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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: Adelantado who wrote (229)	10/14/1998 4:36:00 PM
From: Beltropolis Boy	Respond to of 1138

Legato Announces Record Third Quarter 1998 Results; Revenues Grow 71%, Net Income Grows 86%, and Earnings Per Share Increases 82% -- Excluding One-time Charges October 14, 1998 04:00 PM PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 14, 1998--Legato Systems, Inc. (LGTO), a leader in the enterprise storage management software market, today announced revenue of $37.5 million for the third quarter ended September 30, 1998, representing growth of 71% over third quarter 1997 revenues. Excluding $0.6 million of non-recurring charges associated with the Software Moguls acquisition announced on July 30, 1998, net income grew 86% to $7.9 million, compared with $4.3 million in the third quarter of last year. On the same basis, diluted earnings per share increased 82% to $0.20, up from $0.11 in the year-earlier quarter. Including non-recurring charges from the merger, net income grew 76% to $7.5 million with diluted earnings per share of $0.19 growing 73% over the same quarter of last year. "Our third quarter results were very strong, reflecting continued success in the enterprise storage management software market," commented Louis C. Cole, President and Chief Executive Officer. "We're very pleased with our increasing market momentum and continued customer demand for Legato's storage management solutions," said Mr. Cole. Also during the quarter the company successfully completed the merger and integration of Software Moguls, Inc., a Minnesota-based developer and supplier of storage management software. For the first nine months of fiscal 1998, the company reported revenues of $98.6 million, an increase of 71% over the $57.8 million reported in the same period of last year. Net income, excluding non-recurring expenses, grew 82% to $18.5 million, compared with $10.2 million in the corresponding period of last year. Comparable diluted earnings per share for the first nine months increased 74% to $0.47, versus the year-earlier period. Including non-recurring charges, net income for the first nine months was $18.1 million and fully diluted earnings were $0.46 per share. "We are pleased with our third quarter financial performance in all respects," observed Stephen C. Wise, Chief Financial Officer. "Product revenues grew $11.4 million over last year's third quarter to $28.8 million, achieving record levels both domestically and internationally. Our efforts to expand our consulting services and support offerings are driving higher growth in service revenues, which grew 90.7% to $8.7 million in the current quarter. Excluding non-recurring charges, operating income expanded to 30.6% of revenue helping to fuel year-over-year earnings per share growth of 82%," Wise concluded.