Best Software, Inc. Reports Financial Results for the Second Quarter.RESTON, Va.--(BUSINESS WIRE)--Oct. 20, 1997--Best Software, 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 :BEST), a leading provider of asset, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and payroll management software for middle market businesses, today announced financial results for the quarter ended September 30, 1997. Best Software's second quarter revenues were up 27% over the same period last year. Revenues for the quarter were $11.8 million compared to $9.3 million in the second quarter of fiscal 1997. Earnings per share for the second quarter of fiscal 1998 were 11 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. with net income of $1.1 million, compared to $1.1 million a year ago. Revenues for the six-month period ended September 30, 1997 were $22.5 million compared to $17.8 million (for the Company's ongoing business) in the prior fiscal year, an increase of 27%. Earnings per share for the six-month period were 15 cents. "Overall Best had an outstanding quarter, achieving strong growth in both our FAS asset management and Abra human resources divisions across all sources of product and service revenue," said Tim Davenport, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Best Software. Revenue growth was 28% for license fees and royalty and 27% for services for the quarter ended September 30, 1997. The mix of revenue between license fees and royalty and services approximated 50%/50%. Highlights for the quarter include: The next releases of Abra Suite (version 5.0) and FAS (version 97.2) successfully completed beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the . The new 32-bit versions of these products will ship in October to further strengthen the competitive position of Best's market leading products. The Canadian version of Abra HR was shipped adding to the product line of previously shipped Canadian versions of FAS, FASTrack and Abra People Manager Plus. On September 30, 1997, the company completed an initial public offering of 4.15 million shares of common stock, which resulted in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the company of approximately $33 million. The offering closed October 3, 1997. Best Software, Inc., with offices in Reston, Virginia Reston is an internationally known planned community whose goal was to revolutionize post-World War II concepts of land use and residential/corporate development in American suburbia. , St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. and Ontario, Canada, is a leading provider of asset, human resources and payroll management software solutions for middle market businesses. Its cost-effective solutions complement core accounting systems and are scaleable, supporting Microsoft operating systems The following is a list of Microsoft operating systems. For the codenames that Microsoft gave their operating systems, see Microsoft codenames. Before Windows
Best will hold an investor conference call today at 4:30 p.m. EST to review its results with investors. Those investors interested in participating should dial 1-800-425-7617 and reference the "Best Software Conference Call." After the conference call, investors may send follow-up e-mail questions to Best at the following addresses: Tim Davenport, President and Chief Executive Officer tim_davenport@bestsoftware.com David Bosserman, Chief Financial Officer david_bosserman@bestsoftware.com This release contains descriptions of the company's expectations regarding future business trends. These 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. are made in reliance upon safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Accordingly, actual results may differ materially from those contemplated by the forward-looking statements. FAS and FASTrack are trademarks and the Best logo is a registered trademark of Best Software, Inc. Abra and Abra Suite are trademarks of Abra Software, Inc., which is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Best Software, Inc. Windows is a registered trademark of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, . All other trademarks are the property of their respective holders. The results of operations for the quarter and six-months ended September 30 follow. -0-
Best Software, Inc.
Condensed Consolidated Financial Information-Unaudited
(in thousands, except per share amounts)
Quarter Ended Six-Months Ended
September 30 September 30
1997 1996 1997 1996
Revenues:
License fees and royalty $5,889 $4,603 $11,246 $9,667
Services 5,936 4,688 11,225 9,123
Total 11,825 9,291 22,471 18,790
Cost of revenues:
License fees and royalty 556 362 927 939
Services 1,492 1,241 2,962 2,755
Total 2,048 1,603 3,889 3,694
Gross margin 9,777 7,688 18,582 15,096
Operating expenses:
Sales and marketing 4,418 2,999 8,722 6,953
Research and development 2,077 1,464 4,125 3,281
General and administrative 1,584 1,250 3,168 2,773
Total 8,079 5,713 16,015 13,007
Operating income 1,698 1,975 2,567 2,089
Other income (expense), net 82 87 (212) 98
Income before taxes 1,780 2,062 2,355 2,187
Income tax provision 685 940 910 985
Net income $1,095 $1,122 $1,445 $1,202
Pro forma net income per share $0.11 $0.15
Shares used in computing net
income per 9,581 9,646
share
CONTACT: Best Software, Inc. David Bosserman Chief Financial Officer 703-709-5200, ext. 3230 david_bosserman@bestsoftware.com or Best Software, Inc Susan Lee (media) 703-709-5200, ext. 3277 susan_lee@bestsoftware.com or Baron, McDonald & Wells Dianne Rabbitt (media) 770-492-0373 drabbitt@bmwpr.com |
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