EAII earnings
EAI Announces First Quarter 1999 Results
PR Newswire - April 29, 1999 06:45
AMES, Iowa, April 29 /PRNewswire/ -- Engineering Animation, Inc. (Nasdaq: EAII) announced today its financial results for the first quarter ended March 31, 1999.
EAI had revenues of $24,800,000 in the first quarter, an increase of 12 percent over first quarter 1998 revenues of $22,145,000. Before acquisition costs and non-recurring expenses, EAI's first quarter net income was $151,000, or 1 cent per share, compared to net income of $2,263,000 or 18 cents per share in the first quarter of 1998. EAI had cash collections of over $30 million and strong cash flow from operations in the first quarter.
Including acquisition costs and non-recurring expenses, the Company recorded a net loss of $500,000 or 4 cents per share in the first quarter of 1999 compared to a net loss of $647,000 or 6 cents per share in the first quarter of 1998. See the attached earnings release supplement for the earnings per share effects of acquisition costs and non-recurring expenses.
"We are not pleased with this performance," said EAI President and Chief Executive Officer Matthew Rizai. "We have taken a hard look at our operational practices and procedures over the past several weeks. While our sales pipeline was sufficient to meet our goals, we underestimated the time required to close several key sales."
In the first quarter, EAI continued to win new customers such as Volvo Truck, Storage Technology, Litton Guidance & Control Systems and Fairchild Donnier, and expand its relationships with existing customers -- such as General Motors, Lockheed Martin, AlliedSignal, United Defense and DaimlerChrysler. Also during the first quarter, EAI announced a strategic partnership with SAP AG, the world's leading provider of enterprise business software, to integrate EAI's visualization technology with SAP(TM) R/3(R), SAP's enterprise business application.
Product developments during the first quarter included the launch of VisEPM(TM), a foundation for visual enterprise process management that integrates EAI's solutions, as well as other popular third party applications for manufacturing industries, into one open, scalable solution for enterprise-wide sharing and analysis of product and process data.
"Our customers want the flexibility to select best-in-class applications while still being able to share digital assets across their enterprises and with their suppliers," said Marty Vanderploeg, EAI executive vice president and chief technology officer. "VisEPM provides an open framework for data -- ranging from sophisticated CAD models to simple assembly instructions -- to be shared seamlessly across an extended enterprise."
First Quarter Highlights
During the first quarter of 1999, EAI continued to penetrate worldwide markets with its enterprise software solutions. After an extensive evaluation, Volvo Truck Corporation, one of the world's leading manufacturers of trucks, selected EAI's VisEPM to support the development of its next generation of engines for its Swedish-based operations in Gothenburg and Skvode.
In the first quarter, EAI announced that General Motors selected EAI as its immersive virtual reality partner. EAI's immersive virtual reality solutions will be deployed worldwide at GM's global engineering centers to provide visualization of full-scale vehicle designs and to perform complex analysis and evaluation of surface quality.
Lockheed Martin's Aeronautics Sector expanded its adoption of VisEPM in the Sector's virtual product development environment, with applications on the F-22, Joint Strike Fighter (JSF), F-16, X-33 and other advanced aircraft programs. EAI's solutions will provide real-time links to visual product data among the different locations in Lockheed Martin's Aeronautics Sector as well as Lockheed Martin's subcontractors and suppliers.
EAI received initial and repeat software orders from a wide range of companies including Caterpillar, Daifuku, Ford, Jaguar, Lucent Technologies, McDonnell Douglas, Navistar, Pratt & Whitney, Renault, Sauer-Sundstrand and Sikorsky Aircraft.
About EAI
EAI is the leading producer of enterprise-wide visual process management, collaboration, communication and analysis solutions. EAI maintains its corporate headquarters and technology center in Ames, Iowa, and has offices worldwide.
ENGINEERING ANIMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
1999 1998
(unaudited)
Assets
Current assets:
Cash and short-term investments $ 37,503 $ 35,496
Accounts receivable, net:
Billed 23,804 30,539
Unbilled 9,740 8,969
Other current assets 6,600 5,321
Total current assets 77,647 80,325
Property and equipment, net 20,746 19,781
Other assets 16,092 16,674
Total assets $ 114,485 $ 116,780
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,827 $ 3,788
Accrued expenses and other current
liabilities 15,772 17,794
Total current liabilities 19,599 21,582
Debt and lease obligations, long-term
portion 1,336 1,480
Other long-term liabilities 173 179
Stockholders' equity 93,377 93,539
Total liabilities and stockholders'
equity $ 114,485 $ 116,780
ENGINEERING ANIMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three months ended March 31,
1999 1998
Revenues:
Software products $ 19,415 $ 16,581
Interactive products 5,385 5,564
Total revenues 24,800 22,145
Cost of revenues 9,444 7,053
Gross profit 15,356 15,092
Operating expenses:
Sales and marketing 7,121 5,169
General and administrative 2,994 2,855
Research and development 5,341 3,911
Acquisition costs and non-recurring expenses 651 4,524
Total operating expenses 16,107 16,459
Loss from operations (751) (1,367)
Interest and other income, net 344 519
Loss before income taxes (407) (848)
Income tax expense (benefit) 93 (201)
Net loss $ (500) $ (647)
Loss per share:
Basic $ (0.04) $ (0.06)
Diluted $ (0.04) $ (0.06)
Weighted average shares outstanding 11,792 11,172
Weighted average shares outstanding
and assumed conversion 11,792 11,172
ENGINEERING ANIMATION, INC.
EARNINGS RELEASE SUPPLEMENT
(in thousands, except per share data; unaudited)
Three months ended March 31,
1999 1998
Net loss $ (500) $ (647)
Adjustments:
Acquisition costs and non-recurring expenses -- 4,249
Goodwill and developed technology amortization 651 275
Tax benefits from acquisition costs and
non-recurring expenses -- (1,614)
Total adjustments 651 2,910
Net income before acquisition costs and
non-recurring expenses $ 151 $ 2,263
Diluted earnings per share $ 0.01 $ 0.18
Weighted average shares outstanding
and assumed conversion 12,921 12,518
For more information, visit EAI at eai.com or call 515-296-9908.
SOURCE Engineering Animation, Inc.
/CONTACT: Barry French of Engineering Animation, Inc., 515-296-8920, or
barry@eai.com/
/Web site: eai.com
(EAII)
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