International Network Services Announces Record
Second Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 27, 1997-- International Network Services ,
today announced record revenue and net income for the second quarter ended December 31,
1996. Revenue for the second quarter reached $23.3 million, a 143% increase from revenue of
$9.6 million for the same period in 1995, and a 24% increase from revenue of $18.9 million for the
first quarter of fiscal 1997. Net income for the quarter increased 144% to $1.8 million, or $0.05
per share, compared to $753,000, or $0.02 per share a year ago.
Revenue for the first half of fiscal 1997 reached $42.2 million, a 147% increase from revenue of
$17.1 million for the first half of fiscal 1996. Net income for the first half of fiscal 1997 increased
127% to $3.0 million, or $0.09 per share, compared to $1.3 million, or $0.04 per share a year
ago.
"The second quarter was another successful quarter for INS," remarked Donald McKinney,
Chairman and CEO. "We achieved record financial results and continued to expand our service
offerings. We announced a comprehensive set of services aimed at addressing customers' internal
and external network security requirements and completed the latest version of EnterprisePro, our
network performance management service. We continued our commitment to being the premier
provider of services for complex enterprise networks."
"In addition to expanding our network service offerings," added John Drew, President and COO,
"we continued to attract and retain quality personnel and continued our geographic expansion. We
ended the quarter with 664 employees, an increase of 92 during the quarter, and we began
providing service in Minneapolis and Hartford, bringing our total number of locations to 25. We
now have a presence in the top ten U.S. markets and 18 of the top 25 markets. We are very
pleased with our results for the quarter and our success in meeting our plans."
International Network Services (INS) is a leading provider of services for complex enterprise
networks. INS provides professional services for the full life cycle of a network, including planning,
design, implementation, operations and optimization, and maintains expertise in the most complex
network technologies and multi-vendor environments. INS also provides electronic services for
certain repetitive network management tasks, such as network monitoring and network
performance reporting. As of December 31, 1996, INS had 664 employees and provided service
from 25 locations. INS' headquarters are located at 1213 Innsbruck Drive, Sunnyvale, CA
94089. The INS Web site is located at ins.com .
INTERNATIONAL NETWORK SERVICES
STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
For the Quarter For the Six Months
Ended Ended
December 31, December 31,
1996 1995 1996 1995
Revenue $23,337 $9,610 $42,225 $17,116
Operating expenses
Professional personnel 10,445 4,448 18,891 7,795
Sales and marketing 3,713 1,701 6,247 3,150
General and
administrative 3,387 922 6,192 1,515
Other costs 3,159 1,321 6,302 2,501
Total operating
expenses 20,704 8,392 37,632 14,961
Income from operations 2,633 1,218 4,593 2,155
Interest and other, net 374 16 354 23
Income before income taxes 3,007 1,234 4,947 2,178
Provision for income taxes 1,173 481 1,930 849
Net income $1,834 $753 $3,017 $1,329
Net income per share $0.05 $0.02 $0.09 $0.04
Shares used to compute net
income per share 33,743 30,583 32,434 30,484
INTERNATIONAL NETWORK SERVICES
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
Dec 31, June 30,
1996 1996
ASSETS
Current assets:
Cash and investments $36,533 $869
Accounts receivable 18,785 11,821
Deferred income taxes 857 857
Prepaid expenses and other assets 662 386
Total current assets 56,837 13,933
Property and equipment, net 7,373 4,139
Total assets $64,210 $18,072
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,005 $1,908
Accrued expenses 5,810 3,704
Income taxes payable - 250
Deferred revenue 604 612
Borrowings under line of credit - 1,000
Current portion of notes payable - 399
Total current liabilities 9,419 7,873
Notes payable, less current portion - 316
Total shareholders' equity 54,791 9,883
Total liabilities and
shareholders' equity $64,210 $18,072
CONTACT: International Network Services
Kevin Laughlin, 408/542-0100
VP Finance & CFO |
