Template Software Reports Second Quarter Loss Citing Disappointing European Results as Anticipated; Company Reserves for European Operations Realignment.DULLES Dul·les , Allen Welsh 1893-1969. American public official. Director of the CIA (1953-1961), he resigned after the failed invasion of the Bay of Pigs. Noun 1. , Va.--(BUSINESS WIRE)--July 27, 1999-- Template (1) A pre-designed document or data file formatted for common purposes such as a fax, invoice or business letter. If the document contains an automated process, such as a word processing macro or spreadsheet formula, then the programming is already written and embedded in the Software Inc. (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 :TMPL TMPL Taylor Memorial Public Library (Cuyahoga Falls, OH) ), a leading provider of enterprise application integration (EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. ) products and services based in Dulles, Virginia Dulles, Virginia is an unincorporated census-designated place located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of AOL, Orbital Sciences Corporation and ODIN technologies and the former headquarters of MCI Inc. are located in Dulles. , today announced second quarter financial results ended June June: see month. 30, 1999. The Company reported an operational net loss of $1.7 million or $0.35 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges associated with the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations. Revenue for the second quarter was $9.8 million compared to $10.2 million for the second quarter of 1998. Including charges related to the European realignment, the Company's after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. loss for the second quarter was $3.7 million or $0.75 per share. Shortly after recognizing shortfalls in the European operations, Template issued a second-quarter earnings warning and began implementation of a plan designed to significantly improve European operations. The realignment plan The realignment plan (Hebrew: תוכנית ההתכנסות focused on offices in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and France and primarily involved staff reductions and management changes. The realignment costs, estimated at $2.7 million before tax, include a $1.0 million reduction in goodwill. "These measures were essential to improving the efficiency of our European operations," stated Joseph M. Fox, Template's founder, Chairman and Co-CEO. "Our alliance with Visual Edge, a leading supplier of application integration solutions, has progressed into the marketing cycle and we anticipate seeing revenue resulting from that alliance in the coming months. Template is reselling Visual Edge's Madrid(TM) product, that seamlessly combines R/3 with non-SAP IT systems, in Europe." Peter Russo, Template's recently appointed Executive Vice President and Chief Financial Officer, commented, "During the second quarter we took steps to assure that our European operations are focused and motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo . These actions, coupled with diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d supervision, should develop our European presence into productive profit centers." Highlights of the Second Quarter Template reported revenue of $9.8 million for the second quarter, a 4 percent decrease from the second quarter of 1998. Product sales during the quarter were $1.2 million, a reduction of $1.4 million or 54 percent from the second quarter of 1998. Excluding costs associated with the realignment of Template's European operations, the Company reported an after-tax net loss of $1.7 million, of which European operations represented approximately $1.2 million. As a result of the low product sales, which accounted for only 12 percent of revenue for the quarter, the Company's gross margin, prior to one-time charges, averaged 26 percent, significantly down from the 1998 second quarter average of 49 percent. During the second quarter, Template expanded its administrative infrastructure with the appointment of Peter Russo as Executive Vice President and Chief Financial Officer. Kimberly Osgood, who formerly served as Vice President and Chief Financial Officer, assumed the title of Vice President of Finance and Administration. Template also formed a strategic alliance with Visual Edge, a leading supplier of software integration solutions. This alliance enables Template to offer an Enterprise Integration Template (EIT EIT erythrocyte iron turnover. ) connector to SAP R/3, boosting Template's competitive edge in the growing enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) segment of the integration software market. Template also announced plans to offer EIT connectors to other ERP applications, including PeopleSoft and Oracle Financials. To expand its vertical market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , Template also formed alliances with Convista, a solutions 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 the health care, transportation, finance and insurance industries, and Powersolv, a development consulting firm providing services to the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , health care and utilities industries. Conference Call Scheduled The Company will conduct a conference call on Wednesday, July 28, at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to provide further