StarBase Announces Record Revenue and Strong Operating Results for the Third Quarter
SANTA ANA, Calif., Feb. 16 /PRNewswire/ -- StarBase Corporation (Nasdaq: SBAS - news), a leading provider of Internet and intranet-based technical collaboration products for web site application production and software configuration management (SCM), today announced results for the third fiscal quarter ended December 31, 1998.
Operational Results
Revenue for the third quarter of FY99 was $1,917,000, a 192% increase over the $657,000 reported for the same period last year. Net loss applicable to the common stock decreased by $238,000, or 11 percent, to $1,886,000 from the net loss of $2,124,000 for the same period last year. Correspondingly, loss per share for the third quarter decreased to $0.09 from a loss of $0.15 for the same period last year.
Comparing results on a sequential quarter-to-quarter basis, revenue for the third quarter increased $273,000, or 17%. Net loss applicable to the common stock decreased $657,000, or 26%, during the quarter. Furthermore, the loss per share decreased by $0.05, or 36 percent.
''The revenue gains in the previous three quarters have demonstrated the company has been gaining momentum in front of our long awaited launch of StarTeam 4.0 and the Enterprise Suite, stated William R. Stow III, chairman and chief executive officer of StarBase. We are halfway through our February launch press tour, and the feedback from both industry analysts and the press has been very positive. We have long believed that the Enterprise Suite would bring StarBase to the forefront of the industry. While it has taken us longer than we expected to build, we have incorporated considerable customer feedback within the Enterprise Suite. Customer feedback drives this business, should never be ignored and when listened to carefully provides the foundation for developing truly great products and great companies. We have listened; we have streamlined our products and the internal operations of the company in response to this feedback. Now that we know that StarTeam 4.0 and Enterprise Suite will meet customer expectations, our excitement for the future is even greater.''
Sales Highlights
In the third quarter, many current customers like ABB, AT&T Wireless, EDS, Frito-Lay, Seagate and Wang continued to purchase additional licenses of StarTeam to deploy in their development environments. In addition, the larger initial purchases by new customers like Hollywood Video and PDG are developing a positive business trend of increased average revenue per order and higher average number of licenses per order.
Corporate Highlights
In the third quarter, StarBase announced a milestone OEM agreement with Cyrano, a leading automated software quality (ASQ) provider, to jointly develop a software development solution that seamlessly integrates SCM and testing features, allowing for the synchronization across all stages of the development life cycle. The company also had the pleasure of welcoming Frank R. Caccamo, vice president and chief information officer (CIO) at Reynolds and Reynolds, as a new board member. Mr. Caccamo brings a wealth of industry experience and, as a large customer, has a unique and vital perspective.
Development Highlights
The development of StarTeam 4.0 and Enterprise Suite was well underway in the third quarter, and most of the core components were finished in this time period. Current StarTeam 3.0 customers also received a comprehensive software update with numerous enhancements in service pack 3 delivered in November. Furthermore, the company announced the agreement to purchase the software assets of Site Technologies and began the integration of technologies for the 1999 calendar Q2 release of StarTeam.com.
Forward-looking Statement
When used in the preceding discussion, the words ''believes, expects, or intend to'' and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, (vi) and other risks described in StarBase Corporation's SEC reports and filings.
About StarBase
StarBase Corporation, with headquarters in Santa Ana, California, offers a complete family of advanced Internet and Intranet-based technical collaboration and software configuration management tools for improving team productivity, including Year 2000 and Enterprise Program Management Office applications. StarTeam has won several awards including InfoWorld's 1997 ''Best of the Test Center,'' PCWeek's 1996 Analyst's Choice and PC Week's 1996 IT Excellence Award. Leading organizations such as Hollywood Entertainment, Bank of America, Boeing, Dell Corporation, Intel Corporation, Sprint, and Xerox have chosen StarTeam to aid in their development projects. StarBase is located at 4 Hutton Centre Drive, Suite 800, Santa Ana, CA 92707. Tel: 714-445-4400. Fax: 714-445-4404. Visit StarBase's web site at www.starbase.com.
StarBase and its product names are trademarks of StarBase Corporation. All other products are trademarks of their respective owners.
StarBase Corporation
Summarized Financial Information
For the Quarter Ended December 31, 1998
(In thousands, except per share amounts)
Three Months Three Months Nine Months Nine Months
ended ended ended ended
Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1998 Dec. 31, 1997*
(unaudited) (unaudited) (unaudited) (unaudited)
Total revenues $1,917 $657 $4,714 $1,361
Gross margin 1,812 643 4,273 1,292
Operating expenses 3,636 2,189 10,922 5,615
Operating loss (1,824) (1,546) (6,649) (4,323)
Interest and other
income expense (5) (578) 41 (904)
Net loss (1,829) (2,124) (6,610) (5,228)
Non-cash dividend 57 -- 256 1,660
Net loss applicable
to common stock (1,886) (2,124) (6,866) (6,888)
Basic and diluted
loss per common
share $(0.09) $(0.15) $ (0.37) $(0.51)
Weighted average
number of common 20,555 14,448 18,810 13,365
Dec. 31, 1998 March 31, 1998
(unaudited)
Total assets $4,813 $5,682
Total liabilities 2,325 1,252
Total shareholder's equity $2,488 $4,430
*Reflects restated non-cash dividends.
SOURCE: StarBase Corporation |
