Comshare Reports First Quarter Profit; BudgetPLUS Revenue Increased 81%.ANN ARBOR Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich.--(BUSINESS WIRE)--Oct. 26, 1999-- Comshare, Inc. (Nasdaq:CSRE CSRE Comparative Studies in Race and Ethnicity CSRE Closed System Respirator Evaluator ) announced today net income of $0.1 million, or $0.01 per share for the quarter ended September September: see month. 30, 1999, which compares to net income of $0.1 million, or $0.01 per share, in the same period one year ago. License fees were $5.3 million compared to license fees of $5.8 million in the same quarter a year ago, reflecting revenue on a consistent basis from the Company's French and German operations, which were converted to distributorships last fiscal year. Total revenue was $14.5 million in the first quarter compared to $16 million for the same quarter a year ago, on the same consistent basis. BudgetPLUS, Comshare'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. , represented over one third of total license fees in the first quarter. License fees for this product grew 76% compared to the year ago quarter. Total BudgetPLUS software revenue increased even more quickly at 81% over the same quarter a year ago. In addition, license fees for the Company's consolidation application, FDC FDC - Floppy Disk Controller , grew 26% in the first quarter, benefiting from major new enhancements. "We are continuing to change the mix of our business, aimed at growing total revenue and improved profitability," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the Ganster, Comshare 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. and President. "These first quarter results give us confidence that Comshare's strategy of focusing on financial analytic applications Analytic Applications are a type of business application software, used to measure and improve the performance of business operations. More specifically, Analytic Applications are a type of Business Intelligence solution. and leading with our budgeting application, BudgetPLUS, is the correct strategy to achieve the revenue growth and profitability we are seeking. Software revenue from the Company's older products continues to decline as expected, but is increasingly being replaced by our newer products: BudgetPLUS, FDC and DecisionWeb." "Another important change was evident in our first quarter results," continued Ganster. "The growth in BudgetPLUS was partially driven by its availability on relational databases relational database Database in which all data are represented in tabular form. The description of a particular entity is provided by the set of its attribute values, stored as one row or record of the table, called a tuple. . License fees from the relational versions of BudgetPLUS were 59% of total BudgetPLUS license fees, a significantly higher percentage than expected. We believe that the release of the relational versions has broadened the market opportunity of BudgetPLUS through the support of mainstream databases. The sale of the relational versions also offers the benefit of lower cost of sales, thus decreasing costs in the quarter relative to prior quarters." Companies around the world and in many industries purchased Comshare's applications in the first quarter. Organizations that purchased BudgetPLUS include Barnes and Noble College Bookstores, Bombardier Capital Holdings, CONSOL Inc., First Union Corporation, Furla, Grandi Stazioni, Liberty Funds Group, Manchester Airport For City Airport Manchester, UK, see . For the United States airport, see . Manchester Airport (IATA: MAN, ICAO: EGCC) is a major airport in Manchester, UK. It opened to airline traffic in June 1938. PLC, Memtek Products, Inc., Metropolitan Life Insurance Company, Nomura Nomura (野村 or 乃村 or 埜村) is a Japanese surname. It can refer to: People
ASCO Association of Schools and Colleges of Optometry (since 1941; Rockville, Maryland) ASCO Australian Standard Classification of Occupations ASCO Automatic Switch Company Group Ltd., Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Financial Systems, Boers Univerg, Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). , Carlisle Companies, Inc., Coronation coronation, ceremony of crowning and anointing a sovereign on his or her accession to the throne. Although a public ceremony inaugurating a new king or chief had long existed, a new religious service was added when Europe became Christianized. Holdings, Fauldings, Grosvenor Estate Holdings, Gucci, HMG hMG menotropins (human menopausal gonadotropin). HMG abbr. human menopausal gonadotropin , M&M/Mars, Inc., Macdermid Incorporated, MasterCard International, Mercedes, Origin, Saison Information Systems, and Setec. "We also progressed in several important initiatives for the Company," added Ganster. "We debuted at our Users Conference a fully operational demonstration version of BudgetPLUS on IBM's DB2 Universal Database, which was on track with our development plan and co-marketing agreement with 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) . We initiated the pilot marketing program with Microsoft to bundle BudgetPLUS with SQL Server An earlier relational DBMS from Sybase and from Microsoft. Sybase introduced SQL Server in 1988 for various Unix versions. In that same year, with help from IBM, Sybase created an OS/2 version that Microsoft licensed and branded as Microsoft SQL Server. , which will run in November. We also saw the first leads in the pipeline for our new resellers in our middle market channel partners program." "I am encouraged by the progress we are making," Ganster confirmed. "We're beginning to see payoff on our strategies, market positioning and customer appeal for our applications for financial analytic applications. We firmly believe Comshare is well positioned for success in the marketplace and stronger financial performance, with our formula to exploit the Web as a platform, have our products work with mainstream relational and multidimensional mul·ti·di·men·sion·al adj. Of, relating to, or having several dimensions. mul  ti·di·men (OLAP (OnLine Analytical Processing) Decision support software that allows the user to quickly analyze information that has been summarized into multidimensional views and hierarchies. OLAP tools are used to perform trend analysis on sales and financial information. )
databases and employ the latest technologies to further refine and
advance our products."
