First Operating Profit from UNIX/NT Line
SAN MATEO, Calif.--(BUSINESS WIRE)--Oct. 30, 1998-- Enlighten Software Solutions, Inc. (NASDAQ:SFTW - news), a provider of workgroup administration and enterprise management solutions for the UNIX and Windows NT marketplaces, today reported record operating results from its UNIX and NT business for the third quarter ended September 30, 1998.
Revenue related to Enlighten's emerging UNIX/NT business rose over 10 fold to $1,408,000 in the third quarter of 1998, representing the highest level since the Company began marketing its UNIX/NT products. The increase in revenue was principally attributable to the commencement of product shipments pursuant to Enlighten's strategic bundling agreement with Silicon Graphics, Inc. (NYSE:SGI - news). Total revenue for the third quarter of 1998 increased 22%, to $1,507,000, compared to revenue of $1,235,000 in the third quarter of 1997. Revenues in the third quarter of 1997 consisted of $105,000 related to Enlighten's UNIX/NT business and $1,130,000 from the Company's Tandem products business which was divested in the fourth quarter of 1997.
Enlighten reported net income of $70,000, or $0.02 per share, in the third quarter of 1998, compared to a net loss of $558,000, or $0.19 per share, in the third quarter of 1997. The weighted average numbers of shares outstanding for the third quarters of 1998 and 1997 were 4,124,000 and 2,946,000, respectively. The increase in the weighted average shares outstanding primarily reflects the addition of 700,000 shares of Common Stock in the Company's May 1998 public offering.
Revenue related to Enlighten's UNIX/NT business rose 377% to $2,196,000 in the first nine months of 1998 compared to revenue of $460,000 in the first nine months of 1997. For the first nine months of 1998, total revenue was $2,627,000 compared to $3,993,000 in the same period a year ago. Revenue for the first nine months of 1997 included $3,533,000 from the Company's Tandem products business which was divested in the fourth quarter of 1997.
For the nine months ended September 30, 1998, Enlighten reported a net loss of $433,000, or $0.13 per share, compared to a net loss of $2,384,000, or $0.81 per share, in the same period last year. The weighted average number of shares outstanding for the first nine months of 1998 was 3,384,000 compared to 2,936,000 in the same period last year.
Other significant events during the quarter include:
OEM partner, Silicon Graphics, Inc. (SGI) began bundling DSM/Workgroup with all new servers and workstations. Additionally, DSM/Workgroup was bundled with each copy of SGI's new IRIX 6.5 operating system upgrade shipped to maintenance customers in the 1998 third quarter.
A distribution relationship with two of General Electric's IT Distribution companies, Access Graphics and Integration Alliance. Access Graphics is the world's largest UNIX platform distributor and the largest master reseller for Sun Microsystems and Silicon Graphics. Integration Alliance is the premier distributor of integrated enterprise solutions with a focus on the HP commercial computing environment. The GE IT Distribution businesses represent over 1,000 employees and combined revenues of over $1.8 billion. This global agreement allows certified resellers for these GE businesses to sell or bundle the EnlightenDSM/Workgroup product throughout the U.S., Canada, Europe and Latin America.
AVCOM Technologies, Inc., one of the largest Sun Microsystems regional systems integrators in the U.S., selected EnlightenDSM as the systems management and events monitoring solution for AVCOM's SHAMU (Secure High Availability Mobile Unit) on-site demo system. AVCOM is also one of Access Graphic's largest resellers in the U.S.
Bill Bradley was appointed Vice President, Business Development. Mr. Bradley has over nineteen years in sales and marketing in the high-technology industry particularly in the area of channel marketing. Mr. Bradley was instrumental in securing the Silicon Graphics and General Electric IT relationships.
Enlighten also disclosed today that it is continuing its appeal with the Nasdaq Stock Market regarding maintaining the Company's National Market tier listing. Nasdaq notified the Company that, effective October 23, 1998, the Company's securities commenced trading on the Nasdaq SmallCap Market during the appeal process. If the appeal is successful, the Company would be reinstated to the Nasdaq National Market.
David Parker, President and CEO, commented, ''Our strong third quarter performance highlights the success and initial benefits of our third party sales strategy for EnlightenDSM, our award-winning workgroup management suite. In the four quarters since the disposition of our Tandem product line, we have refocused the Company and successfully implemented a new distribution strategy that has allowed us to grow our UNIX/NT license revenue from a virtual standstill to a record quarterly level in our history. We have also demonstrated an ability to manage our cost structure, enabling Enlighten to reduce overhead per employee at the same time we have sharply increased revenues, enabling the Company to achieve a net operating profit for the first time in over three years.''
Mr. Parker added, ''EnlightenDSM/Workgroup has now been licensed on over 100,000 systems worldwide representing an exponential increase in our installed base. This powerful installed base and ongoing SGI distribution, combined with our new relationship with GE and our continued progress in developing other strategic distribution partners, should contribute to our goal of becoming the de facto systems management tool for the UNIX/NT marketplace.''
Enlighten Software Solutions, Inc. is a provider of UNIX and UNIX/NT environment workgroup administration and enterprise management solutions for open systems distributed computing environments. The Company's award winning EnlightenDSM product suite provides cost-effective systems administration solutions for mixed vendor environments including DEC, Hewlett-Packard, IBM, SCO, Silicon Graphics, Sun Microsystems and Windows NT. The EnlightenDSM product suite provides comprehensive functionality with unprecedented ease of installation and use. The EnlightenDSM product suite conforms with industry standard frameworks yet allows seamless integration with other vendors' point solutions. For more information, please visit the Company's web site located at enlightendsm.com. |
