Back from skiing? Here's another ODIS partner reporting strong growth:
Sterling Software Announces Third Quarter Results
Company Reports 39th Consecutive Quarter of Continuous Growth
DALLAS, Aug. 3 /PRNewswire/ -_ Sterling Software, Inc. (NYSE: SSW -
news) today announced record revenue, operating profit and earnings
per share for its third fiscal quarter ended June 30, 1998. Third
quarter revenue was $161.5 million, a 41% increase over last year's
$114.2 million. Operating profit was up 113% to $37.0 million from
last year's $17.4 million, and the operating profit margin improved
from 15% to 23%. Diluted earnings per share increased 50% to $.36
compared to third quarter 1997 earnings per share of $.24.
For the first nine months of fiscal 1998, revenue was $469.8
million, up 48% compared to $318.1 million in the first nine months of
1997. Operating profit for the first nine months of 1998 was
$90.4 million, up 130% from last year's $39.3 million, and the
operating profit margin improved from 12% to 19%. Diluted earnings per
share for the first nine months of fiscal 1998 was up 53% to $.92,
compared to $.60 for the first nine months of fiscal 1997. All prior
year amounts for operating profit, operating profit margin and
earnings per share are before one-time charges.
All three lines of business posted solid growth during the third
quarter. The Company's largest business, Applications Management, grew
revenue $52.4 million from $22.0 million in the third quarter of 1997
to $74.4 million in the third quarter of 1998. The operating profit
margin in the Applications Management business doubled, growing from a
15% margin in the third quarter of 1997 to a 31% margin in the third
quarter of 1998. The Applications Management business' operating
profit grew $19.5 million to $22.8 million. Sterling Software's
Systems Management business grew revenue $3.9 million, or 9%, to $50.0
million and posted an operating profit of $19.5 million for the third
quarter, representing a 39% margin. The Federal Systems business grew
revenue 20% in the third quarter to $37.2 million and generated a 6%
operating profit margin, contributing $2.4 million of operating profit
to the quarter's results.
Today, the company separately announced the completion of its
acquisition of Synon Corporation, a leader in model-based application
development for IBM AS/400 and Windows NT(TM) platforms. The stock-
or-stock merger transaction was valued at approximately $78 million
based on recent closing prices for Sterling Software's common stock.
Sterling L. Williams, the company's president and chief executive
officer, said, ''We had a superb quarter and continued to produce
record results, even with significant focus on integration activities
related to our two recent acquisitions, Synon Corporation and Mystech
Associates. Synon is our 29th acquisition and not only strengthens
our enterprise application development tools offerings, but is also
expected to be immediately accretive to earnings per share.'' Mr.
Williams further commented, ''We believe that all three of our
businesses are well positioned. The Synon acquisition contributes to
growth in our Applications Management business, the Mystech
acquisition contributes to growth in our Federal Systems business and
our products for the network management and distributed storage
management markets position us for strong growth in our Systems
Management business.''
Sterling Software is a leading provider of software and services for
the applications management, systems management and federal systems
markets. Sterling Software, with its headquarters in Dallas, has a
worldwide installed base of more than 20,000 customer sites and has
3,500 employees in 95 offices worldwide. For more information on
Sterling Software, visit the company's Web site at www.sterling.com.
(...)
STERLING SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(unaudited)
Three Months Nine Months
Ended June 30 Ended June 30
1998 1997 1998 1997
Revenue:
Products $67,144 $52,234 $189,595 $136,369
Product support 40,787 29,106 121,603 88,621
Services 53,614 32,904 158,573 93,139
161,545 114,244 469,771 318,129
Too bad we don't have the numbers for the COOL software suite
but since all the product lines are reported to have grown strongly I
guess we don't have to worry about it!
Gustave. |