About Comshare Comshare is a leading provider of software applications for management planning and control ("MPC (1) (Mobile PC) A handheld or laptop computer. See handheld computer, laptop computer and Ultra-Mobile PC. (2) (MultiPath Channel) See multipath. "), which includes planning, budgeting, financial consolidation, management reporting and analysis. Comshare's MPC applications deliver business-critical information that can be used to make sound planning and management decisions. In business for 33 years, Comshare is one of the top independent software companies, with customers around the world, many of which are Fortune 500 and Financial Times Top 1000 companies. Comshare is a Hyperion Alliance Partner, an IBM Business Partner, a Microsoft Certified See certification. Solutions Provider and an Oracle Business Alliance Partner. For more information on Comshare, call 1-800-922-7979, send e-mail to info@comshare.com or visit Comshare's Web site at www.comshare.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain information in this press release contains "forward looking statements" within the meaning of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , including those concerning the Company's future results, strategy and product releases. Actual results could differ materially from those in the forward looking statements due to a number of uncertainties, including, but not limited to, the demand for the Company's products and services; the size, timing and recognition of revenue from significant orders; increased competition and pricing pressures from competitors; the Company's success in and expense associated with developing, introducing and shipping new products; new product introductions and announcements by the Company's competitors; changes in Company strategy; product life cycles; the cost and continued availability of third party software and technology incorporated into the Company's products; the impact of rapid technological advances, evolving industry standards and changes in customer requirements, including the impact on the Company's revenues of Microsoft's OLAP database; the impact of recent changes in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and international sales personnel and the overall competition for key employees; cancellations of maintenance and support agreements; software defects; changes in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ; variations in the amount of cost savings anticipated to result from cost reduction actions; the impact of cost reduction actions on the Company's operations; fluctuations in foreign exchange rates; the impact of undetected errors or defects associated with the Year 2000 date functions on the Company's current products and internal systems; the ability of the Company to generate sufficient future taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. or to execute available tax strategies required to realize deferred tax assets; economic conditions generally or in specific industry segments; risks inherent in seeking and consummating acquisitions, including the diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of management attention to the assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of the operations and personnel of acquired businesses, the ability of the Company to successfully integrate acquired businesses and the impact on the Company's results and financial condition from debt issued, liabilities acquired and additional expenses incurred in connection with such acquisitions. In addition, a significant portion of the Company's revenue in any quarter is typically derived from non-recurring license fees, a substantial portion of which is booked in the last month of a quarter. Since the purchase of the Company's products is relatively discretionary and generally involves a significant commitment of capital, in the event of any downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in any potential customer's business or the economy in general, purchases of the Company's products may be deferred or canceled. Further, the Company's expense levels are based, in part, on its expectations as to future revenue and a significant portion of the Company's expenses do not vary with revenue. As a result, if revenue is below expectations, results of operations are likely to be materially, adversely affected. Comshare is a registered trademark; Comshare BudgetPLUS, Comshare DecisionWeb, Comshare Decision and Comshare FDC are trademarks of Comshare, Inc. All other trademarks are the property of their respective holders. -0-
COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited; in thousands, except per share data)
Three Months Ended
September 30,
------------------------
1999 1998
---- ----
Revenue
Software licenses $ 5,302 $ 6,126
Software maintenance 5,748 7,114
Implementation, consulting
and other services 3,456 3,919
-------- --------
Total revenue 14,506 17,159
Costs and expenses
Selling and marketing 5,817 6,938
Cost of revenue and support 5,238 6,406
Internal research and
product development 2,150 2,247
General and administrative 1,479 1,977
-------- --------
Total costs and expenses 14,684 17,568
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Loss from operations (178) (409)
Other income (expense)
Interest income, net 364 482
Exchange gain (loss) (104) 7
-------- --------
Total other income 260 489
Income before taxes 82 80
Provision for income taxes 30 28
-------- --------
Net income $ 52 $ 52
-------- --------
-------- --------
Shares used in basic
EPS computation 9,642 9,998
-------- --------
-------- --------
Shares used in diluted
EPS computation 9,642 9,998
-------- --------
-------- --------
Net income per common
share - basic EPS $ 0.01 $ 0.01
-------- --------
-------- --------
Net income per common
share - diluted EPS $ 0.01 $ 0.01
-------- --------
-------- --------
COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, June 30,
1999 1999
---------- ---------
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $26,715 $31,794
Accounts receivable, net 18,469 14,723
Other current assets 2,976 5,657
------- -------
Total current assets 48,160 52,174
Property and equipment, net 2,453 2,638
Deferred income taxes 6,094 5,067
Other assets 3,490 3,576
------- -------
Total assets $60,197 $63,455
------- -------
------- -------
Liabilities and shareholders' equity
Current liabilities
Current portion of
long-term debt $ 753 $ 882
Deferred revenue 10,401 11,611
Other current liabilities 14,078 15,227
------- -------
Total current liabilities 25,232 27,720
Long-term debt 691 1,198
Other liabilities 2,988 3,271
Shareholders' equity 31,286 31,266
------- -------
Total liabilities and
shareholders' equity $60,197 $63,455
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