Stac Software Reports Earnings for the Fourth Fiscal Quarter of 1999;
My favorite part...
"The Company's cash and short term investments position increased to $29,790,000, representing approximately $4.98 per share based on 5,981,000 shares outstanding at September 30,1999."
STAC is trading as of close today at $3.62 per share!
Stac Software Reports Earnings for the Fourth Fiscal Quarter of 1999; Replica Product Line Sees Strong Growth
Monday, November 1, 1999 06:19 PM Mail this article to a friend
SAN DIEGO, Nov. 1 /PRNewswire/ -- Stac Software, Inc. (Nasdaq: STAC), the leader in recovery solutions for remote Windows networks, today reported results for its fourth fiscal quarter which ended September 30, 1999.
Stac reported software revenues of $3,865,000 for its fourth fiscal quarter, compared to software revenues of $3,020,000 in the fourth quarter of fiscal 1998, representing quarter over quarter growth of 28%. Software revenues for the twelve months ended September 30, 1999 were $13,856,000, compared to $14,292,000 for the twelve months ended September 30, 1998. In the prior fiscal year royalty revenues of $5,111,000 were recorded for the twelve months ended September 30, 1998. The royalty revenues were received under software and patent licenses to Microsoft and IBM, which were paid in full in January 1998. No such royalty revenues were received in fiscal 1999, or are expected to be received at any point in the future.
Net loss from continuing operations for the quarter ended September 30, 1999 was $221,000, or $0.04 per common share, compared to a net loss from continuing operations of $7,794,000, or $1.31 per common share, for the fourth fiscal quarter of 1998. The net loss from continuing operations in the quarter ended September 30, 1999 includes non-recurring restructuring charges of $400,000 ($254,000 on an after-tax basis). Net of these restructuring charges, profitable results of $33,000, or $0.01 per share, would have been achieved. The net loss for the September 1998 quarter included a valuation allowance Stac established for deferred tax assets. As a result, the Company recorded a corresponding one-time charge of $6,372,000 to its provision for income taxes.
For the twelve month period ending September 30, 1999 there was a net loss from continuing operations of $2,898,000 or $0.49 per common share, compared to a net loss from continuing operations of $7,882,000, or $1.24 per common share, for the comparable period of the prior fiscal year, reflecting the tax valuation adjustment referred to above. The net loss from continuing operations for the twelve months ended September 30, 1999 is inclusive of non-recurring restructuring charges of $1,222,000; $776,000 or $0.13 per share on an after-tax basis. Results for the twelve months ended September 30, 1998 included a restructuring charge of $350,000; $208,000 or $0.03 per share after taxes.
The Company's cash and short term investments position increased to $29,790,000, representing approximately $4.98 per share based on 5,981,000 shares outstanding at September 30,1999.
"In fiscal 1999 we demonstrated continuous quarterly revenue growth while at the same time making the necessary adjustments to our cost structure that enabled us to achieve profitability by year end," said John Ticer, President and Chief Executive Officer of Stac. "We are well positioned for profitable growth in the new fiscal year with product lines that directly enable the emerging trend of eSupport for remote computing assets."
Revenues
Revenues from the Company's award-winning Replica product line more than doubled over those from the comparable quarter of the prior year. The Replica product line includes Replica Network Data Manager (NDM), the first centrally-managed systems and data recovery solution for desktop and mobile PCs, and Replica Tape. Replica Tape is the fastest, easiest to use, and most reliable backup and bare-metal disaster recovery solution for remote Windows NT servers. During the quarter Stac's Replica Network Data Manager product was awarded UK's Network Week and Information Week magazine's Data Integrity Product of the Year. Also during the quarter, Stac announced the availability of Replica(R) Network Data Manager 2.0, the latest edition of its online backup and disaster recovery software for networked Windows(R) PCs. With version 2.0 of Replica NDM, Stac introduced eXpressAdmin, a major extension to the product's remote recovery and central administration capabilities and a key enabler in the company's plans to launch a 20-licence pack for the small to medium enterprise. "This release of Replica NDM represents a significant advance in on line recovery technology," said John Ticer. "Our industry-leading innovations in ease of administration and use are creating new market opportunities for Stac and its business partners."
Also included in revenues are sales of Stac's ReachOut remote control helpdesk application software and other software and service revenues.
Stac Operating Expenses
Operating expenses were $4,336,000 for the quarter ended September 30, 1999, compared to operating expenses of $5,664,000 for the quarter ended September 30, 1998, and $19,079,000 for the twelve months ended September 30, 1999, compared to $22,860,000 for the comparable period in the prior fiscal year. Research and development expenses for the September 1999 quarter decreased to $1,336,000 from $1,984,000 for the same quarter in the prior year, and to $6,179,000 for the twelve months ended September 30, 1999 from $7,555,000 for the twelve months ended September 30, 1998, primarily due to lower employee and consulting costs in the current periods related to the reallocation of resources amongst development facilities in conjunction with the restructuring discussed below. The Company expects to continue to spend significant resources on the development of the Replica product line. Sales and marketing expenses for the September 1999 quarter were $1,969,000, compared to $2,385,000 in the previous year's comparable quarter, and $8,247,000 and $10,509,000 for the twelve months ended September 30, 1999 and 1998, respectively. The decrease in sales and marketing expenses was the result of a reorganization of the sales and marketing functions to focus on OEM sales and on developing partnerships with resellers. General and administrative expenses in the September 1999 quarter were $631,000 compared to $1,295,000 in the previous year's quarter and were $3,431,000 in the twelve months ended September 30, 1999, compared to $4,446,000 in the comparable period of the prior fiscal year. The reduction in expenses in the current quarter and twelve month periods reflects lower management costs and non-recurring costs, both related to Stac's spin-off of its former Hi/fn, Inc. subsidiary. Restructuring charges for the three month period ended September 30, 1999 were $400,000. In addition, for the quarter ended December 31, 1998 restructuring charges were $822,000. The restructuring charges were composed of severance and benefit payments, lease termination costs, and abandonment of leasehold improvements and fixed asset disposals that were initiated to better align Stac Software's resources to maximize spending efficiencies.
Hi/fn
As previously announced, Stac completed the spin-off of its Hi/fn semiconductor subsidiary to Stac stockholders in the form of a dividend on December 16, 1998. Accordingly, Hi/fn results for year-to-date and prior periods have been reclassified and reported as discontinued operations on Stac's financial statements.
Balance Sheet
Cash and short-term investments were $29,790,000 at September 30, 1999, an increase of $5,358,000 from September 30, 1998. The increase of cash is primarily due to repayment of a $5,000,000 note from the Company's Hi/fn subsidiary, received during the second fiscal quarter. The Company has no short or long-term debt. Based on outstanding shares of 5,981,000 at September 30, 1999, there is $4.98 per outstanding share in cash and liquid investment assets.
Stac Software, Inc.
Founded in 1983, Stac Software, Inc. is known worldwide for its innovations in data compression. The company builds on these advancements to create high-performance systems recovery software solutions to protect business-critical data in networked enterprises. Stac has established strategic relationships with Hewlett-Packard, Legato Systems, Microsoft, Tivoli Systems and other industry leaders. Stac's products are sold through a variety of domestic and international channels. Information on Stac's award-winning products can be accessed via the Internet at stac.com, by calling the company's North American Headquarters in San Diego, California: 1-800-279-7822 (U.S. and Canada), Stac's European Headquarters in the United Kingdom: +44(0) 1344-302900 (Europe) or +1 (619) 794-3741 in other countries. *Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. The Company makes no assurances regarding the future success of its products. Those risks include, but are not limited to, delays in the development or introduction of products, customer or sales channel acceptance of products and competitive product introductions from new or established competitors.
The Company does not project future financial results and expressly disclaims responsibility for any such projections released by third-party analysts. The above risk factors and others are more fully discussed in the Company's Form 10-K for the year ended September 30, 1998 and its quarterly reports on Form 10-Q.
Stac Software, Inc., Stac, ReachOut, and Replica are trademarks or registered trademarks of Stac Software, Inc. All other trademarks are the property of their respective owners.
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