INDIANAPOLIS, Jan. 28 /PRNewswire/ -- Software Artistry, Inc.
(Nasdaq: SWRT), today announced record revenues for the fourth quarter ended
December 31, 1996.
Revenues for the quarter ended December 31, 1996, were $12.5 million, up
36% from $9.3 million in the fourth quarter of 1995. Net income for the
quarter was $1.7 million, or $0.23 per share, unchanged from $1.7 million, or
$0.22, in the fourth quarter of 1995.
For the year ended December 31, 1996, revenues were $34.4 million, a
34% increase over $25.6 million for the same period last year. Net income for
the year was $1.9 million or $0.28 per share, prior to the inclusion of a
severance charge of $.02, versus $3.7 million or $0.51 per share in 1995.
"We are very pleased with our results for the fourth quarter," said
W. Scott Webber, President and Chief Executive Officer. Our aggressive 1996
strategy is clearly proving successful. For example, the increased investment
in development resulted in the accelerated delivery in November of the 3.5
release of our flagship product, Expert Advisor, which brings the most
advanced and scaleable architecture to the internal support market. Our
external customer relationship management product is now in the final testing
stages. We have also enhanced both our direct, as well as indirect
distribution channels, with a positive impact already being felt in the fourth
quarter. In addition, Days Sales Outstanding (DSO) showed significant
improvement, declining to 88 versus 109 days at the end of the third quarter.
We anticipate that the initiatives undertaken in 1996 will result in an
accelerated growth rate in 1997."
Separately, the Company announced the discontinuation of its share
repurchase program. Of the 500,000 share repurchase program authorized by the
Board in January 1996, 242,500 shares were repurchased.
Software Artistry, Inc. is recognized as a leader in providing strategic,
automated support solutions for large and medium-sized organizations in a wide
range of industries. The Company develops, markets, and supports the
SA-EXPERTISE(TM) suite of software applications for customer service and
support operations.
This press release may include forward-looking statements that are subject
to certain risks and uncertainties that could cause actual results to differ
materially from those anticipated. These risks and uncertainties are detailed
from time to time in the Company's filings with the Securities and Exchange
Commission (SEC), including the Company's 10-Q for the quarter ended September
30, 1996 and in the Company's Form 10-K and annual report for the fiscal year
ended December 31,1995.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended December 31, Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenues:
Initial license fees $9,377 $7,124 $23,246 $18,722
Renewal license fees
and services 3,159 2,130 11,149 6,906
Total revenues 12,536 9,254 34,395 25,628
Expenses:
Costs of license fees 590 500 1,873 1,490
Costs of renewal license
fees and services 2,089 1,296 6,547 4,303
Sales and marketing 4,778 3,600 14,973 9,850
Product development 1,345 910 4,926 2,890
General and
administrative 1,064 697 3,390 2,155
Severance charge -- -- 207 --
Total operating
expenses 9,866 7,003 31,916 20,688
Income from operations 2,670 2,251 2,479 4,940
Interest income, net 126 237 693 728
Income before income taxes 2,796 2,488 3,172 5,668
Provision for income taxes 1,107 807 1,235 1,920
Net income $1,689 $1,681 $1,937 $3,748
Primary:
Net income per share $0.23 $0.22 $0.26 $0.52
Shares used in computing
net income per share 7,433 7,655 7,478 7,150
Fully diluted:
Net income per share $0.23 $0.22 $0.26 $0.51
Shares used in computing
net income per share 7,433 7,655 7,478 7,393
SOFTWARE ARTISTRY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1996 1995
Assets
Current Assets:
Cash and cash equivalents $15,606 $15,816
Marketable securities 2,216 2,263
Trade account receivables, net 13,785 12,442
Other receivables 366 --
Prepaid expenses and other current
assets 870 672
Deferred income taxes 262 103
Total current assets 33,105 31,296
Property and equipment, net 5,676 3,318
Capitalized software development
costs, net 1,245 820
Other assets 51 60
Total assets $40,077 $35,494
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and capitalized
leases $-- $22
Accounts payable and accrued
expenses 2,556 1,095
Accrued compensation and related
expenses 1,898 1,527
Income taxes payable 874 877
Deferred revenue 7,560 5,873
Total current liabilities 12,888 9,394
Deferred income taxes 737 462
Total liabilities 13,625 9,856
Stockholders' equity:
Common stock, no par value;
10,000,000 shares authorized,
6,985,708 shares outstanding
at December 31, 1996;
6,777,148 shares outstanding
at December 31, 1995 24,090 23,103
Treasury stock; 242,500 shares
at December 31, 1996 (2,028) --
Retained earnings 4,473 2,535
Accumulated Translation Adjustments (83) --
Total stockholders' equity 26,452 25,638
Total liabilities and
stockholders' equity $40,077 $35,494
SOURCE Software Artistry, Inc.
CONTACT: Thomas E. Vanneman, Vice President and CFO, of Software
Artistry, 317-843-1663, or fax, 317-843-7477 |
