StarBase Corp. Announces Results of Operations for the Quarter and Six Months Ended Sept. 30, 1996.
The company's financial position for the quarter and six months ended Sept. 30, 1996 has improved over the same periods last year. Software product and license revenue was $381,000 for the six months compared with $215,000 for the same period in the prior year.
Consulting revenue was $0 for the six months compared with $497,000 for the six months of the prior year. The net loss for six months ending Sept. 30, 1996 was $(2,577,000), or $(0.22) per share, as opposed to $(3,564,000), or $(0.53) per share, for the same period a year ago. Operating cash and cash equivalents as of Sept. 30, 1996 were $5,579,000 compared with $16,000 as of Sept. 30, 1995.
Current liabilities have decreased to $681,000 from $2,900,000 on Sept. 30 of the previous year. For the quarter ended Sept. 30, 1996, revenue was $172,000 compared with $202,000 in the prior year. The net loss for the quarter was $(1,367,000), or $(0.11) per share, compared with a net loss of $(1,439,000), or $(0.19) per share, in the prior year.
The results for the quarter reflect the company's reorganization that started in the spring of 1995, when StarBase decided to focus entirely on software designed to increase the productivity of Internet developers and applications programmers. As a result, the company's Consulting Division was discontinued and no revenue was recorded for consulting services in the quarter and six months ended Sept. 30, 1996.
For the same quarter in 1995, consulting services produced revenue of $136,000, but resulted in a gross margin loss of $(5,000). For the six months ended Sept. 30, 1995 revenue from consulting services was $497,000 and resulted in a gross margin loss of $(128,000).
Since May 1996, the company has raised approximately $8.1 million (net) from the sale of additional equity pursuant to private placement offerings and the exercise of warrants. With the availability of funds, the company is executing on its plan to gain market acceptance of its premier product, StarTeam 2.0, which shipped in late August 1996.
Marketing efforts have increased substantially and include multiple direct mail campaigns, heightened trade show presence and favorable reviews from the industry press and analysts. The company has also been able to fully staff its sales and marketing departments. In addition, development efforts have continued to progress with continued enhancements to StarTeam 2.0 and the recent announcements of its integration with Oracle Developer/2000 and Microsoft Visual Basic for Applications.
StarBase, with headquarters in Irvine, produces integrated team development tools that improve the efficiency and effectiveness of developing software applications for business. StarTeam has won several awards including the PC Week LABS Top Product of 1995 -- Application Development Utilities and PC Week IT Excellence Award, 1996. More about StarBase, its products, and detailed financial information is available by accessing the company's Web site: http://www.starbasecorp.com, or by contacting us at 714/442-4400. -0-
StarBase Corporation Summarized Financial Information For the Quarter and Six Months Ended Sept. 30, 1996 (In thousands, except per share amounts) Three months ended Six months ended Sept. 30, Sept. 30, (unaudited) (unaudited) 1996 1995 1996 1995 Net revenue $ 172 $ 202 $ 381 $ 712 Gross margin 145 17 353 15 Net loss (1,367) (1,439) (2,577) (3,564) Net loss per share $(0.11) $(0.19) $(0.22) $(0.53) Weighted average shares outstanding 12,714 7,727 11,471 6,666 Cash balance at end of quarter $5,579 $ 16 -- --
NOTE: StarBase and its product names are trademarks of StarBase Corp. All other products are trademarks of their respective companies.
CONTACT: StarBase Corp., Irvine
Robert Leimena, 714/442-4416
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|Date:||Nov 14, 1996|
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