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INTERSOLV REPORTS FOURTH QUARTER AND YEAR END OPERATING RESULTS

 ROCKVILLE, Md., June 10 /PRNewswire/ -- INTERSOLV, Inc. (NASDAQ: ISLI), today reported operating results for the fourth fiscal quarter ended April 30, 1993. Revenue was $21.2 million, which is down 12 percent when compared with the comparable quarter last year. Operating income for the quarter was $1.0 million, prior to restructuring charges. A $3.4 million provision for restructuring was made in the fourth fiscal quarter to reduce certain on-going operating expenses of the business. INTERSOLV reported a net loss of $5.1 million, or 43 cents per share, due primarily to restructuring charges and an adjustment to income taxes caused by the restructuring charges.
 Revenue for the fiscal year ended April 30, 1993, increased 2 percent to $80.4 million. Operations generated pre-tax earnings of $4.5 million, prior to restructuring charges. Restructuring charges for the year totaled $16.6 million, including a $13.2 million non-cash charge to reduce capitalized software provided for in the third fiscal quarter and the $3.4 million charge referenced above in the fourth quarter. The net loss for the fiscal year including the non-recurring charges was $11.9 million, or $1 per share.
 Kevin J. Burns, INTERSOLV's president/CEO, said: "Managing through the Excelerator product transition was very challenging last year. With a 25 percent decrease in Excelerator revenues, our other lines of business had to grow 27 percent or better just to stay even overall. Given this situation, we felt it was best to implement operational changes and provide for related charges in the fourth quarter of fiscal 1993 and believe we will benefit from these changes in fiscal 1994."
 INTERSOLV is a software products company specializing in application development tools for the desktop. The company offers a broad line of products that operate on IBM compatible PCs and Local Area Networks (LANs) under Windows, OS/2, and UNIX. Customers using INTERSOLV products can build applications for a wide variety of data bases running on PCs, LANs, mainframes and client/server environments. INTERSOLV's customer base numbers 140,000 software professionals at more than 10,000 sites worldwide.
 INTERSOLV, INC.
 Quarter to Quarter Comparison -- Operating Results
 Three Months Ended April 30
 (dollars in thousands, except per share amounts)
 Percent
 Q4 Increase Q4
 4/30/93 (Decrease) 4/30/92
 Revenues $21,163 (12 pct.) $23,925
 Costs and Expenses:
 Cost of Sales 1,225 74 pct. 704
 Sales & Marketing 13,566 (3 pct.) 13,929
 Research & Development 3,137 6 pct. 2,957
 General & Administrative 2,231 (5 pct.) 2,358
 Restructuring Charges 3,373 833
 Total Costs & Expenses 23,532 13 pct. 20,781
 Operating Income (Loss) (2,369) 3,144
 Other Income, Net 5 28
 Pretax Profit (Loss) (2,364) 3,172
 Taxes 2,770 946
 Net Income (Loss) ($ 5,134) $ 2,226
 EPS ($ 0.43) $ 0.18
 Shares Used for EPS 11,942 12,616
 Operating Margin 5 pct. 17 pct.
 Restructuring Charges (16 pct.) (4 pct.)
 Pretax Margin (11 pct.) 13 pct.
 Tax Rate N/A 30 pct.
 Net Margin (24 pct.) 9 pct.
 Year to Year Comparison of Operating Results
 Years Ended April 30
 (dollars in thousands, except per share amounts)
 Percent
 Year Ended Increase Year Ended
 4/30/93 (Decrease) 4/30/92
 Revenues $80,410 2 pct. $79,144
 Costs and Expenses:
 Cost of Sales 5,632 25 pct. 4,493
 Sales & Marketing 50,758 10 pct. 46,299
 Research & Development 10,752 (4 pct) 11,176
 General & Administrative 8,770 6 pct. 8,263
 Restructuring charges 16,573 833
 Total Costs & Expenses 92,485 30 pct. 71,064
 Operating Income (Loss) (12,075) 8,080
 Other Income, Net 52 302
 Pretax Profit (Loss) (12,023) 8,382
 Taxes (128) 2,508
 Net Income (Loss) ($11,895) $ 5,874
 EPS ($ 1.00) $ 0.48
 Shares Used for EPS 11,861 12,303
 Operating Margin 6 pct. 11 pct.
 Restructuring Charges (21 pct.) (1 pct.)
 Pretax Margin (15 pct.) 11 pct.
 Tax Rate 1 pct. 30 pct.
 Net Margin (15 pct.) 7 pct.
 Balance Sheet
 (in thousands)
 April 30, April 30,
 1993 1992
 Assets:
 Current Assets:
 Cash and Cash Equivalents $ 9,017 $ 5,768
 Accounts Receivable, net 21,598 22,124
 Refundable Income Taxes 358 3,367
 Prepaid Expenses and Other Assets 2,845 3,585
 Total Current Assets 33,818 34,844
 Software, net 15,553 21,988
 Property and Equipment, net 8,080 8,717
 Notes Receivable and Other Assets 1,624 1,891
 Total Assets $59,075 $67,440
 Liabilities and Stockholders' Equity:
 Current Liabilities:
 Accounts Payable
 & Accrued Expenses $13,949 $12,218
 Deferred Revenue 10,486 8,344
 Total Current Liabilities 24,435 20,562
 Deferred Income Taxes -- 1,686
 Total Liabilities 24,435 22,248
 Stockholders' Equity 34,640 45,192
 Total Liabilities and
 Stockholders' Equity $59,075 $67,440
 Financial Ratio:
 Days Sales in Receivables 92 days 83 days
 Cash Flows
 Years Ended April 30
 (in thousands)
 4/30/93 4/30/92
 Cash Inflows (Outflows)
 Operating Activities
 Net Income (Loss) ($11,895) $ 5,874
 Non-Cash Items:
 Restructuring Provision 13,200 --
 Depreciation and Amortization 6,694 4,002
 Deferred Income Taxes (1,686) 1,686
 Payment of merger costs (634) (11,135)
 Other Changes in Assets & Liabilities 8,001 (1,434)
 Net Cash Provided By (Used By)
 Operating Activities 13,680 (1,007)
 Investing Activities
 Additions to Software (9,217) (8,422)
 Additions to Property and Equipment (2,852) (3,106)
 Change in Marketable Securities -- 6,297
 Changes in Other Assets 126 (29)
 Net Cash Used in Investing Activities (11,943) (5,260)
 Net Provided by Financing Activities 1,608 2,295
 Effect of Exchange Rate Changes on Cash (96) 15
 Increase (Decrease) in Cash and Cash
 Equivalents 3,249 (3,957)
 Cash and Cash equivalents,
 Beginning of Fiscal Year 5,768 9,725
 Cash and Cash Equivalents,
 End of Period $ 9,017 $ 5,768
 -0- 6/10/93
 /CONTACT: Kevin J. Burns, president/CEO, 301-230-3201, or Kenneth A. Sexton, VP finance/CFO, 301-230-3210, both of INTERSOLV/
 (ISLI)


CO: INTERSOLV, Inc. ST: Maryland IN: CPR SU: ERN

DC -- DC031 -- 0805 06/10/93 16:46 EST
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Date:Jun 10, 1993
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