ADVANCED MOBILE SOLUTIONS BECOMES A PIONEER IN INTEGRATED GLOBAL OPERATIONS
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MINNEAPOLIS, July 22 /PRNewswire/ -- Advanced Mobile Solutions
recently became one of the first companies in the world to use the
Internet to integrate overseas and domestic manufacturing operations.
The Net UI interface to the Fourth Shift MSS for OBJECTS ERP system
provides Advanced Mobile Solutions a fast, cost-effective way to share
manufacturing and financial data between its Moraga, Calif.
headquarters and factories in Tianjin, China and Tijuana, Mexico. Net
UI allows the company to remotely complete any task -- from order entry
to system configuration to checking on a bill of material. It also
provides enhanced performance to LAN users of the system as well as
high performance access to data over inexpensive low bandwidth
communication lines such as voice grade phone lines or the Internet.
"Net UI puts us in direct touch with our factories," said Wayne
Ronhaar, director of information systems and telecommunications for
Advanced Mobile Solutions. "We just click on an icon, go into the
server and look up the information we want." Dialing in with a 56k
modem, the Mexico facility runs off the server in Moraga, allowing both
facilities to share resources. The China facility has its own
stand-alone Fourth Shift system, which is accessed remotely via the
Internet.
Dialing in using a laptop and 56k modem, Ronhaar recently timed how
long it would take to access a bill of material with 600 lines. "It
only took three seconds to pull up the entire bill. From a user point
of view, the response is instantaneous," said Ronhaar. "If I had tried
the same thing in fat client mode, I could have eaten lunch in the time
it would have taken to pull up one screen," he added.
The Net UI thin client interface allows applications to run off a
server, rather than individual workstations, which greatly frees up
network traffic. Fourth Shift tests have shown that Net UI decreases
network traffic more than 90%, enhancing network performance for all
applications using the network. Fourth Shift studies also show that LAN
users typically get their data 50% faster in thin client mode. For
this reason, almost all workstations at the Moraga headquarters are set
up to run in the thin client mode. "Because performance under Net UI
is so much faster, the end user response has been very enthusiastic,"
says Ronhaar. "What's more, Net UI is so easy to configure, logging in
and setting up workstations is just a breeze," according to Ronhaar.
About Advanced Mobile Solutions
Advanced Mobile Solutions manufactures accessories and parts for
Motorola cellular phones. Established in 1990, the company is based in
Moraga, Calif.
About Fourth Shift
Fourth Shift Corporation (Nasdaq: FSFT) fs.com , based
in Minneapolis, develops software for manufacturing and distribution
enterprises worldwide. The Company's software has been licensed by
more than 3,300 customer sites in 60 countries including some of the
fastest growing manufacturers and global enterprises from the Fortune
500. Fourth Shift maintains close strategic relationships with leading
information technology vendors Micro Data Base Systems, Inc. (mdbs),
Microsoft, and IBM. Fourth Shift is a Microsoft Solution Provider
Partner.
SOURCE Fourth Shift Corporation
-0- 7/22/98 /CONTACT: Albert Maruggi,
Director, Corporate Communications of Fourth Shift Corporation,
612-851-6286, amaruggi@fs.com/
/Web site: fs.com (FSFT)
CO: Fourth Shift Corporation; Advanced Mobile Solutions ST:
Minnesota, California IN: CPR SU:
MINNEAPOLIS, July 21 /PRNewswire/ -- Fourth Shift Corporation (Nasdaq:
FSFT) today reported earnings per share of $.04 and year over year
revenue growth of 35% for the second quarter. Total revenues were
$17.3M for the second quarter compared to $12.9M in the same quarter
last year. This is the highest quarterly revenue in the company's
history. For the six months ended June 30, 1998, the company has
improved EPS by $.15 compared to the same period of 1997.
"Effective execution of our Tier 3 market strategy is fueling our
growth," said CEO M.M. Stuckey. Tier 3 is defined as manufacturers
with annual revenues up to $150 million and represents the fastest
growing segment of the ERP marketplace. "We continue to build on our
solid foundation of product functionality and Services' expertise
particularly in the industries of computers and electronics, machinery,
automotive, fabricated and consumer products," said Stuckey.
Each geography of Fourth Shift's global operations had a strong
quarter: The Americas and Europe had revenue increases over Q2 of 1997
of 44% and 50%, respectively. Asia revenue was 40% higher than Q1 of
1998, although down from 1997 levels. Fourth Shift also reported
record revenues in Services in the second quarter, up 38% from the
second quarter of last year.
Contributing to Fourth Shift's momentum in the first half of the year
were several new product announcements and functionality enhancements.
They include:
-- NET UI which made Fourth Shift, the only "Internet Ready" ERP system
for Tier 3 manufacturers.
-- The ability to connect mid-size manufacturing facilities to larger
corporate ERP systems like SAP and JD Edwards.
-- MSS for OBJECTS 6.1, released ahead of schedule in the second
quarter, which added functionality, more database capacity, and
increased network and Internet performance.
Managing Automation, a trade publication following the
manufacturing and technology market wrote in its July 1998 issue that
Fourth Shift has got its act together.
