NEON Reports Record Third Quarter Results; Revenue Growth Tops 250%.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. , Colo.--(BUSINESS WIRE)--Oct. 22, 1997--New Era of Networks, Inc.(TM) (NEON) (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 :NEON) today reported record revenues and its fifth consecutive quarter of bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. improvement. Revenues of $5.9 million in the quarter ended September September: see month. 30, 1997 increased 254% compared to revenues of $1.7 million for the third quarter ended September 30, 1996, and rose 24% compared to the $4.8 million reported in the preceding quarter ended June June: see month. 30, 1997. International business accounted for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40% of 1997 third quarter revenue. Excluding the impact of the amortization of purchased intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in- in- word element [L.], in, within, or into. in- word element [L.], not. in- 1 or il- or im- or ir- pref. process research and development associated with the acquisition of Menhir menhir (mĕn`hēr') [Breton,=long stone], in archaeology, name given to the single standing stones of Western Europe, and by extension to those of other lands. Their size varies and their shape is rough and squared, tapering toward the top. Limited in September 1997, revenue and profit for the most recent five quarters were as follows: -0-
For the Three Months Ended(a)
(unaudited)
Sept 30 Dec 31 Mar 31 June 30 Sept 30
1996 1996 1997 1997 1997
Revenue (000) $1,673 $2,819 $3,674 $4,779 $5,921
Net Loss (000) (a) ($2,071) ($1,488) ($784) ($529) ($117)
Per Share (a) ($0.34) ($0.24) ($0.13) ($0.08) ($0.01)
(a) Excluding the amortization of purchased intangibles and write-
off of in-process research and development related to the September
1997 acquisition of Menhir Limited. Giving effect to the
acquisition-related costs, the reported net loss was ($2.7) million
or ($0.30) per share in the quarter ended September 30, 1997 and
($4.0) million or ($0.56) per share in the nine months ended
September 30, 1997. See financial tables.
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Revenue for the nine months ended September 30, 1997 was $14.4
million, a growth of 232% over the $4.3 million reported in the
corresponding period of 1996. For the first nine months of 1997,
excluding the acquisition-related costs, the Company reported a net
loss of ($1.4) million or ($0.20) per share. This compares to a net
loss of ($4.2) million or ($0.73) per share for the same period in
1996.
"We worked very hard to maximize our business partnerships and to
expand our reach internationally during the third quarter," said
Rick Adam, NEON President and CEO. "Our record revenue in the third
quarter reflects and affirms our strategy, especially with our newest
customer wins in the third quarter, including CEDEL Bank, Flemings
Bank, Abbey National Treasury Services, Handelsbank, Credito
Italiano, and Standard Corporate and Merchant Bank (SCMB) of South
Africa."
NEON entered into a relationship with IBM to integrate IBM's
market-leading MQSeries(TM) with its NEONet enterprise integration
product suite. This partnership will provide MQSeries customers with
real-time, intelligent message routing and message reformatting, and
create a software architecture that supports heterogeneous networks
of any size. NEON joined IBM's BESTeam program; as a BESTeam member,
NEON will work with IBM to jointly market and sell the integrated
product.
Tandem Computers selected NEON to provide the integration
foundation for the Tandem(R) Payments Factory, which offers banks an
integrated approach to real-time global payments processing.
NEONet(TM) will deliver the intelligent messaging hub for transaction
routing, enabling the seamless integration of nine payments-related
applications from industry-leading solutions providers, including
NEON.
NEON announced the immediate availability of NEONweb(TM), a
complete web solution set with 100% Pure Java Certification(TM).
NEONweb provides a set of tools that allows users to "legacy-enable"
Java applications, integrating legacy applications with client/server
and Web-based applications across traditional networks and the World
Wide Web.
"We believe the need for enterprise application integration is a
global concern," Adam commented. "In September we strengthened
NEON's European presence and business base with the acquisition of
Menhir Limited, a U.K. corporation. Menhir's major product,
Rapport, allows banks to consolidate client relationships across
multiple product lines and divisions, making it an important
integration tool for global banking. Rapport is installed on more
than 4,000 workstations worldwide, supporting more than 20 customers
including Banque Paribas, Credit Lyonnaise, the Royal Bank of
Scotland, Dresdner Kleinwort Benson, and NatWest Ventures. The
blending of NEONet and Rapport technologies will benefit customers
and further our international opportunities. Our Menhir acquisition
greatly expands our corporate visibility outside the U.S."
