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4Front Software International, Inc. announces fiscal 1997 first quarter results.

LONDON--(BUSINESS WIRE)--June 11, 1997--4Front Software International, Inc. ("4Front") (Nasdaq NM: FFST FFST First Failure Support Technology
FFST Fat Free Soft Tissue
FFST Full and Flat Square Tube (Cathode Ray Tube design) 
) today announced results for the first quarter ended April 30, 1997.

                            Highlights(a)
First Quarter ended April 30,

                        1997           1996       %Increase

Revenues           $ 18,624,000   $ 10,550,000       77%

Net income         $    631,000   $    198,000      219%

Net income per
  share (basic)    $       0.10   $       0.07       43%

Net income per
  share (diluted)  $       0.09   $       0.05       80%

Fully diluted
  shares
  outstanding         6,695,698      3,697,573

(a) A substantial part of the company's growth in the past three
years has been achieved through acquisition.  Accordingly, the
results of operations from period to period are not necessarily
comparable.

    For the first quarter ended April 30, 1997, revenues increased 77%
to $18,624,000, versus $10,550,000 reported for the comparable
year-ago period.  Net income for the most recent quarter was
$631,000, or $0.09 per share fully diluted (based on 6,695,698
shares), versus $198,000, or $0.05 per share fully diluted (based on
3,697,573 shares), for the comparable year-ago period.  The
significant increase in shares outstanding reflects the impact of the
company's secondary offering of Common Stock that was completed
during the second quarter of 1996 and the assumed conversion of
applicable stock options and warrants for the first quarter ended
April 30, 1997.
    Anil Doshi, Chairman and Chief Executive Officer of 4Front, said,
"Overall, we are pleased with our performance for the quarter,
especially with that of our services business, where most activities
continue to surpass our expectations.  Reflecting the increased
service contribution, margins continued to improve.  As we have
stated, margin improvement, and profitability, is now our main focus.
    "A year ago, 4Front was not even ranked among the UK's top 25
largest third party computer maintenance companies.  It is a sign of
the pace of growth in 4Front's services business that it is now
ranked as the 13th largest such company.  During the quarter the new
4Front National Call Center became operational.  All of our hardware
and software support activities are coordinated from this new central
facility, which is currently handling an average of 1,000 support
calls a day.  The move to this facility provides 4Front with a
stronger foundation from which to handle the increasing level of
business being contracted.
    "During the quarter, 4Front's help-desk business made significant
progress in attracting customers on both the retail and the corporate
fronts.  On the retail side, a new large supply contract with Byte
Ltd. was signed and, after the quarter-end, 4Front signed an
agreement to provide the John Lewis Group, a major retailer, with an
estimated $500,000 worth of software support contracts.  On the
corporate side, the company is increasing its participation in major
corporate help-desk bids, following its recent contract successes."
    Mr. Doshi concluded, "In general, our services business is gaining
an increasing number of higher value contracts, which reflects both
our excellent record of service and the benefit of `critical mass'
that 4Front has worked hard to achieve over the past few years."
    Mark Ellis, President of 4Front, added, "Orders in our storage
business were in line with targets.  However, overall first quarter
business was affected by worldwide product shortages, particularly in
the high-end disc drive market.  Elsewhere on the product side,
indications are that the network computer technology is being well
received on both sides of the Atlantic and looks to be a fast growing
market.  Our sales of network computers are picking-up steadily and
we have a number of promising large-scale opportunities where pilot
systems are being evaluated."
    Mr. Ellis concluded, "Lastly, the UK economy remains strong and
conditions in the computer service markets in which 4Front operates
continue to be good."
    4Front Software International, Inc., a UK-based specialized computer
services company provides a wide range of specialized high-end
information technology solutions and services principally to
Financial Times UK Top 500 companies and government authorities.  The
company provides key elements of distributed computing, including
systems development and integration, storage and client-server
solutions and products, as well as extensive hardware and software
support services.  The company's customers include Mobil Oil, Royal
Dutch/Shell Group, GEC/Marconi, JP Morgan, Fujitsu, Dupont, Reuters
and the U.K.  Ministry of Defense.
-0-
        4FRONT SOFTWARE INTERNATIONAL, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS

                         For the Three Months Ended
                         April 30,         April 30,
                           1997              1996
                        (unaudited)       (unaudited)

REVENUES:
Products              $ 10,427,687      $  7,328,339
Services                 8,196,598         3,221,899
                        18,624,285        10,550,238

Cost of Products         8,880,689         6,002,795
Cost of Services         4,148,921         1,276,346
                        13,029,610         7,279,141

GROSS PROFIT
Products                 1,546,998         1,325,544
Services                 4,047,677         1,945,553
                         5,594,675         3,271,097

OPERATING EXPENSES:

  Selling, general and
    administrative       4,354,626         2,712,078
  Depreciation             195,166            80,959
  Amortization             210,481            61,870
    Total operating
      expenses           4,760,273         2,854,907

INCOME BEFORE INTEREST, INCOME
 TAXES AND SHARE OF RESULTS
 IN EQUITY INVESTEE:       834,402           416,190

   Interest income          77,644             3,841
   Interest expense        (71,145)         (103,614)

INCOME BEFORE INCOME TAXES AND
 SHARE OF RESULTS IN EQUITY
 INVESTEE:                 840,901           316,417

SHARE OF OPERATING (LOSS) OF
 EQUITY INVESTEE               ---           (52,173)

INCOME BEFORE INCOME TAXES 840,901           264,244

INCOME TAXES               210,225            66,061

NET INCOME            $    630,676      $    198,183

NET INCOME PER
  COMMON SHARE (Basic)   $    0.10      $       0.07

NET INCOME PER COMMON
  SHARE (Fully Diluted)  $    0.09      $       0.05
WEIGHTED AVERAGE SHARES
  OUTSTANDING            6,514,747         3,011,068

FULLY DILUTED SHARES
  OUTSTANDING            6,695,698         3,697,573
-0-

4FRONT SELECT BALANCE SHEET INFORMATION

                        April 30, 1997         January 31, 1997
                          (unaudited)              (audited)

Current assets         $  29,747,000           $  30,349,000
Current liabilities       23,417,000              24,764,000
Total assets              41,216,000              42,021,000
Long-term debt               421,000                 489,000
Shareholders' equity   $  17,378,000          $   16,769,000




CONTACT: Investor Relations Investor relations

The process by which the corporation communicates with its investors.
:

Jason Thompson Jason Thompson can refer to different people:
  • Jason Thompson (soccer), a soccer player
  • Jason Thompson (baseball) (born 1954), a baseball player
  • Jason Thompson (1990s baseball player) (born 1971), a first baseman for the San Diego Padres baseball team
, ext. 124

212/838-3777

or

Company Contact:

4Front Software International, Inc.

Mark Ellis Mark Ellis is the name of:
  • Mark Ellis (baseball player), a Major League Baseball player
  • Mark Ellis (footballer), Bolton Wanderers trainee
  • Mark Ellis (record producer), alternative rock and post-punk producer better known as Flood
  • Mark Ellis (writer)
 or Ken Newell The Very Reverend Doctor Kenneth Norman Ernest Newell OBE DD is an Irish Presbyterian minister. He served as Moderator of the General Assembly of the Presbyterian Church in Ireland (June 2004-2005).

011/44-1923-294555
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 11, 1997
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