Intergraph Operating Results for Third Quarter 1999.HUNTSVILLE Huntsville, town, Canada Huntsville, town (1991 pop. 14,997), SE Ont., Canada, on the Muskoka River. It has lumber mills and a woodworking plant, but it is sustained mainly by its year-round tourist trade. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Oct. 26, 1999-- Intergraph (Intergraph Corporation, Huntsville, AL, www.intergraph.com) A software and services company founded in 1969 as M&S Computing by Jim and Nancy Meadlock, Keith Schonrock, Bob Thurber and Terry Schansman. Corporation (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 :INGR) today reported operating results for its third quarter ended September September: see month. 30, 1999. The Company incurred a net loss for the quarter of $.93 per share on revenues of $228.5 million, compared to a net loss of $.56 per share on revenues of $253.6 million in third quarter 1998. The 10% revenue decline from third quarter 1998 resulted primarily from reduced revenue in the Company's computer hardware business. 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. before nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". declined 12% from the same quarter last year. The Company's loss from operations, exclusive of nonrecurring charges to operations of $21 million ($.43 per share), was $.45 per share, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $.53 per share for third quarter 1998. The nonrecurring charges were for the cost of actions taken during the quarter to reduce expenses and achieve future profitability. These actions include narrowing the focus in the Company's computer business, verticalizing the Company's businesses worldwide, and eliminating approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 400 jobs. Orders for systems during the third quarter totaled $155 million, down 10% from third quarter 1998. The backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of systems orders at September 30 was $216 million, up from $207 million in the same quarter last year. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jim Meadlock said, "Our stated objectives have been to stem the losses in Intergraph's unprofitable business units and restructure the Company to fully support the vertical industries where Intergraph continues to be a market leader. To that end, we have reduced headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. , consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: offices, completed the worldwide vertical-market alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. workstations, specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. servers, digital video products, and 3D graphics cards. We are actively engaged in discussions with potential partners for Intergraph Computer Systems, Intense3D, and VeriBest." Intergraph also announced today that the Company and its primary lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. have amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. their existing loan agreement and are in negotiations to revise the agreement to provide additional liquidity and flexibility in managing its operations and resources. The Company has received the commitment of the lender for such revisions, subject to further syndication See syndication format. of the revised agreement and to final negotiation of terms. The Future of Intergraph - Vertical Market Solutions As a technical solutions and systems integration company, Intergraph is made up of vertical business units that provide customizable core software and services to governments and industries worldwide. "These business units represent Intergraph's future direction, which is built upon decades of providing innovative products to local and federal governments, as well as to the transportation, process and building, utilities, communications, and public safety industries," Meadlock said. "This new structure provides an even greater opportunity for the business units to focus exclusively on their customers' workflows and requirements. Significant contracts won during the quarter are indicative indicative: see mood. of the Company's continuing success in the utilities and transportation industries." Among those contracts were the Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. Municipal Utilities District, City of Winnipeg Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. Telecom, and Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). Power Co., as well as several State Departments of Transportation and the U.S. Army Corps of Engineers. Update on the Intergraph v. Intel Lawsuit lawsuit: see procedure; tort. On October October: see month. 12, Judge Edwin Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith. Nelson reversed his opinion of June June: see month. 4, in which he had ruled that Intel does not have a license to use Intergraph's patents. Intergraph CEO Jim Meadlock commented, "We believe Judge Nelson's original and well-documented opinion to be correct. Therefore, on October 15, we filed Notice of Appeal and remain very confident that the facts in the case demonstrate that Intel does not have a license to use the patents. Also, the recent ruling has no effect on the tort tort, in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract. When such a duty is breached, the injured party has the right to institute suit for compensatory damages. and antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. claims that form two of the three parts of Intergraph's lawsuit." The trial is scheduled for June 12, 2000, in the U.S. District Court, Northern District of Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . -0-
Intergraph Corporation
Summary Financial Information
----------------------------------------------------------------------
Quarter Ended September 30 (Unaudited) 1999 1998
----------------------------------------------------------------------
Revenue $228,459,000 $253,624,000
Loss from operations before
nonrecurring charges (22,143,000) (25,652,000)
Nonrecurring charges to operations (20,995,000)(a) 120,000
Loss from operations (43,138,000) (25,532,000)
Other nonoperating expense, net 863,000) ( 641,000)
Income tax expense ( 1,500,000) ( 1,000,000)
Net loss $(45,501,000) $(27,173,000)
Net loss per share -
basic and diluted $(.93) $(.56)
Weighted average shares outstanding -
basic and diluted 48,971,000 48,416,000
(a) Includes an inventory write-down of $7 million included in cost
of revenues in the consolidated statement of operations.
Nine Months Ended September 30 (Unaudited) 1999 1998
----------------------------------------------------------------------
Revenue $714,180,000 $746,055,000
Loss from operations before
nonrecurring charges (47,047,000) ( 87,422,000)
Nonrecurring charges to operations (23,467,000)(b) ( 13,782,000)
Loss from operations (70,514,000) (101,204,000)
Gains on sales of assets 11,505,000 111,042,000
Arbitration settlement ( 8,562,000) ---
Other nonoperating expense, net ( 6,080,000) (4,057,000)
Income tax expense ( 1,500,000) (4,500,000)
Net income (loss) $(75,151,000) $1,281,000
Net income (loss) per share -
basic and diluted $(1.54) $.03
Weighted average shares outstanding
- basic 48,834,000 48,316,000
- diluted 48,834,000 48,355,000
(b) Includes an inventory write-down of $7 million included in cost
of revenues in the consolidated statement of operations.
