -- Novadigm, Inc. (Nasdaq: NVDM - news) today reported financial results for the Company's 1998 third fiscal quarter ended December 31, 1997. Revenues were $7.2 million, an increase of 27 percent over revenues of $5.7 million for the same period a year earlier. Net loss was $1.9 million, or a loss of $0.11 per share on both a basic and diluted basis, compared with a loss of $2.9 million, or a loss of $0.17 per share on both a basic and diluted basis, in the third fiscal quarter of last year.
''During the quarter we continued to expand our market penetration by signing several new domestic and international customers,'' said Wallace Ruiz, Novadigm's chief financial officer. ''Enterprise Desktop Manager(TM) (EDM) remains our flagship product, with both the 4.0 and earlier versions well-received by the market, driven by our success in North America and the U.K. However, our bottom-line was impacted by primarily one-time expenses associated with the sale, marketing and development of Radia and EDM 4.0 products and year 2000 compliance, along with increased costs associated with expanding business activities and growth in Europe,'' he added.
Highlights of the quarter included:
* Record revenues from both European operations and North American direct
channels.
* Record sell-through from Novadigm and its distributors worldwide.
* Signing of 15 new customer and 9 expanded customer license agreements.
* The signing of a worldwide enterprise license agreement with
British-Telecom (BT) through the Company's partner, Amdahl Corporation.
One of the largest single-use customer licenses for Novadigm's EDM and
Radia Software Manager, the agreement is an internal-use license and
gives BT the right to re-sell additional desktops to affiliates and
customers throughout the world.
* Completion of Radia product launch, which included a worldwide tour with
more than 80 meetings with editors and analysts, resulting in
70 articles and garnering top product ratings from Hurwitz Group and
Forrester Research industry analysts.
* Partnerships with NCR Corporation [NYSE:NCR - news] and Diebold, Inc., to deliver ATM
software management solutions to the banking and finance communities
together with the successful launch of EDM for banking applications.
* Novadigm became a premier level member of the Tivoli 10/Plus
Association. EDM is now certified by Tivoli for use with TME
frameworks.
* Opened Novadigm subsidiary in Germany.
With this quarter's new licenses, the Company has expanded its customer base to approximately 161 organizations in 17 countries.
''This quarter's results provide strong feedback that the investments and strategies we've implemented in our recovery plan have produced renewed strength in our market position,'' said Albion J. Fitzgerald, founder, chairman and CEO of Novadigm. ''The demand for scaleable software management solutions in our core market is once again growing rapidly as organizations have begun again to deploy business-critical enterprise applications across both their internal networks and the Internet.
''We believe that with the adjustments we've made in re-aligning our EDM and Radia product offerings to current market needs coupled with our investment in our distribution channel network worldwide provide the right foundation for continued market leadership and growth. In the coming quarters, we plan to continue to both grow our share of the market and optimize our bottom line,'' Fitzgerald added.
Revenues for the first nine months ended December 31, 1997, were $16.2 million , an increase of 3 percent per share on both a basic and diluted basis from $15.8 million for the same period last year. Net loss for the first nine months of fiscal 1998 was $6.4 million, or a loss of $0.37 per share per share on both a basic and diluted basis, compared with $8.3 million, or a loss of $0.48 per share on both a basic and diluted basis, a year ago.
About Novadigm
Novadigm is a leading provider of distributed software, content and application management solutions for client/server and Internet computing environments. The Company's products use patented adaptive configuration and 'fractional differencing' technologies to reduce the cost and complexity of distributing software across large-scale networks, cutting management overhead by 80% or more. Novadigm licenses its products to Fortune 1,000 IT organizations, software vendors and service providers around the world. More information on Novadigm, Inc. can be found on the World Wide Web at novadigm.com or by calling 800-626-6682.
NOTE: This document may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. For a complete discussion of risk factors which could affect the Company's current and future operating results, see the discussions in the Company's recently filed Form 10-K for the fiscal year ended March 31, 1997. |
