New Dimension Software Announces Record Revenues and Earnings for the Fourth Quarter and the Year 1997
Net Income for the Year 1997 Increased by 101 Percent as Compared to 1996
TEL AVIV, Israel, Feb. 19 /PRNewswire/ -- New Dimension Software, Ltd. (Nasdaq: DDDDF) today announced record revenues for the fourth quarter and the year ended December 31, 1997. Total revenues for the quarter were $18,425,000, a 35 percent increase as compared to the same period last year. Net income increased by 20 percent to $3,410,000 (or $0.27 per diluted share), a record quarterly level for the Company, as compared to net income of $2,835,000 (or $0.24 per diluted share) for the same period last year.
Excluding the tax benefit effect of $831,000 for loss carry forwards that were recorded in the fourth quarter of 1996, net income for the fourth quarter of 1997 increased by 70 percent as compared to the same period last year.
Total revenues for the year ended December 31, 1997 were $64,969,000, a 49 percent increase as compared to the same period last year. Net income for the year ended December 31, 1997 increased by 101 percent to $10,966,000 (or $0.89 per diluted share), as compared to net income of $5,452,000 (or $0.48 per diluted share) for the same period last year.
Excluding the tax benefit effect of $831,000 for loss carry forwards that were recorded in 1996, net income for the year ended December 31, 1997 increased by 137 percent as compared to the same period last year.
On a geographic basis, New Dimension Software's revenues increased by 46 percent in North America, by 1 percent in Europe and by 40 percent in the rest of the world, as compared to the same quarter last year.
Revenues derived from product sales reached record levels during the fourth quarter and grew by 33 percent as compared to the same period last year. The revenues from sales of client/server products as a percentage of total product sales reached 48 percent in the fourth quarter.
Maintenance revenues reached record levels during the fourth quarter and grew by 37 percent as compared to the same period last year.
"We are very pleased with the performance of the Company this year," said Dan Barnea, the Company's CEO. "We believe the growth in revenues reflects our ability to continue to cultivate and expand on our customer base. As of year end, the Company had approximately 2,150 customers worldwide, a 29 percent increase over the fourth quarter 1996 level. We are proud of this achievement, which we believe reflects the strength of our technology, service arms and overall market position."
"A major contributor to our revenues increase is the continued growth in multi-year contracts," Mr. Barnea continued. "During the fourth quarter, the Company closed 61 multi-year contracts worldwide. The largest multi-year contract signed during the quarter was a $3.4 million contract with a major outsourcing company. The Company continues to focus on securing long-term relationships with its customers."
"The Company recently expanded its reach in North America by entering into an arrangement with Anacomp, Inc., a world leader in information delivery systems and services," Mr. Bannea said. "Through the new relationship, Anacomp, Inc. has been authorized to resell New Dimension Software's Enterprise Output Management(TM) product line in North America. With more than 15,000 customers and a strong focus on the computer output market, Anacomp is well positioned to bring the message of our advanced Enterprise Output Management technology to its market niche."
"Overall, we continue to view the strength of our technology as the cornerstone to our success," Mr. Barnea said. "Our IOA(R) (Integrated Operations Architecture(R)) for the Enterprise product line is a tightly integrated suite of core systems management disciplines that allow organizations to take advantage of established and new technologies such as the Web, frameworks and Enterprise Resource Planning (ERP) applications. We attribute much of our success to the proven ability of our products to interface with major frameworks from vendors such as Tivoli and Hewlett Packard, and with ERP applications from market leaders such as SAP, Oracle and PeopleSoft. We plan to build on our relationships with these and other vendors throughout 1998 to develop more advanced, tightly integrated solutions for the enterprise."
All earning per share amounts represent diluted earnings per share as defined by the Statement of Financial Accounting Standards No. 128. Diluted earnings per share calculations include the dilutive impact of stock options issued to employees under New Dimension Software's stock option plan. |
