Printer Friendly

Smallworldwide plc Reports Results for First Quarter Fiscal 1998.

CAMBRIDGE, U.K.--(BUSINESS WIRE)--Nov. 5, 1997--

Company Reports 41.4% Rise in Revenues to $13.0 Million

During Quarter; Software License Revenues Increased 65.3%

to $8.0 Million

Smallworld Reports Net Income of $0.5 Million, or

$0.06 Per Share

Smallworldwide plc (Nasdaq: SWLDY) today announced unaudited results for the first quarter of fiscal 1998. Smallworld develops and markets engineering, business and operations support software for utilities, telecommunications companies and other public and private enterprises.

Revenues for the quarter, ended September 30, reached $13.0 million compared with revenues of $9.2 million for last year's comparable period, an increase of 41.4%. Software license revenues increased 65.3% during the quarter to $8.0 million, or 61.8% of total revenues, from $4.9 million, or 52.9% of total revenues last year. Revenues generated from services and maintenance were $4.8 million versus $4.2 million in the comparable period a year ago.

The increase in revenues was due to increasing sales of software licenses to existing customers such as Sydney Water, Powercor (Melbourne, Australia) and Deutsche Telekom, which completed its purchase of software licenses for its Megaplan project, together with 34 new customers including Metronet (Calgary, Canada) and Utilicorp in the US and City West Water (Melbourne, Australia).

Gross profit for the first quarter increased 58.9% to $9.4 million from $5.9 million last year, reflecting the favorable change in revenue mix towards software licenses, together with improving services and maintenance margins.

Operating expenses were $8.9 million versus $6.1 million in last year's first quarter. The increase reflects continued planned expansion in the Company's research and development and sales and marketing efforts, in particular.

The Company reported an operating income of $588,000 for the quarter versus an operating loss of $174,000 last year and net income of $477,000, or $0.06 per share, compared with a net loss of $197,000, or $0.03 per share, in last year's first quarter.

Smallworld's Chairman, Dick Newell, said, "We are particularly pleased with the increase in license revenues during the quarter, as it demonstrates continued strong demand for our software from leading utilities and telecommunications providers around the world. Revenues generated from business with existing Smallworld customers, together with the new business gained during the period, underline the recognition that our object-oriented technology is receiving for its considerable flexibility, power and ease of use."

Andy Stafford, Smallworld's Chief Executive Officer, said, "In the first quarter, we expanded into markets and business areas that carry tremendous opportunity over the long term. In addition to growing our business in the United States and Europe, we successfully increased our revenues in the Asia Pacific region - most particularly with sales to leading utilities in Australia. We attribute these developments to the ongoing investments we are making to expand, and deepen, our presence in markets of strategic importance."

In other operating highlights, Smallworld made progress on several ongoing initiatives during the quarter. Investment increased in the development of applications aimed at various Smallworld focus markets. In particular, the company commenced work on its Outage and Distribution Management System (ODMS), an application being developed for Smallworld's electricity customers in North America and other overseas markets.

Smallworld (http://www.smallworld-us.com) develops and markets engineering, business and operations support software for utilities, telecommunications companies and other public and private enterprises. The Company's technology automates business processes that are critical for enhancing customer service, business planning, network engineering and facilities maintenance. Smallworld's object-oriented software is designed to deliver a low cost of ownership while supporting rapid deployment of enterprise applications and seamless integration with other systems. The Company, headquartered in Cambridge, England, has about 500 customers in over 22 countries around the world. -0-

Please note: Some statements contained within this report may be of a forward-looking nature and may involve risks and uncertainties. Actual future results and outcomes may differ materially from those discussed. Factors that may cause such differences include, but are not limited to, management of growth, market acceptance of the Company's products and services, risks associated with new product versions, dependence on third party relationships and the activities of competitors. -0-

 SMALLWORLDWIDE plc AND SUBSIDIARIES
 UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share data)


 Three months Three months
 ended ended
 Sept. 30, Sept. 30,
 1997 1996
 (unaudited) (unaudited)

Revenues:
 Licenses $8,039 $4,862
 Services and maintenance 4,816 4,169
 Other 144 160
 Total revenues 12,999 9,191

Cost of revenues:
 Licenses 689 77
 Services and maintenance 2,826 3,055
 Other 35 114
 Total cost of revenues 3,550 3,246

Gross profit 9,449 5,945

Operating expenses:
 Research and development 1,926 1,202
 Sales and marketing 5,388 3,519
 General and administrative 1,547 1,398
 Total operating expenses 8,861 6,119

Income (loss) from operations 588 (174)
 Other income, net 88 3
 Interest on securities 151 -
 Interest income (expense), net 100 (13)
Income (loss) before income taxes 927 (184)
 Provision for income taxes 450 24
 Share of income from equity affiliates 0 11
Net income (loss) $477 ($197)

Net income (loss) per share $0.06 ($0.03)

Shares used to compute net income
 (loss) per share 8,236 5,960

-0-

 SMALLWORLDWIDE plc AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In thousands)

 Sept. 30, June 30,
 1997 1997
 (unaudited) (unaudited)

ASSETS
Current assets:
 Cash and equivalents $11,672 $6,975
 Short-term investments 1,504 4,000
 Accounts receivable 9,505 15,559
 Inventories 641 932
 Amounts receivable from equity
 affiliates 487 146
 Prepaid expenses and other assets 2,620 2,371
 Deferred income taxes 1,952 2,002
 Total current assets 28,381 31,985

Long-term investments 8,646 8,291
Property and equipment, net 4,398 4,058
Deferred income taxes 357 357
Goodwill 343 370
Equity investments 268 276
 TOTAL ASSETS $42,393 $45,337

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable $3,399 $3,619
 Income taxes payable 1,227 863
 Personnel taxes 584 334
 Accrued liabilities 5,299 6,926
 Accrued contractual liability 0 2,400
 Deferred revenue 2,250 2,002
 Current portion of capital lease
 obligations 337 341
 Total current liabilities 13,096 16,485
Accrued liabilities, less current portion 0 26
Capital lease obligations, less current
 portion 207 305
Deferred revenue, less current portion 587 330
 Total liabilities 13,890 17,146

Shareholders' equity:
 Ordinary and Preference Shares 141 140
 Cumulative translation adjustment (367) (48)
 Additional paid-in capital 25,365 25,268
 Accumulated unrealized losses on
 investments (24) (80)
 Retained earnings 3,388 2,911
 Total shareholders' equity 28,503 28,191

TOTAL LIABILITIES AND SHAREHOLDERS'
 EQUITY $42,393 $45,337





CONTACT: Andy Stafford

Chief Executive Officer

SMALLWORLDWIDE plc

+(44) 1223 301144

Andy.Stafford@Smallworld.co.uk

or

Ian McShane

Controller

SMALLWORLDWIDE plc

(44) 1223 301144

Ian.McShane@Smallworld.co.uk

or

Jason Kendy

Gerard Carney

Gavin Anderson & Co.

(212) 373-0200

jkendy@gavinanderson.com
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Nov 5, 1997
Words:1159
Previous Article:Meditrust And Santa Anita Shareholders Approve Reverse Merger.
Next Article:NRG Closes PacGen Acquisition.
Topics:


Related Articles
Smallworldwide plc reports record first quarter 1997 results.
Smallworldwide plc reports record first quarter 1997 results.
Smallworldwide plc announces launch of Smallworld GIS version 2.2.
Smallworldwide plc Reports Second Quarter 1997 Results.
National Land Survey of Finland signs contract with Smallworld for 600 GIS licenses.
Smallworldwide plc Reports Results for Fourth Quarter and Fiscal 1997.
Smallworldwide plc Reports Record Results for Third Quarter of Fiscal 1998.
Smallworldwide plc Reports Results for Fourth Quarter and Full Fiscal Year 1998.
Smallworld Technology Selected and Implemented by New York.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters