STATE OF THE ART Reports Third Quarter Results.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Oct. 16, 1996--Accounting software developer STATE OF THE ART, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . today reported that revenue for the three months ended September September: see month. 30, 1996 decreased 9 percent to $11,054,000, compared with $12,194,000 in the third quarter of the previous year. Revenue for the nine-month period ended September 30, 1996 increased 13 percent to $36,439,000, compared with $32,390,000 for the same nine-month period of the prior year. The company reported a loss of $855,000 or $0.07 per share for the third quarter compared to a profit of $1,285,000 or $0.12 per share in the third quarter of 1995. Included in the loss for the quarter was a $530,000 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 prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. royalties associated with the Sybase (Sybase Inc., Dublin, CA, www.sybase.com) A software company founded in 1984 that specializes in enterprise infrastructure and integration of platforms, databases and applications. (r) Watcom SQL A relational DBMS for DOS, Windows, NetWare and OS/2 developed by Watcom International Corporation, Waterloo, Ontario. Watcom SQL evolved into Sybase SQL Anywhere when it was acquired by Powersoft and then Sybase. database for the
company's client/server product line, Acuity acuity /acu·i·ty/ (ah-ku´i-te) clarity or clearness, especially of vision. a·cu·i·ty n. Sharpness, clearness, and distinctness of perception or vision. Financials(tm), which now features a Microsoft(r) SQL Server An earlier relational DBMS from Sybase and from Microsoft. Sybase introduced SQL Server in 1988 for various Unix versions. In that same year, with help from IBM, Sybase created an OS/2 version that Microsoft licensed and branded as Microsoft SQL Server. database. Earnings for the nine-month period ended September 30, 1996 totaled $1,295,000 or $0.11 per share, as compared to $3,680,000 or $0.33 per share for the same nine-month period in the prior year. "This quarter proved to be a transitional quarter for the company as we continued to introduce new Windows(r) and client/server products to the marketplace," said David W. Hanna, chairman and chief executive officer. "We feel confident that with the new product offerings, combined with the implementation of demand-generation advertising, training and seminar programs, we will see accelerated revenue growth in future quarters," continued Hanna. Founded in 1981, and headquartered in Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). , STATE OF THE ART develops and markets accounting software for medium-sized businesses. STATE OF THE ART stock is traded on the 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 National Market System under the symbol SOTA SOTA State Of The Art SOTA School of the Arts (San Francisco) SOTA Society of Typographic Aficionados SOTA Salmon of the Americas SOTA Society of the Ancients (gaming) SOTA Society of Taiwanese Americans . STATE OF THE ART can be contacted at 1-800-854-3415 or by visiting STATE OF THE ART's home page on the World Wide Web at http://www.sota.com -0- NOTE: Certain matters discussed in this news release are 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. , including, without limitation, statements concerning the company's products, distribution channels and future revenue and earnings. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. -0-
STATE OF THE ART, INC.
Corporate Fact Sheet
October 16, 1996
Description of Business: Develops, produces, markets and
supports midrange and entry-level
microcomputer accounting software.
Corporate Address: 56 Technology, Irvine, CA 92618
Telephone: (714) 753-1222
Trading Information: (NASDAQ - SOTA)
11,134,939 shares outstanding
1996 stock volume: 18,287,000 shares as
of 9/30/96
1995 stock volume: 22,557,000 shares
1996 price range: $9.25 to $19.75
Current Price: $12.875
Key Ratios: Current Ratio: 7.3
ROE: 4%
ROA: 3%
Officers: Chairman and CEO: David W. Hanna
V.P. Finance and CFO: Joseph R. Armstrong
-0-
Consolidated Income Statements:
(in thousands, except per share data)
Three months ended (3rd Qtr) Nine months ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenue $ 11,054 $ 12,194 $ 36,439 $ 32,390
Cost of revenues 2,636 2,829 7,646 7,495
Gross profit 8,418 9,365 28,793 24,895
Operating expenses:
Sales & marketing 5,676 4,388 15,126 11,588
Research &
development 3,191 2,250 9,114 5,451
General &
administrative 1,220 1,072 3,606 3,105
Total operating
expenses 10,087 7,710 27,846 20,144
Operating
income(loss) (1,669) 1,655 947 4,751
Other income 354 323 1,045 911
Income(loss) before
taxes (1,315) 1,978 1,992 5,662
Income taxes (460) 693 697 1,982
Net income(loss) ($855) $1,285 $1,295 $3,680
Earnings(loss)
per share (0.07) $0.12 $0.11 $0.33
Weighted average common
shares and
equivalents 11,834 11,123 11,692 11,179
-0-
Consolidated Balance Sheets:
(in thousands)
Assets: Sept. 30, 1996 Dec. 31, 1995
Cash and cash equivalents $ 18,502 $ 16,681
Short term investments
(Fed T Bills) 17,653 17,102
Accounts & other receivables 5,204 5,175
Inventory 1,300 1,086
Other current assets 1,717 1,005
Total current assets 44,376 41,049
Equipment 5,613 4,357
Capitalized costs 1,271 1,398
Other assets 139 828
$ 51,399 $ 47,632
Liabilities and Shareholders'
Equity:
Current liabilities $ 5,857 $ 5,180
Non-current liabilities 232 202
Total liabilities 6,089 5,382
Shareholders' equity 45,310 42,250
$ 51,399 $ 47,632
CONTACT: STATE OF THE ART, Irvine Joseph R. Armstrong, CFO See Chief Financial Officer. and Vice President, Finance 714/753-1222, Ext. 3823 Holly Barnett, Director, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 714/753-1222, Ext. 3803 or Shafer Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Linda Waters or Judy Kahn 800/503-1177 (Calif.) |
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