Since a bunch of us jumped into SBAS yesterday, I thought I would post the earnings report. Some good news here. Apologies if it's already been posted.
Russ
Monday November 15, 12:41 pm Eastern Time
Company Press Release
StarBase Corp. Reports Continued Strong Revenue Growth For Second Quarter FY 2000
Revenue Increased 126% Over Same Period in the Prior Year and Cash Flow From Operations Is Positive
SANTA ANA, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--StarBase Corp. (Nasdaq:SBAS - news), a leading provider of eBusiness Life Cycle Management Solutions, Monday reported results for the second quarter of Fiscal 2000 ended Sept. 30, 1999.
Revenue for the quarter ended Sept. 30, 1999, increased to $3,712,000, compared with $1,644,000 for the quarter ended Sept. 30, 1998, a 126 percent increase. Net loss applicable to the common stock decreased 60 percent to $1,118,000 from a net loss of $2,809,000 for the same period in 1998. Correspondingly, loss per share for the second quarter ended Sept. 30, 1999, decreased to $0.04 from a loss of $0.15, as reported for the same period last year.
Comparing results on a sequential quarter-to-quarter basis, total revenue for the second quarter increased $219,000 or 6 percent while revenue from direct sales of StarTeam increased by more than 30 percent. The first-quarter results also included revenue from strategic partnerships. Net loss applicable to the common stock decreased by $185,000 or 14 percent. The loss per share decreased $0.01 sequentially.
The net loss for the second fiscal quarter included one-time expenses totaling more than $1,120,000. This consisted of a non-recurring expense for acquired technology of approximately $470,000 and a non-recurring reserve relating to the company's funding of OpenAvenue of approximately $650,000.
The acquired technology will provide the basis for a group of new applications built on the recently announced StarGate application programming interface (API). These applications are expected to be released during the first half of 2000.
''We took the most conservative accounting approach by writing off the funds advanced to OpenAvenue. OpenAvenue is now operating as an independent company and has received a portion of the initial round of financing that is now underway. The reserve can be reversed once the loan is paid back,'' said Doug Norman, chief accounting officer.
''Without the one-time, non-recurring charges during the quarter, StarBase would have reported break-even results from operations. In addition, cash flow from operations for the six-month period ended Sept. 30, 1999, was positive for the first time in the history of the company.
''Our balance sheet was very strong at the end of September with over $6.1 million in cash and $1.3 million in deferred revenue, which will be recognized over the subsequent 12 months,'' stated William R. Stow III, chairman and chief executive officer.
''With a strong balance sheet and the recent announcement of the acquisition of ObjectShare, we are now well positioned to fully execute on our recently announced strategy for the eBusiness application development market. We expect ObjectShare to contribute high-end consulting and training that will play a critical role in our eBusiness solution and additionally make a significant contribution to revenue and profitability,'' continued Stow.
Sales Highlights
In the second quarter the company received numerous repeat orders from marquis customers such as Hewlett-Packard, Anderson Consulting, Siemens, Booz Allen Hamilton, 3DFX and Manhattan Associates. New customers like Automationdirect.com, Abuzz, Nethot Development, Transaction Information Systems, Trend Micro Inc. and Mayo Foundation have also found their software configuration management solutions in StarTeam's eBusiness Life Cycle Management offering.
Development Highlights
StarTeam 4.1 was released in July 1999 providing an important step toward the support of large development teams working on eBusiness applications. The new functionality in StarTeam 4.1 includes support for market-leading application server solutions including: NetDynamics from Sun MicroSystems and HahtSite from Haht Software. In addition, StarTeam 4.1 adds new integrations with Rational Rose, a market-leading modeling tool, and Microsoft J++, a JAVA development environment.
About StarBase
StarBase offers a complete family of advanced Internet and Intranet-based technical collaboration products for Web site production, e-commerce application development and software configuration management for mission-critical applications. StarBase products are designed to improve development team productivity throughout the corporate enterprise over internal networks or remotely on the Web.
StarTeam received ''Two Thumbs Up'' from New Media in May 1999 and Four Stars from Software Development in August 1999, as well as named the 25th fastest-growing ISV for Windows by Microsoft and CMP Media in April 1999 and ''Best of the Test Center'' by InfoWorld in January 1998.
Leading organizations such as Hollywood Entertainment, Bank of America, Boeing, Dell Corp., Intel Corp., Sprint and Xerox have chosen StarTeam to aid in their development projects. StarBase is located at 4 Hutton Centre Drive, Suite 800, Santa Ana, Calif. 92707. Tel: 714/445-4400. Fax: 714/445-4404. Visit StarBase's Web site at www.starbase.com.
Forward-Looking Statement
When used in the preceding discussion, the words ''believes, expects, or intend to'' and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, (vi) and other risks described in StarBase Corp.'s SEC reports and filings.
Note to Editors: StarBase and its product names are trademarks of StarBase Corp. All other products are trademarks of their respective owners.
StarBase Corp.
Summarized Financial Information
For the Quarter Ended Sept. 30, 1999
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Total revenues $ 3,712 $ 1,644 $ 7,205 $ 2,798
Gross margin 2,924 1,547 5,971 2,462
Operating expenses 3,870 4,181 7,627 7,415
Operating loss (946) (2,634) (1,656) (4,953)
Interest and other
income (expense) 32 5 35 44
Equity in loss from
investee (250) 0 (250) 0
Net loss (1,165) (2,631) (1,872) (4,911)
Non-cash dividend (47) 178 549 334
Net loss applicable to
common stock (1,118) (2,809) (2,421) (5,245)
Basic and diluted loss
per common share $ (0.04) $ (0.15) $ (0.08) $ (0.29)
Weighted average number
of common 30,355 18,378 29,146 17,932
Sept. 30, 1998 March 31, 1999
(unaudited)
Current assets $ 8,950 $ 4,325
Total assets 11,239 6,605
Current liabilities 3,094 2,017
Total liabilities 3,933 2,143
Total shareholders' equity $ 7,300 $ 4,462 |
