Computron Software Reports Third Quarter Results.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)--Oct. 29, 1999-- Computron 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 ended September 30, 1999. The Company reported revenues of $12.2 million, and $43.4 million, respectively, for the three and nine months ended September 30, 1999. The Company reported operating and net losses for the 1999 third quarter of $1.6 million and $1.7 million, respectively, compared to operating and net income of $145,000 and $52,000, respectively, for the same period in 1998. Net loss for the nine months ended September 30, 1999 was $3.2 million, as compared to $9.4 million during the 1998 period. The 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. for the quarter ended September 30, 1999 included a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the remaining value of goodwill of the Company's French subsidiary, which amounted to $573,000. In addition, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs charged to operations for the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. French subsidiary and the Company's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. subsidiary aggregated $360,000 for the quarter ended September 30, 1999. The net loss during the nine month period ended September 30, 1999 includes a $261,000 loss on the sale of the Company's German subsidiary, which occurred as of May 31, 1999. On a comparable basis excluding the operations of the German subsidiary sold in May 1999 for all periods, revenues declined 19% for the three month period ended September 30, 1999, and were flat for the nine month period ended September 30, 1999. Commenting on the results, 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. John Rade John Rade, (born August 31, 1960, in Ceres, California) was a linebacker in the NFL from 1983 to 1991. noted, "Third quarter license revenues reflect contract slippage Slippage The difference between estimated transaction costs and the amount actually paid. Notes: Slippage is usually attributed to a change in the spread. See also: Spread, Transaction Costs Slippage , while other revenue streams remain strong. Computron is centering its efforts on new product releases for late 1999 and early 2000 to become more strategically focused in the Internet and e-commerce side of our business. Many of these new products were showcased at our recent International Users' Conference and received high praise from the attendees who represented Computron's elite customer base." Rade continued, "The Company is strategically focusing on its internally developed products, has eliminated its German subsidiary and reduced costs dramatically in its French and Canadian subsidiaries such that these entities, which were purchased in 1995 and 1996, will no longer have a material adverse effect on our operations." 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 To turn a set of manual steps into an operation that goes by itself. See automation. business processes across the enterprise and allow organizations to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. 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)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
1998 1999 1998 1999
-------- -------- -------- --------
Revenues:
License fees $ 3,233 $ 1,160 $ 10,612 $ 7,009
Services 12,922 11,063 35,386 36,390
-------- -------- -------- --------
Total revenues 16,155 12,223 45,998 43,399
-------- -------- -------- --------
Operating expenses:
Cost of license fees 705 310 2,515 1,526
Cost of services 6,909 5,793 21,725 19,354
Sales and marketing 3,039 2,547 11,601 8,920
Research and
development 2,409 1,806 7,966 5,915
General and
administrative 2,948 2,749 10,213 9,618
Goodwill impairment -- 573 -- 573
Restructuring costs -- -- 1,311 --
-------- -------- -------- --------
Total operating
expenses 16,010 13,778 55,331 45,906
-------- -------- -------- --------
Operating income (loss) 145 (1,555) (9,333) (2,507)
-------- -------- -------- --------
Other income (expense):
Costs related to class
action litigation -- -- (40) --
Loss on sale of
subsidiary -- -- -- (261)
Interest income 109 14 368 71
Interest expense (150) (110) (307) (326)
Other expense (52) (71) (74) (142)
-------- -------- -------- --------
Other expense, net (93) (167) (53) (658)
-------- -------- -------- --------
Net income (loss) $ 52 $ (1,722) $ (9,386) $ (3,165)
======== ======== ======== ========
Basic and diluted
income (loss) per
common share $ -- $ (0.07) $ (0.39) $ (0.13)
======== ======== ======== ========
Weighted average basic
and diluted common
shares outstanding 23,791 23,914 23,788 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 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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