Best Software Announces Results for the First Quarter.RESTON Reston, uninc. city (1990 pop. 48,556), Fairfax co., N Va., a planned community established in 1961. A suburb of Washington, D.C., Reston is organized in a series of residential villages and commercial areas. , Va.--(BUSINESS WIRE)--April 19, 1999-- Best Software, Inc. (Nasdaq: BEST), a leading provider of corporate resource management solutions, today announced financial results for the first quarter ended March 31, 1999. In the quarter, Best Software generated revenue of $20.0 million and 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 of $0.20 exclusive of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. write-offs and amortization. Best Software's revenue grew 46% to $20.0 million compared to $13.7 million in the quarter ended March 31, 1998. License fees and royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. rose 37% to $9.3 million from $6.8 million. Services revenue increased 55% to $10.7 million from $6.9 million due to strong revenue from all sources -- support contracts, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and training. "We're we're Contraction of we are. we're we are pleased to deliver a good quarter with growth from all our products and services," said Tim Davenport Davenport, city (1990 pop. 95,333), seat of Scott co., E central Iowa, on the Mississippi River; inc. 1836. Bridges connect it with the Illinois cities of Rock Island and Moline; the three communities and neighboring Bettendorf, Iowa, are known as the Quad Cities. , 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. . "The buying behavior of the middle market appears unchanged as our customers continue to buy PC, client/server An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). and Web-based solutions, apparently less affected by Year 2000 issues than are enterprise customers." Comparing the quarterly results on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis before the effect of acquisition-related charges, 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. grew 27% to $3.3 million compared with operating income of $2.6 million in the first quarter of 1998. The March 1999 operating income margin was 16%. Net income was $2.4 million, a 22% increase over net income of $2.0 million in the prior period. Diluted earnings per share were $0.20 in the quarter compared with diluted earnings per share of $0.17 in the quarter ended March 31, 1998. The acquisition-related charges excluded from the Company's pro forma financial results include the $1.2 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process research and development ("IPR&D") related to its acquisition of the assets of OmniVista Software Corporation in March 1999, the write-off of IPR&D related to the acquisition of HR Management Software GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) in March 1998, the amortization of acquired intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and the related tax effects. As reported, operating income was $1.7 million compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.3 million in the first quarter of 1998. Net income was $1.4 million compared with a net loss of $402,000 in the prior period. Diluted earnings per share were $0.12 compared with a loss per share of $0.04 in the quarter ended March 31, 1998.
Highlights since the fourth quarter earnings release include:
-- In March 1999, the Company announced that it had acquired the
assets of OmniVista Software Corporation, a leading provider of
planning and analytical applications. These products, including
strategic planning, budgeting and allocations solutions, will be
marketed as Best! Imperativ Analytics.
-- In February 1999, the Company's Best! Imperativ HRMS won the 1998
Industry Solutions Award for the Best Complementary Mid Market
Application. The Mid Market Accounting and ERP Industry Solutions
Awards were sponsored by Microsoft Corporation and Business
Finance Magazine. Best! Imperativ HRMS is a Web-based human
resources management solution that includes roles-based
self-service functionality.
-- Best Software and PowerCerv Technologies announced a strategic
alliance in March 1999. PowerCerv will market and license Best!
Imperativ Asset Accounting as an integrated component of its ERP
Plus application suite for discrete manufacturers. PowerCerv is a
key provider of integrated front-office and back-office software
for the middle market.
-- The Company acquired H.R. Management & Software AG, now Best
Switzerland, in March 1999 to expand its European presence and
extend its professional services capacity for the forthcoming
international version of Best! Imperativ HRMS.
-- Deepening its management team, the Company announced several
appointments during the quarter, including Elvin Monteleone as
executive vice president of the Financial Applications Group from
Seagate Software, Inc.; Steve Hendricks as vice president of
Professional Services from PowerCerv Corporation; and Mary
Sullivan as director for the Certified Public Accountants and
consulting relationships program, who rejoins Best Software after
serving as a consultant with the Baan Company.
