Forte Software reports record fourth quarter and fiscal 1997 financial results; fourth quarter revenue grows 76%; earnings per share up 180%.OAKLAND Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Calif.--(BUSINESS WIRE)-- April 24, 1997--Forte Software, Inc. (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 :FRTE FRTE Front pour la Régularité et la Transparence des Elections FRTE File Request Thread Element ), a leading supplier of solutions for developing, deploying and managing production applications in distributed environments, today reported record revenue and earnings for its fourth quarter and fiscal year ended March 31, 1997. Total revenue increased 76% in the fourth quarter to $19.6 million, compared with $11.1 million in last year's fourth quarter. Revenue from license fees totaled $13.5 million, or 69% of total revenue, while revenue from maintenance and services contributed $6.1 million, or 31% of total revenue. Included in fourth quarter results was revenue of $5.5 million from a follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. sale to a major existing customer. International revenues increased to $6.7 million in the quarter ended March 31, 1997, representing a 105% increase over the comparable period in the prior year. The increase demonstrates the continued growing presence of Forte Software in the international arena. Domestic revenues increased to $12.9 million in the quarter ended March 31, 1997, representing a 64% increase over the comparable period in the prior year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 1997 fourth quarter was $2.9 million, or 15% of revenue, compared with $922,000, or 8% of revenue for the fourth quarter last year. Net income grew 210% to $3.0 million for the fourth quarter of fiscal 1997 from $955,000 in last year's fourth quarter. Fourth quarter earnings per share increased 180% to $0.14 from $0.05 in the comparable quarter of 1996. For the full year, total revenue grew 110% to $63.1 million compared with fiscal 1996 revenue of $30.0 million. Net income reached $7.2 million, versus a net loss of $2.0 million last year. Earnings per share for fiscal 1997 were $0.34, up from a loss per share of $0.11 last year. The following table provides a summary of Forte Software's fourth quarter and fiscal 1997 results (in millions, except per share data): -0-
Quarter Ended Year Ended
March 31, March 31,
1996 1997 1996 1997
Revenues $11.1 $19.6 $30.0 $63.1
Operating profit (loss) 0.9 2.9 (2.2) 6.3
Net income (loss) 1.0 3.0 (2.0) 7.2
Income (loss) per share 0.05 0.14 (0.11) 0.34
"Our fourth quarter was a strong one, both operationally and
financially," observed Marty Sprinzen, President and Chief Executive
Officer. "We saw good growth within our installed base, including
one of our largest transactions to date, providing continuing
validation of the ease-of-use, superior performance and successful
deployments our customers are achieving using our solutions. We also
added 26 names to our new customer list, important evidence of our
leadership in the large and rapidly growing marketplace for
client/server and Internet-based application development tools." New
customers included American Re-Insurance Company, Banque Directe
(France), Blue Cross Blue Shield of Texas, The Boeing Company,
Concert Management Services, The Detroit Edison Company, ERPI Sante
(France), Marriott International, New York State Division of Criminal
Justice, Northern Ireland Electric (Ireland), Sekisui Chemical
(Japan), University of Melbourne (Australia), State Fund Mutual
Insurance and Vattenfall (Sweden).
Recent Announcements
Recently Forte Software made a number of important announcements,
including:
-- 4/22/97-Forte Software and Netscape Collaborate To Leverage
Netscape's Expertise In Internet Technology and Forte's Experience In
Server-side Functionality For Large-scale, Distributed Applications
-- 3/27/97-Corning, Inc.'s Forte(R) Applications Won Application
Development Trends Innovator Award (Distributed Systems Development
Category)
-- 3/17/97-Forte Conductor(TM) Production Workflow Offering
Announced, Easing Automation of Mission-Critical Business Processes
-- 1/20/97-Forte Software's Japanese Distributor and Hitachi
Agree to Develop Integrated Interface Between the Forte Application
Environment(TM) and Hitachi's Open TP-1 (the leading UNIX transaction
processing environment in Japan)
About Forte Software
Forte Software, Inc. designs, develops, markets, and supports a
set of products for developing, deploying and managing production
applications in distributed environments, including client/server and
the Internet. Headquartered in Oakland, Calif., Forte is marketed and
sold worldwide through a combination of direct operations,
subsidiaries, geographical distributors, and value added resellers.
For additional information contact Forte Software via the Internet at
info@Forte.com or on the World Wide Web at http://www.Forte.com .
The statements in this release that relate to future plans,
events or performance are forward-looking statements. Actual results
might differ materially due to a variety of factors. Additional
information about these factors is contained in Forte Software's
Annual Report on Form 10-K under the section entitled Business Risks,
and in Forte Software's Reports on Form 10-Q under the sections
entitled Business Risks and Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(c)1997 Forte Software, Inc. Forte is a registered trademark, and
Forte Application Environment, Forte Conductor and the Forte logo are
trademarks, of Forte Software, Inc.
-0-
Forte Software, Inc.
Condensed Consolidated Statements Of Operations
(in thousands, except per share amounts)
Three months ended Years ended
March 31, March 31,
1997 1996 1997 1996
051 30,045
Cost of revenues
License f 2,978 2,246 10,611 8,069
General and administrative 1,342 883 59) (1,039) (114)
Net profit (loss) $ 2,962 $ 955 $ 7,249 $(1,988)
Income (loss) per share(a) $ 0.14 $ 0.05 $ 0.34 $ (0.11)
Shares used in computing profit
(loss) per share(a) 21,068 19,225 21,110 17,517
(a) Pro forma shares reflecting conversion of preferred stock
for the year ended March 31, 1996
Forte Software, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $35,103 $ 35,081
Short-term investments $13,154 6,236
Accounts receivable, net of allowances of
$941 ($531 in 1996) 17,750 11,059
Prepaid expenses and other current assets 1,003 839
Total current assets $67,010 $ 53,215
Equipment and leasehold improvements, net 6,489 3,903
Other assets 250 173
Total assets $73,749 $ 57,291
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 3,003 1,066
Accrued expenses and other liabilities 10,190 5,410
Deferred revenue 9,247 5,941
Current portion of capital lease obligations 915 1,084
Total current liabilities 23,355 13,501
Capital lease obligations due after one year 849 1,714
Deferred revenue 871 2,032
Commitments
Stockholders' equity:
Common Stock 188 183
Additional paid-in capital 64,169 62,618
Accumulated deficit (15,486) (22,735)
Foreign currency translation adjustments (197) (22)
Total stockholders' equity 48,674 40,044
Total liabilities and stockholders' equity $73,749 $ 57,291
CONTACT: Forte Software Rodger Rodger is a surname, and may refer to:
German biologist who asserted that hereditary characteristics are transmitted by a germinal plasm. , 510/869-3435 |
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