DataWorks reports increases in third quarter and nine month revenues and earnings.SAN DIEGO--(BUSINESS WIRE)--Oct. 28, 1996--In what is traditionally a weak quarter for most enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) providers, DataWorks (DataWorks Corporation, San Diego, CA) A software company founded in 1977 that specialized in integrated enterprise resource planning (ERP) systems. The company developed, implemented and supported open systems and client/server-based software for midrange manufacturing companies Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DWRX) on Monday Monday: see week. reported significant increases in revenues and earnings for the third quarter and nine months. For the quarter ended Sept. 30, 1996, the company reported that revenues increased to $14,807,000 vs. $11,570,000 for the same period in 1995. Net income before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs and related tax consequences associated with the company's acquisition of DCD (Document Content Description) An XML schema language from Textuality, Microsoft and IBM that is implemented as an RDF vocabulary. It supports data typing and schema reuse and is the successor to XML-Data. See XML schema, RDF and XML. Corp. in the third quarter increased 183 percent to $1,404,000, or 17 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $496,000, or 11 cents per share, for the same period in 1995. The one-time acquisition costs were $3,656,000 and resulted in an increased tax rate of 49.5 percent vs. the historical 39 percent level. For the nine months ended Sept. 30, 1996, revenues increased to $42,285,000 from $29,229,000 a year ago. Net income, excluding one-time acquisition costs and related tax consequences, increased 278 percent to $4,017,000, or 49 cents per share, compared with $1,063,000, or 19 cents per share, in 1995. Financial results for each period noted above, including 1995, contain DCD's financial results for the corresponding period. DCD was acquired in a pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free transaction in September September: see month. 1996. Growth Factors President and Chief Executive Officer Stuart W. Clifton Clifton, industrial city (1990 pop. 71,742), Passaic co., NE N.J., on the Passaic River; settled 1685, set off from Passaic and inc. 1917. It has steel, textile equipment, chemical, plastics, clothing, and electronics industries. said: "DataWorks' strong growth during the first nine months of 1996 has been driven by our focus on meeting the varied requirements of midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually manufacturers with `right-sized' ERP systems. "During the third quarter, to enhance our product offerings to the low end of the ERP midrange manufacturing market -- companies with annual revenues of $3 million to $25 million -- we acquired DCD Corp. This acquisition allows us to provide the smaller manufacturer with an ERP system that meets their specific requirements for ease of use, rapid installation and low cost. These new product additions complement our DataFlo and ManFact systems which target the $25 million to $200 million manufacturer. "The DCD acquisition brings 3,000-plus customers to DataWorks, including many rapidly growing manufacturers. As these companies expand, DataWorks plans to provide them with an easy migration path to our other larger, more comprehensive ERP products. We believe DataWorks' ease of migration will make it attractive for them to stay with the same software supplier, positively impacting our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth potential. "Staying in the forefront of midrange manufacturing trends, in the third quarter, we also announced object-oriented versions of our DataFlo and ManFact products. The escalating demand for these object-oriented ERP systems is driven by the increased need for stronger ease of use and customization -- key factors in a midrange manufacturer's selection of an information system today. Currently we plan to have these products generally available in 1997." Customer Mix Executive Vice President and Chief Financial Officer Norman R. Farquhar said: "Our early entry into offering our full line of ERP systems on Microsoft NT continues to strengthen our leadership position within the midrange market, where manufacturers have limited IS departments and smaller budgets than the larger, Fortune 1000 companies. During the third quarter, we again saw increased growth in sales of our ERP systems running in the NT environment." Revenue Gains Farquhar said: "We are pleased to see continued revenue growth in the software and service categories which comprised 58 percent and 35 percent, respectively, of 1996 third quarter revenues. DataWorks continues to de-emphasize hardware sales which accounted for 7 percent of 1996 third quarter revenues compared to 13 percent in the same period a year ago." DataWorks is a supplier of software solutions for discrete and repetitive manufacturers in the midrange market. The company's products feature advanced ERP system functionality combined with open system technologies, including client-server architecture client-server architecture Architecture of a computer network in which many clients (remote processors) request and receive service from a centralized server (host computer). , relational database 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. and easy-to-use, Windows-based graphical user interfaces graphical user interface (GUI) Computer display format that allows the user to select commands, call up files, start programs, and do other routine tasks by using a mouse to point to pictorial symbols (icons) or lists of menu choices on the screen as opposed to having to . DataWorks is one of the first manufacturing software The following list of software modules are the manufacturing components of Baan's ERP (BaanERP) system, acquired by SSA Global in 2003 and subsequently by Infor at the end of 2006. It is listed here because it provides a comprehensive overview of the required software. See MES. companies to have customers completely installed and operational on the Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . Worldwide headquarters is located in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . For more information, contact Chris Jensen Chris Jensen (born October 28, 1963 in Fort St. John, British Columbia) is a retired NHLer. He played for the New York Rangers and Philadelphia Flyers. External links Chris Jensen's career stats at The Internet Hockey Database , DataWorks, 21 Technology Drive, Irvine, Calif. 92618; phone: 714/788-4013; e-mail: jensenc@dataworks.com. -0- NOTE: Except for the historical information contained herein, this news 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. that are subject to risks and uncertainties, including variation of quarterly revenues, the significance of NT to midrange market success, estimates of availability of products and change in economic conditions of the various markets the company serves, as well as the other risks detailed from time to time in the company's SEC reports, including the report 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. for the year ended Dec. 31, 1995.
