ISG International Software Group Reports First Quarter Results.BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Mass.--(BUSINESS WIRE)--April 23, 1998-- -- Fortune 1000 firms select ISG ISG Iraq Study Group ISG Iraq Survey Group ISG International Steel Group ISG Integrated Security Gateway ISG Information Systems Group ISG Information Systems Group (IBM) ISG Integrated Starter/Generator for high performance Universal Data Access infrastructure -- ISG International Software Group Ltd. (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 NMS See NetWare Management System. :SISGF) today reported its operating results for the first quarter ended March 31, 1998. Total Revenues on a quarter-to-quarter basis increased by twenty seven percent (27%) to $3,358,000 in the first quarter of 1998 from $2,630,000 in the fourth quarter of 1997. This increase is attributable to the growth in revenues from ISG Navigator See Netscape Navigator, Netscape and Norton Navigator. Navigator - Netscape Navigator , our Universal Data Access product. Total revenues in the first quarter of 1998 increased by 6.4% to $3,358,000 from $3,156,000 in the first quarter of 1997 reflecting a decline in ISG's legacy business during 1997. This legacy business has remained stable since the fourth quarter of 1997 and is expected to remain stable throughout 1998. Gross Profit for the first quarter of 1998 was $2,442,000 compared with $2,240,000 in the 1997 period. The Company had net income of $255,000 in the first quarter of 1998 compared with net income of $343,000 in the first quarter of 1997 due to an increase of $313,000 in sales and marketing expenses in the 1998 period. Net income per share was $0.03 in the first quarter of 1998 compared with $0.04 income per share in the first quarter of 1997. Arie Gonen Gonen (Hebrew: גונן) is a Jewish neighbourhood in southcentral Jerusalem, Israel. The official Hebrew name, "Gonen," has never caught on. , President and Chief Executive Officer of ISG, stated "I am very pleased with the improvement of our financial results from the fourth quarter of 1997. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we have increased revenues from ISG Navigator sales as the product is rapidly adopted by Fortune 1000 companies. Our product is winning in the marketplace because of its significant performance and operational advantages over alternative solutions. The number of new customer orders nearly doubled during the first quarter of 1998. Our growing customer base of prestigious accounts now includes companies such as, Lam Research Lam Research Corporation (NASDAQ: LRCX) engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. , Quadgraphics, AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Sabre Group, Reynolds & Reynolds, EG&G, Interlake Interlake is a provincial electoral division in the Canadian province of Manitoba. It was created by redistribution in 1979, and has formally existed since the 1981 provincial election. Previously, much of Interlake was included in the constituency of St. George. Steel, City of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. Pacific, Baxter Labs, Merck Medco, Perrier America, Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , Cobe Labs, AnnArbor Systems and Zeigler Energy. "During 1998, we intend to continue to expand our direct sales organization and marketing activities to rapidly grow revenues from ISG Navigator as its demand increases from the market shift from ODBC (Open DataBase Connectivity) A database programming interface from Microsoft that provides a common language for Windows applications to access databases on a network. to OLE DB (OLE DataBase) A programming interface for data access from Microsoft. It is a COM object that functions in a similar manner to ODBC, but for every type of data source, not just SQL databases. and as end-users begin to understand the product's dynamism. We expanded our indirect channels by adding new resellers and OEMs in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and England and we expect to further expand these channels in the second quarter of 1998. Whereas the majority of our revenues have been from the Digital market, we anticipate that the significant investment of our other distributors, which include among others CA, Tandem (Tandem Computers Inc., Cupertino, CA) A former major manufacturer of fault-tolerant computers founded in 1974 by James Treybig and provider of the early 21st century technology for HP's enterprise computing strategy. , Sungard and Mitsui, will contribute to our revenue growth during the balance of 1998 and beyond. Gonen concluded, "Three important measurements of future revenue and income growth showed marked increases in the first quarter. First, awareness of the Universal Data Access solution grew considerably as leading Database, Applications and Business Intelligence software vendors announced their support of this new standard. Second, awareness of ISG Navigator grew rapidly as evidenced by end-user access to trial licenses of ISG Navigator, which tripled since January 1, 1998 to over one hundred twenty-five Adj. 1. one hundred twenty-five - being five more than one hundred twenty 125, cxxv cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" software access transactions per day. Third, new customer purchases and add-on A purchase of additional goods before payment is made for goods already purchased. An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. sales to previous customers achieved higher levels during the first quarter of 1998 than in previous quarters. ISG Navigator benefited from highly complimentary articles, awards and reviews published in the trade press in addition to many positive references from our installed base. In addition, ISG benefited from continued support from Microsoft through regional seminars, web-site based endorsement and mention, as well as key MSDN (MicroSoft Developer Network) A subscription service from Microsoft for software developers. It includes technical documentation and news, patches and fixes for existing products and beta copies of upcoming releases. distribution. General industry-wide interest in content-rich Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the applications that are powered by high performance data access software has also helped fuel demand for the data access solution that ISG Navigator provides." ISG ISG is the leading provider of Universal Data Access middleware Software that functions as a conversion or translation layer. It is also a consolidator and integrator. Custom-programmed middleware solutions have been developed for decades to enable one application to communicate with another that either runs on a different platform or comes from a based on Microsoft's widely accepted OLE DB standard. ISG products are available on multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. and provide simultaneous database-independent access to many databases and file systems. The company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , ISG Navigator is sold and supported worldwide through sales and support offices in the United States, Israel, United Kingdom, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , and Australia and full service distributors in France and Japan. For more information, visit ISG's Web site at http://www.isgsoft.com Information contained in this document which refers to ISG's future financial status is only management's best estimate at the present time and actual results could differ from present assumptions. SEC reports contain cautionary statements discussing various factors that could cause actual results to differ materially from management's present projections. -0-
ISG International Software Group Ltd.
