Anybody still watching this dog ? Earnings are out and not too "good":
19 Cents LOSSES in the last 3 quarters.
Regards,
Stefan
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Thursday February 4, 4:58 pm Eastern Time
Company Press Release
SOURCE: Gensym Corp.
Gensym Announces Fourth Quarter and Year-End Results
CAMBRIDGE, Mass., Feb. 4 /PRNewswire/ -- Gensym Corp. (Nasdaq: GNSM - news), a leading provider of software and services for intelligent solutions, today reported that revenues for its fourth quarter ended December 31, 1998 were $8.1 million, compared to revenues of $9.5 million for the fourth quarter of 1997. The net loss for the fourth quarter of 1998 was $1.2 million, or $0.19 per share, compared to net income for the fourth quarter of 1997 of $200,000, or $0.03 per share, on a diluted basis. The Company also today confirmed that it intends to continue purchases of its Common Stock on the open market under a previously authorized and announced stock repurchase plan.
Total revenues for the year ended December 31, 1998 were $35.0 million, a decrease of 1.5% as compared to fiscal 1997. Revenue for 1998 included a $1.0 million increase in service revenue, primarily consulting and maintenance, and a $1.5 million decline in license revenue. Net loss for 1998 was $1.5 million, or $0.23 per share, compared to a net loss of $5.0 million, including a restructuring charge of $1.6 million, or $0.79 per share, for 1997.
Lowell Hawkinson, Gensym chairman and chief executive officer, stated, ''Our fourth quarter and fiscal year results were disappointing, particularly in the area of product license revenue. We experienced slippage of a number of large license orders that had been expected in the fourth quarter. Business in our Asia-Pacific region was slow. Our petrochemical industry business, which had provided 30% of 1997 license revenue, continues to be soft. Also, though the effect is difficult to quantify, we see some customers diverting resources to address their Y2K problems, resources that might otherwise be devoted to projects involving the use of Gensym products.''
Mr. Hawkinson continued, ''To better align our sales resources with today's market requirements, where deeper industry and application knowledge are increasingly important prerequisites for success, Gensym has changed, as of the beginning of 1999, from a unified worldwide sales organization to focused sales teams operating within four business units -- Manufacturing, Communications, Advanced Systems, and EMA (Europe/Middle East/Africa). We anticipate that this strengthened business unit structure will better support the level of application knowledge needed to sell most effectively in our major markets. Additionally, the Company expects the new business unit structure will directly benefit its consulting services, which showed strong bookings and backlog growth in 1998.
''We continue to believe in the fundamentals of our business and in the market opportunities for intelligent operations management products. Our business in telecom and government has been expanding, largely offsetting the declines we have seen in our more traditional markets. We have prospects for continued strong growth in these newer markets, even as we see signs of rebound in the more established ones, notably manufacturing. We released several new technology products in 1998 that will progress to more mature second releases in 1999. And our strengthened and more focused business units will better equip us to deliver the specific application functionality our customers require to more quickly and directly benefit from our powerful and unique core technology.''
Founded in 1986, Gensym Corp. is a leading supplier of software and services for intelligent operations management. Common applications include quality management, process optimization, dynamic scheduling, network fault management, energy and environmental management, and abnormal situation management. Gensym has sold more than 10,000 product licenses to organizations in manufacturing, communications, aerospace, transportation, finance, and other industries. Based in Cambridge, Mass., Gensym has offices in North America, Europe, Africa, and the Pacific Rim. Visit Gensym on line at gensym.com.
This document contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, fluctuations in customer demand, intensity of competition from other solutions vendors, timing and acceptance of new products, and general economic and industry conditions, as well as other risks included on Form 10-Q for the quarter ended September 30, 1998, as filed with the Securities and Exchange Commission and available on the Web at gensym.com. Gensym Corp. assumes no obligation to update the information contained in this press release.
GENSYM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share amounts)
Three months ended Year ended
December 31, December 31,
1998 1997 1998 1997
REVENUES:
Product $3,509 $5,275 $16,911 $18,433
Service 4,614 4,236 18,067 17,076
Total revenues 8,123 9,511 34,978 35,509
COST OF REVENUES 2,130 2,223 8,698 9,352
Gross profit 5,993 7,288 26,280 26,157
OPERATING EXPENSES:
Sales and marketing 4,764 4,583 18,276 18,802
Research and development 1,517 1,554 6,023 6,977
General and administrative 1,123 1,084 4,134 4,528
Restructuring charge 0 0 0 1,558
7,404 7,221 28,433 31,865
Operating income (loss) (1,411) 67 (2,153) (5,708)
OTHER INCOME, NET 203 137 715 779
Income (loss) before provision for
income taxes (1,208) 204 (1,438) (4,929)
PROVISION FOR INCOME TAXES 0 0 50 40
Net income (loss) $(1,208) $204 $ (1,488) $(4,969)
Basic earnings (loss) per share $(0.19) $0.03 $(0.23) $(0.79)
Diluted earnings (loss) per share $(0.19) $0.03 $(0.23) $(0.79)
Weighted average common shares
outstanding 6,245 6,378 6,371 6,310
Weighted average common shares
outstanding assuming dilution 6,245 6,420 6,371 6,310
GENSYM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) December 31, December 31,
1998 1997
ASSETS
Current Assets:
Cash and cash equivalents $13,696 $10,958
Short-term investments 838 4,843
Accounts receivable, net 7,578 8,311
Prepaid expenses 1,775 1,565
Deferred income taxes 1,160 1,160
Total current assets 25,047 26,837
Property and Equipment, net 1,982 2,384
Long-term investments 0 1,041
Long-term deferred income taxes 1,000 1,000
Deposits and other assets 239 255
$28,268 $31,517
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $517 $914
Accrued expenses 3,862 4,976
Deferred revenue 6,406 5,799
Total current liabilities 10,785 11,689
Stockholders' Equity:
Common stock 65 64
Capital in excess of par value 20,427 19,941
Treasury Stock (1,279) 0
Retained earnings (deficit) (1,101) 387
Cumulative translation adjustment (629) (564)
Total stockholders' equity 17,483 19,828
$28,268 $31,517
SOURCE: Gensym Corp.
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