04/22 18:04 TSI International Software Announces Record First Quarter
Financial [TSFW-news]
TSI International Software Announces
Record First Quarter Financial Results
WILTON, Conn.--(BUSINESS WIRE)--April 22, 1999--TSI International
Software Ltd. [TSFW-news], a leading supplier of enterprise
application integration (EAI) software that enables its customers to
integrate applications both internally and with its business partners,
announced today record financial results for the first quarter ended
March 31, 1999.
Revenues for the first quarter of 1999 increased 111% to a record
$17.2 million from $8.2 million for the first quarter of 1998. On a
proforma basis, excluding amortization of intangibles, and as
illustrated in the table below, TSI Software had operating income for
the first quarter of $1,663,000, up 155% from $653,000 from the prior
year's first quarter. Net income on a proforma basis for the first
quarter of 1999 rose 123% to $1,346,000 from $605,000 for the first
quarter of 1998.
-0-
For the Three Months Ended
March 31, March 31,
1999 1998
(In thousands, except per share data)
Revenues $17,236 $ 8,187
Operating income (a) 1,663 653
Operating percentage (a) 10% 8%
Proforma net income (a) (b) 1,348 605
Proforma income per fully diluted
share (a) (b) $0.10 $0.06
Proforma shares outstanding, fully
diluted (a) 13,257 10,828
(a) Adjusted to exclude amortization of intangible assets (see
below). Including amortization, net income (loss) is ($220,000)
for the period ending March 31, 1999 and income (loss) per share
is ($.02).
(b) Amounts presented on a proforma basis, assuming a tax rate of 38%.
TSI Software's net income per share, on a proforma basis, was
$0.10 for the first quarter of 1999 versus $0.06 per share from the
prior first quarter. The impact of amortization is summarized below.
For full details on TSI Software's reported results, see the financial
tables accompanying this release.
Quarterly Highlights
Commenting on the quarter's results, Connie Galley, president and
CEO of TSI Software stated, "Our record financial performance this
past quarter clearly demonstrates the strong momentum of our company
as a leading provider of enterprise application integration software.
The acceleration of revenues and strong profit growth we experienced
throughout 1998 is continuing in response to increasing customer
demand for our products. Our three dimensional growth strategy, is
working extremely well. Our strategy continues to focus on 1)
accelerating our penetration of the EAI market for extended enterprise
integration in the Americas, Europe and Asia; 2) adding domain
expertise to penetrate new EAI markets with Mercator; and 3) adding
complementary products and capabilities which increase the overall
value of the EAI solutions we deliver. During the first quarter, we
made significant progress on all fronts."
Galley continued, "The most significant event that took place
during the quarter was TSI's acquisition of Braid Group Ltd., a
leading provider of application integration solutions for
international banking and brokerage houses worldwide. The integration
of Braid into TSI is proceeding faster than planned and with more
synergies than expected. This acquisition is a strategic fit for
several reasons. It enhances our strength in the overall EAI market
with its leadership position among customers in the London financial
community. It brings to TSI significant domain expertise in a large
and growing market with all the benefits of acquiring a well-managed
and experienced software company. The acquisition extends our sales
coverage in Europe and Asia Pacific, substantially increasing our
international strength outside the Americas. Going forward, we expect
this will boost our international revenues, making us truly a global
EAI player. In addition, TSI gains complementary products and
technologies that have tremendous cross-selling potential.
"We are particularly pleased with the pace of the TSI-Braid
integration. In one month's time, we have successfully completed our
integration planning and have identified significant sales synergies.
The entire former Braid sales organization has added Mercator to the
products they can market. We believe that Mercator's complementary
technology increases their ability to meet an expanded range of
integration requirements, and deliver significantly more value to the
customer, in virtually every financial services institution. Sales
managers are already working on joint opportunities involving the
products of both companies, including several in the financial
services industry and another in the utilities industry.
"The combined research and development organization is now
integrated under the leadership of TSI's Saydean Zeldin, vice
president of research and development. We have developed product plans
to integrate the offerings of both companies to address an even
broader requirement in the financial services market for event-driven
management and integration of financial transactions. Taking advantage
of Mercator's ability to quickly integrate applications, we expect to
introduce our first combined offering this quarter.
"We also made important strides in extending the reach of
Mercator to the world of business-to-business electronic commerce.
From the outset, TSI's definition of EAI has encompassed, and our
Mercator product supports, the end-to-end integration of our
customers' supply and demand chains - including integration of partner
applications with internal systems through e-Commerce connections.
This capability is a key requirement for success in the EAI space
today and going forward. TSI's Mercator for EC product, now in general
release, enables our customers to integrate their customer and partner
business-to-business transactions with back office systems. We now
have 25 customers across all industries for our Mercator for EC
product. We are seeing strong demand for this product among new and
existing customers alike. In addition, the Braid suite of products
also supports TSI's e-Commerce strategy, as its 40 plus financial
gateways enable financial services customers to integrate
business-to-business e-Commerce transactions between financial
institutions.
"In the first quarter, TSI added to its growing customer base
with the addition of over 40 new customers across all industries for
our Mercator products. These include AllTel Information Services, Avon
Products, CompUSA, The Gap, Intermec, Matsushita, Pratt & Whitney,
Principal Life and Time Warner among many others. Customers in the
financial services market purchasing Braid products during the first
quarter included Disbank in Turkey, Shell Pension Fund in Holland,
Evergreen International Management in the UK, and Colonial First
Investments in Australia.
"Customer demand for integration solutions surrounding packaged
enterprise applications remains high. Despite reports of slowdowns in
sales of new enterprise application software, we have seen increased
demand for Mercator in the ERP aftermarket from customers that have
previously purchased their ERP system and are now progressing with
their implementations. During the first quarter, we booked add-on
revenue for all of our EAI products from many existing customers and
partners, including Boeing, Citibank, HBOC, HK Systems, IBM, IPNet,
Lucent, Manhattan Associates, Netscape, Philips and Siemens.
"Finally, the strength of TSI's third-party channel sales efforts
has consistently rewarded TSI with substantial revenue and continues
to represent an important segment of our revenue growth. Today we have
more than 85 partners reselling Mercator across many markets. We
signed ten new channel partners during the first quarter, including
American Management Systems, Teleinformatica in the UK, and several in
the healthcare industry including Proxymed and Integrated Healthcare.
Systems integrator partners PricewaterhouseCoopers and Andersen
Consulting contributed revenue from Abbott Labs, Canadian Post and
Micron Technology, among others. We also booked substantial add on
revenue from existing partners including IBM Global Services, Mitsui
and BEA who resells TSI's Mercator EAI software as part of its e-Link
offering. Our relationship with BEA is a further extension of
Mercator's impact in e-Commerce solutions.
Bill Coleman, BEA Systems president and chief executive officer
stated "We recently expanded our relationship with TSI Software based
on the strength of its Mercator EAI product. Our partnership is even
more meaningful based on BEA's recently announced $100 million
commitment from Hewlett Packard, much of which involves BEA's e-Link |
