Boole & Babbage Reports Record Results in Fourth Quarter 1997.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Nov. 17, 1997-- License growth was 32% for Q4 before currency impact as 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). new sales increased by 56%. 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. in Q4 increased by 104% with margins of 13.3%. 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. was up 140% to $.36 despite a $.05 decrease due to currency impact Boole Boole , George 1815-1864. British mathematician and logician who developed a calculus of symbolic logic. Noun 1. Boole - English mathematician; creator of Boolean algebra (1815-1864) George Boole & Babbage (language) Babbage - The structured assembly language for the General Electric Company 4xxx range of computers and their OS4000 operating system. It is strictly an assembler in that the generated code is relatively predictable but it can be written in a sufficiently structured , 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 : BOOL) announced that revenues for its fiscal fourth quarter ended September September: see month. 30, 1997 were a record $52,129,000 or a 9% increase over the fiscal 1996 revenues of $47,854,000. Operating income was up 104% to $6,957,000 compared with $3,407,000 in 1996's fourth quarter. Related earnings per share increased 140% to a record $.36 versus $.15 last year. Unless noted otherwise, all reported results reflect the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effect of the acquisition of MAXM Systems Corporation which was completed during the second quarter and was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . For the year ended September 30, 1997, revenues were up 9% to a record $197,097,000. Including the pre-tax impact of $11,309,000 from the second quarter's acquisition and non-recurring costs, operating income decreased by 8% to $11,814,000. The after-tax impact of these charges was $8,469,000 or $.42 per share which resulted in earnings per share of $.67, a 12% increase over 1996's earnings per share of $.60. Without these one-time charges, operating income would have been up 80% to $23,123,000 with operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 11.7% and related earnings per share of $1.09 or a 82% increase over 1996. "I am very pleased with the strong performance across all product groups and sales channels," said Paul E. Newton, 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. . "Before the impact of currency rates, our licensing growth was approximately 32%, as our mainframe revenues grew by 24% and client/server revenues grew by 56%. Led by a strong performance from Europe, we grew about 41% internationally and in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , where we had a very tough comparable, we grew 16% to a record level. "In early October we announced our Desired-State Management product initiative which performs much like an auto-pilot for the "jetliner cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. " analogy analogy, in biology, the similarities in function, but differences in evolutionary origin, of body structures in different organisms. For example, the wing of a bird is analogous to the wing of an insect, since both are used for flight. we often use to describe our product strategy to investors. Recently, top industry analysts have begun to stress the role of "desired-state management" as the only feasible method of meeting service levels and other business goals in today's complex computing computing - computer environment. In support of this initiative, we are currently shipping our new Explorer family of 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. and Web-based products. "This represents a significant expansion of our current COMMAND/POST, MainView, SpaceView and Command MQ product lines. The Desired State Management initiative and the Explorer product family that implements it allows us to respond to what analysts believe to be near-term demands from the marketplace. We also hope to increase the number of our competitive wins due to the enhanced competitive position of our products. "And, this initiative is a vital part of three key changes that are underway as we 1) focus on accelerating our revenue growth as client/server products become a larger share of our business, 2) support this Desired State Management position by aggressive marketing programs such as the upcoming "Best Practices in Enterprise Management" Forums and 3) exploit our current major development efforts on NT, the web, sysplex, and MQ to keep our technology one step ahead of the quickly evolving market demands. "Finally, we hope that recent financial market turmoil affords us acquisition opportunities in addition to increased investor interest as a result of our steady, consistent track record over the past 24 quarters in which our reported EPS has grown at a 30% compounded rate," Newton concluded. Except for the historical information contained herein, the matters discussed in this news release are 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 timely development and market acceptance of new products, the impact of competitive products particularly from larger companies with more resources, and worldwide economic conditions as they affect the spending intentions of the Company's customers, as well as the other risks detailed from time to time in the Company's SEC reports, including the 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 fiscal 1996 as well as the most recently filed Form 10-Q Form 10-Q See 10-Q. . Boole & Babbage is a leader in enterprise automation software for distributed systems Distributed systems (computers) A distributed system consists of a collection of autonomous computers linked by a computer network and equipped with distributed system software. and is committed to supporting open systems and the growing client/server market to help IS organizations increase systems availability and reduce costs. Boole & Babbage maintains strategic alliances with other industry leaders to ensure its customers the most powerful, efficient solutions. Founded in 1967, it sells more than 40 products in North America, Europe, Asia, Japan, Australia, and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Following are highlights of fiscal 1997's fourth quarter and annual results: -0- KEY FINANCIAL HIGHLIGHTS Fourth Quarter 1997 -- 24th Consecutive quarter of year-to-year earnings growth -- License revenue up 19% as reported but up 32% if at constant currency -- At constant currencies, client/server licenses up 56%, mainframe up 24%. North America grew by 16% and International was up 41% -- Total revenue up 9% to $52.1 million as reported but up 20% to $57.3 million if at constant currency -- Operating income up 104% to 13.3% as reported but up 147% to 14.7% if at constant currency -- Earnings per share up 140% to $.36 vs Analyst estimates of $.31 to $.33. Could have been up another $.05 to $.41 if at constant currencies. -- Stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program restarted after expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the SEC mandated moratorium A suspension of activity or an authorized period of delay or waiting. A moratorium is sometimes agreed upon by the interested parties, or it may be authorized or imposed by operation of law. from the MAXM acquisition and totaled $1.5 million during the quarter. Fiscal Year ended September 30, 1997 -- License revenue up 14% as reported but up 23% if at constant currency -- Total revenue up 9% to $197.1 million as reported but up 17% to $210.7 million if at constant currency -- Excluding one-time acquisition charges, operating income up 80% to 11.7% as reported but up 108% to 12.7% if at constant currency -- Without one-time acquisition charges, earnings per share up 82% to $1.09 but could have been up 103% to $1.22 if at constant currencies. -- R&D spending at 16% of Boole revenue but net capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of only 3% -- Cash & lease receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of $175 million, Total assets of $260 million, and Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $118 million -0-
Boole & Babbage, Inc.
Consolidated Statements of Income -- As restated for 97Q2 pooling
with MAXM Systems
(Amounts in thousands, except net income per share)
Three Months Ended Fiscal Year Ended
September 30, September 30,
1997 1996 1997 1996
-------- -------- -------- --------
Revenue:
Product licensing $ 29,790 $ 24,943 $108,909 $ 95,219
Maintenance
fees and other 22,339 22,911 88,188 84,932
-------- -------- -------- --------
Total revenue 52,129 47,854 197,097 180,151
-------- -------- -------- --------
Costs and expenses:
Cost of product licensing 4,064 3,657 15,030 15,355
Cost of maintenance
fees and other 5,040 5,168 19,751 19,483
Product development 6,308 6,483 24,881 22,326
Sales and marketing 25,282 24,474 95,817 91,766
General and administrative 4,478 4,665 18,495 18,392
Acquisition and
nonrecurring costs -- -- 11,309 --
-------- -------- -------- --------
Total costs and expenses 45,172 44,447 185,283 167,322
-------- -------- -------- --------
Operating income 6,957 3,407 11,814 12,829
Interest and other
income, net 2,606 1,644 9,180 5,643
-------- -------- -------- --------
Income before
provision for
income taxes 9,563 5,051 20,994 18,472
Provision for income taxes 2,300 2,075 7,525 7,015
-------- -------- -------- --------
Net income $ 7,263 $ 2,976 $ 13,469 $ 11,457
======== ======== ======== ========
Shares used in per
share calculations 20,395 19,357 20,095 19,207
======== ======== ======== ========
Net income per share:
Before acquisition
and nonrecurring costs $ 0.36 $ 0.15 $ 1.09 $ 0.60
======== ======== ======== ========
As reported $ 0.36 $ 0.15 $ 0.67 $ 0.60
======== ======== ======== ========
Supplemental Data:
--Q4 Licensing revenue growth--
As reported Proforma (1)
Client/server products 43% 56%
Mainframe products 12% 24%
------------- -------------
19% 32%
------------- -------------
Domestic channels 16% 16%
International channels 22% 41%
------------- -------------
19% 32%
------------- -------------
(1) Proforma excludes impact of currency rates
Boole & Babbage, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
September 30, September 30,
Assets 1997 1996
-------------- -------------
Cash and short-term
investments $ 56,973 $ 62,010
Installment and other
receivables, net 117,759 85,362
Accounts receivable, net 26,412 27,955
Deferred tax asset 16,725 15,121
Prepaid expenses and
other current assets 4,513 4,383
Purchased and internally
developed software, net 12,152 11,614
Equipment, furniture and
leasehold improvements, net 9,968 12,763
Other assets 15,642 5,332
--------- ---------
Total assets $ 260,144 $ 224,540
========= =========
Liabilities and Stockholders'
Equity
Accounts payable and
accrued payroll expense $ 18,735 $ 15,495
Other accrued liabilities 27,079 25,090
Short-term borrowings
and notes payable 1,385 4,063
Capital lease obligations 2,728 4,638
Deferred maintenance revenue 91,715 80,190
Stockholders' equity
Common stock 91,990 81,062
Retained earnings 32,800 19,332
Unrealized gain on
marketable securities 5,691 370
Foreign currency
translation adjustment (3,503) 704
Less treasury stock (8,476) (6,404)
--------- ---------
Total stockholders' equity 118,502 95,064
--------- ---------
Total liabilities and
stockholders' equity $ 260,144 $ 224,540
========= =========
CONTACT: Boole & Babbage, Inc. Arthur F. Knapp, Jr., 408/526-3333 aknapp@boole.com http://www.boole.com |
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