insights regarding the financial results and to respond to investor questions. Shareholders who are interested in participating in the call should dial 800/810-0924 approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Template Software Earnings conference call. A recording of the call will be available from 2:00 p.m. on Wednesday, July 28, until midnight on Monday, August 2, by calling 719/457-0820. The code number for the recording is 735048. Template Software is the leading provider of software products and solutions for enterprise application integration. Template's object-based integration architecture and innovative software templates enable organizations to rapidly capture, automate To turn a set of manual steps into an operation that goes by itself. See automation. and integrate critical business processes across the enterprise, reducing cost and risk of implementing business solutions. For more information about Template Software and its technology offerings, contact Template Software Headquarters, 45365 Vintage Park Plaza, Suite 100, Dulles, Virginia 20166; voice: 703/318-1000; fax: 703/318-3253; e-mail: info@template.com; World Wide Web: www.template.com. Template Software, Enterprise Integration Template and EIT are trademarks or registered trademarks of Template Software, Inc. All other names mentioned above may be trademarks or registered trademarks of their respective owners. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains 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. that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, reliance on key personnel, the results of the Company's European restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission (which reports are available from the Company upon request). These risks could cause Template Software's actual results for 1999 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Template Software in this release. -0-
Template Software, Inc. and Subsidiaries
Consolidated Statements of Operations
(amounts in thousands, except per share and share data)
(unaudited)
Three months ended Six months ended
--------------------- ----------------------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
--------- ---------- ---------- ----------
Revenues:
Products $ 1,195 $ 2,568 $ 3,397 $ 3,893
Services 8,623 7,680 18,884 14,913
--------- ---------- ---------- ----------
Total Revenues 9,818 10,248 22,281 18,806
--------- ---------- ---------- ----------
Cost of revenues:
Products 464 418 1,083 753
Services 7,241 4,796 14,635 9,280
--------- ---------- ---------- ----------
Total cost of
revenues 7,705 5,214 15,718 10,033
--------- ---------- ---------- ----------
Gross profit 2,113 5,034 6,563 8,773
--------- ---------- ---------- ----------
Operating expenses:
Selling and marketing 2,661 2,561 5,079 4,808
Product development 543 322 911 667
General and
administrative 4,046 1,516 5,647 2,810
--------- ---------- ---------- ----------
Total operating
expenses 7,250 4,399 11,637 8,285
--------- ---------- ---------- ----------
Income (loss) from
operations (5,137) 635 (5,074) 488
Interest income
(expense) 81 171 173 323
Other income
(expense) (4) 129 (1) 159
--------- ---------- ---------- ----------
Income (loss) before
income taxes (5,060) 935 (4,902) 970
Income tax provision
(benefit) (1,310) 296 (1,238) 350
--------- ---------- ---------- ----------
Net income (loss) $ (3,750) $ 639 $ (3,664) $ 620
========= ========== ========== ==========
Earnings (loss) per
share - basic $ (0.75) $ 0.13 $ (0.74) $ 0.12
========= ========== ========== ==========
Shares used in
computing basic
earnings (loss) per
share 4,968,866 5,081,191 4,976,030 4,975,739
========= ========== ========== ==========
Earnings (loss) per
share - diluted $ (0.75) $ 0.11 $ (0.74) $ 0.11
========= ========== ========== ==========
Shares used in
computing diluted
earnings (loss) per
share 4,968,866 5,870,448 4,976,030 5,880,690
========= ========== ========== ==========
Template Software, Inc. and Subsidiaries
Consolidated Balance Sheets
(amounts in thousands)
June 30, 1999 December 31, 1998
(unaudited)
---------------- ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,163 $ 1,831
Marketable securities 6,265 8,221
Accounts receivable, net 12,503 15,752
Deferred tax asset 3,556 1,873
Other current assets 1,248 1,699
---------------- ------------------
Total current assets 24,735 29,376
---------------- ------------------
Property and equipment, net 5,124 5,423
Software development
costs, net 3,088 2,601
Goodwill, net 8,837 10,298
Other assets 1,538 1,367
---------------- ------------------
Total assets $ 43,322 $ 49,065
================ ==================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 6,456 $ 6,744
Current portion of
long-term debt 224 451
Income taxes payable 22 27
Deferred income 863 1,437
---------------- ------------------
Total current
liabilities 7,565 8,659
---------------- ------------------
Long-term debt, net of
current portion 116 77
Deferred income taxes 1,119 827
Other long term
liabilities 445 421
---------------- ------------------
Total liabilities 9,245 9,984
---------------- ------------------
Shareholders' equity 34,077 39,081
---------------- ------------------
Total liabilities and
shareholders' equity $ 43,322 $ 49,065
================ ==================
-0- |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion