Boole & Babbage Reports Record Revenues, Margins, and EPS in Fourth Quarter 1998.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. 5, 1998-- The Company Has Now Reported 28 Consecutive Quarters of Meeting or Exceeding Expectations; Reported 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. Has Grown at a Compounded Rate of 32% Since 1992; 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. Represented Nearly 40% of License Revenue in Q4 and 34% for the Year With a Growth Rate of 60% in Constant Currency Boole & Babbage, Inc. (Nasdaq:BOOL) today announced that earnings per share for its fourth quarter ended September 30 increased by 42% to a record $.34 compared with $.24 last year. Revenues were at record levels of $58.0 million or an 11% increase over the fiscal 1997's fourth quarter revenues of $52.1 million. 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. increased 59% to approximately $11.0 million with margins of 19.0% versus 13.3% in 1997. Currency rates had a negligible impact on the results during the quarter. For the fiscal year ended September 30, 1998 revenues increased 11% to approximately $218.2 million. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increased by 207% (57% excluding the impact of 1997 acquisition related charges) with margins of 16.6%. Earnings per share is up 167% (64% excluding the impact of 1997 acquisition related charges) to $1.20 compared with $.45 ($.73 without acquisition charges). Without the adverse impact of currency rates, revenues would have been up 15% to nearly $227 million with related per share earnings up 71% to $1.25. "I am absolutely delighted with our strong fourth quarter performance which significantly exceeded analyst expectations," 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. . "Distributed systems revenues constituted nearly 40% of our license revenue and grew by 50% to record levels while our mainframe revenues, where we had a tough comparable, declined slightly despite a $2.5 million sequential increase. 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. had a record quarter with 47% growth and Europe grew our Boole products by approximately 33% before a decrease of approximately 20% on third party products reduced their overall reported growth to 13%. "Our other international channels continued to be adversely affected by our conservative accounting for business in Asia 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. and decreased by approximately 55% reducing our overall license growth to approximately 13%. For the year, our licensing growth was nearly 20% at constant currencies led by North America at 28% and Europe at 20% (about +30% on Boole products) while other international channels showed a 3% decline. Distributed system See distributed computing. distributed system - A collection of (probably heterogeneous) automata whose distribution is transparent to the user so that the system appears as one local machine. licenses were up approximately 60% with mainframe licenses up 5%. "We unleashed several significant initiatives during the quarter as we completed the implementation of our common Graphical User Interface graphical user interface (GUI) Computer display format that allows the user to select commands, call up files, start programs, and do other routine tasks by using a mouse to point to pictorial symbols (icons) or lists of menu choices on the screen as opposed to having to strategy with the release of MainView Explorer, the last component of our very successful Explorer family. We also released SpaceView/DS that extended our storage management capabilities to UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). and NT. A major milestone was reached with the release of COMMAND/POST 4.1 that includes several rapid-deployment features as well as enhanced framework interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. and Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 extended support. Other key programs were the Command MQ Bonus Pac that provides web downloads of our easy to deploy MQSeries management tool and a new ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). model independently based on customer experiences and designed to help buyers quantify the higher returns generated by our COMMAND/POST solution. "Our most exciting development was the recently announced merger with BMC Software BMC Software, Inc. NYSE: BMC, is an American enterprise management software provider, focusing on IT infrastructure applications. BMC was founded in 1980 and is headquartered in Houston, Texas. , Inc. in the 6th biggest software transaction ever. With our large combined resources, we believe that customers will benefit from more integrated products and expanded service, employees will have new growth opportunities, and our shareholders can then see the rewards from these initiatives," 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 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 1997 and the most recent 10-Q. About Boole & Babbage, Inc. Boole & Babbage is a leader in availability and service level management for distributed systems. Its Enterprise Automation product lines provide a flexible and scaleable set of solutions used by many Fortune 1000 companies to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. all the IT operations, including systems, applications, databases, middleware Software that functions as a conversion or translation layer. It is also a consolidator and integrator. Custom-programmed middleware solutions have been developed for decades to enable one application to communicate with another that either runs on a different platform or comes from a , and Web technologies, into a coherent business view to reduce overall business costs. Founded in 1967 and named after two 19th Century forerunners to the modern computing computing - computer industry (George Boole (person) George Boole - 1815-11-02 - 2007-10-24 12:44 best known for his contribution to symbolic logic (Boolean Algebra) but also active in other fields such as probability theory, algebra, analysis, and differential equations. He lived, taught, and is buried in Cork City, Ireland. -- of Boolean algebra Boolean algebra (b  `lēən), an abstract mathematical system primarily used in computer science and in expressing the relationships between sets (groups of objects or concepts). and
Charles Babbage (person) Charles Babbage - The british inventor known to some as the "Father of Computing" for his contributions to the basic design of the computer through his Analytical Engine. -- the Babbage Computing Machine) the Company today is
the oldest publicly-traded independent software vendor in the systems
management industry with revenues of about $225 million, 930 employees
and 43 offices in 26 countries. For more investor information, visit us
on the Web at www.boole.com, or call 800/722-6653, ext. 3417.Note to Editors: Boole & Babbage, COMMAND/POST and MainView are registered trademarks of Boole & Babbage, Inc. SpaceView is a trademark of Boole & Babbage, Inc. All other product names and trademarks are property of their respective owners. -0-
Boole & Babbage, Inc.
