MERANT Reports First Quarter Results.Business Editors/Hi-Tech WritersROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BUSINESS WIRE)--Aug. 22, 2000 MERANT (MERANT plc, St. Albans, England, www.merant.com) Originally founded as Micro Focus Group in 1976 in the U.K., MERANT is a software and services company focusing on enterprise change management, Web content management and its PVCS products. (London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. (LSE LSE - Language Sensitive Editor ): MRN MRN Motor Racing Network MRN Medical Record Number MRN Magnetic Resonance Neurography MRN Medicare Remittance Notice MRN Matières Radioactives Naturelles MRN Meteorological Rocket Network MRN Manufacturers Resource Network ; Nasdaq National Market (NNM NNM Network Node Manager NNM NASDAQ National Market (financial) NNM National Nutrition Month (March; American Dietetic Association) NNM Naryan-Mar (Russia) NNM Net New Money ): MRNT), a global leader in e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. software solutions, today reported its results for the first fiscal quarter ended July July: see month. 31, 2000. A conference call has been scheduled for investors and analysts to review results today at 4:00 pm BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. (11:00 am US EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). MERANT announced preliminary first quarter estimates on August 7, 2000, cautioning that revenues and earnings would be below market expectations. Key First Quarter Points (ended July 31, 2000) -- Revenues were (pound)47.6 million under U.K. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ($72.8 million U.S. GAAP). -- Egility e-business software solutions grew 7%, and now make up 62% of business. -- Total Cobol revenue declined 24%, with Cobol license fees down 43%. -- Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta losses were (pound)5.4 million ($7.6 million) before amortization of goodwill charges, resulting from shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in first quarter revenue. -- Cash position remains strong, totaling (pound)79 million ($119 million) at the end of the first fiscal quarter. -- Strategic Egility partnerships announced with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 , Netron and Sun. Commenting on the results, Ken Sexton sex·ton n. An employee or officer of a church who is responsible for the care and upkeep of church property and sometimes for ringing bells and digging graves. , chief financial officer at MERANT, said: "Operating costs operating costs npl → gastos mpl operacionales in the first quarter of this fiscal year have declined by more than (pound)8 million ($12 million), compared with the fourth quarter ended April 30, 2000. This was the result of actions taken at the end of last year to reduce our 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. in non-growth areas such as Cobol. The revenue shortfall was the major reason for our earnings being below original consensus estimates, as a relatively high percentage of the Company's operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. is fixed over the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. . We will continue to reduce expenses in areas where revenues are below expectations and where longer-term growth prospects are declining. The number of employees is below that at the end of last fiscal year and is expected to further decline. MERANT continues to have a strong financial position with (pound)79 million ($119 million) in cash on our balance sheet." Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. , MERANT president and chief executive officer, added: "As discussed during our announcement of first quarter preliminary estimates, we are disappointed with our revenue. We firmly believe Egility e-business is the correct focus for the Company's future growth, but it did not grow as much as expected in the first quarter. A continuing transition to a solutions-based, customer-centric sales model has impacted revenues. We are taking action to improve execution, and will continue to make adjustments in sales and marketing in order to accelerate our transition to an e-business software solutions company and return MERANT to profitability. Cobol revenues decreased at a faster than expected rate, and this decline could continue. This phenomenon was experienced across the industry, as other enterprise software companies have recently reported shortfalls associated with mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, revenues. We will be reducing our cost base in Cobol to ensure future profitability for this revenue stream. In addition, our overall European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. revenues were below expectations. This geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. shortfall was caused by a combination of market and execution issues. The Company is considering a number of strategic alternatives to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with authority granted to MERANT at our last Annual General Meeting, to buy-back up to 10% of its outstanding shares, the Company plans to initiate INITIATE. A right which is incomplete. By the birth of a child, the husband becomes tenant by the curtesy initiate, but his estate is not consummate until the death of the wife. 2 Bouv. Inst. n. 1725. a buy-back program, subject to market conditions." Financial Commentary for the First Quarter - ended July 31, 2000 Under U.K. GAAP, revenues were (pound)47.6 million for the first fiscal quarter as compared to (pound)54.9 million for the period ended July 31, 1999. MERANT's Egility e-business revenue made up 62% of MERANT's total revenues for the quarter. Total revenue from Cobol solutions declined 24%, with Cobol license fees down 43% due to a greater than anticipated decline in demand for Cobol and mainframe-related products. Pre-tax losses before amortization of goodwill were (pound)5.4 million for the quarter ended July 31, 2000. The above pre-tax losses are excluding goodwill charges of (pound)10.5 million. For the first fiscal quarter, revenues were $72.8 million under U.S. GAAP. Pre-tax losses were $7.6 million before goodwill amortization charges. The above pre-tax losses are excluding a goodwill amortization charge of $3.1 million.
Summary financial results are as follows:
G.B. pounds, U.K. GAAP Three months ended
----------------------------
(in millions, except per
ordinary share amounts) July 31, July 31,
2000 1999
----------------------------
Revenue (pound)47.6m (pound)54.9m
EBITA ((pound)6.4m) (pound)0.8m
Pre-tax (loss) earnings -
excluding goodwill ((pound)5.4m) (pound)1.4m
Net (loss) earnings per
share - excluding goodwill (2.4p) 0.6p
(Loss) after goodwill & taxation ((pound)15.9m) ((pound)7.9m)
(Loss) per ordinary share (10.9p) (5.7p)
U.S. dollars, U.S. GAAP Three months ended
----------------------------
(in millions, except per ADS amounts) July 31, July 31,
2000 1999
----------------------------
Revenue $72.8m $87.6m
EBITA ($9.2m) $1.3m
Pre-tax (loss) earnings
- excluding goodwill ($7.6m) $2.3m
Net (loss) earnings per ADS
- excluding goodwill ($0.17) $0.05
Net (loss) income ($10.7m) $0.9m
Net (loss) earnings per ADS - diluted ($0.36) $0.03
Notes: -- EBITA EBITA Earnings Before Interest Taxes Amortization is earnings before interest, taxes and goodwill amortization. -- Net (loss) earnings excluding goodwill amortization is calculated based on an assumed tax rate of 35%. The actual tax rate for the fiscal year could differ depending on future operating results. Operational Highlights MERANT's first quarter business developments include: -- MERANT Teams with IBM to Enhance WebSphere A family of Java development and Web application server products from IBM that run in an open, Eclipse-technology based environment on OS/390, OS/400, NT/2000, Linux and various Unix platforms. with Market-Leading Data Access Technology - IBM will integrate MERANT's Egility Unified Information Access technology into IBM's WebSphere software platform for e-business. -- MERANT Joins Compaq to Deliver Mainframe-Class Speed and Scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it to E-Business Customers - this announcement is an expanded relationship with Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. , whereby MERANT's Egility solutions will be optimized for Compaq's AlphaServer AlphaServer was the name given to a series of server computers, produced from 1994 onwards by Digital Equipment Corporation, and latterly by Compaq and HP. As the name suggests, the AlphaServers were based on the DEC Alpha 64-bit microprocessor. platform running Unix software. Under this agreement, Compaq will also license and distribute MERANT's Server Express. -- MERANT and Netron Partner to Deliver Legacy-To-E-Business Solutions - announced this quarter is a strategic relationship whereby MERANT will incorporate Netron HotRod application mining technology into MERANT's Egility legacy extension and integration solutions. -- MERANT Accelerates Deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of Legacy Applications for E-Business - Egility legacy extension solution first to wrap Cobol applications into Enterprise Java Beans See JavaBeans. . -- MERANT Enhances 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 Technology for B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business Transactions and Information Integration - this next generation of Egility Unified Information Access technology introduces new comprehensive capabilities to manage and secure data for e-business for e-business and enterprise transactions, such as Sun's Java 2 Platform Java 2 Platform - Java 2 Platform, Standard Edition Enterprise Edition (J2EE (Java 2 Platform, Enterprise Edition) A platform from Sun for building distributed enterprise applications. J2EE services are performed in the middle tier between the user's machine and the enterprise's databases and legacy information systems. ) and Windows DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. , through highly interoperable The ability for one system to communicate or work with another. See interoperability. standards-based middleware. -- MERANT Expands Strategic Partnership with Sun - MERANT will expand its strategic relationship with Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Inc., delivering a framework of infrastructure solutions based on Sun's J2EE. Conference Call Update A conference call has been scheduled today at 4:00 pm BST (11:00 am EDT) for investors and analysts to review the first quarter results. For those wishing to participate on the conference call, the telephone numbers are 800-446-2782 (US), 847-413-3235 (International) and ++353 1 240 5490 (Dublin Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. ). For access to our web presentation, please refer to the following web site at http://merant.webex An application sharing and conferencing service that is widely used for presentations, demos, training and support from WebEx Communications, Inc., San Jose, CA (www.webex.com). Everything that the presenters see and manipulate on their computers can be viewed by everyone in the .com at least 10 minutes prior to the call. About MERANT MERANT is a leading global e-business software solutions company. Founded in 1976, MERANT has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $360 million in annual revenues, 2,000 employees and more than 500 technology partners. More than 5 million professionals use MERANT technology solutions at 35,000 customer sites, including the entire Fortune 100, the majority of the Global 500 and over 400 leading dotcoms. MERANT uses its Egility framework, a comprehensive set of solutions combining expertise, market-leading technology, best practices and an extensive network of partners, to deliver an e-business applications infrastructure. Building on MERANT Egility, MERANT provides comprehensive enterprise-strength e-business solutions for companies, including e-business strategy, creative design, application development and legacy integration. For additional information, visit www.merant.com. Investor inquiries can be forwarded to Investor.Relations@merant.com. 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. The following statement is made in accordance with the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This announcement contains forward-looking statements that include statements regarding expectations for MERANT's business strategy, its operating expenses and number of employees, its sales and marketing organization, and future prospects and growth, including the growth of MERANT's e-business solutions business and related revenues. These forward-looking statements involve a number of risks and uncertainties. Actual results could differ materially from those anticipated by these forward-looking statements. Future results will be difficult to predict as MERANT transforms its business strategy to provide e-business solutions and away from certain of its past primary markets, including the market for Year 2000 products and services. MERANT's ability to recruit RECRUIT. A newly made soldier. and retain key personnel, especially in the sales and business units, could materially alter financial results and plans for the sales and business units. Other factors that could cause actual results to differ materially include, among others, the ability of MERANT to effectively manage its costs against uncertain revenue expectations, the potential for a decrease in revenue or a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in revenue growth which may be caused by delays in the timing of sales and the delivery of products or services, the ability of MERANT to develop, release, market and sell products and services to customers in the highly dynamic market for enterprise application development and e-business solutions, the potential need for enterprise application development solutions and e-business solutions to shift based on changes in technology and customer needs, the market acceptance of MERANT's e-business solutions and e-business solutions generally, the effect of competitors' efforts to enter MERANT's markets and the possible success of existing competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in those markets, and MERANT's ability to manage and integrate recently acquired businesses or other businesses that it may acquire in the future. Further information on potential factors which could affect MERANT's financial results is included in MERANT's Annual Report on Form 20-F for the year ended April 30, 1999, and Quarterly Reports on Form 6-K for the quarters ended July 31, 1999, October October: see month. 31, 1999, and January January: see month. 31, 2000, each as submitted to the SEC and as may be updated and 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. with future filings or submissions, including MERANT's Form 20-F for the year ended April 30, 2000. MERANT undertakes no obligation to release publicly any updates or revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statements contained in this announcement that may reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date of this announcement. Financial Statement Information The financial information contained in this report does not constitute statutory accounts as defined in section 240 of the U.K. Companies Act 1985. Prior year figures are based on the financial statements of the Company for the year ended April 30, 2000, which will be filed with the U.K. Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . U.S. Securities Filings As a foreign private issuer 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. , MERANT is not required to file quarterly reports with the SEC. However, starting in 1997 MERANT began furnishing to the SEC, on a voluntary basis, quarterly reports on Form 6-K which include MERANT's results for the applicable quarter in a format similar to that of a Form 10-Q Form 10-Q See 10-Q. . These materials are available on the SEC web site located at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Copies of MERANT's Annual Report to Shareholders and Annual Report on Form 20-F, each for the year ended April 30, 1999, are available upon request to MERANT's offices in Rockville, Maryland Rockville is the county seat of Montgomery County, Maryland, United States. According to the 2006 census update, the city had a total population of 59,114, making it the second largest city in Maryland. or Newbury Newbury, town (1991 pop. 31,488), West Berkshire, S central England. In a farming region, Newbury trades in wool, malt, and farm products. Paper, furniture, and metal products are also made. In the Middle Ages the town was an important textile manufacturing center. , United Kingdom. Trademark Notice MERANT and Egility are trademarks of MERANT. All other trademarks as they appear in this announcement are the property of their respective owners.
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED STATEMENTS OF INCOME - IN U.S. FORMAT
----------------------------------------------------------------------
(in thousands - except per
share and ADS data) Three months ended
(unaudited)
July 31, July 31,
2000 1999
----------------------------------------------------------------------
Net revenue
License fees $ 30,611 $ 42,526
Maintenance subscriptions 27,954 25,380
Training and consulting 14,251 19,689
--------- ---------
Total net revenue 72,816 87,595
----------------------------------------------------------------------
Cost of revenue
Cost of license fees 2,375 2,555
Cost of maintenance subscriptions 5,390 5,694
Cost of training and consulting 15,095 14,916
--------- ---------
Total cost of revenue 22,860 23,165
----------------------------------------------------------------------
Gross profit 49,956 64,430
----------------------------------------------------------------------
Operating expenses
Research and development 14,770 14,492
Sales and marketing 38,112 40,830
General and administrative 6,249 7,812
Goodwill amortization 3,121 978
--------- ---------
Total operating expenses 62,252 64,112
--------- ---------
(Loss) income from operations (12,296) 318
Interest income, net 1,583 1,013
--------- ---------
(Loss) income before income taxes (10,713) 1,331
Income taxes -- 479
--------- ---------
Net (loss) income ($ 10,713) $ 852
----------------------------------------------------------------------
Net (loss) income per share: basic ($ 0.07) $ 0.01
Net (loss) income per ADS: basic ($ 0.36) $ 0.03
Shares used in computing basic net
(loss) income per share 149,355 143,792
ADSs used in computing basic net
(loss) income per ADS 29,871 28,758
Net (loss) income per share: diluted ($ 0.07) $ 0.01
Net (loss) income per ADS: diluted ($ 0.36) $ 0.03
Shares used in computing diluted net
(loss) income per share 149,355 148,606
ADSs used in computing diluted net
(loss) income per ADS 29,871 29,721
----------------------------------------------------------------------
Note: Each American depositary share ("ADS") represents five ordinary
shares.
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED BALANCE SHEET - IN U.S. FORMAT
----------------------------------------------------------------------
(in thousands)
(unaudited) July 31, April 30,
2000 2000
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 101,556 $ 106,140
Short-term investments 17,162 19,538
Accounts receivable, net 73,680 92,840
Prepaid expenses and other assets 11,980 10,127
--------- ---------
Total current assets 204,378 228,645
--------- ---------
Long-term assets:
Property, plant and equipment, net 45,436 47,518
Goodwill, net 41,746 44,297
Software product assets, net 4,883 5,569
Other assets 3,255 2,987
--------- ---------
Total assets $ 299,698 $ 329,016
----------------------------------------------------------------------
Liabilities and shareholders' equity
Current liabilities:
Borrowings $ 2,644 $ 2,785
Accounts payable 10,525 12,208
Accrued employee compensation 14,358 20,088
Income taxes payable 8,334 7,601
Deferred revenue 64,288 69,830
Other current liabilities 35,174 41,945
--------- ---------
Total current liabilities 135,323 154,457
--------- ---------
Deferred income taxes 14,724 13,157
--------- ---------
Total liabilities 150,047 167,614
----------------------------------------------------------------------
Shareholders' equity:
Ordinary shares 4,878 4,876
Additional paid-in capital
and other reserves 172,924 172,892
Treasury stock (9,646) (11,742)
Retained earnings (4,271) 6,442
Accumulated other
comprehensive loss (14,234) (11,066)
--------- ---------
Total shareholders' equity 149,651 161,402
----------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 299,698 $ 329,016
----------------------------------------------------------------------
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED STATEMENTS OF CASH FLOW - IN U.S. FORMAT
----------------------------------------------------------------------
(in thousands) Three months ended
(unaudited) July 31, July 31,
2000 1999
----------------------------------------------------------------------
Operating activities:
Net (loss) income ($ 10,713) $ 852
Adjustments to reconcile net
(loss) income to cash
(used) provided by
operations:
Depreciation of fixed assets 3,470 3,251
Amortisation of software
product assets and other 3,617 3,481
intangibles
Changes in operating assets
and liabilities (2,412) (4,330)
Deferred taxation -- 1,398
--------- ---------
Net cash (used) provided by
operating activities (6,038) 4,652
--------- ---------
Investing activities:
Purchases of property, plant
and equipment (2,665) (3,303)
Software product assets and
other intangibles (98) (1,517)
Available-for-sale securities 2,376 13,809
--------- ---------
Net cash (used) provided by
investing activities (387) 8,989
--------- ---------
Financing activities:
Issuance of ordinary shares,
net of expenses 2,377 1,139
Own shares (847) --
Repayment of borrowings -- 1,644
--------- ---------
Net cash provided by
financing activities 1,530 2,783
--------- ---------
Effect of exchange rates on cash 311 141
--------- ---------
(Decrease) increase in cash (4,584) 16,565
--------- ---------
Cash at beginning of period 106,140 86,580
--------- ---------
