Here it is!!!!!
Company Press Release
Centura Announces Fourth Quarter Earnings Best Operating Income in Five Years
REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Feb. 10, 1998--Centura Software Corporation (NASDAQ:CNTRC/formerly Gupta Corporation) today announced net income for the 1997 fourth quarter was $1.0 million, or $0.07 per share on a basic and $0.06 on a diluted basis.
This compares with net income of $1.2 million, or $0.08 per share on a basic and $0.07 on a diluted basis for the fourth quarter of 1996. The Company recorded a net loss for 1997 of $0.6 million, or $0.04 per share on a basic and diluted basis, compared with net income of $2.0 million or $0.15 per share in 1996 on a basic and diluted basis. Net revenue was $14.5 million and $57.9 million for the fourth quarter and year ended December 31, 1997, respectively, compared with $17.6 million and $63.2 million for the same periods last year.
Operating income, before one-time charges, for the fourth quarter and year ended December 31, 1997 was $2.3 million, or 15.7% of net revenue, and $2.8 million, or 4.8% of net revenue, respectively. This compares with $0.5 million, or 2.8% of net revenue, and $1.9 million, or 2.9% of net revenue, in operating income, before one-time charges, for the same periods in the prior year.
Scott Broomfield, Centura's CEO, commented, ''At an operating income of 15.7% of net revenue, before one-time charges, we believe these results support our assessment of the profit potential of the Company's core products and technologies, and our ability to deliver this value to our customers.''
Broomfield continued, ''The fourth quarter performance resulted in Centura's best quarterly operating income in 5 years. However, we are still in the early stages of the Company's turnaround and need to improve our capital structure and serve our customers much better than we have in the past. The task ahead is to continue to bring our core operational and customer value into the hands of our shareholders. We are looking forward to the challenges in the year ahead.''
John Bowman, Centura's CFO commented, ''Net income in the fourth quarter was $1.5 million before deducting $0.5 million of one-time charges primarily related to discontinuing the Foresite product. This compares with $0.6 million of net income in the 1996 fourth quarter, before one-time credits of $0.6 million. The net loss in 1997 included $1.5 million of one-time costs, including the discontinuation of Foresite and other downsizing costs, interest costs associated with factoring accounts receivable and a charge for foreign currency fluctuation in the first quarter of 1997 in the amount of approximately $0.7 million.
''The recently implemented loan facility with Coast Business Credit has replaced the factoring arrangement and is anticipated to be operable at a lower cost of funds in 1998.'' Bowman continued, ''In efforts to minimize foreign currency exposures the Company implemented a hedging program in June 1997 which we are continuing to evaluate and improve upon. We continue to have a substantial international presence, principally in Europe, requiring an appropriate level of attention to currency management.''
International revenues accounted for 59% and 58% of the Company's net revenue in the fourth quarter and year ended December 31, 1997, respectively, compared with 57% and 60% in the comparable periods in 1996.
About Centura Software
Since its inception in 1984, Centura, formerly known as Gupta Corporation, has enjoyed a rich history of innovation, creating the first client/server DBMS for PCs. Its current product lineup includes an embedded database, SQLBase, and application development tools, SQLWindows, Centura Team Developer, and Quest/Web. Today, Centura has 26 offices around the world, supporting hundreds of thousands of developers who embed its tools in applications used by more than 1 million end users. Centura is positioning its client/server products to be WEB capable and Mobile ready. New Centura products are all Year 2000 compliant.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely shipments of new products, the effect of competitive pressures and the other risks detailed from time to time in the Company's SEC reports, including the Annual Report on Form 10-K for the fiscal year ended December 31, 1996 and the Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30, and September 30, 1997 and the forthcoming 10-K for the fiscal year ended December 31, 1997.
Centura Software Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
months ended For the year ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
(Unaudited)
Net Revenues:
Product $10,039 $12,450 $40,714 $45,452
Service 4,505 5,134 17,232 17,781
------- ------- ------- -------
Net revenues 14,544 17,584 57,946 63,233
Cost of revenues:
Product 1,206 1,514 4,779 5,060
Service 1,180 2,738 7,439 9,518
------- ------- ------- -------
Cost of revenues 2,386 4,252 12,218 14,578
------- ------- ------- -------
Gross profit 12,158 13,332 45,728 48,655
Operating Expenses:
Sales and marketing 6,250 8,122 26,224 29,106
Research and development 1,791 2,662 9,724 11,032
General and administrative 1,838 2,059 6,990 6,667
Acquisition expense 467 530 467
Litigation expense (878) - (878)
Restructuring expense 467 (223) 1,030 (223)
------- ------- ------- -------
Total operating expenses 10,346 12,209 44,498 46,171
------- ------- ------- -------
Operating income (loss) 1,812 1,123 1,230 2,484
Other income (expense):
Interest income 48 302 234 637
Interest expense (322) (434) (1,039) (831)
Foreign currency gain (loss) (491) 397 (1,012) 215
------- ------- ------- -------
Income (loss) before income
taxes 1,047 1,388 (587) 2,505
Provision for income taxes 17 202 62 478
------- ------- ------- -------
Net income (loss) $ 1,030 $ 1,186 $ (649) $ 2,027
======= ======= ======= =======
Net income (loss) per share
(basic) $ 0.07 $ 0.08 $ (0.04) $ 0.15
======= ======= ======= =======
Basic weighted average
common shares 15,779 15,181 15,439 13,231
======= ======= ======= =======
Net income (loss) per share
(diluted) $ 0.06 $ 0.07 $ (0.04) $ 0.15
======= ======= ======= =======
Diluted weighted average
common shares 18,154 19,089 15,439 13,380
======= ======= ======= =======
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, Dec. 31,
1997 1996
ASSETS
Cash, cash equivalents and short term
investments $ 3,974 $ 8,734
Accounts receivable, net 11,744 13,574
Other current assets 3,348 3,516
-------------------
Total current assets 19,066 25,824
Other assets, non current 9,134 10,881
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Total assets $ 28,200 $ 36,705
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LIABILITIES AND SHAREHOLDERS' DEFICIT
Current portion of long-term debt $ 10,682 $ 336
Accounts payable and other current
liabilities 11,789 12,480
Accrued litigation expenses 209 6,733
Deferred revenue 14,618 21,891
-------------------
Total current liabilities 37,298 41,440
Long-term debt, less current portion 10,032
Other long-term liabilities 856 2,156
-------------------
Total liabilities 38,154 53,628
Shareholders' Deficit (9,954) (16,923)
===================
Total liabilities and
shareholders' deficit $ 28,200 $ 36,705
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Contact:
Centura Software
John Bowman, 650/596-3400
www.centurasoft.com
or
Miller/Shandwick Technologies
Michael Celiceo, 650/962-9550
mceliceo@miller.shandwick.com
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