SEEC-SEEC .report two
SEEC, Inc. Announces Record Earnings and Revenues in Third Quarter
PITTSBURGH, Jan. 15 /PRNewswire/ -- SEEC, Inc. (Nasdaq: SEEC - news) today announced record revenues of $3,454,000 for the third quarter of fiscal 1998, an increase of 384% over revenues of $713,000 in the same quarter last year, and an increase of more than $1 million over the second quarter of fiscal 1998. Revenues for the first nine months of fiscal 1998 increased by 357%, to $8,243,000, from $1,803,000 for the same period last year. Revenue growth was driven by software license and maintenance fees, which increased by 615% and 708% for the third quarter and first nine months of fiscal 1998, respectively, over the same periods last year.
Net income for the third quarter of fiscal 1998 was $672,000 or $0.13 per share, compared to a net loss of $(45,000) or $(0.02) per share for the third quarter of fiscal 1997. Net income for the first nine months of fiscal 1998 was $1,548,000 or $0.29 per share, compared to a net loss of $(13,000) or $(0.01) per share for the same period last year. Earnings per share amounts are calculated on diluted shares of 5,336,000 and 5,312,000 for the third quarter and first nine months of fiscal 1998, respectively, and 2,636,000 for both the third quarter and first nine months of fiscal 1997.
Ravi Koka, SEEC's president and chief executive officer, stated, ''As more of SEEC's clients and solution partners move toward the latter phases of the year 2000 process, we are seeing an increased demand for our renovation and testing technology. We expect that these trends will intensify through calendar 1998, as many companies in the U.S. and Europe, and the Federal and state governments, finally begin to attack the year 2000 problem in earnest. With SEEC's accurate year 2000 solution, the Company is well-positioned to capitalize on the coming opportunities, through direct sales to end-users and government agencies in the U.S. and Europe, and through our partnerships with third-party service providers serving both domestic and international markets.''
Gross margin percentages improved to 73% for both the third quarter and the first nine months of fiscal 1998, compared to 50% and 51% in the same periods of fiscal 1997, due to the growth in software license and maintenance fee revenues. These revenues, which produce higher gross margins than professional services revenues, comprised in excess of 80% of total revenues in the fiscal 1998 periods, compared to 55% and 47% in the third quarter and first nine months of fiscal 1997, respectively.
Total operating expenses, including cost of revenues, were $2,868,000 and $7,128,000 for the third quarter and first nine months of fiscal 1998, respectively, compared to $763,000 and $1,796,000 for the same periods of fiscal 1997, reflecting the Company's revenue growth and also the planned expansion of all categories of the Company's operations.
As of December 31, 1997, SEEC, Inc. had a total of 68 employees, increased from 62 at the end of the previous quarter. This compares to 37 employees at the beginning of fiscal year 1998 (April 1, 1997) and 15 employees at the start of fiscal year 1997 (April 1, 1996).
SEEC provides enterprise solutions using a suite of software products for maintaining and redeveloping legacy software applications and related databases, including solutions for the year 2000 problem. SEEC also provides solutions for the migration of existing COBOL applications from mainframe to client/server environments. The Company's enterprise solutions and software products are designed to minimize the time and cost of maintenance, redevelopment, migration and integration, and year 2000 compliance, by automating various functions and utilizing well-defined procedures and repeatable processes.
The statements made in this press release that are not historical facts contain forward-looking information that involves risks and uncertainties that may cause actual results to differ. Such risks include, but are not necessarily limited to, those detailed in the Company's Securities and Exchange Commission filings.
SEEC, Inc.
Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1997 1996 1997 1996
(Consolidated) (Consolidated)
Revenues:
Software license and
maintenance fees $2,824,166 $394,909 $6,836,303 $846,030
Professional services
-- product related 592,017 181,232 1,251,356 447,622
Professional services
-- other 37,448 137,183 155,536 509,183
Total revenues 3,453,631 713,324 8,243,195 1,802,835
Operating Expenses:
Cost of revenues:
Software license
and maintenance fees 411,459 109,912 1,025,678 203,998
Professional services
-- product related 477,503 124,003 1,061,583 259,430
Professional services
-- other 29,916 123,673 145,676 426,381
Total cost of revenues 918,878 357,588 2,232,937 889,809
General and administrative 417,370 111,495 1,200,886 198,484
Sales and marketing 1,285,215 189,401 3,004,530 465,622
Research and development 246,314 104,034 689,358 241,845
Total operating expenses2,867,777 762,518 7,127,711 1,795,760
Income (Loss)
from Operations 585,854 (49,194) 1,115,484 7,075
Interest Income (Expense):
Interest expense (7,918) (4,355) (25,362) (35,791)
Interest income 156,207 8,209 519,790 15,392
Net interest
income (expense) 148,289 3,854 494,429 (20,399)
Income (Loss) Before
Income Taxes 734,143 (45,340) 1,609,912 (13,324)
Provision for
Income Taxes 62,000 --- 62,000 ---
Net Income (Loss) $672,143 $(45,340) $1,547,912 $(13,324)
Net income (loss)
per common share:
Basic $0.13 $(0.02) $0.31 $(0.01)
Diluted $0.13 $(0.02) $0.29 $(0.01)
Average common and
common equivalent
shares outstanding:
Basic 5,010,574 2,594,928 5,005,129 2,594,928
Diluted 5,336,421 2,636,188 5,312,228 2,636,188
SEEC, Inc.
Balance Sheets
December 31, March 31,
1997 1997
(Consolidated) (Audited)(a)
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $1,801,330 $3,811,401
Short-term investments 9,925,659 8,987,771
Accounts receivable 4,673,542 956,505
Prepaid expenses 240,957 178,210
Total current assets 16,641,488 13,933,887
Equipment and Leasehold Improvements, Net 291,248 119,565
Investment in Affiliate 5,000 5,000
$16,937,736 $14,058,452
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accrued compensation $1,365,944 $352,318
Deferred revenue 755,566 122,378
Accrued income taxes 62,000 ---
Other accrued liabilities 754,132 188,613
Current maturities of long-term debt --- 120,000
Total current liabilities 2,937,642 783,309
Long-term debt, less current maturities --- 120,000
Advance royalty --- 780,552
Accrued royalties --- 30,331
Total liabilities 2,937,642 1,714,192
Shareholders' Equity:
Common stock -- $.01 par value; 20,000,000
shares authorized; 5,046,094 and 5,000,833
shares issued and outstanding at December 31,
1997, and March 31, 1997, respectively 50,461 50,008
Additional paid-in capital 14,506,416 14,489,601
Accumulated deficit (579,837) (2,127,749)
Unrealized gains (losses) on investments 23,054 (67,600)
Total shareholders' equity 14,000,094 12,344,260
$16,937,736 $14,058,452
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