Thursday July 23, 5:38 pm Eastern Time
Company Press Release
Intergraph Corp. Announces Operating Results for Second Quarter
1998
HUNTSVILLE, Ala.--(BUSINESS WIRE)--July 23, 1998--Intergraph Corporation (NASDAQ: INGR - news)
today reported operating results for its second quarter ended June 30, 1998. The Company had a net loss for the
quarter of $.43 per share, including a $.17 per share gain on the sale of its printed circuit board manufacturing
facility. In comparison, the Company incurred a net loss of $.33 per share in the second quarter of 1997, including a
$.13 per share charge resulting from an adverse contract arbitration award. For the current quarter, the Company
incurred a loss from operations of $.59 per share versus a loss of $.15 per share in the same prior year period. The
increased operating loss is the result of a 15% decline in revenues and a seven point decline in gross margin. Revenues
and margin have been significantly adversely impacted by the Company's ongoing litigation with Intel Corporation
[Nasdaq:INTC - news]. Orders for new systems during the second quarter totaled $223 million, up 2% from second
quarter 1997 and up 43% from first quarter 1998.
In a lawsuit filed last November, Intergraph alleged that Intel is using its dominant market position in an attempt to
coerce Intergraph into giving up certain key patent rights. The text of the court's April 10th ''Memorandum of
Opinion and Preliminary Injunction'' is available at intergraph.com.
Intergraph CEO Jim Meadlock said: ''In April the U.S. District Court ordered Intel to provide Intergraph with
advanced product samples and information. Intel has appealed that injunction, even though they clearly suffer no
harm from the injunction. The delay in recovering from Intel's withholding of product and information continues to
have an adverse impact on Intergraph's revenues and margins. Based on the current level of cooperation from Intel,
we expect our revenue recovery period to extend through the third quarter.
''Nevertheless, as part of our strategy to rebuild momentum in the 3D graphics marketplace, we unveiled two days
ago at SIGGRAPH '98 our revolutionary Wildcat 3D graphics technology, which will boost the performance of
Windows NT-based workstations five to ten times beyond anything on the market today - and at one-tenth the price.
We will ship the first entry level products based on the Wildcat 3D graphics technology at the end of this year. And
we believe, as one industry editor put it, the systems could 'knock UNIX workstations out of the ring since the
Intergraph machines have the advantage of commodity priced Windows hardware.''' -O-
Intergraph Corporation
Summary Financial Information
Quarter Ended June 30 (Unaudited)
1998 1997
Revenue $246,613,000 $288,609,000
Loss from operations (28,662,000) (7,327,000)
Gain on sale of assets 8,275,000 ---
Other nonoperating
expense, net (601,000) (8,700,000)/a
Income tax expense --- ---
Net loss (20,988,000) (16,027,000)
Net loss per share -
basic and diluted $(.43) $(.33)
Weighted average shares
outstanding - basic and diluted 48,311,000 47,888,000
Six Months Ended June 30 (Unaudited)
1998 1997
Revenue $492,431,000 $541,367,000
Loss from operations (75,672,000)/b (31,531,000)
Gains on sales of assets 111,042,000/c ---
Other nonoperating
expense, net (3,416,000) (10,785,000)/a
Income tax expense (3,500,000) ---
Net income (loss) 28,454,000 (42,316,000)
Net income (loss) per share -
basic and diluted $.59 $(.88)
Weighted average
shares outstanding -
basic 48,265,000 47,823,000
diluted 48,358,000 47,823,000
(a) Includes the adverse contract arbitration award referenced
above.
(b) Includes nonrecurring charges of $13,902,000 or $.29 per
share, primarily for employee termination costs and write-off of
intangible assets.
(c) Includes a gain of $102,767,000 or $2.13 per share on the
sale of assets of the Company's Solid Edge and Engineering Modeling
System product lines.
Intergraph Background Information
A computer industry pioneer, Intergraph Corporation provides comprehensive engineering, GIS, and IT solutions for
the process and building, utilities and transportation industries, and local and national governments. For desktop or
enterprise solutions, Intergraph offers software, computers, support, consulting, and training services. Industry
analysts consistently rank Intergraph as a top solutions provider in the markets the Company has served for three
decades. Intergraph common stock trades on The NASDAQ Stock Market under the symbol: INGR. Visit our web
site at www.intergraph.com for more information about Intergraph Corporation.
Information contained in this press release includes statements that are forward looking as defined in Section 21E of
the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward
looking statements. Information concerning factors that could cause actual results to differ materially from those in
the forward looking statements is described in the Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and its Form 10-Q for the quarter ended March 31, 1998.
Intergraph and the Intergraph logo are registered trademarks of Intergraph Corporation. Other brands and product
names are trademarks of their respective owners. |
