Tivoli Systems Inc. reports 1995 second quarter results.

AUSTIN, Texas--(BUSINESS WIRE)--July 27, 1995--Tivoli Systems Inc. today reported revenues of $11.3 million for the second quarter ended June 30, 1995 compared to revenues of $6.2 million for the second quarter of 1994.

Net income for the quarter was $1.3 million or $0.08 per share. For the corresponding quarter in 1994, the company reported net income of $0.3 million or $0.03 per share.

Revenues for the six months ended June 30, 1995 were $20.5 million, compared to $11.0 million for the same period in 1994. Net income for the six months ended June 30, 1995 was $1.7 million or $0.11 per share, up from $0.6 million or $0.04 per share for the same period of 1994. The following table provides additional detail on Tivoli's second quarter and first half results (in thousands, except per share data): -0-

               Quarter Ended            Six Months Ended
                 June 30                    June 30
             --------------            ---------------
                             Percent                      Percent
             1995      1994  Increase    1995     1994    Increase

Revenues    $11,252   $6,231      81%  $20,537  $10,988     87%
Operating
 Income     $ 1,025   $  344     198%  $ 1,546  $   596    159%
Net Income  $ 1,260   $  348     262%  $ 1,717  $   596    188%
Net Income
 per share  $  0.08   $ 0.03     167%  $  0.11  $  0.04    175%

"We are pleased with the results achieved in the second quarter," said Frank Moss, Tivoli Systems president and CEO. "Our revenue growth continues to reflect increasing demand for systems management solutions by organizations with distributed client/server environments, and the continued acceptance of the Tivoli Management Environment(TM)(TME) 2.0 to meet this need. While increasing our operating income to more than $1 million and more than 9% of revenues, we continued to make strategic investments in our business, specifically in our technical support, professional services, and international operations.

"We have continued to enjoy success in winning customers in competitive situations as TME 2.0 gains acceptance in multi-vendor, distributed, client/server environments," added Moss. "Recent customers include BellSouth Telecommunications, LSI Logic, Nova Gas Transmission, Medaphis Physician Services and Pacific Bell."

During the second quarter, Tivoli gained significant industry support for TME. Tivoli joined Oracle Corporation and DBMX Ltd. in a three-way marketing agreement that will make TME-based database administration for Oracle customers available through a solution to be developed by DBMX. This relationship, together with TME-based database administration tools marketed by Sybase and Informix, provides Tivoli coverage of all three leading RDBMS vendors.

In April, Tivoli launched its applications management strategy by announcing the Applications Management Specification (AMS), which is intended to provide a consistent, standard way for creating, "management-ready" client/server applications that automatically connect to TME. Eight leading application development tools vendors including Dynasty, Forte, Informix, Intersolv, Sybase/Powersoft, Oracle, Softool, and Unify, have announced that they support the strategy and will incorporate AMS compatibility into future versions of their products. Tivoli also announced that it expects to provide AMS compatibility for SAP AG's R/3 system in the third quarter of 1995. "We are delighted with the rapid and enthusiastic reception that AMS has received from the industry," indicated Moss. "We believe we are well positioned to play a leadership role in overcoming one of the last major barriers to the widespread deployment of mission-critical client/server systems -- managing users' applications."

Tivoli Systems Inc. (NASDAQ:TIVS) is a leading supplier of systems management software and services for managing distributed client/server environments. The company's product family, the Tivoli Management Environment, is used by Fortune 1000 companies worldwide to make client/server work by removing systems management as a barrier to success. Headquartered in Austin, Texas, Tivoli distributes its products worldwide through a network of domestic and international sales offices, international distributors and systems integrators. -0-

NOTE TO EDITORS: Tivoli Management Environment is a trademark of Tivoli Systems Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

CONTACT: Tivoli Systems Inc.

James R. Offerdahl, 512/794-9070