Award Software Announces Earnings Results for First Quarter 1998.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 27, 1998--Award Software International(R), Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AWRD) today announced financial results for its first quarter ended March 31, 1998. Revenues for the first quarter of fiscal 1998 were $6.4 million. This compares with $7.5 million in the 1997 fourth quarter and $5.0 million in the first quarter of 1997. Income from operations was $1.3 million, compared with $1.9 million in the 1997 fourth quarter and $1.1 million in the first quarter a year ago. Net income for the first quarter of 1998 was $1.1 million compared with $1.7 million in the 1997 fourth quarter and $892,000 in the first quarter of 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the first quarter of 1998 were $0.15 per share compared with $0.22 per share in the 1997 fourth quarter and $0.12 per share in the first quarter of 1997. "We are pleased with our continued growth in both revenue and net income," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). C. Huang Huang (Chinese: 黃) is a Chinese surname. While Huang is the pinyin romanisation of the word, it may also be romanised as Wong, Vong, Bong, Ng, Uy, Wee, Oi, Oei or Ooi, Ong, Hwang, or Ung due to pronunciations of the word in , chairman and chief executive officer of Award Software. "On April 16, Award and Phoenix Technologies announced that we have signed a definitive agreement to merge See mail merge and concatenate. the companies. The merger will enable both companies to apply common R&D resources in the development of innovative products for our respective, complimentary BIOS BIOS in full Basic Input/Output System Computer program that is typically stored in EPROM and used by the CPU to perform start-up procedures when the computer is turned on. offerings. We believe this strategy will best enable us to offer competitive pricing structures in an industry that has become increasingly price sensitive despite continual demands for product diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. and improvement." Effective immediately, the Board of Directors has indefinitely in·def·i·nite adj. Not definite, especially: a. Unclear; vague. b. Lacking precise limits: an indefinite leave of absence. c. suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. The statements in this news release, other than the historical information, contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to various risks and uncertainties that could cause actual results of Award and the combined company to differ materially from those currently anticipated. The success of the combined company will depend upon a number of factors, including (i) the combined company's ability to integrate the various functional groups, such as sales and engineering, effectively and achieve costs savings; (ii) the risk that customers may defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. purchasing decisions following the announcement of the Merger; (iii) the ability of Phoenix, Award and the combined company to retain key employees following the announcement of the Merger; (iv) the impact of transaction and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. to be incurred by the combined company; and (v) the combined company's ability to successfully introduce new products and upgrades to existing products. Further information on factors that could affect Award's results are detailed in Award Software's Annual Report on Form 10K for the year ended Dec. 31, 1997 as filed with the Securities and Exchange Commission. Further information on factors that could affect Phoenix's results are detailed in Phoenix Technologies Annual Report on Form 10K for the year ended Sept. 30, 1997 and Form 10Q for the quarter ended December December: see month. 31, 1997 as filed with the Securities and Exchange Commission. -0- Note to Editors: Award Software International is a registered trademark and AwardBIOS is a trademark of Award Software International Inc. Phoenix is a registered trademark of Phoenix Technologies Ltd. All other trademarks, registered trademarks or service marks are the property of their respective owners. -0-
Award Software International Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
Mar. 31, Dec. 31,
1998 1997
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 25,604 $ 24,631
Accounts receivable, net 4,671 4,256
Receivables from related parties 770 747
Other current assets 2,201 2,181
Total current assets 33,246 31,815
Property and equipment, net 1,370 1,367
Other assets 1,493 1,199
TOTAL ASSETS $ 36,109 $ 34,381
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 358 $ 449
Accrued liabilities 4,381 3,950
Total current liabilities 4,739 4,399
Minority interest 191 170
Total liabilities 4,930 4,569
Shareholders' equity:
Common stock 22,643 22,571
Deferred stock compensation (87) (106)
Retained earnings 9,467 8,320
Cumulative translation adjustment (844) (973)
Total shareholders' equity 31,179 29,812
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 36,109 $ 34,381
Award Software International Inc.
Condensed Consolidated Statement of Income
Three months ended
Mar. 31,
1998 1997
(In thousands, except per
share amounts)
(Unaudited)
Revenues:
Software license fees $ 5,261 $ 4,036
Engineering services 679 347
Related parties 466 645
Total revenues 6,406 5,028
Cost of revenues:
Software license fees 371 229
Engineering services 212 85
Related parties 17 26
Total cost of revenues 600 340
Gross profit 5,806 4,688
Operating expenses:
Research and development 1,635 1,661
Sales and marketing 1,772 1,041
General and administrative 1,072 888
Total operating expenses 4,479 3,590
Income from operations 1,327 1,098
Interest income, net 339 261
Minority interest (26)
Income before provision for
income taxes 1,640 1,359
Income tax provision 492 467
Net income $ 1,148 $ 892
Diluted net income per common share $ 0.15 $ 0.12
Weighted average number of common and
common equivalent shares outstanding 7,670 7,701
CONTACT: Award Software International(R) Inc. Toni Goodrich Goodrich is a surname, and may refer to:
toni_goodrich@award.com or Stapleton Stapleton may refer to: Places United Kingdom
Ellen El·len , Mount A peak, 3,514.2 m (11,522 ft) high, of southern Utah. Brook/Deborah Stapleton, 650/470-0200 ellen@stapleton.com |
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