CBT Group Reports Record Second Quarter Revenues of $44.9 Million.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.---(BUSINESS WIRE)--July 14, 1998--CBT Group PLC (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 : CBTSY) today announced record financial results for the second quarter ended June June: see month. 30, 1998. CBT (Computer-Based Training) Using the computer for training and instruction. CBT programs are called "courseware" and provide interactive training sessions for all disciplines. Group's revenues for the second quarter were $44.9 million, a 51 percent increase from $29.8 million in the second quarter of 1997. Net income for the second quarter before deducting the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. costs of acquisition was $8.8 million or $0.19 per equivalent American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. , a 226 percent increase over net income of $2.7 million or $0.06 per equivalent American Depositary Share before deducting after-tax costs of acquisitions in the second quarter of 1997. Reported net income for the second quarter was $4.1 million compared to $2.2 million in the second quarter of 1997. Weighted average equivalent American Depositary Shares outstanding totaled 46.4 million in the second quarter of 1998, compared with 43.9 million equivalent American Depositary Shares in the second quarter of 1997. "This quarter's results reflect the growing appeal of our expanding product offerings, as well as the fundamental strength of our business model," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. J. Buckley, CBT Group 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. . "Our year-over-year revenue growth in the quarter of 51 percent continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the annual growth rate of the technology-based training sector overall. We believe that our thoughtful approach to technology-based training, combined with the breadth and depth of our library, and our advanced deployment and management products, place CBT Group in the sweet spot for continued growth in this rapidly growing market." In the second quarter, CBT Group's corporate customer base grew to 1,732 with the addition of 81 new corporate customers. The company added five more million-dollar-plus contracts in the quarter, bringing the total number of multimillion-dollar contracts for the year to 10. Announced in the quarter was a $1.6 million contract with British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. to provide CBT Group's interactive training courses to British Airways' 2,500 information technology staff members. Also announced today was a $2.6 million agreement with Whittman-Hart, a leading provider of IT consulting and systems integration services for middle-market companies, to provide its growing workforce of 2,100 employees with access to CBT Group's full library. (See today's press release, Whittman-Hart Extends and Expands Partnership with CBT Systems (CBT Systems, Menlo Park, CA) An acknowledged leader in the design and development of interactive education software for information technology training. Specializing in self-study courses that users can take at their own PCs, CBT developed a library of more than 600 titles for through $2.6 million Agreement.) CBT Group's aggressive product development enabled the delivery of a record 69 new interactive education software titles in the quarter. The company's library currently comprises 694 titles, representing a 25 percent increase over the number of titles at the end of 1997. Significant product announcements in the quarter included CBT Group's plan to deliver a new 100-title curriculum for the IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Suites for 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. . The company also announced a 12-course project management curriculum for technical and business users, and an expanded curriculum for Microsoft BackOffice See BackOffice. training. As a result of the company's close partnership with Microsoft, CBT Group developed an online training course, Start Collaborating with Outlook 98, exclusively for Microsoft's 19-city Collaboration Working together on a project. See collaborative software. Computing computing - computer Seminars in May. Demonstrating its first-to-market development capabilities, CBT Group also developed an Online Reviewers Guide for the Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. 98 operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. and delivered two new interactive training courses for individual and corporate users of Windows 98 to coincide with the June launch of Microsoft's newest version of Windows. CBT Group expanded its co-development partner list to 19 in the quarter with the addition of Intel Corp. and Rational Software Corporation. The company today also announced that it has strengthened its relationship with Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. through an expanded co-development agreement that includes the development of a comprehensive training curriculum for the new Cisco Career Certifications Cisco Career Certifications are IT professional certifications for Cisco products. The tests are administered by Pearson VUE (Prometric previously administered the test; but as of 1 Aug 2007, no longer does). . CBT Group is the only interactive training provider selected by Cisco to develop a full curriculum for the Cisco Career Certifications. (See today's press release, Cisco Systems and CBT Systems to Develop Comprehensive Training Solutions for New Cisco Career Certifications.) CBT Group signed a new technology partnership with Centra Software in May. The companies plan to add the ability to access Centra's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Symposium symposium In ancient Greece, an aristocratic banquet at which men met to discuss philosophical and political issues and recite poetry. It began as a warrior feast. Rooms were designed specifically for the proceedings. , from within CBTCampus(TM), CBT Systems' comprehensive enterprise training platform. Another CBT Group technology partner, Asymetrix Learning Systems, announced in May that it had begun shipping Toolbook II CBT Systems Edition, which is designed to enable organizations to create custom training applications with the consistent look and feel and navigational control of CBT Group's