Any forward-looking statements in this news release involve risks
and uncertainties that could cause the Company's future results to
vary materially. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in the
Company's public reports filed from time to time with the Securities
and Exchange Commission, including the Company's reports on Form 10-Q
and the Company's Prospectus dated June 18, 1997.
About New Era of Networks
New Era of Networks, Inc. (NASDAQ:NEON), develops, markets, and
supports the first packaged solution for automating enterprise
application integration. NEON's principal product, NEONet, provides
organizations with a structured software platform for integrating
disparate applications and systems across the enterprise. NEONet
enables companies to preserve their existing investments in legacy
systems while incorporating new technologies such as client/server
and Internet/intranet. NEONet greatly speeds and simplifies the
integration of popular packaged applications, including PeopleSoft,
SAP, and Oracle Applications. The company's customers include some
of the largest and most technologically sophisticated financial
services, healthcare, energy, and insurance companies in the world.
NEON has business relationships with partners such as IBM, Society
for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.),
Tandem, Oracle, PeopleSoft, KPMG, Andersen Consulting, First
Consulting Group, Sun Microsystems, SunGard, and others. NEON's
World Wide Web address is http://www.neonsoft.com . For more
information about NEON, call 303-486-9348.
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New Era of Networks, the NEON logotype, NEONet, NEONweb,
Neonsoft, NEONaccess, NEONentry, NEONreplication, NEONenrich,
NEONmsgtrak, and NEONbalance are trademarks of New Era of Networks,
Inc. All other trademarks herein are the property of their
respective owners.
A full-text copy of this announcement may be obtained by calling
the Company's fax retrieval line at 1-888-329-2312 and selecting
option "two". The announcement may also be downloaded from the Web;
access "http://www.businesswire.com/iponet.htm" and select "New Era
of Networks".
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NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
REVENUES:
Software licenses $4,031 $ 832 $ 9,691 $ 1,354
Services and
maintenance 1,890 841 4,683 2,972
Total revenues 5,921 1,673 14,374 4,326
Cost of revenues:
Cost of software
licenses 342 252 758 408
Cost of services
and maintenance 1,148 455 3,189 1,845
Total cost of
revenues 1,490 707 3,947 2,253
Gross profit 4,431 966 10,427 2,073
OPERATING EXPENSES:
Sales and marketing 2,253 1,469 5,931 2,799
Research and
development 2,108 1,142 4,890 2,486
General and
administrative 616 475 1,481 1,030
Write-off of in-process
technology 2,600 - 2,600 -
Amortization of
intangibles 18 - 18 -
Total operating
expenses 7,595 3,086 14,920 6,315
Loss from operations (3,164) (2,120) (4,493) (4,242)
Other income, net 429 49 444 58
Loss before provision
for income taxes (2,735) (2,071) (4,049) (4,184)
Provision for income
taxes 0 0 0 0
Net loss $(2,735) $(2,071) $(4,049) $(4,184)
Pro forma net loss per
common share $ (0.30) $ (0.34) $ (0.56) $ (0.73)
Pro forma weighted
average shares
of common stock
outstanding 9,035,442 6,073,360 7,199,153 5,693,461
Excluding
acquisition-related
costs:
Net loss $ (117) $ (2,071) $(1,431) $(4,184)
Pro forma net loss per
common share $ (0.01) $ (0.34) $ (0.20) $ (0.73)
NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
1997 1996
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 26,344 $ 3,388
Accounts receivable, net 6,696 2,229
Unbilled revenue 2,261 --
Prepaid expenses and other 762 84
Total current assets 36,063 5,701
Property and equipment, net 1,601 1,128
Other assets, net 1,419 244
Total assets $ 39,083 $ 7,073
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,167 $ 470
Accrued liabilities 1,775 1,370
Notes payable to banks 495 1,100
Deferred revenue 625 175
Total current liabilities 5,062 3,115
Notes payable to banks 32 442
Total liabilities 5,094 3,557
Stockholders' Equity:
Preferred stock (converted to
4,448,209 common shares
in June 1997) -- 11,385
Common stock, $.0001 par value,
45,000,000 shares
authorized, 9,059,919 and
1,359,091 shares issued and
outstanding, respectively 1 --
Additional paid-in capital 46,048 142
Accumulated deficit (12,060) (8,011)
Total stockholders' equity 33,989 3,516
Total liabilities and
stockholders' equity $ 39,083 $ 7,073
CONTACT: New Era of Networks, Inc. Steve Webb
Steven John Webb, better known as Steve Webb, is a British politician, the Member of Parliament for Northavon and the Chair of the Liberal , 303/694-3933 |
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