CONSOLIDATED STATEMENTS OF OPERATION
(in thousands of US Dollars)
Three Months Ended March 31,
----------------------
1998 1997
---------- ----------
Revenues 3,358 3,156
---------- ----------
Cost of revenues 916 916
---------- ----------
Gross profit 2,442 2,240
---------- ----------
Operating expenses
Research and development costs, net 514 520
Selling, general and administrative
expenses 1,804 1,491
---------- ----------
2,318 2,011
---------- ----------
Operating income (loss) 124 229
Financial income ( expenses) - net 133 114
---------- ----------
Income (loss) before income taxes 257 343
Income taxes (benefit) 2 0
---------- ----------
Net income (loss) $255 $343
========== ==========
Income (loss) per share $0.03 $0.04
========== ==========
Weighted average number of
shares outstanding 8,463 8,583
========== ==========
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ISG International Software Group Ltd.
CONSOLIDATED BALANCE SHEETS
(in thousands of US Dollars)
March 31, December 31,
---------- ----------
1998 1997
---------- ----------
ASSETS
Current Assets
Cash and cash equivalents $10,609 $11,429
Restricted cash - -
Marketable securities - -
Accounts receivable - net 4,203 3,728
Other receivables and prepaid expenses 1,287 1,191
---------- ----------
Total current assets 16,099 16,348
---------- ----------
Fixed Assets
Cost 4,884 4,052
Less accumulated depreciation 2,904 2,366
---------- ----------
1,980 1,686
---------- ----------
Other assets
Computer software costs - net 6,500 6,175
Goodwill - net 357 374
---------- ----------
6,857 6,549
---------- ----------
$24,936 $24,583
========== ==========
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ISG International Software Group Ltd.
CONSOLIDATED BALANCE SHEETS
(in thousands of US Dollars)
March 31, December 31,
---------- ----------
1998 1997
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term bank debt $623 $327
Current maturities of long-term debt 168 368
Trade payables 693 789
Deferred revenues 2,128 1,967
Accrued expenses and other
liabilities 1,227 1,536
---------- ----------
Total current liabilities 4,839 4,987
---------- ----------
Long term liabilities
Long term debt 206 177
Accrued severance pay 150 111
---------- ----------
Total long term liabilities 356 288
---------- ----------
Shareholders' equity
Share capital
Authorized 10,000,000 ordinary shares
of NIS 0.1 par value issued and
outstanding:
8,149,363 shares at March 31, 1998
8,125,362 shares at December 31, 1997 370 369
Capital surplus 44,259 44,082
Accumulated deficit (24,838) (25,093)
Foreign currency translation adjustment (50) (50)
---------- ----------
---------- ----------
Total Shareholders' equity 19,741 19,308
---------- ----------
$24,936 $21,386
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CONTACT: Shlomo Baumgarten, CFO See Chief Financial Officer. ISG International Software Group Ltd. Voice: (972) 48559604, Email: shlomo@isg.co.il or Derek Caldwell, Executive VP Sunrise Sunrise, city (1990 pop. 64,407), Broward co., SE Fla., a residential suburb 8 mi (13 km) W of Fort Lauderdale; inc. 1961 as Sunrise Golf Village. It is a major office and commercial center and the site of Sawgrass Mills, one of the largest malls in the United States. Financial Group, Inc. Tel: (212) 421-1616, Fax: (212) 421-5944 |
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