courseware Educational software. See CBT and OpenCourseWare. (application) courseware - Programs and data used in Computer-Based Training. . Other significant events in the quarter included the completion of CBT Group's acquisition of ForeFront Group, a provider of technology-based training products for technical professionals. "We expect that our leadership as an innovator in Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and intranet product deployment will continue to propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin our business forward," Buckley said. "Internet technologies are quickly becoming core to the training efforts of organizations worldwide. Because we have always designed our courseware to be distributed over networks, we have very quickly been able to provide customers with complete training solutions -- a broad range of training content, powerful administration tools, and online mentoring -- that fully exploit the capabilities of the Internet and intranets. Through our in-depth training content, deployment products such as CBTWeb(TM), CBTWeb Plus(TM), and CBTCampus(TM), and services such as Scholars.com's online mentoring, we have established a definite lead in the delivery of a consistent, rich education and training environment designed to be deployed and accessed anywhere in the world, any time of the day or night. "Our focus on aggressively developing all aspects of our business -- from creating the industry's highest quality courseware and most innovative deployment products to the cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or of our partnerships with leading technology companies -- has enabled CBT Group to deliver significant value to customers looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a comprehensive and effective training solution," Buckley added. "We believe that our value-added approach to IT training sets CBT Group apart, enabling us to attract new customers and expand our relationships with existing customers. We plan to continue to finely sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp our focus on the enormous opportunities in the technology-based training space, which International Data Corp. projects will grow at about 40 percent through the year 2002, to ensure our leadership position as the premier interactive training provider." This press release contains statements that are forward looking. These statements are based on current expectations that are subject to risks and uncertainties. Actual results may vary because of factors such as product ship schedules, life cycles, terms and conditions, product mix, competitive products and pricing, customer demand, technological shifts, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other issues discussed in the company's most recent annual 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. . About CBT Group CBT Group is a leading provider of interactive education software for information technology professionals in business, education and government markets worldwide. The company's comprehensive library, which covers a range of client/server, mainframe, and Internet and intranet technologies, is used by the world's leading corporations to train employees to develop and apply mission-critical technologies in the workplace. For information on CBT Group products, call (800) 387-0932, fax (650) 614-5901, or send an email to salesinfo@cbtsys.com. CBT Group is located on the World Wide Web at http://www.cbtsys.com. -0-
CBT GROUP PLC
Condensed Consolidated Statements of Operations
(dollars in thousands, except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
1997 1998 1997 1998
(Unaudited) (Unaudited)
Revenues $29,755 $44,852 $56,482 $84,781
Cost of revenues 5,173 6,697 9,854 12,641
----- ----- ------ ------
Gross profit 24,582 38,155 46,628 72,140
Operating expenses:
Research and development 4,731 6,604 9,162 12,994
Sales and marketing 13,415 18,622 26,243 35,490
General and administrative 3,616 3,594 5,964 6,808
Acquired research and
development 447 -- 447 --
Cost of acquisitions -- 5,505 926 5,505
------ ------ ----- -----
Total operating expenses 22,209 34,325 42,742 60,797
------ ------ ------ ------
Income from operations 2,373 3,830 3,886 11,343
Other income, net 665 936 1,220 1,903
------ ----- ------- ------
Income before provision for
income taxes 3,038 4,766 5,106 13,246
Provision for income taxes 817 667 1,336 1,805
------ ------ ----- ------
Net income 2,221 4,099 3,770 11,441
====== ====== ====== ======
Net income per equivalent
ADS (1) - Basic $0.06 $ 0.09 $ 0.09 $0.27
======= ======= ====== =====
ADSs used in computing net
income per equivalent
ADS - Basic 39,923 43,283 39,690 42,939
======= ======= ====== ======
Net income per equivalent
ADS (1) - $0.05 $0.09 $0.09 $0.25
======= ======= ===== =====
Diluted
ADSs used in computing
net income per equivalent 43,938 46,357 43,757 46,080
======= ====== ====== ======
(1) Net income per equivalent ADS gives effect to both two-for-one
share splits of Registrants' ADSs effected in May 1996 and
March 1998
CBT GROUP PLC
Condensed Consolidated Balance Sheets
( dollars in thousands)
December 31, June 30,
1997 1998
(Unaudited)
ASSETS
Current assets
Cash $35,505 $45,577
Short term investments 36,038 36,091
Accounts receivable, net 40,031 44,009
Inventories 615 1,021
Deferred tax assets, net 140 142
Prepaid expenses 4,198 8,458
------- -------
Total Current assets 116,527 135,298
Intangible assets 5,600 4,878
Property and equipment, net 10,207 14,345
Investment 200 350
Deferred tax assets, net 342 47
Other assets 8,453 12,023
------- -------
Total assets 141,329 166,941
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 32,510 28,660
Total current liabilities 32,510 28,660
------- -------
Non current liabilities 1,141 1,096
Shareholders' equity 107,678 137,185
------- -------
Total liabilities and
shareholders' equity 141,329 166,941
======= =======
Note to Editors: CBT Systems, CBT Campus, CBTWeb, CBTWeb Plus, LivePlay and the CBT Systems logo are trademarks of CBT Group PLC. All other company and product names may be trademarks of the respective companies with which they are associated. CONTACT: CBT Group PLC (Analyst Contact) Richard Okumoto, 650/614-5900 x605 richard_okumoto@cbtsys.com or CBT Group PLC (Media Contact) Cindy McCaffrey, 650/614-5962 cindy_mccaffrey@cbtsys.com |
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