09:19 PM PRN SOFTWORKS Reports Results For Quarter Ending June 30, 1998
SOFTWORKS Reports Results For Quarter Ending June 30, 1998
September 18, 1998 09:19 PM
ALEXANDRIA, Va., Sept. 18 /PRNewswire/ -- SOFTWORKS SWRX reported second quarter results for the three month period ending June 30, 1998. Investors should note that the following results are for the second quarter ending June 30, 1998, which concluded prior to the company's Initial Public Offering on August 4, 1998.
Total Revenue for the quarter ended June 30, 1998 increased 44.5% to $9.1 million, as compared to $6.3 million for the same period in 1997. Operating income for the period increased 425% to $336,000 from $64,000 for the same period in 1997. The positive revenue increase was primarily attributable to an overall 58.2% increase in software license revenue resulting from continuing strong acceptance of the Company's products and the Company's expansion efforts into new market territories. Additionally, SOFTWORKS' revenue from international operations increased 83.7% to $2.0 million, over the same period in 1997. For the quarter ended June 30, 1998 SOFTWORKS had a net loss of $13,000 after provisions for income taxes and interest expense. According to SOFTWORKS' Chief Financial Officer, R.C. "Mac" McLaughlin, "SOFTWORKS is proud of achieving a double-digit increase in license revenues for virtually all of its product arenas as well as the gathering strength in its international operations. It is important to note that these are second quarter results being released now, due to the timing of our recent IPO on August 4, 1998, and they do not in any way presage our third quarter earnings."
SOFTWORKS is a leading global provider of IT solutions for the enterprise. Founded in 1977, SOFTWORKS responds to data and systems management needs of organizations worldwide, supporting customers in more than 50 countries with solutions for multi-platform data and storage management, enterprise performance management, Year 2000, and professional services. For more information about SOFTWORKS, visit the company's website at softworks.com.
Except for historical information contained in this news release, the matters discussed are forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on SOFTWORKS' management's current expectations and assumptions, which may be affected by a number of factors that could cause actual results to differ materially from anticipated results, including, without limitation, competitive product introductions, price competition, any failure or delay in the Company's ability to develop and introduce new products, seasonal factors affecting the Company's sales, the Company's ability to attract and retain qualified technical, sales managerial, and other key personnel, the Company's ability to manage expenses effectively and the risk factors reported from time in the Company's Security and Exchange Commission filings and reports.
SOFTWORKS, INC.
Condensed Consolidated Income Statements
(in thousands, except for per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Software licenses 6,026 66.6% 3,809 60.8% 9,762 62.4% 6,104 55.8%
Maintenance 2,625 29.0% 2,458 39.2% 5,176 33.1% 4,829 44.2%
Professional
services 403 4.4% -- 0.0% 712 4.5% -- 0.0%
Total revenue 9,054 100.0% 6,267 100.0% 15,650 100.0% 10,933 100.0%
Cost of revenue
(exclusive of
amortization and
depreciation shown
separately below):
Software licenses 194 2.1% 114 1.8% 633 4.1% 215 1.9%
Maintenance 1,612 17.8% 1,137 21.4% 3,258 20.8% 2,500 22.9%
Professional
services 196 2.2% -- 0.0% 421 2.7% -- 0.0%
Total cost of
revenue 2,002 22.1% 1,451 23.2% 4,312 27.6% 2,715 24.8%
Gross margin 7,052 77.9% 4,816 76.8% 11,338 72.4% 8,218 75.2%
Operating expenses:
Sales and
marketing 4,516 49.9% 3,300 52.6% 7,911 50.5% 5,605 51.2%
General and
administrative 1,254 13.9% 594 9.5% 2,356 15.1% 1,478 13.5%
Amortization and
depreciation 525 5.8% 445 7.1% 1,015 6.5% 881 8.1%
Research and
development 421 4.6% 413 6.6% 693 4.4% 686 6.3%
Total operating
expenses 6,716 74.2% 4,752 75.8% 11,975 76.5% 8,650 79.1%
Operating income
(loss) 336 3.7% 64 1.0% (637) (4.1%) (432)(3.9%)
Other expenses (169)(1.9%) -- 0.0% (169) (1.1%) -- 0.0%
Income (loss) from
operations before
income taxes 167 1.8% 64 1.0% (806) (5.2%) (432)(3.9%)
Provision for
(benefit from)
income taxes 180 1.9% 84 1.3% (26) (0.2%) (79)(0.7%)
Net loss $(13)(0.1%) $(20)(0.3%)$(780) (5.0%) $(353)(3.2%)
Basic and
diluted net loss $(0.00) $(0.00) $(0.06) $(0.03)
Basic and
diluted weighted
average shares
outstanding 14,083 14,083 14,083 14,083
SOURCE SOFTWORKS, Inc.
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