Award Software Announces Earnings Results for Third Quarter 1997; Revenues Increase 65% over Q3 1996.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 27,1997--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), a leading provider of system management software (SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. ), today announced financial results for the third quarter and nine months ended Sept. 30, 1997. Revenues for the third quarter of fiscal 1997 were a record $5.6 million. This compares with $5.2 million in the 1997 second quarter and $3.4 million in the third quarter of 1996, a 65 percent increase. Income from operations was $1.4 million, compared with $1.2 million in the 1997 second quarter and $835,000 in the third quarter a year ago. Net income for the third quarter of 1997 was $1.1 million, compared with $1.0 million in the 1997 second quarter and $608,000 in the third quarter of 1996. Earnings per share for the third quarter of 1997 were $0.15 per share compared with $0.13 per share in the 1997 second quarter and $0.10 per share in the third quarter of 1996. "The addition of Packard Bell See Packard Bell NEC. , Motorola and LG Electronics to our customer base during Q3 is clear evidence that we are committed to become the leading provider of system management software," said Kevin Berry Kevin John Berry OAM (10 April 1945 – 7 December 2006) was an Australian butterfly swimmer of the 1960s who won the gold medal in the 200m butterfly at the 1964 Summer Olympics in Tokyo. He set twelve world records in his career. , the Company's Chief Financial Officer. "Also this quarter, we continued to leverage our desktop system management software expertise to design and develop products for the embedded Inserted into. See embedded system. device market as evidenced this quarter by our Japanese subsidiary's first embedded design wins." Award Software is the leader in 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. shipments with a 60 percent x86-based desktop and server market share worldwide. Every PC must have a BIOS, the software component without which the computer will not work. EliteBIOS is the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to system management software (SMS) product that Award Software designs, develops and markets to manufacturers of desktop, server, mobile and embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. . EliteBIOS-powered PCs can become Managed PCs and can be remotely administered using MPCAccess(TM), one of several solutions in the SMSAccess(TM) suite of products designed to ease administration and reduce total cost of PC ownership. Award Software's CardWare(R) enables full utilization of PC Card devices with MS Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. (R). Manufacturers of Internet appliances Also called "information appliance," "smart appliance," and "Web appliance," it is a device specialized for accessing the Web and/or e-mail. Designed for ease of use, it plugs into a telephone jack or LAN connection for Internet hookup. and other embedded devices can greatly reduce time to market by designing in Award Software products such as APIAccess(TM), which integrates WIN32(R) applications into real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. . Award Software's new subsidiary, Unicore(R) Software, provides vital BIOS upgrades The following organizations specialize in BIOS upgrades. See BIOS. ESUPPORT.COM N. Andover, MA 800/800-BIOS www.esupport.com AMERICAN MEGATRENDS, INC. Norcross, GA 800/828-9264 www.megatrends.com re> to extending PC life, and diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler tools to reduce PC repair time, including PC DIAG DIAG Diagnostics DIAG Diagonal DIAG Diagnosis DIAG Diagram DIAG Disbandment of Illegal Armed Groups (Afghanistan) DIAG Digital Image Applications Group (TM) and POSTcard(R). Award Software continues to expand its research and development efforts to create innovative new products for the growing computer and embedded systems industries. Corporate headquarters are in Mountain View, Calif., and the company has offices in North Andover North Andover (ăn`dōvər), town (1990 pop. 22,792), Essex co., NE Mass., on the Merrimack River, in a dairy and farm area; settled c.1644, set off from Andover and inc. 1855. , Mass., Germany, Taiwan, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Japan. For more information, e-mail info@award.com. The Company's stock is traded on the NASDAQ National Market under the symbol AWRD. More information can be obtained from the Company's SEC filing or by visiting Award Software's Web site at http://www.award.com . The statements in this news release, other than the historical financial information, may 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 involve risks and uncertainties including those associated with the acceptance of new technology and products, the company's concentration of revenues in the desktop BIOS Market, the Company's ability to respond to technological change and other market conditions that could cause actual results to differ materially. Further information on factors that could affect the company's results are detailed in Award Software's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 1996 and on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 1997, as filed with the Securities and Exchange Commission. -0- Note to Editors: All trademarks are the property of their respective owners. -0-
AWARD SOFTWARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
(Unaudited)
Three months Nine months
ended ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
------- ------- ------- -------
Revenues:
Software license fees $ 4,693 $ 3,000 $13,017 $ 8,049
Engineering services 662 91 1,703 382
Related parties 248 304 1,112 1,118
Total revenues 5,603 3,395 15,832 9,549
Cost of revenues:
Software license fees 324 173 762 312
Engineering services 184 58 481 115
Related parties 15 27 48 262
Total cost of revenues 523 258 1,291 689
Gross profit 5,080 3,137 14,541 8,860
Operating expenses:
Research and development 1,655 1,144 4,744 3,010
Sales and marketing 1,226 707 3,477 1,965
General and administrative 791 451 2,619 1,497
Total operating expenses 3,672 2,302 10,840 6,472
Income from operations 1,408 835 3,701 2,388
Interest income, net 264 114 801 284
Minority interest 12 -- 21 --
Income before provision for
income taxes 1,684 949 4,523 2,672
Income tax provision 556 341 1,503 961
Net income $ 1,128 $ 608 $ 3,020 $ 1,711
Net income per common share $ 0.15 $ 0.10 $ 0.39 $ 0.28
Weighted average number of
common and common equivalent
shares outstanding 7,708 6,039 7,714 6,059
AWARD SOFTWARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)
Sept. 30, Dec. 31,
1997 1996
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $21,843 $23,248
Accounts receivable, net 4,388 2,068
Receivables from related parties 640 1,197
Other current assets 1,044 598
Total current assets 27,915 27,111
Property and equipment, net 1,210 683
Other assets 1,360 616
TOTAL ASSETS $30,485 $28,410
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 254 $ 215
Accrued liabilities 2,332 3,104
Total current liabilities 2,586 3,319
Minority interest 168 --
Total liabilities 2,754 3,319
Shareholders' equity:
Common stock 21,620 21,269
Deferred stock compensation (124) (180)
Retained earnings 6,660 4,130
Cumulative translation adjustment (425) (128)
Total shareholders' equity 27,731 25,091
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $30,485 $28,410
CONTACT: Award Software International Inc. Toni Goodrich, 650/237-6831 toni_goodrich@award.com or Stapleton Communications Inc. Anna Yen/Deborah Stapleton, 650/988-9207 anna@stapleton.com |
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