Comshare reports fourth quarter and fiscal 1995 results; 1995 EPS rose substantially.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)--Aug. 1, 1995--Comshare, Incorporated (Nasdaq-NM: CSRE CSRE Comparative Studies in Race and Ethnicity CSRE Closed System Respirator Evaluator ), The Decision Support Company, today announced results for the fourth quarter and fiscal year ended June June: see month. 30, 1995. Total revenues in the fourth quarter increased 11% to $28.8 million compared with the prior year's quarter, reflecting strong growth in all three of the Company's decision support markets. This was the fourth consecutive quarter of revenue and net income growth on a comparable basis. The Company reported fourth quarter net income of $1.7 million, or $0.30 per share, compared with a loss of $1.6 million, or $(0.30) per share, for the fourth quarter of last year. For the fiscal year ended June 30, 1995, revenues rose 12% to $108.4 million from $96.6 million for fiscal 1994. Net income for fiscal 1995 of $5.3 million, or $0.95 per share, rose sharply compared with net income for fiscal 1994 of $222,000, or $0.04 per share. Commenting on the results, T. Wallace Wal·lace , Alfred Russel 1823-1913. British naturalist who developed a concept of evolution that paralleled the work of Charles Darwin. Wrathall, President and Chief Executive Officer, said, ``We are very pleased with our quarterly and fiscal year results. The client/server An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). releases of our products during the past 18 months and strong market demand for decision support applications continue to drive our revenue growth and profitability, and we have made good progress throughout last year on our strategic commitments to our customers and shareholders. We have several initiatives for the upcoming fiscal year that are intended to strengthen our market position. In keeping with our focused strategy of developing value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: applications, the Company has new product releases planned and is committed to providing superior customer service to our global customer base.'' Implementation and consulting revenue, which increased 30% in the fourth quarter compared with the prior year's quarter, continues to experience strong growth driven by healthy increases in software license fees. Software license fees rose 23% compared with the fourth quarter of 1994, the sixth consecutive quarterly increase on a comparable basis. OLAP/EIS Applications Market In the OLAP/EIS market, overall software license revenue grew 16% for the quarter and 26% for the year. ``Mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, license fees continue to decline, impacting the overall growth rate in this market,'' stated Jehle Jehle was a car company based in Liechtenstein which operated during the late 1970s to the early 1990s. Founded by tuner Xaver Jehle, it was the only car company ever to be based in that country. . ``However, if we isolate isolate /iso·late/ (i´sah-lat) 1. to separate from others. 2. a group of individuals prevented by geographic, genetic, ecologic, social, or artificial barriers from interbreeding with others of their kind. the software license fees for desktop and client/server OLAP/EIS products, the growth is significantly higher at 43% for the quarter and 69% for the year.'' Wrathall commented, ``As one of the first companies to successfully launch an 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. (On-Line Analytical Processing (database) On-Line Analytical Processing - (OLAP) A category of database software which provides an interface such that users can transform or limit raw data according to user-defined or pre-defined functions, and quickly and interactively examine the results in various dimensions ) product, Comshare is experiencing substantial growth in this area. The latest version of Commander OLAP, which was released last quarter, sets us apart from the competition by combining our new innovative Detect and Alert technology with powerful multidimensional mul·ti·di·men·sion·al adj. Of, relating to, or having several dimensions. mul  ti·di·men analytics, which means business professionals can spend
their time solving problems and exploiting opportunities, instead of
searching through large volumes of data.'' Detect and Alert
software agents perform time consuming, repetitive tasks, freeing
business professionals to do the more productive work of analysis and
decision making.Financial Reporting Applications Market In the Financial Reporting Applications market, software license revenue jumped 34% for the quarter and 40% for the year over the comparable periods the prior year, fueled by the second major Windows release of Commander FDC FDC - Floppy Disk Controller and Commander Budget. These products provide an integrated database application for financial consolidation, reporting and budgeting that is targeted at the controller's function in organizations. Retail Decision Support Applications Market Software license revenue in the Retail Decision Support market surged 44% and 41% respectively for the quarter and year from the year-earlier periods. Comshare's family of retail decision support applications has positioned the Company as the leader in merchandise planning Merchandise Planning is a strategic and systematic approach used by retailers, particularly in fashion and non-food areas. It is aimed at maximising return on investment, through planning and monitoring sales, margins and inventory in order to increase profitability. for the retailing industry, enabling retailers to minimize In a graphical environment, to hide an application that is currently displayed on screen. For example, in Windows and Mac, the application's window is removed from the screen and represented by an icon on the Windows Taskbar. In the Mac, the icon is placed in the Dock. See Win Minimize windows. mark downs and maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. profitability. Among the companies selecting Merchandise Planning software was NM Direct, the catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. arm of the famed retail chain Neiman Marcus Neiman Marcus U.S. department-store chain. It was founded in Dallas, Texas, in 1907 by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband, A.L. Neiman. , and a division of The Neiman Marcus Group. NM Direct chose Merchandise Planning to plan and track its complete business cycle from catalog planning to order shipping, with specific emphasis on the merchandise planning aspects of the business. Total maintenance revenue in the fourth quarter of 1995 was $9.5 million, a 9% decrease compared with the fourth quarter of 1994. However, maintenance revenue in the fourth quarter of 1994 was unusually high due to the recognition of deferred maintenance revenue related to the change of certain agents to distributors in that period. Excluding the impact of that change, fourth quarter maintenance revenue was flat with fourth quarter 1994 levels. Commenting on maintenance revenue, Kathryn Kathryn may refer to: People with the given name Kathryn:
Comshare wrote off capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software associated with its mainframe products in the fourth quarter of 1995, taking a $6.4 million charge to earnings that is reflected in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and unusual charges. Jehle said, ``The decision to write off capitalized software for the mainframe products reflects our commitment to our client/server product strategy, and reduces the amount of capitalized software on the balance sheet.'' Costs and expenses before software capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and amortization, and before restructuring and unusual charges, were $25.7 million, an increase of 4%, well below the 11% revenue increase. Income taxes in the fourth quarter were impacted by the tax benefit from the capitalized software 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. and a $4.1 million reduction in tax valuation reserves against prior year net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. and tax credits that had not been previously recognized. ``With Comshare's return to profitability,'' commented Jehle, ``prior year tax losses and credits are being used to reduce taxes payable, allowing the Company to recognize this benefit. In addition, the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of this tax benefit combined with the Company's write-off of capitalized software had minimal impact on the bottom line.'' A market leading decision support company, Comshare develops and markets Decision Support planning, analysis and reporting applications used by managers and executives to improve their productivity, decision making and competitiveness in managing their business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Within the decision support software category, the company focuses on three major markets -- On-Line Analytical Processing (OLAP) applications, which includes customized Executive Information Systems (EIS (1) (Executive Information System) An information system that consolidates and summarizes ongoing transactions within the organization. It provides top management with all the information it requires at all times from internal and external sources. ); Financial Reporting Applications; and Retail Decision Support Applications. One of the top 50 independent software companies, Comshare has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,000 customers worldwide, many of which are Fortune 1000 and Financial Times Top 1000 companies. Commander and Commander OLAP with Detect and Alert are trademarks of Comshare, Incorporated. Any other trademarks mentioned are the property of their respective holders. -0-
Comshare, Incorporated
Consolidated Statement of Operations
Three Months Ended Twelve Months Ended
June 30, June 30,
1995 1994 1995 1994
Revenue
Software licenses $13,564,900 $11,056,900 $49,294,200 $ 37,871,200
Software
maintenance 9,545,400 10,464,300 36,649,100 41,625,100
Implementation,
consulting and
other services 5,730,400 4,393,800 22,414,800 17,129,500
----------- ----------- ----------- ------------
28,840,700 25,915,000 108,358,100 96,625,800
Costs and expenses
Selling and
marketing 12,162,300 12,178,000 45,282,600 46,457,400
Cost of revenue
and support 6,478,800 5,025,200 24,799,100 17,669,900
Internal research and
product development 4,195,600 4,710,600 16,180,500 19,292,800
Internally capitalized
software (2,803,100) (3,340,300) (11,666,900) (13,193,200)
Software
amortization 3,188,100 3,521,200 13,250,300 12,516,500
General and
administrative 2,861,300 2,719,800 11,662,800 9,890,900
Restructuring and
unusual charges 6,365,000 2,343,000 6,365,000 2,343,000
----------- ----------- ----------- ------------
32,448,000 27,157,500 105,873,400 94,977,300
----------- ----------- ----------- ------------
Income (loss)
from operations (3,607,300) (1,242,500) 2,484,700 1,648,500
Other income (expense)
Interest income 53,300 17,900 156,900 78,900
Interest expense (97,300) (198,400) (668,700) (568,000)
Exchange gain (loss) 132,600 5,000 307,000 (25,200)
----------- ----------- ----------- ------------
88,600 (175,500) (204,800) (514,300)
----------- ----------- ----------- ------------
Income (loss)
before taxes (3,518,700) (1,418,000) 2,279,900 1,134,200
Provision (benefit)
for income taxes (5,210,400) 162,600 (3,047,800) 912,300
----------- ----------- ----------- ------------
Net income (loss) $ 1,691,700 $(1,580,600) $ 5,327,700 $ 221,900
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
Weighted average
number of common
and dilutive common
equivalent shares 5,684,300 5,346,500 5,598,800 5,489,400
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
Net income (loss) per
common share $ .30 $.(30) $ .95 $ .04
----- ----- ----- -----
----- ----- ----- -----
Comshare, Incorporated
Condensed Consolidated Balance Sheet
June 30, June 30,
1995 1994
Cash $ 1,398,500 $ 1,773,900
Accounts receivable 29,530,900 30,846,600
Other current assets 4,880,600 5,498,800
------------- ------------
Current assets 35,810,000 38,119,300
Property and equipment, net 3,412,800 4,197,600
Computer software, net 32,676,200 40,235,600
Other assets 7,411,100 6,391,200
------------- -----------
$ 79,310,100 $ 88,943,700
------------- -----------
------------- -----------
Deferred revenue $ 18,599,300 $ 19,616,800
Other current liabilities 19,361,800 18,951,200
------------- ------------
Current liabilities 37,961,100 38,568,000
Long-term debt, less
current portion 5,435,700 15,354,400
Deferred income taxes 275,300 5,510,500
Other liabilities 3,089,600 3,005,000
Shareholders' equity 32,548,400 26,505,800
------------- ------------
$ 79,310,100 $ 88,943,700
------------- -----------
------------- -----------Notes: During the fourth quarter ended June 30, 1995 the Company recorded unusual charges of $6,365,000. These charges relate to the write-off of capitalized software associated with its mainframe products.
The fourth quarter ended June 30, 1995 also includes a $4,100,000 reduction in tax valuation reserves against prior year net operating losses and tax credits that had not been previously recognized. During the fourth quarter ended June 30, 1994 the Company made provisions totaling $2,343,000 for management actions or plans primarily in connection with staff reductions related to restructuring. CONTACT: Company Contact: Comshare, Inc.: Kathryn Jehle, 313/769-6723 Ricia Hughes, 313/769-6068 or Financial Communications Contact: Lippert/Heilshorn & Associates, Inc.: Laura Wilker, 212/838-3777 (ext. 106) Kris Otridge, 212/838-3777 (ext. 115) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion