TSI International Software Announces Record Second Quarter Revenues
and Operating Income
WILTON, Conn.--(BUSINESS WIRE)--July 23, 1998--TSI International Software Ltd. (the ''Company'')
(NASDAQ:TSFW - news), a leading supplier of Enterprise Application Integration (EAI) software, announced today record
revenues and operating and net income for the second quarter and six months ended June 30, 1998.
Revenues for the second quarter of 1998 increased 65% to a record $10.1 million from $6.2 million for the second quarter of
1997, driven by the Revenue growth of the Company's flagship product, Mercator(R), which more than doubled in the
quarter. For the six months ended June 30, 1998 revenues rose 57% to $18.3 million compared to $11.7 million for the same
period in 1997.
Software License Revenue for the Company grew 109% for the second quarter of 1998 and 101% for the six months ended
June 30, 1998 as compared to the second quarter of 1997 and six months ended June 30, 1997, respectively. Software
License Revenues for the second quarter represented 66% of total revenues, up from 52% in the second quarter of 1997.
Operating income for the second quarter of 1998 was $1,072,000 versus $338,000 in the second quarter of 1997, a 217%
increase. For the six months ended June 30, 1998 operating income was $1,726,000 versus $691,000 in 1997, a 150%
increase.
Net income for the second quarter of 1998 rose 359% to $1,225,000 from $267,000 for the second quarter of 1997. For the
six months ended June 30, 1998, the Company reported net income of $2,097,000, a 262% increase over the same period in
the prior year.
On a diluted per share basis, the Company reported earnings per share of $.11 for the second quarter of 1998, as compared
to $.04 for the second quarter of 1997. Assuming a 38% tax rate, the Company's diluted per share earnings increased to $.08
per share for the second quarter of 1998 from $.03 per share for the second quarter of 1997. The Company earned $0.19
per share for the first 6 months of 1998 on a diluted basis versus $.09 for the comparable period in 1997.
In June 1998, the Company completed a secondary public offering of 3,511,000 shares, including 1,200,000 newly-issued
shares sold by the Company, which raised approximately $21.9 million in net proceeds to the Company.
Quarterly Highlights
''We are very pleased to report a record second quarter, reflecting the strong demand for enterprise application integration
solutions we bring to the market,'' stated Connie Galley, President and CEO of the Company. ''Revenue from Mercator more
than doubled compared to the same quarter last year, with significant growth in both the SAP R/3 and non-SAP related
Mercator revenue. Revenues from international markets exceeded 10% of our total revenue for the first time, reflecting the
increasingly global nature of the enterprise application integration market.
''We expanded our third party distribution channels, adding twelve new Mercator resellers in the quarter. Included were BEA
Systems and Candle Corporation who joined the growing list of middleware companies who re-sell Mercator, expanding
TSI's worldwide market reach. In June, over 140 people, representing over 60 partner organizations, attended TSI's annual
Alliance Conference, more than triple the number at TSI's first Alliance Conference last year.
''Mercator continued to gain stature within the SAP market, adding a significant number of major R/3 customers, both
domestic and international. SAP selected Mercator as a component of its Accelerated Solutions initiative -pre-configured
versions of R/3 designed for fast implementations at low cost. Mercator education courses are now standard offerings within
SAP education centers. Manhattan Associates, a leading provider of supply chain execution solutions for consumer markets
worldwide, received SAP certification using Mercator for integration with SAP R/3. Lastly, we expanded our pipeline of
potential customers at a number of SAP marketing events including the annual SAP user group (ASUG) conference in
Toronto, and major SAP (SAPPHIRE) conferences in Brazil and Spain.
''Also in the quarter we signed our first contract for the use of Mercator in conjunction with S.W.I.F.T. at a major New York
bank, opening the way for Mercator's entry into the international financial services market.
''The broad-based acceptance of Mercator as a leading application integration solution, the addition of major new distribution
channels, and the strengthening of our position in the SAP marketplace were important accomplishments which position us well
for the future.''
About TSI International Software Ltd.
TSI Software is a leading provider of off-the-shelf software solutions for integrating ERP systems, such as SAP, PeopleSoft
and Oracle, with other enterprise applications. TSI Software's Mercator is the leading solution for integrating SAP R/3 with
existing systems, best-of-breed applications, web applications, databases and data warehouses across all industries. Mercator
significantly reduces the time, cost and effort associated with building and maintaining ERP application interfaces, particularly
for when dealing with complex data formats such as SAP R/3, EDI, S.W.I.F.T., HL7 and other industry standards. TSI
Software's application integration solutions, including EDI, operate on over 20 different hardware and software platforms,
work with all major systems for message transport and queuing, and have been implemented by over 8,000 customers
worldwide. More information about the Company can be found at www.tsisoft.com.
The Company's Form 10-Q will be filed with the SEC by August 15, 1998.
Legal Notice Regarding Forward-Looking Statements
Statements in this press release that are not purely historical are forward-looking statements, including statements regarding the
Company's beliefs, expectations, hopes or intentions regarding the future. Forward-looking statements in this release include,
but are not limited to, statements regarding the demand for the Company's applications integration solutions and acceptance of
Mercator including in the international markets. It is important to note that actual outcomes and the Company's actual results
could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as changes in demand for applications integration solutions and the Company's Mercator
family of products in particular, the ability of the Company to expand its international operations, the ability of the Company to
continue to add resellers and other distribution channels, and the success of third parties in utilizing and marketing the
Company's products, seasonality in operating results, and market acceptance of the SAP R/3 system or difficulties and/or
delays in SAP R/3 implementations. Readers should also refer to the risk disclosures outlined in the Company's reports filed
with the Securities and Exchange Commission. All forward-looking statements and reasons why results might differ included in
this release are made as of the date hereof, based on information available to the Company as of the date hereof, and the
Company assumes no obligation to update any such forward-looking statement or reason why results might differ.
Mercator is a registered trademark of the Company. TSI Software is a trademark of the Company. All other products and
company names mentioned are the property of their respective owners. |