Best Software, with offices in the U.S., Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , is a
leading provider of corporate resource management solutions, which help
organizations to better manage their people, assets and planning. Its
scalable cost-effective cost-effective,n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solutions complement core accounting systems and support Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. (R) technology including Windows(R)95, Windows(R) 98, 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), and BackOffice An earlier suite of network server software products from Microsoft that was licensed and supported as one inclusive bundle. The suite was discontinued in late 2001, but some of the underlying products and their client access licenses (CALs) remained as stand-alone products. (R). Best Software will hold an investor conference call today at 5:30 p.m. Eastern Time. Investors interested in participating should dial 800-288-8974 and reference the Best Software Conference Call. Investors from outside the U.S. or without access to the toll-free number should dial 612-332-0228. NOTE TO EDITORS: Forward looking statements in this release, including statements regarding the delivery and integration of new products and services and expectations for revenue and earnings, are based on information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Such forward looking statements are made only as of the date hereof. The Company's actual results could differ materially from those stated or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward looking statements due to risks and uncertainties associated with fluctuations in the Company's quarterly operating results, concentration of the Company's product offerings, development risks involved with new products and technologies, competition, and other risk factors disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the Company's filings with the Securities and Exchange Commission. Best Software, Best! Imperativ, Best! Imperativ Analytics, Best! Imperativ HRMS HRMS Human Resource Management System HRMS High Resolution Microwave Survey (SETI, Project Phoenix) HRMS High Resolution Mass Spectroscopy HRMS High Resolution Molecular Spectroscopy HRMS Human Resources Management Specialist , and Best! Imperativ Asset Accounting are trademarks, and the Best logo is a registered trademark of Best Software, Inc. Microsoft, Windows, Windows 95, Windows 98, Windows NT, and BackOffice are registered trademarks 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 pro forma and historical results of operations for the quarter ended March 31 follow. -0-
Best Software, Inc.
Pro Forma Consolidated Statements of Operations
(in thousands, except per share amounts)
Quarter Ended
March 31,
1999 1998
Pro Forma Pro Forma
-------- --------
Revenue:
License fees and royalties $9,342 $6,803
Services 10,700 6,895
-------- --------
Total 20,042 13,698
-------- --------
Cost of revenue:
License fees and royalties 340 440
Services 3,365 2,139
-------- --------
Total 3,705 2,579
-------- --------
Gross margin 16,337 11,119
-------- --------
Operating expenses:
Sales and marketing 7,552 4,704
Research and development 3,340 2,121
General and administrative (Note 1) 2,171 1,710
-------- --------
Total operating expenses, excluding
acquisition related charges 13,063 8,535
-------- --------
Operating income 3,274 2,584
Other income, net 591 594
-------- --------
Income before income taxes 3,865 3,178
Income tax provision 1,450 1,200
======== ========
Net income $2,415 $1,978
======== ========
Basic earnings per common share $0.21 $0.18
======== ========
Diluted earnings per common share $0.20 $0.17
======== ========
Basic shares used in computing earnings
per share 11,699 10,981
======== ========
Diluted shares used in computing
earnings per share 12,329 11,872
======== ========
Note 1. For the quarter ended March 31, 1999, excludes $1.2 million
related to the write-off of IPR&D related to the acquisition of the
assets of OmniVista Software Corporation in March 1999, and
amortization of acquired intangibles of $350,000. For the quarter
ended March 31, 1998, excludes $3.9 million related to the write-off
of IPR&D related to the acquisition of HR Management Software GmbH in
March 1998.
Best Software, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Quarter Ended
March 31,
1999 1998
Pro Forma Pro Forma
-------- --------
Revenue:
License fees and royalties $9,342 $6,803
Services 10,700 6,895
-------- --------
Total 20,042 13,698
-------- --------
Cost of revenue:
License fees and royalties 340 440
Services 3,365 2,139
-------- --------
Total 3,705 2,579
-------- --------
Gross margin 16,337 11,119
-------- --------
Operating expenses:
Sales and marketing 7,552 4,704
Research and development 3,340 2,121
General and administrative 2,171 1,710
Amortization of acquired intangibles 350 --
Write-off of purchased research and
development 1,200 3,850
-------- --------
Total 14,613 12,385
-------- --------
Operating income (loss) 1,724 (1,266)
Other income, net 591 594
-------- --------
Income (loss) before income taxes 2,315 (672)
Income tax provision (benefit) 875 (270)
======== ========
Net income (loss) $1,440 ($402)
======== ========
Basic earnings (loss) per common share $0.12 ($0.04)
======== ========
Diluted earnings (loss) per common share $0.12 ($0.04)
======== ========
Basic shares used in computing earnings
(loss) per share 11,699 10,981
======== ========
Diluted shares used in computing earnings
(loss) per share 12,329 10,981
======== ========
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