DataWorks Corp.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
1996 1995 1996 1995
Revenues:
Software licenses $ 8,624 $ 6,642 $24,459 $15,952
Hardware 1,030 1,538 3,718 4,189
Maintenance and other
services 5,153 3,390 14,108 9,088
Total Revenues 14,807 11,570 42,285 29,229
Cost of revenues:
Software licenses 537 690 1,912 1,513
Hardware 752 1,203 2,745 3,291
Maintenance and other
services 3,660 2,193 10,319 5,820
Total cost of revenues 4,949 4,086 14,976 10,624
Gross profit 9,858 7,484 27,309 18,605
Operating expenses:
Sales and marketing 4,710 3,097 12,738 8,328
Research and
development 1,194 809 3,137 2,309
General and
administrative 1,730 1,315 5,164 3,718
Merger and related
costs 3,656 --- 3,656 ---
ESOP contribution --- 111 --- 334
Total operating
expenses 11,290 5,332 24,695 14,689
Income (loss) from
operations (1,432) 2,152 2,614 3,916
Other income (expense),
net 77 (403) 315 (1,313)
Income (loss) before
income taxes and
extraordinary item (1,355) 1,749 2,929 2,603
Provision (credit) for
income taxes (671) 626 1,450 913
Income (loss) before
extraordinary item (684) 1,123 1,479 1,690
Extraordinary item, net
of income taxes --- 627 --- 627
Net income (loss) $ (684) $ 496 $ 1,479 $ 1,063
Per share information:
Income (loss) before
extraordinary item $ (0.09) $ 0.24 $ 0.18 $ 0.30
Extraordinary item --- (0.14) --- (0.11)
Net income (loss) $ (0.09) $ 0.11 $ 0.18 $ 0.19
Shares used in per
share computations 7,780 4,615 8,179 5,714
Net income excluding
one-time costs and
tax effect of merger $ 1,404 $ 496 $ 4,017 $ 1,063
Per share information
excluding one-time
costs and tax effect
of merger $ 0.17 $ 0.11 $ 0.49 $ 0.19
-0-
DataWorks Corp.
Consolidated Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
1996 1995
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,866 $13,005
Accounts receivable, net 18,248 12,759
Deferred income taxes 2,011 2,011
Other current assets 3,327 1,381
Total current assets 32,452 29,156
Equipment, furniture and
fixtures, net 3,667 2,197
Receivable from officer 155 206
Acquired and developed
software costs, net 4,092 1,852
Intangible assets, net 4,029 4,617
Other assets 171 125
Total assets $44,566 $38,153
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 6,563 $ 3,073
Accrued compensation 2,221 1,892
Other accrued liabilities 2,122 2,352
Deferred revenue 6,403 5,853
Total current liabilities 17,309 13,170
Deferred income taxes 1,864 1,929
Deferred rent 134 161
Commitments
Shareholders' equity:
Common stock, no stated par value:
Authorized shares - 25,000,000
Issued and outstanding shares -
7,816,451 and 7,425,140
at Sept. 30, 1996, and Dec. 31,
1995, respectively 26,894 26,007
Accumulated deficit (1,635) (3,114)
Total shareholders' equity 25,259 22,893
Total liabilities and shareholders'
equity $44,566 $38,153
CONTACT: DataWorks Corp. Chris Jensen, 714/788-4013 |
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