Peerless Systems Reports Record Second-Quarter Results.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--Aug. 21, 1997--Peerless Systems Corp. (Nasdaq:PRLS PRLS Puerto Rican and Latino Studies (program of study) ), a leader in embedded Inserted into. See embedded system. imaging systems, Thursday Thursday: see week. announced record revenues and earnings for its second fiscal quarter ended July July: see month. 31, 1997. Revenues expanded to $6.0 million, up 59 percent from the $3.8 million reported for the same quarter a year ago. The company reported net income of $1.0 million, or 9 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , up 612 percent from the $147,000, or 3 cents per share, recorded in the comparable period a year ago. Revenues from the first six months of fiscal 1998 grew 56 percent to $11.1 million, up from the $7.1 million recorded for the comparable period a year ago. The company reported net earnings for the six-month period ended in July 1997 of $1.8 million, or 16 cents per share, up substantially from the $222,000, or 5 cents per share, recorded for the comparable period last year. Growth in Peerless revenue in the second quarter was led by record product-license fees, which expanded 164 percent from the same quarter last year. Increased shipments of digital document products that incorporate Peerless imaging technology, as well as a higher level of development license fees, drove revenue gains during the second quarter. The expansion in revenues continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, corporate increases in 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. , enabling the company to attain another record high in operating profitability during the second quarter. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the second quarter of fiscal 1998 rose to 23 percent of revenue, compared with 19 percent in the first quarter and 7 percent in the comparable quarter last year. ``We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. with the continued expansion of the Peerless embedded imaging platform within the digital document product market, and are especially pleased with our progress in the color sector,'' stated Ed Gavaldon, chief executive officer. ``During the second quarter, two OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers introduced ground-breaking ground-breaking Adjective innovative color laser printers A laser printer that prints in color using four toner cartridges (CMYK) of cyan, magenta, yellow and black. The colors are applied one at a time to the drum and are then adhered to the paper. See printer. incorporating Peerless' embedded imaging technologies.'' Both the Minolta Minolta Co., Ltd. was a Japanese worldwide manufacturer of cameras, camera accessories, photo-copiers, fax machines and laser printers. Minolta was founded in Osaka, Japan in 1928 as Nichi-Doku Shashinki Shōten Color PageWorks, the industry's first color laser printer to break the $3,000 price barrier critical to the U.S. business market, and the Xerox (Xerox Corporation, Stamford, CT, www.xerox.com) A major manufacturer of analog and digital copy machines, computer printers and document management systems. Corporate headquarters are in Stamford, CT, while manufacturing and marketing is in Rochester, NY. DocuPrint C55 desktop color laser printer, a state-of-the-art $3,500 color laser printer, have commenced commercial shipments. Shortly after the close of the quarter, the company attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. another color milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. with the successful completion of its fifth- generation imaging co-processor ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. , the Peerless QP1800. ``With the advent of the QP1800, Peerless OEMs are now able to deliver continuous tone quality on color or monochrome Also called "mono." Refers to display screens that use one foreground and one background color; for example, black on white, white on black or green on black. The first terminals connected to mainframes and minicomputers were monochrome, and monochrome screens were widely used on early printers and multifunction devices for the first time,'' noted Gavaldon. `Peerless' object-based See object-oriented programming. image-processing technology continued to win acceptance across the networked monochrome, multifunction and color sectors of the digital document product market in the second quarter. Design win activity during the second quarter was particularly strong in the multifunction sector,'' remarked Gavaldon. Also during the quarter, the company announced the formation of its new subsidiary company, Peerless Systems Co. Ltd. in Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , in order to better service and support the growing Peerless Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and customer base, which now constitutes more than half of the corporate total (a). Peerless Systems is a leading provider of software-based embedded imaging systems to original-equipment manufacturers of digital document products. Digital document products include printers, copiers, fax machines, scanners and emerging color products, as well as multifunction products that perform a combination of these imaging functions. In order to process digital text and graphics, digital document products rely on a core set of imaging software and supporting electronics, collectively known as an embedded imaging system. The Peerless family of products and engineering services provides advanced embedded imaging technologies that enable the company's OEM customers to develop digital printers, copiers and multifunction products quickly and cost-effectively. Peerless Systems is located at 2381 Rosecrans Rose·crans , William Starke 1819-1898. American Union general. After successful campaigns in West Virginia and Mississippi, he was defeated at Chickamauga, Georgia (1863), and relieved of his duties. Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., El Segundo, CA. 90245; main telephone 310/536-0908; facsimile 310/536-0058; Web site www.peerless.com . NOTE TO EDITORS: This news release refers to various products and companies by their trade names. In most, if not all, cases these designations are claimed as trademarks or registered trademarks by their respective companies. (a) ``Safe-harbor'' statement under the 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: With the exception of historical information, the statements set forth above include 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. that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the following: the fact that the company's markets are characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by rapidly changing technology, evolving industry standards and frequent introductions of new products and enhancements, and the company's ability to respond to such changes; difficulties that the company may experience in completing the development of turnkey See turnkey system. designs for OEM customers, its color technology or other products; the fact that the multifunction and color markets targeted by the company are at an early stage of development; the highly competitive nature of the markets for the company's products; the company's ability to attract and retain skilled personnel; the company's reliance on third-party suppliers for components used in the company's products; the quarterly variability in the company's bookings and design wins; and the company's reliance on a relatively small number of OEM customers for a large percentage of its revenue. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are also discussed in the company's filings with the Securities and Exchange Commission, including its recent filings 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. , Form 10-Q Form 10-Q See 10-Q. and Form S-1. -0-
PEERLESS SYSTEMS CORP.
