Computron Software Reports Fourth Quarter Operating Profit; Net Loss for the Year.Business Editors RUTHERFORD Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. , N.J.--(BUSINESS WIRE)--Jan. 31, 2000 Computron computron - /kom'pyoo-tron"/ 1. A notional unit of computing power combining instruction speed and storage capacity, dimensioned roughly in instructions-per-second times megabytes-of-main-store times megabytes-of-mass-storage. Software, Inc. (AMEX AMEX See: American Stock Exchange :CFW CFW Custom Firmware CFW Call Forward CFW Cystic Fibrosis Worldwide CFW Cache Fast Write CFW Citizens for Florida's Waterways CFW Center for Writing (education) CFW Continuous Fillet Weld (engineering) ) today reported its financial results for the quarter and year ended December December: see month. 31, 1999. The Company reported fourth quarter revenues of $14.5 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. of $1.3 million and a net loss of $0.5 million including extraordinary and other special charges; compared to revenues totaling $17.5 million, operating income of $0.5 million, and net income of $0.3 million for the comparable period in 1998. For the year ending December 31, 1999, the Company reported revenues of $57.9 million, an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.2 million, and an overall net loss of $3.7 million after extraordinary and other special charges, compared to revenues in 1998 of $63.5 million, an operating loss of $8.8 million, and an overall net loss of $9 million. The net loss for 1999 includes a $2.2 million loss on the sale of the Company's French and German subsidiaries, a gain of $508 thousand on the sale of expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. state tax loss carry-forwards to a third party, and an extraordinary charge of $182 thousand for the write off of deferred debt issuance costs in connection with the amendment of the Company's long term debt agreement. Revenues and operating results of subsidiaries sold during 1999 which have been included in the Company's operating results through the date of sale were as follows (in thousands):
Three Months Ended Year Ended
December 31, December 31,
1998 1999 1998 1999
---- ---- ---- ----
License fees $ 493 $ 31 $ 2,944 $ 527
Services 2,558 520 8,951 4,897
-------- -------- -------- --------
Total revenues $ 3,051 $ 551 $ 11,895 $ 5,424
======== ======== ======== ========
Operating loss $ (136) $ (121) $ (3,694) $ (2,442)
======== ======== ======== ========
Commenting on the results, CEO John Rade noted, &uot;In 1999, we took
the necessary steps to focus on our internally developed product
lines. Sale of our operations in Germany in the second quarter,
downsizing of our Canadian operations in the third quarter and the
sale of our French subsidiary in the fourth quarter allows us to focus
on growing our core business, which generated operating profits of
approximately $2.4 million in 1999.&uot;
Computron Software, Inc. Background Information
Founded in 1978, Computron Software, Inc. (AMEX:CFW) is a global
provider of application software solutions for business and finance.
Used by more than 500 companies worldwide, these solutions automate
business processes across the enterprise and allow organizations to
capitalize on the knowledge within their systems. Computron's goal is
to provide organizations with competitive advantage and added,
measurable business value. The Company's latest Internet products will
allow companies to quickly deploy e-business application strategies.
For further information on Computron, its products, services and
customers, visit the Computron web site at
http://www.computronsoftware.com.
COMPUTRON SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
1998 1999 1998 1999
-------- -------- -------- --------
(Unaudited)
Revenues:
License fees $ 4,661 $ 4,459 $ 15,273 $ 11,468
Services 12,862 10,010 48,248 46,400
-------- -------- -------- --------
Total revenues 17,523 14,469 63,521 57,868
-------- -------- -------- --------
Operating expenses:
Cost of license fees 1,309 429 3,824 1,955
Cost of services 6,664 5,293 28,389 24,647
Sales and marketing 3,369 3,144 14,970 12,064
Research and
development 2,602 1,685 10,568 7,600
General and
administrative 3,373 2,595 13,586 12,213
Goodwill impairment -- -- -- 573
Restructuring costs (286) -- 1,025 --
-------- -------- -------- --------
Total operating
expenses 17,031 13,146 72,362 59,052
-------- -------- -------- --------
Operating income (loss) 492 1,323 (8,841) (1,184)
-------- -------- -------- --------
Other income (expense):
Costs related to class
action litigation (34) -- (74) --
Loss on sale of
subsidiaries -- (1,981) -- (2,242)
Interest income 85 18 453 89
Interest expense (132) (124) (439) (450)
Other expense (68) (77) (142) (219)
-------- -------- -------- --------
Other expense, net (149) (2,164) (202) (2,822)
-------- -------- -------- --------
Income (loss) before
income tax benefit
and extraordinary item 343 (841) (9,043) (4,006)
Income tax benefit-sale
of state tax net
operating loss
carryforwards -- 508 -- 508
-------- -------- -------- --------
Income (loss) before
extraordinary item 343 (333) (9,043) (3,498)
Extraordinary loss -- (182) -- (182)
-------- -------- -------- --------
Net income (loss) $ 343 $ (515) $ (9,043) $ (3,680)
======== ======== ======== ========
Basic and diluted income
(loss) before
extraordinary loss
per common share $ 0.01 $ (0.01) $ (0.38) $ (0.14)
Basic and diluted
extraordinary
loss per common share -- (0.01) -- (0.01)
-------- -------- -------- --------
Basic and diluted net
income (loss) per
common share $ 0.01 $ (0.02) $ (0.38) $ (0.15)
======== ======== ======== ========
Weighted average basic
and diluted common
shares outstanding 24,479 23,914 23,963 23,914
======== ======== ======== ========
The unaudited financial information included in this document is intended only as summary provided for your convenience, and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the complete financial statements of the Company (including the Notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , which set forth important information) contained in its Reports 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. and 10-Q filed by the Company with the U.S. Securities and Exchange Commission (SEC). Such reports are available on the public EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. electronic filing system maintained by the SEC. This press release contains 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. . Such statements are only predictions, and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company's documents and reports filed from time to time with the Securities and Exchange Commission. |
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