Brock's Q497 Earnings Release:
FOR IMMEDIATE RELEASE:
February 9, 1998
Brock International, Inc. Announces
Positive Results for Fourth Quarter
Software license revenues grew 41 percent over fourth quarter 1996, and 161 percent over third quarter 1997
(ATLANTA)-For the fourth quarter ended December 31, 1997, Brock International, Inc. (NASDAQ/NMS - BROC) reports revenues of $4,850,000 and earnings of $174,000 before a one-time charge related to the acquisition of Netgain Corporation on December 31, 1997. Including the one-time charge of $696,000 for in-process research and development, the company lost $522,000 ($.10 per share). For the year, the company reports revenues of $15,848,000 and a net loss of $1,510,000 ($.30 per share).
The fourth quarter results compare favorably with 1996 fourth quarter results. Total revenues grew moderately over the comparable quarter of 1996 and earnings improved by $5,879,000, excluding the one-time charge of $696,000 in 1997 and a restructuring charge of $1,598,000 in 1996.
The improved quarterly performance is due to increased license revenues, a high rate of customer retention, and continued tight controls over expenses. Improvement in the company's TakeControlO products and marketing during 1997 resulted in fourth quarter software license revenues of $2,408,000. This represents a 41 percent increase over the comparable quarter of 1996 and a 161 percent increase over the third quarter of 1997. Customer satisfaction remained high, as demonstrated by maintenance revenues of $1,291,000, an increase from the fourth quarter of 1996.
The balance sheet remains strong following the acquisition. The company is debt-free with a year-end net cash balance of $4,969,000, up slightly over the previous year-end. Capitalized software decreased to $1,089,000, while Brock incurred a total of $2,699,000 in product development expense during the year.
Brock Chief Executive Officer, Doug MacIntyre comments, "These positive financial results reflect the success of turnaround strategies initiated early last year. We will continue improving the existing business while investing in our new Web applications and implementing expansion strategies to stimulate growth." Next month the company expects to launch NetgainO Enterprise, the first customer information system based completely on Internet technologies. The suite's first application, Netgain Sales, is designed to meet the unique needs of major corporations selling through multiple channels.
Brock International Inc., headquartered in Atlanta, is a global supplier of innovative customer information systems that optimize customers' revenues and relationships. Through a professional staff in Atlanta and affiliates around the world, Brock International serves major companies throughout the Americas, Europe and the Pacific Rim. For additional information, please visit our website (http://www.broc.com), or contact us at 770/431-1200.
NOTE: This release contains forward-looking statements. The actual results may vary and involve a number of uncertainties and risks such as potential fluctuations in the quarterly results due to market demand, competition, technological developments, and the size, timing, and contractual terms of orders.
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