Cash at end of period $ 101,556 $ 103,145
----------------------------------------------------------------------
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED PROFIT AND LOSS ACCOUNT - IN U.K. FORMAT
----------------------------------------------------------------------
(in thousands - except
per share data) Three months ended
(unaudited) July 31, July 31,
2000 1999
(pound) 000 (pound)000
----------------------------------------------------------------------
Revenue
Licence fees 20,035 26,749
Maintenance subscriptions 18,248 15,815
Training and consulting 9,300 12,331
-------- --------
Total revenue 47,583 54,895
----------------------------------------------------------------------
Cost of revenue
Cost of licence fees 1,553 1,597
Cost of maintenance subscriptions 3,514 3,568
Cost of training and consulting 9,842 9,275
-------- --------
Total cost of revenue 14,909 14,440
----------------------------------------------------------------------
Gross profit 32,674 40,455
----------------------------------------------------------------------
Operating expenses
Research and development 9,630 9,069
Sales and marketing 24,851 25,464
General and administrative 4,630 5,136
Goodwill amortisation 10,510 8,754
-------- --------
Total operating expenses 49,621 48,423
-------- --------
Operating (loss) before interest
and taxation (16,947) (7,968)
Interest income, net 1,082 638
-------- --------
(Loss) before taxation (15,865) (7,330)
Taxation -- (592)
-------- --------
(Loss) for the period
after taxation (15,865) (7,922)
----------------------------------------------------------------------
(Loss) per share: basic (10.9p) (5.7p)
(Loss) per share: diluted (10.9p) (5.7p)
----------------------------------------------------------------------
Number of shares: basic 145,323 139,982
Number of shares: diluted 145,323 139,982
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED BALANCE SHEET - IN U.K. FORMAT
----------------------------------------------------------------------
(unaudited) July 31, April 30,
2000 2000
(pound) 000 (pound)000
----------------------------------------------------------------------
Fixed assets:
Intangible fixed assets 109,186 120,205
Tangible fixed assets 30,290 30,075
Investment 6,011 7,431
--------- ---------
Total fixed assets 145,487 157,711
----------------------------------------------------------------------
Current assets:
Stock 1,440 1,444
Trade debtors 49,120 58,760
Other debtors and prepaid
expenses 9,802 7,101
Cash and bank deposits 79,145 79,543
--------- ---------
Total current assets 139,507 146,848
--------- ---------
Creditors: amounts falling
due within one year
Bank loans and overdrafts 1,763 1,763
Trade creditors 7,017 7,726
Accrued employee compensation 9,572 12,714
Current corporation tax 5,403 4,801
Accrued expenses and other
current liabilities 15,180 15,429
Deferred revenue 42,859 44,196
--------- ---------
Total current liabilities 81,794 86,629
----------------------------------------------------------------------
Net current assets 57,713 60,219
----------------------------------------------------------------------
Total assets less current
liabilities 203,200 217,930
Provisions for liabilities
and charges 20,273 19,446
--------- ---------
Net assets 182,927 198,484
----------------------------------------------------------------------
Capital and reserves
Called up share capital 2,989 2,988
Share premium account and
other reserves 200,442 200,421
Profit and loss account (20,504) (4,925)
--------- ---------
Total shareholders' equity 182,927 198,484
----------------------------------------------------------------------
MERANT plc - QUARTER ENDED JULY 31, 2000
CONSOLIDATED CASH FLOW STATEMENT - IN U.K. FORMAT
----------------------------------------------------------------------
(unaudited) Three months ended
July 31, July 31,
2000 1999
(pound) 000 (pound)000
----------------------------------------------------------------------
Operating (loss): (16,947) (7,968)
Depreciation of fixed assets 2,268 1,557
Amortisation of software product
assets and other intangibles 11,082 11,110
Changes in operating assets and
liabilities 3,624 2,213
Restructuring charges (637) --
Deferred taxation -- (3,113)
------- -------
Net cash (outflow) / inflow
from operating activities (610) 3,799
Returns on investments and
servicing of finance 1,082 638
Taxation (48) 1,204
Capital expenditure and
financial investment (3,106) (5,774)
------- -------
Cash (outflow) before financing (2,682) (133)
Financing 2,002 1,778
------- -------
(Decrease) / increase in cash (680) 1,645
----------------------------------------------------------------------
----------------------------------------------------------------------
Reconciliation of net cash flow
to movements in net funds:
(Decrease) / increase in cash (680) 1,645
Cash outflow from increase in
loans -- (1,012)
Cash outflow from increases
in liquid resources -- (7)
------- -------
Change in cash resulting
from cash flows (680) 626
Currency translation difference 282 67
------- -------
Movement in cash during the period (398) 693
Net funds at beginning of period 77,780 73,692
------- -------
Net funds at end of period 77,382 74,385
----------------------------------------------------------------------
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