Business Segment Information
Quarter Ended September 30 Total Income (Loss) Net
(Unaudited) Revenue From Operations Income (Loss)
----------------------------------------------------------------------
Intergraph $151,386,000 $2,089,000 $2,089,000
Intergraph Computer Systems 85,784,000 (21,595,000) (21,846,000)
Intergraph Public Safety 24,116,000 2,400,000 1,831,000
VeriBest 7,951,000 (1,177,000) (1,070,000)
Corporate --- (24,855,000) (26,505,000)
Eliminations (40,778,000) --- ---
----------------------------------------------------------------------
Total Company $228,459,000 $(43,138,000) $(45,501,000)
Nine Months Ended September 30 Total Income (Loss) Net
(Unaudited) Revenue From Operations Income (Loss)
----------------------------------------------------------------------
Intergraph $478,534,000 $15,254,000 $15,254,000
Intergraph Computer Systems 265,214,000 (41,101,000) (41,690,000)
Intergraph Public Safety 70,152,000 7,586,000 5,408,000
VeriBest 22,087,000 (5,239,000) (6,199,000)
Corporate --- (47,014,000) (47,924,000)
Eliminations (121,807,000) --- ---
----------------------------------------------------------------------
Total Company $714,180,000 $(70,514,000) $(75,151,000)
Intergraph Background Information Intergraph Corporation is a technical solutions and systems integration company made up of business units that develop, market, and support customizable core software and services for local and national governments and for the following vertical industries: process and building, transportation, utilities, communications, and public safety. Other business units deliver software, hardware and services across multiple industries. Built on 30 years of technology innovation, Intergraph is consistently ranked by industry analysts as a leading vendor in the markets it serves. Intergraph common stock trades on The NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: INGR. Visit our web site at www.intergraph.com for more information. Information contained in this press release includes statements that are forward looking as defined in Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the 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. . Information concerning factors that could cause actual results to differ materially from those in the forward looking statements is described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual 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. and its Form 10-Q Form 10-Q See 10-Q. filings for the quarters ended March 31, 1999 and June 30, 1999. Intergraph and the Intergraph logo are registered trademarks of Intergraph Corporation. Other brands and product names are trademarks of their respective owners. -0-
Third Quarter 1999 Financial Statements
Intergraph Corporation and Subsidiaries
Third Quarter 1999
Consolidated Balance Sheets (Unaudited)
----------------------------------------------------------------------
September 30, December 31,
(In thousands) 1999 1998
----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 53,073 $ 95,473
Accounts receivable, net 282,657 312,123
Inventories 37,687 38,001
Other current assets 33,120 48,928
----------------------------------------------------------------------
Total current assets 406,537 494,525
Investments in affiliates 9,641 12,841
Other assets 70,492 61,240
Property, plant, and equipment, net 110,961 127,368
----------------------------------------------------------------------
Total Assets $597,631 $695,974
======================================================================
Liabilities and Shareholders' Equity
Trade accounts payable $ 63,689 $ 64,545
Accrued compensation 44,433 42,445
Other accrued expenses 76,973 79,160
Billings in excess of sales 62,720 68,137
Short-term debt and current
maturities of long-term debt 15,008 23,718
----------------------------------------------------------------------
Total current liabilities 262,823 278,005
Deferred income taxes 3,076 3,142
Long-term debt 57,200 59,495
----------------------------------------------------------------------
Total liabilities 323,099 340,642
Total shareholders' equity 274,532 355,332
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $597,631 $695,974
======================================================================
This unaudited information is provided for analysis purposes only.
Some account headings have been abbreviated. In the event of
discrepancies with published financial reports, the published reports
will be conclusive.
Intergraph Corporation and Subsidiaries
Third Quarter 1999
Consolidated Statements of Operations (Unaudited)
----------------------------------------------------------------------
Quarter ended Nine months ended
(In thousands except September 30, September 30,
per share amounts) 1999 1998 1999 1998
----------------------------------------------------------------------
Revenues
Systems $154,748 $176,697 $483,319 $513,394
Maintenance and services 73,711 76,927 230,861 232,661
------------------------------------------------ -------------------
Total revenues 228,459 253,624 714,180 746,055
------------------------------------------------ -------------------
Cost of revenues
Systems 116,592 125,572 344,875 367,918
Maintenance and services 49,573 49,952 144,328 145,644
------------------------------------------------ -------------------
Total cost of revenues 166,165 175,524 489,203 513,562
------------------------------------------------ -------------------
Gross profit 62,294 78,100 224,977 232,493
Product development 17,612 20,692 52,401 66,641
Sales and marketing 44,161 57,426 140,946 176,670
General and administrative 29,664 25,634 85,677 76,604
Nonrecurring charges (credit) 13,995 (120) 16,467 13,782
------------------------------------------------ -------------------
Loss from operations (43,138) (25,532) (70,514) (101,204)
Gains on sales of assets --- --- 11,505 111,042
Arbitration settlement --- --- (8,562) ---
Interest expense (1,501) (1,804) (4,329) (5,854)
Other income (expense) - net 638 1,163 (1,751) 1,797
------------------------------------------------ -------------------
Income (loss) before
income taxes (44,001) (26,173) (73,651) 5,781
Income tax expense 1,500 1,000 1,500 4,500
------------------------------------------------ -------------------
Net income (loss) $(45,501) $(27,173) $(75,151) $1,281
================================================ ===================
Net income (loss)
per share -
Basic and diluted $( 0.93) $( 0.56) $( 1.54) $0.03
=================== ===================
Weighted average shares
outstanding -
Basic 48,971 48,416 48,834 48,316
================== ===================
Diluted 48,971 48,416 48,834 48,355
=================== ===================
Systems orders $154,900 $173,000 $462,600 $551,500
================================================ ===================
This unaudited information is provided for analysis purposes
only. Some account headings have been abbreviated. In the event of
discrepancies with published financial reports, the published reports
will be conclusive.
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