Cheyenne Software posts first quarter sales and earnings results.

ROSLYN HEIGHTS, N.Y.--(BUSINESS WIRE)--Oct. 24, 1995--Cheyenne Software, Inc. (AMEX:CYE) reported that for the first quarter ended September 30, 1995 (FQ196), revenues increased to $38,464,000 versus $21,652,000 in last year's comparable quarter. Net income for FQ196 was $7,396,000 or 19 cents per share versus $14,938,000 or 38 cents per share last year. Included in last year's comparable quarter (FQ195) was a $21,232,000 (28 cents per share, net of income taxes) one time gain, arising from the exchange of Gates/FA Distributing, Inc. shares for Arrow Electronics, Inc. shares. Included in FQ196's net expenses were charges of $1,636,000 (about 3 cents per share, net of income taxes) associated with the write-off of purchased R&D relating to the Chili Pepper Software, Inc. acquisition.

ReiJane Huai, President and Chairman said, "We are delighted with the results achieved in FQ196 which is traditionally our slowest quarter due to summer seasonality. We believe our product development diversification plans are working. Sales of the new Windows NT and Unix product lines grew significantly and we expect continued good growth from these products. We plan to ship our new ARCserve for NetWare version 6 product during FQ296 and are confident concerning its potential market acceptance."

Elliot Levine, Executive Vice President and Chief Financial Officer commented, "We added approximately 50 employees worldwide during FQ196 and controlled other expenses, thereby enabling us to maintain our strong operating profit margins. In FQ296, we expect to begin to move a portion of our employees into our nearby newly leased 100,000 square foot Lake Success, New York facility. Our cash, cash equivalents and investment position increased $7,203,000 in the quarter to $78,405,000." -0-

                     CHEYENNE SOFTWARE, INC.
               Consolidated Statements of Earnings
         Three Months Ended September 30, 1995 and 1994
                          (unaudited)

                                              Three Months Ended
                                                 September 30
                                               1995       1994
                                    (In thousands, except per share data)

Revenues                                     $38,464     $21,652

Cost of Sales (including technical support)    6,693       3,760

Gross Profit                                  31,771      17,892

Operating Expenses:
       Research and development                5,166       2,815
       Selling and marketing                  11,126       8,235
       General and administrative              3,277       1,780
       Charge for purchased research
        and development                        1,636           0

            Total operating expenses          21,205      12,830

Operating income                              10,566       5,062

Non-Operating Income:
     Interest income and other                   726         752
     Other gains, net                              0      21,232

Income before income taxes                    11,292      27,046

Provision for income taxes                     3,896      12,108

Net income                                     7,396      14,938

Net income per share                            0.19       $0.38

Weighted average number of common shares and
       equivalents outstanding                38,829      39,687

CONTACT: ReiJane Huai, President and CEO

Elliot Levine, CFO

Cheyenne Software, Inc.

516/484-5110