American Securities Inc. Announces Strong Buy Recommendation For Platinum Software Corp.GAITHERSBURG, Md.--(BUSINESS WIRE)--May 1, 1998--American Securities Inc. Friday announces its strong buy recommendation for Platinum Software Corp. Platinum Software ("PSQL PSQL Pervasive Sql ") designs, develops, markets and supports a broad range of financial applications software products targeted for businesses. PSQL has grown rapidly over the past year by utilizing an aggressive acquisition program, acquiring Clientele Software Inc., and FocusSoft Inc. This has paid dividends in PSQL's dramatic rise as a major player in the business software industry. PSQL's most recent quarter showed revenues of $26.4 million for the March quarter up from $16.4 million last year for an increase of 61%. PSQL's Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to $4193 million in March 1998 compared with $822 million in March 1997. PSQL earned 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the quarter ended March 1998, compared to only three cents per share over the same time period in 1997, while net income nearly tripled, from $4343 million to $1157 million. Net profit margin for March, 1998 was 16.6% compared with 4.3% the same period in 1997. If business software sales continue at their torrid pace later this year, we can expect further strong profits for PSQL. PSQL's Windows capability and in-house consulting staff con·sult·ing staff n. The body of specialists affiliated with a hospital who serve in an advisory capacity to the attending staff. , which provides service for PSQL customers, will continue to make PSQL products an attractive option for businesses. Heightened demand for software applications offered by PSQL could increase EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. from negative earnings in fiscal 1997 to 47 cents in 1998 and 85 cents for 1999. We believe that PSQL is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. at current prices. Rapid growth and consistently high profit margins could lead to a dramatic rise in the price of the stock. PSQL has a diversified product base and a strong sales force as evidenced by a sales per employee ratio in the top third of the industry. Our 12 month price target is $38 per share based on estimated 1999 EPS of $0.85. STRONG BUY! This report contains forward-looking statements and information which involve important risks and uncertainties that could affect anticipated results in the future and accordingly, such results may differ from the results predicted. This report is provided by American Securities Inc., a financial services company whose subsidiaries include AC Financial Inc. an NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). member firm and MSJ MSJ Motion for Summary Judgment (civil procedure legal practice) MSJ Misawa, Japan (Airport Code) MSJ Meteorological Society of Japan MSJ Multiple Selective Reject MSJ Mac Serial Junkie Partners Corp., investment manager of a national hedge fund. For further information contact Michael Efrusy at 800/379-9224. CONTACT: American Securities Inc. Michael Efrusy, 800/379-9224 |
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