Smallworldwide plc Reports Results for Fourth Quarter and Fiscal 1997.CAMBRIDGE Cambridge, city, CanadaCambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , England--(BUSINESS WIRE)--Aug. 20, 1997-- Company Reports 30.3% Rise in Revenues to $14.2 Million During Quarter; Software License Revenues Increased 63.9% to $10.4 Million Excluding R&D 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. for Acquisition of Software Product Line, Smallworld 1. (legal) SMALLWORLD - A trademark of Smallworldwide Plc.. 2. (language) SmallWorld - An object-oriented language. ["SW 2 - An Object-based Programming Environment", M.R. Laff et al, IBM TJWRC, 1985]. Reports Net Income of $1.5 Million, or $0.19 Per Share Smallworldwide plc (Nasdaq: SWLDY) today announced unaudited results for the fourth quarter and fiscal 1997. Smallworld develops and markets engineering, business and operations support software for utilities, telecommunications companies See telecom company. and other public and private enterprises. For the quarter ended June June: see month. 30, 1997, revenues reached $14.2 million compared with revenues of $10.9 million for last year's comparable period on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, an increase of 30.3%. Software license revenues increased 63.9% during the quarter to $10.4 million, or 73.5% of total revenues, from $6.4 million on a pro forma basis, or 58.4% of total revenues last year. Revenues generated from services and maintenance were $3.5 million versus $4.0 million in the comparable 1996 pro forma period resulting from the Company's strategy to reduce the amount of consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" that it provides directly and refer such business to its business partners. The rise in total revenues was due to increasing sales of software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. to existing customers such as National Land Survey of Finland Finland, Finnish Suomi (swô`mē), officially Republic of Finland, republic (2005 est. pop. 5,223,000), 130,119 sq mi (337,009 sq km), N Europe. , Deutsche Post Deutsche Post AG (ISIN: DE0005552004, LSE: DPO) is a German post, logistics and courier headquartered in Bonn, previously the German state-owned mail monopoly. It has 520,000 employees in more than 220 countries and territories worldwide and generated revenue of € 60. , Niagara Niagara, river, United States and Canada Niagara (nīăg`rə), river, 34 mi (55 km) long, issuing from Lake Erie between Buffalo, N.Y., and Fort Erie, Ont., Canada. Mohawk and Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. , which purchased 462 software licenses as part of its Megaplan project, together with new customers including Tacoma Public Utilities Tacoma Public Utilities is the public utility service for Tacoma, Washington. It was formed in 1893, and is made up of Tacoma Power, Tacoma Water, and Tacoma Rail, and the Click! Network television cable service. ; Helix Water, a U.S. municipal water authority; National Land Agency of Indonesia; and Bayernwerke Netcom, the German telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. provider. Gross profit for the fourth quarter increased 67.6% to $10.6 million from $6.4 million pro forma last year, reflecting continued gross margin improvement. The Company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $399,000 for the quarter versus pro forma operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $159,000 last year. The loss includes a write-off for acquired research and development of approximately $2.0 million, or $0.26 per share, for Smallworld's acquisition of a software product line and related operational support from Integration Technologies. Excluding the write-off, operating income would have been $1.6 million. 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. , excluding the acquisition-related writeoff writeoff A reduction to zero in the value of an asset carried on a firm's financial statement. Companies often hesitate to make writeoffs because profits reported to stockholders are reduced. , were $9.0 million versus $6.2 million in last year's pro forma fourth quarter. The increase reflects higher than expected one-time costs in its German subsidiary, related primarily to the Deutsche Telekom order and launch of Smallworld GIS (1) (Geographic Information System) An information system that deals with spatial information. Often called "mapping software," it links attributes and characteristics of an area to its geographic location. Version 2.2, together with the continuing global expansion of the Company's operations. Smallworld reported a net loss of $339,000, or a loss of $0.04 per share, compared with a net loss of $67,000, or a loss of $0.01 per share, in last year's fourth quarter. Excluding the write-off, net income would have been $1.5 million, or $0.19 per share. For the full year ended June 30, 1997, Smallworld's revenues rose 47.8% to $48.3 million from $32.7 million on a pro forma basis during the prior fiscal year. Software license revenues increased 64.0% during the year to $31.5 million, or 65.1% of total revenues, from $19.2 million, or 58.7% of total revenues last year on a pro forma basis. Revenues generated from services and maintenance were $16.2 million versus $12.7 million in the comparable 1996 pro forma period. Gross profit for the year grew 62.3% to $34.3 million, versus pro forma gross profit of $21.2 million in last year's comparable period. Smallworld reported operating income of $2.4 million for fiscal 1997, versus pro forma operating income of $1.0 million last year, and net income of $1.4 million, or $0.20 per share, compared with pro forma net income of $2.1 million last year. Excluding the write-off, the Company's operating income, net income and earnings per share for fiscal 1997 would have been $4.4 million, $3.3 million, and $0.46 per share, respectively. The pro forma results reflect Smallworld's acquisitions in 1995 and early 1996 of its German, Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. , Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. and Swedish distributors as if the acquired businesses had been consolidated with effect from January 1, 1995. Smallworld's Chairman, Dick Newell Dr. Richard G. Newell has spent over 30 years in the software industry in Computer aided design (CAD) and Geographic Information Systems (GIS). Dick holds degrees in Civil Engineering and Numerical Analysis and a PhD in Chemical Engineering. , said, "We are particularly pleased with the continued rapid growth in license revenues, which rose 64% during the year, as well as our impressive new business win rate. During the year, we made substantial progress in expanding our presence around the world and are now approaching 500 customers. We expect to continue growing our market share rapidly in fiscal 1998." Mr. Newell added, "We are also encouraged by the increasing number of customers that are using our software as the foundation for operations support, like managing power outages This is a list of famous wide-scale power outages. 1965
Computerized system that relates and displays data collected from a geographic entity in the form of a map. The ability of GIS to overlay existing data with new information and display it in colour on a computer screen is used primarily to technology. Mr. Andy Stafford, Smallworld's Chief Executive Officer, noted that the acquisition of the product line from Integration Technologies reflects the broader usage of Smallworld's technology, as well as the Company's decision to develop selected applications for its focus markets. "These particular products were developed under a Smallworld licensing agreement and have been designed initially to automate To turn a set of manual steps into an operation that goes by itself. See automation. business processes which help communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. plan, design, build and manage their complex broadband networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. which integrate voice, video and data services. These are applications that take our technology beyond the historic limitations of GIS." He noted that Smallword added 15, Denver-based, members of Integration Technologies' operations support group to its development staff as a result of the acquisition and also assumed the company's customer base, which includes five U.S. communications companies. Mr. Stafford also said that the Company intends to continue to place a high priority on expanding its marketing efforts during fiscal 1998 under the leadership of Peter Morse, who was appointed to a new position as Smallworld's international marketing director in early July. Smallworld now has 46 sales and marketing professionals located in 14 offices worldwide, including a new office in Korea opened The Korea Open is an Asian Tour men's professional golf tournament played in South Korea. In 2007 the total purse was US$1,000,000 making it one of the Asian Tour's richest sole-sanctioned events. The 2007 tournament was the 49th edition of the event. during the quarter. Another priority will be continuing to expand the number of Smallworld's business partners and the scope of their activities. Most recently, Smallworld's U.S. subsidiary, Smallworld Systems, formed a marketing alliance with Digital Equipment Corporation and Convergent Group, a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , to provide electric and gas utilities with a single-source solution for the engineering and management of complex physical networks. 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 o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. software is designed to deliver a low cost of ownership while supporting rapid deployment of enterprise applications and seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. with other systems. The Company, headquartered in Cambridge, England, has over 470 customers in more than 20 countries around the world. 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 share and per share data)
Three Months Ended
June 30,
1997 1996
(Unaudited) (Unaudited)
(pro forma)
Revenues:
Licenses $ 10,440 $ 6,369
Services and maintenance 3,540 4,049
Other 229 491
Total revenues 14,209 10,909
Cost of revenues:
Licenses 1,312 549
Services and
maintenance 2,139 3,640
Other 113 368
Total cost of revenues 3,564 4,557
Gross profit 10,645 6,352
Operating expenses:
Research and development 1,529 1,267
Acquired research and
development 2,026 0
Sales and marketing 6,123 3,676
General and administrative 1,366 1,250
Total operating expenses 11,044 6,193
Income from operations (399) 159
Other income (loss), net (449) (55)
Interest expense, net (302) 12
Income before income taxes (546) 92
Provision (benefit) for
income taxes (172) 202
Share of income from
equity affiliates 35 43
Net income ($ 339) ($ 67)
Net income per share ($ 0.04) ($ 0.01)
Shares used to compute net
income per share 7,807,564 5,960,077
Year Ended
June 30,
1997 1996
(Unaudited) (Unaudited)
(pro forma)
Revenues:
Licenses $ 31,473 $ 19,186
Services and maintenance 16,202 12,713
Other 662 806
Total revenues 48,337 32,705
Cost of revenues:
Licenses 2,355 911
Services and maintenance 11,440 10,157
Other 203 475
Total cost of revenues 13,998 11,543
Gross profit 34,339 21,162
Operating expenses:
Research and development 4,923 3,951
Acquired research and
development 2,026 0
Sales and marketing 19,787 11,864
General and administrative 5,214 4,343
Total operating expenses 31,950 20,158
Income from operations 2,389 1,004
Other income (loss), net (722) (79)
Interest expense, net (612) 43
Income before income taxes 2,279 882
Provision (benefit) for
income taxes 934 (1,130)
Share of income from
equity affiliates 46 125
Net income $ 1,391 $ 2,137
Net income per share $ 0.20 $ 0.37
Shares used to compute net
income per share 7,091,069 5,710,695
SMALLWORLDWIDE plc AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30,
1996 1997
(Audited) (Unaudited)
ASSETS
Current Assets
Cash and equivalents $733 $6,975
Accounts receivable 9,945 15,559
Inventories 1,160 932
Amounts receivable from equity
affiliates 743 146
Prepaid expenses and other
assets 915 2,616
Deferred income taxes 385 1,783
Available-for-sale
investments 0 4,000
Total current assets 13,881 32,011
Property and equipment, net 2,840 4,058
Deferred income taxes 1,771 0
Goodwill 925 370
Investments 214 8,567
TOTAL ASSETS $19,631 $45,006
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $3,127 $3,619
Income taxes payable 962 989
Personnel taxes 929 310
Accrued liabilities 3,466 9,353
Deferred revenue 1,875 2,003
Current portion of capital
lease obligations 315 341
Total current liabilities 10,674 16,615
Accrued liabilities, less
current portion 62 26
Capital lease obligations,
less current portion 516 305
Deferred revenue, less
current portion 482 331
Total liabilities 11,734 17,277
Redeemable Preference Shares 299 0
Shareholders' equity:
Ordinary and Preference Shares 731 140
Cumulative translation
adjustment (494) (512)
Additional paid-in capital 5,839 25,268
Accumulated unrealized
(losses) on investments 0 (80)
Retained earnings 1,522 2,913
Total shareholders' equity 7,598 27,729
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $19,631 $45,006
CONTACT: Smallworldwide plc, Cambridge Andy Stafford/Ian McShane, 44/1223-301144 Email: Andy.Stafford@Smallworld.co.uk Email: Ian.McShane@Smallworld.co.uk or Gavin Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic & Co. Trina Hardiman/Gerard Carney car·ney n. Informal Variant of carny. , 212/373-0229 Email: Thardiman@gavinanderson.com |
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