Comshare reports second quarter results; restructuring charges to be taken in company's third quarter.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)--Jan. 22, 1997--Comshare, Incorporated (Nasdaq-NM Symbol:CSRE CSRE Comparative Studies in Race and Ethnicity CSRE Closed System Respirator Evaluator ), The Decision Support Company, today announced a net loss of $2.8 million, or $0.28 a share, for the second quarter ended December December: see month. 31, 1996, compared with a net loss of $12.9 million, or $1.48 per share, for the same period a year ago, which included a $15.5 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of 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. The Company also announced it would take an estimated $6 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the Company's third quarter ended March 31, 1997. Compared to the first quarter ended September September: see month. 30, 1996, software license fee revenue grew 78% in the second quarter to $11.7 million and total revenue grew 31% to $26.2 million. "We are pleased by the strong growth in our license fees over the first quarter," commented, 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 of Comshare. "We are beginning to see the return of the Company's sales momentum and the benefit from the changes in our sales organization, primarily in our North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. where the license fee growth over the first quarter was the strongest. Our International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. achieved moderate growth during this quarter compared to the first quarter. We have not fully recovered our sales momentum overseas." A preliminary decision, subject to a legally required notice period, has been made to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. all product development activities in Ann Arbor, Michigan  “Ann Arbor” redirects here. For other uses, see Ann Arbor (disambiguation). Ann Arbor is a city in the U.S. state of Michigan and the county seat of Washtenaw County. . Wrathall stated, "This consolidation will provide the benefits of better communication and shared technology, and strengthen the Company's product offerings by facilitating the smooth integration of our applications with the Comshare Application Architecture. It will also result in substantial cost savings and improved productivity. In addition, we are taking other cost reduction actions including reductions in management and non-revenue generating costs." Wrathall added, "The cost and effort to consolidate product development is a sign of our commitment to the retail market in particular and our other key vertical markets." "The total annual cost savings expected from these actions is approximately $7 million," said Kathryn Kathryn may refer to: People with the given name Kathryn:
Founded by tuner Xaver Jehle, it was the only car company ever to be based in that country. , Senior Vice President and Chief Financial Officer. "A reserve of approximately $6 million will be taken in the Company's third quarter to cover the cost of the facilities consolidation and other restructuring-related costs. The combination of these cost reduction actions and a continued improvement in sales momentum would return the Company to profitability," added Jehle. "Comshare's strategy of providing decision support applications to vertical industries remains unchanged," said Wrathall. "The enthusiastic response to our new class of retail applications, the Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism Enterprise Suite, introduced at the recent National Retail Federation `97 Conference confirms our direction. We have also been pleased with the recognition of the Arthur market position by recent new customers, including Strouds, a California-based retailer, who chose Arthur because, in their view, it is unquestionably un·ques·tion·a·ble adj. Beyond question or doubt. See Synonyms at authentic. un·ques  tion·a·bil the leading product in the marketplace with a very clear and proven
track record."
Further recognition of Comshare's strategy came recently from Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. Eckerson, Editor-in-Chief, Senior Consultant of the Patricia Seybold Patricia B. Seybold, CEO of Patricia Seybold Group, is the author of Customers.com, The Customer Revolution, Outside Innovation, and co-author of Brandchild. Her books, (particularly Customers. Group, who said, "Comshare has devoted more time and money to thinking, designing and selling decision support applications than the competition. Consequently, it is again emerging as the leader in the decision support marketplace." "The consolidation of development operations and the benefits that it provides, combined with our focus on applications, will help Comshare build on its position in the decision support applications market," Wrathall concluded. "Customer enthusiasm and industry analyst recognition are testaments to that strategy." About Comshare Comshare, The Decision Support Company, develops, markets and supports complete 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). decision support applications designed to improve business analysis, planning, reporting and decision making systems designed to enhance competitiveness and improve profits. The Company focuses its applications software in seven major markets -- retail, consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , utilities, energy services, manufacturing and service organizations. One of the top 50 independent software companies, Comshare has over 3,000 customers worldwide, many of which are Fortune 1000 and Financial Times Top 1000 companies. 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, including those concerning the Company's future results and expected cost savings from cost reduction actions. 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; 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; the impact of recent transitional 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 management and sales personnel; the impact of the investigation into violations of the Company's revenue recognition policies on the Company's ongoing operations; cancellations of maintenance and support agreements; software defects; variations in the amount and timing of cost savings anticipated to result from cost reduction actions; the impact of off-setting increases 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. ; the impact of cost reduction actions on the Company's operations; fluctuations in foreign exchange rates; and economic conditions generally or in specific industry segments. For more information about Comshare products and services, call 1-800-922-7979 or see our home page on the world wide web at http://www.comshare.com -- tables to follow -- -0-
COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited; in thousands, except per share data)
Three Months Six Months Ended
Ended December 31,
December 31,
_________________ _________________
1996 1995 1996 1995
____ ____ ____ ____
Revenue
Software licenses $ 11,703 $ 17,234 $18,271 $ 31,154
Software maintenance 9,331 9,247 18,108 18,262
Implementation, consulting
and other services 5,161 5,702 9,800 11,420
________ ________ _______ ________
Total revenue 26,195 32,183 46,179 60,836
Costs and expenses
Selling and marketing 14,705 13,023 28,141 25,061
Cost of revenue and
support 8,080 7,798 14,998 14,488
Internal research and
product development 4,311 4,088 8,699 8,086
Internally capitalized
software (1,702) (1,076) (3,201) (3,434)
Software amortization 1,784 1,127 3,310 3,743
General and administrative 3,190 3,035 6,114 6,076
Unusual charge - 23,167 - 23,167
________ ________ _______ ________
Total costs and expenses 30,368 51,162 58,061 77,187
________ ________ _______ ________
Loss from operations (4,173) (18,979) (11,882) (16,351)
Other income (expense)
Interest income (expense) 102 54 313 (87)
Exchange gain (loss) (148) (23) (244) (112)
________ ________ _______ ________
Total other income (expense) (46) 31 69 (199)
Loss before taxes (4,219) (18,948) (11,813) (16,550)
Benefit for income taxes (1,457) (6,084) (4,120) (5,196)
________ ________ _______ ________
Net loss $ (2,762) $(12,864) $(7,693) $(11,354)
________ ________ _______ ________
________ ________ _______ ________
Weighted average number of
common and dilutive common
equivalent shares 9,742 8,678 9,723 8,456
________ ________ _______ ________
________ ________ _______ ________
Net loss per common share $ (0.28) $ (1.48) $ (0.79) $ (1.34)
________ ________ _______ ________
________ ________ _______ ________
COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
December 31, June 30,
1996 1996
(Unaudited) (Audited)
_____________ ___________
Assets
Current Assets
Cash and cash equivalents $ 12,696 $ 27,468
Accounts receivable, net 34,468 34,853
Other current assets 10,401 6,491
_____________ ___________
Total current assets 57,565 68,812
Property and equipment, net 5,828 4,519
Computer software, net 9,327 9,064
Deferred income taxes 7,940 7,940
Other assets 8,715 7,903
_____________ ___________
$ 89,375 $ 98,238
_____________ ___________
_____________ ___________
Liabilities and Shareholders'
Equity
Current Liabilities
Current portion of long-term
debt $ 3,340 $ -
Deferred revenue 19,979 18,364
Other current liabilities 21,133 25,890
_____________ ___________
Total current liabilities 44,452 44,254
Long-term debt - 1,913
Other liabilities 3,329 3,407
Shareholders' equity 41,594 48,664
_____________ ___________
$ 89,375 $ 98,238
_____________ ___________
_____________ ___________
CONTACT: Company: Comshare, Inc. Kathryn Jehle, 313/769-6723 Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. Hockstad, 313/994-6036 or Financial Communications: Lippert/Heilshorn & Associates, Inc. Kris Otridge, 415/433-3777 |
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