Boole & Babbage reports record results.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 25, 1995--Boole & Babbage Inc. (NASDAQ:BOOL) announced record revenues, net income and earnings per share for its first quarter of fiscal 1995.

First quarter revenues were $38,573,000 or a 24% increase over the fiscal 1994 revenues of $31,117,000. Operating income was up 25% to $4,171,000 compared to 1994's first quarter. Net income rose by 43% to a record $3,312,000 due to higher interest income and less currency transaction losses. Related earnings per share increased 33% to 44 cents, compared to 33 cents last year (after giving effect to the November 1994 3-for-2 stock split).

"This past quarter not only showed solid progress in our client/server product line with new revenue growth of 50%, but also the continued strength of our mainframe products which grew by 40%. Both of these product areas attained record quarterly revenue levels and have achieved consistently solid growth over this past year," said Paul E. Newton, president and chief executive officer.

"In North America our 35% growth rate was the best in the last two years. Internationally, new revenues increased nearly 37% reflecting a resurgence in Europe and continued strong growth in other international markets, particularly our Japanese and Australian subsidiaries.

"This past quarter we invested in several channel and product initiatives to fuel future revenue growth. While these programs increased our sales and marketing costs by 36% and thus contained our margin expansion, we believe they will help accelerate our move into the distributed systems management market.

"And, to further help achieve this objective, we recently signed a distribution agreement with Network Intelligence Inc., for their new LAN management product which is scheduled for release later this year. Thus, both operationally and financially, we're off to a strong start for the new fiscal year," Newton concluded.

Boole & Babbage is the worldwide leader in Enterprise Automation software for distributed systems. The company is committed to supporting open systems and the growing client/server market to help IS organizations reduce costs and increase systems availability. Boole & Babbage maintains strategic alliances with Hewlett-Packard, IBM and other industry leaders to ensure its customers the most powerful, efficient solutions.

Founded in 1967, Boole & Babbage sells more than 40 products in North America, Europe, Asia, Japan, Australia, and Latin America.

Following are highlights of fiscal 1995's first quarter ended Dec. 31, 1994: -0-

       Condensed Consolidated Statements of Income (Unaudited)
            (In thousands, except per share amounts)

                                        Q195             Q194

Revenues                              $38,573           $31,117
Costs and expenses                     34,402            27,778
                                       ------            ------

Operating Income                        4,171             3,339

Other income                              631                 6
                                        -----             -----
 Pretax income                          4,802             3,345

Income taxes                            1,490             1,035
Tax rate                                31.0%             31.0%

 Net income                            $3,312            $2,310

Earnings per share (a)                 $  .44            $  .33

Shares outstanding (a)                  7,540             7,090

         Condensed Consolidated Balance Sheets (Unaudited)

                                 Dec. 31,   June 30,   Dec. 31,
                                   1994       1994      1993

Cash                             $36,564     $32,409   $22,023
Trade receivables                 24,842      18,480    20,818
Lease and other receivables       41,228      32,462    25,747
Furniture and equipment            8,181       8,706     8,921
Capitalized software              13,610      14,505    14,015
Other                             13,489      11,185     9,564
                                 -------     -------    ------
 Total Assets                   $137,914    $117,747  $101,088

Accrued expenses                $ 30,633    $ 25,248  $ 23,123
Other liabilities                  5,560       7,256     7,251
Deferred maint. income            50,241      41,936    33,348
Stockholders' equity              51,480      43,307    37,366
                                 -------     -------   -------
 Total Liabilities and Equity   $137,914    $117,747  $101,088

(a) Per share data and number of shares reflect a 3-for-2 stock split
    which became effective on Nov. 7, 1994.

CONTACT: Boole & Babbage, San Jose

Arthur Knapp, 408/526-3333