Balance Sheets
(In thousands)
July 31, Jan. 31,
1997 1997
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 8,963 $24,162
Short-term investments 11,801 2,000
Trade accounts receivable, net 3,547 3,314
Unbilled receivables 1,133 363
Deferred tax asset 1,692 1,692
Prepaid expenses and other current assets 601 253
Total current assets 27,737 31,784
Investments 8,008
Property and equipment, net 1,788 1,665
Other assets 409 453
Deferred tax asset 1,207 1,207
Total assets $39,149 $35,109
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 467 $ 568
Accrued wages 637 711
Accrued compensated absences 505 345
Other current liabilities 480 337
Income taxes payable 1,043 100
Deferred rent, current portion 76 76
Deferred revenue, current portion 5,100 4,591
Total current liabilities 8,308 6,728
Deferred rent 400 217
Deferred revenue 100 100
Total liabilities 8,808 7,045
Stockholders' equity:
Common stock 10 10
Additional paid-in capital 37,601 37,225
Deferred compensation (286) (346)
Accumulated deficit (6,984) (8,825)
Total stockholders' equity 30,341 28,064
Total liabilities and stockholders' equity $39,149 $35,109
PEERLESS SYSTEMS CORP.
Statements of Operations
(In thousands, except per-share data)
(Unaudited)
Three months ended
July 31, 1997
$ %
Revenues:
Product licensing $ 3,758 63.1%
Engineering services and maintenance 2,201 36.9
Total revenues 5,959 100.0
Cost of revenues:
Product licensing 35 0.6
Engineering services and maintenance 1,932 32.4
Total cost of revenues 1,967 33.0
Gross margin 3,992 67.0
Operating expenses:
Research and development 1,042 17.5
Sales and marketing 892 15.0
General and administrative 703 11.8
Total operating expenses 2,637 44.3
Income from operations 1,355 22.7
Interest (income) expense, net (332) (5.6)
Income before income taxes 1,687 28.3
Provision for income taxes 641 10.7
Net income $ 1,046 17.6%
Net income per share $ 0.09
Weighted average number of common and common-
equivalent shares outstanding 11,674
Three months ended
July 31, 1996
$ %
Revenues:
Product licensing $ 1,425 37.9%
Engineering services and maintenance 2,332 62.1
Total revenues 3,757 100.0
Cost of revenues:
Product licensing 32 0.9
Engineering services and maintenance 1,681 44.7
Total cost of revenues 1,713 45.6
Gross margin 2,044 54.4
Operating expenses:
Research and development 616 16.4
Sales and marketing 567 15.1
General and administrative 586 15.6
Total operating expenses 1,769 47.1
Income from operations 275 7.3
Interest (income) expense, net 96 2.5
Income before income taxes 179 4.8
Provision for income taxes 32 0.9
Net income $ 147 3.9%
Net income per share $ 0.03
Weighted average number of common and common-
equivalent shares outstanding 6,600
PEERLESS SYSTEMS CORP.
Statements of Operations
(In thousands, except per-share data)
(Unaudited)
Six months ended
July 31, 1997
$ %
Revenues:
Product licensing $ 7,273 65.6%
Engineering services and maintenance 3,814 34.4
Total revenues 11,087 100.0
Cost of revenues:
Product licensing 70 0.6
Engineering services and maintenance 3,392 30.6
Total cost of revenues 3,462 31.2
Gross margin 7,625 68.8
Operating expenses:
Research and development 2,112 19.1
Sales and marketing 1,777 16.0
General and administrative 1,419 12.8
Total operating expenses 5,308 47.9
Income from operations 2,317 20.9
Interest (income) expense, net (653) (5.9)
Income before income taxes 2,970 26.8
Provision for income taxes 1,129 10.2
Net income $ 1,841 16.6%
Net income per share $ 0.16
Weighted average number of common and common-
equivalent shares outstanding 11,682
Six months ended
July 31, 1996
$ %
Revenues:
Product licensing $ 2,438 34.4%
Engineering services and maintenance 4,650 65.6
Total revenues 7,088 100.0
Cost of revenues:
Product licensing 65 0.9
Engineering services and maintenance 3,296 46.5
Total cost of revenues 3,361 47.4
Gross margin 3,727 52.6
Operating expenses:
Research and development 1,038 14.7
Sales and marketing 1,164 16.4
General and administrative 1,086 15.3
Total operating expenses 3,288 46.4
Income from operations 439 6.2
Interest (income) expense, net 167 2.4
Income before income taxes 272 3.8
Provision for income taxes 50 0.7
Net income $ 222 3.1%
Net income per share $ 0.05
Weighted average number of common and common-
equivalent shares outstanding 5,990
CONTACT: Peerless Systems Corp., El Segundo Hoshi Hoshi (星 Printer, 310/536-0908 hprinter@peerless.com |
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