Here is the complete earnings release.
19:44 Wind River Reports Fourth Quarter Net Income of $0.23 Per Share on
Revenues of $19.8 Million; Quarter Revenues Up 43%
ALAMEDA, Calif.--(BUSINESS WIRE)--Feb. 27, 1997--Wind River Systems Inc.
(NASDAQ:WIND) the leading provider of real-time operating systems, integrated
software development tools and engineering services for embedded applications,
reported operating results for the fourth quarter ended Jan. 31, 1997.
Revenues for the fourth quarter were $19,800,000, an increase of 43% from
the $13,800,000 reported in the fourth quarter of the previous year. Net
income for the quarter was $4,260,000 compared to net income of $1,973,000 for
the corresponding quarter of the previous year, an increase of 116%.
Earnings per share grew from $0.13 in the fourth quarter of last year to
$0.23 this year, an increase of 77%. Weighted average shares outstanding,
used in the computation of earnings per share for the current and previous
years, were 18,819,000 and 15,759,000 respectively.
Total revenues for the year ended Jan. 31, 1997, of $64,000,000 represent a
45% increase from revenues of $44,000,000 in the previous year. Net income
for the year was $11,280,000 compared to $5,383,000 last year, an increase of
110%.
"I am particularly gratified at the execution by our fine Wind River team,"
said Ron Abelmann, president and CEO of Wind River. "By all comparative
financial measures, we appear to be growing our market share and are setting
the standard for profitability in the competitive embedded market. We are
accomplishing this while we continue to invest heavily in new product
development and in preparing our infrastructure for effective operation as a
$100 million plus company," continued Abelmann.
The company has continued to achieve major design wins for Tornado(TM) at
every level of the Embedded Internet(TM) -- from the core components of
routers and switches to servers and network computers.
During the quarter, global data networking leader 3Com Corp. (NASDAQ:COMS)
and cable technology innovator Com21 Inc. both independently selected Tornado
for use in their respective cable modem products.
These companies join Hewlett-Packard, who announced collaboration with Wind
River for its QuickBurst cable modem in January 1996.
Telecom giant and longtime Wind River customer Nortel chose Tornado as the
development and execution environment for its forthcoming Java-based
telephone. Gaming manufacturer GTECH (NYSE:GTK) decided to build its
next-generation, lottery terminals with Wind River software.
Another key design win this quarter in the office automation market was PCPI
(Personal Computer Products Inc., NASDAQ:PCPK) of San Diego, one of four
companies selected by Adobe as a co-developer in printer controllers.
Currently working on multiple projects for major OEMs under non-disclosure,
PCPI will initially use Tornado in controllers for the multifunction
peripheral (MFP) market where fax, copy and printing capabilities are
required.
During the quarter, NASA's Jet Propulsion Laboratories (JPL) launched the
Pathfinder, making Wind River's VxWorks(R) the first commercial operating
system to travel to Mars.
VxWorks, in this mission-critical application, controls the Pathfinder's
trajectory during the cruise phase. It will also control the descent to Mars
and run the ground operations once the Rover has landed on the planet's
surface -- scheduled for July 4 of this year.
The selection of Wind River underscores the confidence that JPL has in the
company's technology.
Wind River Systems Inc.
Wind River Systems Inc. is the leading provider of real-time operating
systems, integrated software development tools, and engineering services for
embedded applications in the Internet, telecommunications and
datacommunications, office automation, networking, computer peripherals,
medical, automotive, industrial, aerospace, and multimedia markets.
Through the industry's most comprehensive product line and customer support,
Wind River enables customers to enjoy rapid time to market and standardize
their designs across products.
Incorporated in 1983, Wind River is headquartered in Alameda, Calif., with
operations in the United Kingdom, France, Germany, Sweden, Italy, Israel,
Japan and Korea, and representation worldwide.
Except for the historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties,
including but not limited to timely development, acceptance and pricing of new
products, the impact of competitive products and pricing, and other risks
detailed in the company's most recent SEC Form 10-K.
Note to Editors: Tornado is a trademark and VxWorks, Wind River Systems and
the Wind River Systems logo are registered trademarks of Wind River Systems
Inc. All other names mentioned are trademarks, registered trademarks or
service marks of their respective companies.
WIND RIVER SYSTEMS INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended 12 Months Ended
Jan. 31, Jan. 31,
1997 1996 1997 1996
(In thousands, except per share amounts)
Revenues:
Product $14,827 $10,171 $ 46,354 $ 31,200
Services 4,973 3,629 17,646 12,800
Total revenues 19,800 13,800 64,000 44,000
Costs and expenses:
Cost of product 1,119 1,526 4,580 3,746
Cost of services 1,979 1,560 6,960 5,530
Selling and marketing 6,861 5,367 23,900 17,905
Product development and
engineering 2,331 1,554 7,722 5,531
General and administrative 1,646 752 5,021 3,158
Total cost and expenses 13,936 10,759 48,183 35,870
Operating income 5,864 3,041 15,817 8,130
Other income (expense):
Interest income 1,150 267 2,465 847
Interest expense -- (38) -- (199)
Minority interest in
consolidated subsidiary
and other (230) 2 (325) 13
Total other income 920 231 2,140 661
Income before income taxes 6,784 3,272 17,957 8,791
Provision for income taxes 2,524 1,299 6,677 3,408
Net income $ 4,260 $ 1,973 $11,280 $ 5,383
Net income per share $0.23 $0.13 $0.64 $0.35
Weighted average common
and common equivalent
shares 18,819 15,759 17,488 15,491
WIND RIVER SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
Jan. 31, Jan. 31,
1997 1996
(in thousands, except per share amounts)
ASSETS
Current assets:
Cash $ 9,848 $ 9,205
Short term investments 46,895 20,632
Accounts receivable, net of
allowance for doubtful accounts
of $1,204 and $378, respectively 13,296 9,216
Prepaids and other current assets 4,780 1,108
Total current assets 74,819 40,161
Investments 43,004 --
Equipment and furniture, net of
accumulated depreciation of $7,328
and $5,048, respectively 8,426 4,059
Computer software development costs,
net of accumulated amortization of
$2,382 and $1,782, respectively 828 721
Goodwill 724 --
Deposits and prepaid assets 860 539
-------- -------
$128,661 $45,480
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,340 $1,345
Accrued liabilities 5,530 2,374
Accrued compensation 4,391 2,642
Accrued taxes 1,941 1,769
Deferred software support and
development revenue 6,271 4,214
Total current liabilities 19,473 12,344
Deferred rent 127 116
Total liabilities 19,600 12,460
Minority interest in consolidated
subsidiary 312 207
Stockholders' equity:
Common stock, par value $.001, 75,000 and
20,000 shares authorized, respectively,
16,922 and 14,117 shares issued
respectively, and 16,847 and 13,892
shares outstanding, respectively 17 14
Additional paid in capital 89,898 24,800
Cumulative translation adjustments (310) (74)
Unrealized loss on securities (353) --
Retained earnings 22,618 11,338
Less treasury stock, 75 and 225
shares, at cost, respectively (3,121) (3,265)
Total stockholders' equity $108,749 $ 32,813
------- -------
$128,661 $45,480
CONTACT: Wind River Systems Inc.
Richard Kraber, 510/748-4100
De Anna Mekwunye, 510/814-2577 (Investor Relations)
19:29 EST FEBRUARY 27, 1997 |