Fourth Shift Corporation
Unaudited Financial Highlights
(000s except Earnings per Common Share)
Three Months Ended Six Months Ended
June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
Revenue From Continuing
Operations $17,328 $12,876 $31,758 $23,681
Income (Loss) From
Continuing Operations $671 $(61) $575 $(1,511)
Net Gain on Sale of
Discontinued Operations $66 $205 $134 $406
Net Income (Loss) $410 $60 $167 $(1,235)
Basic and Diluted
Earnings Per
Common Share $0.04 $0.01 $0.02 $(0.13)
Average Number of
Shares Outstanding
Basic 9,904 9,749 9,903 9,712
Diluted 9,980 9,749 9,950 9,712
About Fourth Shift
Fourth Shift Corporation is a global application software company
that develops software for manufacturing and distribution enterprises
worldwide. Fourth Shift is a leading provider of manufacturing software
to the Tier 3 manufacturer. The company's software has been licensed
by more than 3,300 customer sites in 60 countries.
Fourth Shift maintains close strategic relationships with leading
information technology vendors Micro Data Base Systems, Inc. (mdbs) and
Microsoft. Fourth Shift is also a Microsoft Solution Provider Partner.
This news release contains forward-looking statements that involve
risks and uncertainties including the risk associated with future
revenue and earnings assumptions and product release schedules. Actual
results may vary from those predicted, due to uncertainty in future
software license revenue and future software release schedules. These
and other risks are identified in our SEC filings and should be
considered in evaluating the forward-looking statements made herein.
These risks could cause actual financial results to vary from those
currently anticipated.
Fourth Shift, and OBJECTS are registered trademarks of Fourth Shift
Corporation in the United States and/or other countries.
Fourth Shift Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
ASSETS
June 30, December 31,
1998 1997
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $6,438 $5,758
Accounts receivable, net 14,199 14,001
Inventories 100 482
Prepaid expenses 1,285 1,031
Royalty receivable 66 650
Total current assets 22,088 21,922
FURNITURE, FIXTURES AND EQUIPMENT, net 4,362 5,503
RESTRICTED CASH 465 715
SOFTWARE DEVELOPMENT COSTS, net 3,270 3,289
TOTAL ASSETS $30,185 $31,429
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term obligations $1,040 $1,803
Revolving credit facility 2,228 2,000
Accounts payable 2,104 3,964
Accrued expenses 6,941 8,001
Deferred revenue 12,603 10,315
Total current liabilities 24,916 26,083
LONG-TERM OBLIGATIONS 868 1,299
SHAREHOLDERS' EQUITY:
Common stock 99 98
Additional paid-in capital 30,856 30,640
Other comprehensive losses (303) (236)
Accumulated deficit (26,251) (26,455)
Total shareholders' equity 4,401 4,047
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $30,185 $31,429
Fourth Shift Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
(Unaudited) (Unaudited)
REVENUE:
Software license $7,061 $5,581 $12,394 $9,382
Service 9,133 6,634 17,330 13,050
Third-party software
and other 1,134 661 2,034 1,249
Total revenue 17,328 12,876 31,758 23,681
OPERATING EXPENSES:
Cost of licenses 1,486 693 2,440 1,218
Cost of services 4,566 3,205 8,529 6,327
Cost of third-party
software and other 817 477 1,489 889
Selling, general
and administrative 7,901 6,577 15,030 12,700
Product development 1,887 1,985 3,695 4,058
Total operating expenses 16,657 12,937 31,183 25,192
Operating income (loss) 671 (61) 575 (1,511)
Interest expense, net (152) (65) (283) (133)
Other income (expense), net 20 2 (29) (7)
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE PROVISION
FOR INCOME TAXES 538 (124) 262 (1,651)
Provision for (benefit
from) income taxes 194 21 229 (10)
INCOME (LOSS) FROM CONTINUING
OPERATIONS 344 (145) 33 (1,641)
NET GAIN ON SALE OF
DISCONTINUED OPERATIONS 66 205 134 406
NET INCOME (LOSS) $410 $60 $167 $(1,235)
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE:
Continuing operations
income (loss) per share $0.03 $(0.01) $0.01 $(0.17)
Discontinued operations
income per share 0.01 0.02 0.01 0.04
Net income (loss)
per share $0.04 $0.01 $0.02 $(0.13)
SHARES USED IN BASIC AND DILUTED PER COMMON SHARE COMPUTATION:
Basic 9,904 9,749 9,903 9,712
Diluted 9,980 9,749 9,950 9,712
SOURCE Fourth Shift Corporation
-0- 7/21/98 /EDITOR'S NOTE: Managing
Automation article provided upon request/
/CONTACT: Albert Maruggi, Director, Corporate Communications,
612-851-6286, amaruggi@fs.com, or David G. Latzke, Vice President &
Chief Financial Officer, 612-851-1900, dlatzke@fs.com, both of Fourth
Shift Corporation/
/Web site: fs.com (FSFT)
CO: Fourth Shift Corporation ST: Minnesota IN: CPR SU: ERN
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