Internet Drives Rational Software's Record Second Quarter Revenue And Net Income
biz.yahoo.com
Wednesday October 13, 4:17 pm Eastern Time
Company Press Release
SOURCE: Rational Software Corporation
Internet Drives Rational Software's Record Second Quarter Revenue And Net Income
CUPERTINO, Calif., Oct. 13 /PRNewswire/ -- Rational Software Corporation (Nasdaq: RATL - news) today announced results for the second fiscal quarter and six months ended September 30, 1999.
Revenue for the second quarter and six months ended September 30, 1999 was $128,161,000 and $245,584,000 respectively, compared to $94,656,000 and $177,626,000 respectively, for the same periods last year.
The company reported net income for the second quarter and the six months ended September 30, 1999 of $19,325,000 and $34,018,000 respectively, compared to net income of $12,200,000 and $20,205,000 respectively, for the same periods last year.
Earnings per share on a diluted basis for the second quarter and the six months ended September 30, 1999 were $0.21 and $0.36, respectively, compared to earnings per share of $0.14 and $0.22 respectively, for the same periods last year.
''We estimate that 80 percent of our second quarter revenue was to Internet software teams that are building software for e-business, e-infrastructure, and e-devices,'' noted Mike Devlin, co-founder and CEO of Rational. ''With most of our $500 million run rate coming from the Internet, Rational is now one of the largest Internet-focused software businesses.''
Statements contained in this press release may include ''forward looking'' statements relating to financial performance. The actual future results of the Company could differ materially from those projected herein. Certain risks which could cause actual results to differ materially include fluctuations in operating results, dependence on market growth for sophisticated development tools and competition in the market place. For a list of additional risk factors, see recent SEC filings.
About Rational Software Corporation
Rational Software Corporation, the e-development company, helps organizations develop and deploy software for e-business, e-infrastructure, and e-devices through a combination of tools, services and software engineering best practices. Rational's solution unifies the key members of a software team -- including analysts, developers, and testers -- and provides unique offerings optimized for each of these roles, thereby improving team and individual productivity. Founded in 1981, Rational had revenues of $411.8 million for its fiscal year that ended in March 1999, and employs thousands of people worldwide. For more information, visit Rational at www.rational.com.
Rational Software Corporation
Condensed Consolidated Statements of Operations
(in thousands of dollars, except per share data)
Three months Six months ended
ended September 30 September 30
(unaudited) (unaudited)
1999 % 1998 % 1999 % 1998 %
Net product
revenue $77,782 61 $57,708 61 $150,197 61 $107,701 61
Consulting and
support Revenue 50,379 39 36,948 39 95,387 39 69,925 39
Total revenue 128,161 100 94,656 100 245,584 100 177,626 100
Cost of
product revenue 5,709 5 4,635 5 11,719 5 11,080 6
Cost of
consulting
and support
revenue 13,287 10 10,262 11 24,900 10 19,579 11
Total cost
of revenue 18,996 15 14,897 16 36,619 15 30,659 17
Gross margin 109,165 85 79,759 84 208,965 85 146,967 83
Product research
and development
expenses 23,084 18 16,651 18 45,609 19 32,266 18
Sales and
marketing
expenses 51,165 40 39,913 42 100,526 41 76,378 43
General and
administrative
expenses 10,520 8 9,001 9 20,611 8 15,808 9
Total operating
Expenses 84,769 66 65,565 69 166,746 68 124,452 70
Operating income 24,396 19 14,194 15 42,219 17 22,515 13
Other income, net 2,445 2 3,234 3 5,029 2 6,349 3
Income before
income taxes 26,841 21 17,428 18 47,248 19 28,864 16
Provision for
income taxes 7,516 6 5,228 5 13,230 5 8,659 5
Net income $19,325 15 $12,200 13 $34,018 14 $20,205 11
Net income
per common
share - basic $0.22 $0.14 $0.39 $0.23
Share used
in computing
per share
amounts - basic 86,890 85,046 86,709 86,456
Net income per
common share
- diluted $0.21 $0.14 $0.36 $0.22
Shares used
in computing
per share amounts
- diluted 93,948 89,810 94,026 91,334
Rational Software Corporation
Condensed Consolidated Balance Sheets
(in thousands of dollars)
September 30, March 31,
1999 1999
Assets (unaudited)
Current assets:
Cash and cash
equivalents and
short-term investments $266,431 $259,830
Accounts receivable, net 100,706 92,367
Prepaid expenses
and other assets 15,824 9,176
Deferred tax asset 22,881 22,881
Total current assets 405,842 384,254
Property and equipment, net 46,143 45,445
Other assets, net 22,833 24,257
Total assets $474,818 $453,956
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,167 $13,848
Accrued employee benefits 21,494 27,212
Income taxes payable 32,821 19,652
Other accrued expenses 22,751 16,304
Accrued merger
and integration expenses 1,325 2,619
Deferred revenue 80,566 76,223
Current portion,
long-term debt and
lease obligations 8 30
Total current
liabilities 168,132 155,888
Noncurrent liabilities 2,511 3,696
Total liabilities 170,643 159,584
Stockholders' equity:
Common stock 416,170 440,385
Accumulated deficit (111,995) (146,013)
Total stockholders'
equity 304,175 294,372
Total liabilities
and stockholders'
equity $474,818 $453,956
NOTE: The word ''Rational'' and Rational's products are trademarks of Rational Software Corporation. References to other companies and their products use trademarks owned by the respective companies and are for reference purposes only.
For more information contact: Rational Software Corporation, 18880 Homestead Road, Cupertino, CA 95014
Tel. 408-863-9900 or 800-728-1212; Fax 408-863-4133
Fax-on-demand: 1-800-758-5804 Pin: 113375
E-mail: info@rational.com; Web: www.rational.com
SOURCE: Rational Software Corporation |