Consolidated Statements of Income
(Amounts in thousands, except net income per share)
Three Months Fiscal Year
Ended Ended
Sept 30, Sept 30,
1998 1997 1998 1997
Revenue:
Product licensing $ 33,613 $ 29,790 $124,720 $108,909
Maintenance fees and
other 24,423 22,339 93,516 88,188
Total revenue 58,036 52,129 218,236 197,097
Costs and expenses:
Cost of product
licensing 3,122 4,064 14,369 15,030
Cost of maintenance
fees and other 6,486 5,040 22,928 19,751
Product development 6,421 6,308 25,617 24,881
Sales and marketing 25,884 25,282 99,980 95,817
General and
administrative 5,082 4,478 19,060 18,495
Acquisition and
nonrecurring costs -- -- -- 11,309
Total costs and
expenses 46,995 45,172 181,954 185,283
Operating income 11,041 6,957 36,282 11,814
Interest and other
income, net 3,204 2,606 14,632 9,180
Income before provision
for income taxes 14,245 9,563 50,914 20,994
Tax rate 28.0% 24.1% 28.0% 35.8%
Provision for income
taxes 3,985 2,300 14,260 7,525
Net income $ 10,260 $ 7,263 $ 36,654 $ 13,469
Shares used in per
share calculations
- diluted 30,430 30,595 30,580 30,145
Net income per share -
diluted $ 0.34 $ 0.24 $ 1.20 $ 0.45
Net income per share -
proforma (1) $ 0.34 $ 0.24 $ 1.20 $ 0.73
(1) Excluding acquisition and nonrecurring costs in Q297
Supplemental Data:
Q4 Revenue growth 12 Mo Revenue growth
As Constant As Constant
Reported Currency Reported Currency
Client/server products 51% 45% 55% 60%
Mainframe products -3% -2% 1% 5%
Product licensing 13% 12% 15% 19%
Maintenance fees and other 9% 9% 8% 10%
Total revenue 11% 11% 12% 15%
Boole & Babbage, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
Sept. 30, Sept. 30,
Assets 1998 1997
Cash and short-term investments $ 92,506 $ 56,973
Installment and other receivables, net 123,698 117,759
Accounts receivable, net 23,213 26,412
Deferred tax asset 23,483 16,725
Purchased and internally developed
software, net 12,898 12,152
Equipment, furniture and leasehold
improvements, net 11,225 9,968
Other assets 23,636 20,155
Total assets $310,659 $260,144
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 54,597 $ 45,814
Notes payable and capital lease
obligations 2,433 4,113
Deferred maintenance revenue 113,128 91,715
Stockholders' equity
Common stock 102,295 91,990
Retained earnings 69,454 32,800
Unrealized gain on marketable securities 6,425 5,691
Foreign currency translation adjustment (2,278) (3,503)
Less treasury stock (35,395) (8,476)
Total stockholders' equity 140,501 118,502
Total liabilities and stockholders'
equity $ 310,659 $ 260,144
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion