Smallworldwide plc Reports Results for Fourth Quarter and Full Fiscal Year 1998.CAMBRIDGE Cambridge, city, Canada Cambridge (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. , U.K.--(BUSINESS WIRE)--August 19, 1998-- Fourth Quarter Performance In Line with Revised Expectations Full-Year Results at Record Level, with Revenues Up 39% and Earnings per Share Up 168% Following its July July: see month. 6, 1998 pre-announcement of results for the fiscal 1998 fourth quarter and full year, Smallworldwide plc (Nasdaq: SWLDY) today announced its unaudited results for those periods. Smallworld's fourth quarter earnings were in line with the revised guidance issued by the Company on July 6. For the full year, Company performance reached all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal record highs. Fourth quarter performance For the fourth quarter, ended June June: see month. 30, 1998, total revenues were up 26.6% from the corresponding quarter of fiscal 1997, to $18.0 million. Of this total, software license revenues increased 13.6% to $11.9 million, or 66% of total revenues, compared with 73% of total revenues in the fourth quarter of fiscal 1997. License revenues for the fourth quarter of fiscal 1997 were an unusually high proportion of total revenues, due to the first stage rollout of Deutsche Telekom's Megaplan project. Revenues generated from services and maintenance increased 63.5% to $5.8 million. The growth in fourth quarter revenues was due to increased sales to existing customers together with many new customer wins including Transgrid TransGrid is the owner and operator of the high voltage electricity transmission network in the Australian state of New South Wales. It is the marketing name of the Electricity Transmission Authority, and was established in 1995 after the breakup of the Electricity Commission of and Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
Gross margin for the quarter was 77.7% compared to 74.9% for the corresponding period last year. Reflecting this improvement, gross profit rose 31.4%, to $14.0 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. totaled $13.9 million, versus $11.0 million (including $2.0 million of acquired research and development) in last year's fourth quarter. This aggressive increase resulted from Smallworld's investments in sales and marketing, and research and development activities as the company positioned itself to address the Spatial Having to do with space. Contrast with "temporal," which deals with time. Resource Planning Resource planning may refer to:
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. increased to $54,000 from a loss of $399,000 in the same period in fiscal 1997. Fourth quarter net income totaled $171,000 compared to a loss of $339,000 the previous year. Net income per share reached $0.02 (fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared to a loss of $0.04 per share in the fourth quarter of fiscal 1997. Fiscal 1998 Performance For the year ended June 30, 1998, 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]. turned in a record performance, registering all-time highs in revenue, operating income and net income. Total revenues rose 39.0% to $67.2 million and, of this total, license revenues grew 41.1% to $44.4 million. Gross profit increased 48.6% to $51.0 million. Operating expenses totaled $45.2 million, versus $32.0 million during last year. Full year operating income and net income climbed substantially. Fiscal 1998 operating income increased 145.6% to $5.8 million. Net income, meanwhile, jumped 200.6%, to $4.2 million, or $0.51 (fully diluted) per share. 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, "By all measures, Smallworld turned in a tremendous performance in fiscal 1998. We are particularly proud to report not only that revenues and earnings climbed sharply during the year, but also that 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. continued to grow as a proportion of our total revenues--a clear demonstration of the extent to which new and existing customers are increasingly relying on our technology to boost their competitiveness throughout their enterprises." Mr. Newell Newell may refer to: In places:
n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. management application, on schedule in the final week of the fourth quarter. However, I am pleased to report that PowerOn shipped in July 1998." Andy Stafford Stafford, city (1991 pop. 60,915) and district, Staffordshire, W central England, on the Sow River, above its junction with the Trent. Stafford's chief industry is the manufacture of electrical goods; other products are concrete, shoes and shoe-repairing machinery, , Chief Executive Officer of Smallworld, added, "Our fourth quarter results were below expectations. This setback setback In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. notwithstanding, we are determined to make the substantial investments which are needed to exploit fully the tremendous future growth opportunities so clearly in our reach. Looking forward to fiscal 1999, we foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. continued strength in our business and remain confident that this time next year we will once again be reporting on substantial progress for Smallworld." Smallworld (http://www.smallworld-us.com) develops and markets software products that model real world assets and services, successfully integrating this information across the enterprise. Smallworld's object-oriented technology See object technology. offers fast implementation and easy integration so that its customers can increase revenues, improve customer service and better utilize their assets. The Company, headquartered in Cambridge, England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , has over 500 customers in over 30 countries around the world. Please note: Some statements contained within this report may be of a forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 product and services, risks associated with new product versions, dependence on third party relationships and the activities of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . For a more detailed discussion of the risks associated with the Company's business, please see the Company's Form 20-F on file with the United States Securities and Exchange Commission. -0-
SMALLWORLDWIDE plc AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three months Year ended
June 30, June 30,
--------------- ------------------
1998 1997 1998 1997
Unaudited Unaudited Unaudited Audited
------------------- -----------------
Revenues:
Licenses $11,862 $10,440 $44,395 $31,473
Services and maintenance 5,787 3,540 22,072 16,202
Other 345 229 708 662
------------------- ----------------
Total revenues 17,994 14,209 67,175 48,337
------------------- ----------------
Cost of revenues:
Licenses 695 1,312 2,689 2,355
Services and maintenance 3,249 2,139 13,317 11,440
Other 60 113 147 203
------------------- ----------------
Total cost of revenues 4,004 3,564 16,153 13,998
------------------- ----------------
------------------- ----------------
Gross profit 13,990 10,645 51,022 34,339
------------------- ----------------
Operating expenses:
Acquired research and development 184 2,026 184 2,026
Research and development 3,855 1,529 11,801 4,923
Sales and marketing 7,956 6,123 26,259 19,787
General and administrative 1,941 1,366 6,946 5,228
------------------- ----------------
Total operating expenses 13,936 11,044 45,190 31,964
------------------- ----------------
Income (loss) from operations 54 (399) 5,832 2,375
Other income (loss), net (71) (449) 42 (722)
Interest on securities 117 162 686 410
Interest income, net 88 140 231 202
------------------- ----------------
Income (loss) before income taxes 188 (546) 6,791 2,265
Provision (benefit) for income
taxes 17 (172) 2,571 921
Share of income (loss) from
equity affiliates 0 35 (45) 45
=================== ================
Net income (loss) $171 ($339) $4,175 $1,389
=================== ================
Basic earnings per share $0.02 ($0.04) $0.54 $0.21
=================== ================
Diluted earnings per share $0.02 ($0.04) $0.51 $0.19
=================== ================
Shares used to compute basic
earnings per share 7,708 7,653 7,690 6,734
=================== ================
Shares used to compute diluted
earnings per share 8,369 7,653 8,265 7,438
=================== ================
SMALLWORLDWIDE plc AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30,
-----------------------
-----------------------
1998 1997
Unaudited Audited
-----------------------
ASSETS
Current assets:
Cash and equivalents $9,984 $6,975
Short-term investments 2,320 4,000
Accounts receivable 19,496 15,559
Inventories 1,674 932
Amounts receivable from equity 72 146
affiliates
Prepaid expenses and other assets 3,187 2,371
Deferred income taxes 1,031 2,002
-----------------------
Total current assets 37,764 31,985
Long-term investments 6,157 8,291
Property and equipment, net 5,849 4,058
Deferred income taxes 226 357
Goodwill 1,747 370
Equity investments 0 276
=======================
TOTAL ASSETS $51,743 $45,337
=======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,663 $3,619
Income taxes payable 893 863
Personnel taxes 607 334
Accrued liabilities 8,095 6,926
Accrued contractual liability 0 2,400
Deferred revenue 3,942 2,002
Current portion of capital lease 289 341
obligations
-----------------------
Total current liabilities 19,489 16,485
Accrued liabilities, less current portion 0 26
Capital lease obligations, less current
portion 11 305
Deferred revenue, less current portion 264 330
-----------------------
Total liabilities 19,764 17,146
-----------------------
Shareholders' equity:
Ordinary shares 141 140
Cumulative translation adjustment (634) (48)
Additional paid-in capital 25,361 25,268
Accumulated unrealized gains (losses)
on investments 25 (80)
Retained earnings 7,086 2,911
-----------------------
Total shareholders' equity 31,979 28,191
-----------------------
=======================
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $51,743 $45,337
=======================
CONTACT: Andy Stafford Chief Executive Officer SMALLWORLDWIDE plc +44 (0)1223 301144 Andy.Stafford@Smallworld.co.uk or Martin Cartwright Chief Financial Officer SMALLWORLDWIDE plc +44 (0)1223 301144 Martin.Cartwright@Smallworld.co.uk or Jason Kendy Director Gavin Gavin is a common given name in Ireland, England, Scotland, and Wales. It is the late medieval form of the name Gawain, which in turn is believed to have originated from the Welsh name Gwalchgwn, meaning "white hawk. 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. 212/373-0200 jkendy@gavinanderson.com |
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