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 SEATTLE, Oct. 26 /PRNewswire/ -- Aldus Corp. (NASDAQ: ALDC) today announced record revenues and a significant improvement in earnings for the third quarter ended Oct. 1, 1993. Revenues for the quarter were up 37 percent to $62.2 million compared to $45.3 million a year ago. Earnings for the third quarter were $4.3 million, or 32 cents per share, which included a one-time, pre-tax charge of $2.3 million, or approximately 11 cents per share after tax, related to the acquisition of The Company of Science and Art (CoSA) announced previously in July. Excluding the charge for CoSA, third quarter net earnings were $5.8 million, or 43 cents per share, compared to earnings of $1 million, or 7 cents per share for the same period last year.
 Year-to-date sales rose to $149.4 million from $128.2 million in the prior year, an increase of approximately 16 percent. Net earnings for the first nine months were $4.9 million, or 36 cents per share, compared to $4.8 million and 33 cents per share for the same period in 1992. Net earnings for the first nine months of 1993, exclusive of charges related to the acquisitions of CoSA and After Hours Software, were $7.7 million, or 58 cents per share.
 "The results reflect the positive response from customers and the trade press to the new version of Aldus PageMaker 5.0," commented Bill McAleer, vice president of finance and chief financial officer, who attributed the improved quarterly performance largely to record sales of the company's flagship product. PageMaker upgrade revenues were $16.1 million, or approximately 26 percent of total revenues in the quarter. "We expected this to be a competitive release for PageMaker, and saw strength in both upgrades and full-product sales. PageMaker continued to earn industry awards including a recent five-star rating from 'MacWeek,' and the editor's choice award from 'Windows Magazine,'" added McAleer.
 Sales in the Pacific Rim division continued to increase, with the sharpest improvement in the Japanese subsidiary which was formed last year. Aldus is now one of the leading providers of Macintosh software programs in Japan. European revenues increased 20 percent from the prior year quarter, due primarily to the shipment of foreign language versions of PageMaker. International revenues were approximately 45 percent of total revenues in the third quarter.
 The Aldus Consumer Division also reported improved sales, primarily from TouchBase and DateBook, two Personal Information Management (PIM) products acquired in June from After Hours Software.
 Operating expenses for the quarter were higher due to increased sales and marketing expenses related to product fulfillment and other launch costs to support the new versions of PageMaker. In addition to the write-off of 11 cents per share for the acquisition of CoSA in the third quarter, the company incurred $1.6 million in non-recurring expenses related to restructuring European operations, severance payments, and lease terminations in the U.S. and Europe. Research and development expense was higher compared to last year, as engineering staff was added with the acquisitions of CoSA and After Hours. Development costs in the Ireland subsidiary also contributed to the increase in research and development expense.
 Aldus also announced several new products in the third quarter. In addition to shipping the Macintosh version of PageMaker 5.0, the company announced new versions of Fetch and PhotoStyler, as well as a new Macintosh version of Trapwise, a color-trapping prepress product, and PressWise, a page imposition product. At the Seybold show held in San Francisco last week, Aldus announced a new Macintosh version of FreeHand, its professional illustration product, expected to ship by the end of the year.
 Aldus Corp. creates computer software solutions that help people throughout the world effectively communicate information and ideas. The company focuses on three lines of business: applications for the professional publishing, graphics, and prepress markets; applications for the general consumer market; and service and support for professional end-users. Aldus has subsidiaries in Europe, Asia and the Pacific Rim serving a worldwide network of dealers and distributors.
 (In thousands, except earnings-per-share data)
 Three Months Ended Nine Months Ended
 Oct. 1, Sept. 25, Oct. 1, Sept. 25,
 1993 1992 1993 1992
 Net sales $62,186 $45,306 $149,385 $128,241
 Cost of sales 10,991 10,216 29,205 28,160
 Gross margin 51,195 35,090 120,180 100,081
 Sales and marketing 23,166 18,704 60,345 51,951
 General and administrative 10,344 8,532 27,196 23,344
 Software development costs:
 Research and development 6,648 4,301 15,788 13,295
 Amortization of capitalized
 software development costs 2,917 2,777 7,420 7,339
 Write-off of in-process research
 and development 2,310(A) -- 4,285(A) --
 Income from operations 5,810 776 5,146 4,152
 Interest income, net 645 936 2,073 3,262
 Other income (expense), net (177) (147) (69) (334)
 Income before provision for
 income taxes 6,278 1,565 7,150 7,080
 Provision for income taxes 2,009 524 2,297 2,234
 Net income $ 4,269 $ 1,041 $ 4,853 $ 4,846
 Net income per share $ 0.32 $ 0.07 $ 0.36 $ 0.33
 Weighted average number
 of common shares 13,539 14,288 13,410 14,847
 (A) Represents write-offs of in-process research and development related to the acquisitions of After Hours Software in June, 1993, and CoSA in July, 1993. The charges are not deductible for tax purposes. Earnings per share effect is approximately 10 cents and 11 cents per share, respectively.
 (In thousands)
 Oct. 1, Dec. 31,
 1993 1992
 Current assets:
 Cash and cash equivalents $ 39,739 $ 36,213
 Marketable securities 31,445 34,927
 Trade accounts receivable, net 31,878 21,946
 Inventories 6,896 5,780
 Deferred income taxes 3,208 5,788
 Prepaid expenses 7,017 3,710
 Total current assets 120,183 108,364
 Property and equipment, at cost 54,769 49,842
 Less accumulated depreciation and
 amortization 30,606 24,424
 Total 24,163 25,418
 Software development costs, net 17,127 13,905
 Note receivable from and investment
 in affiliate 1,050 1,225
 Excess of cost over acquired net assets, net 8,280 5,198
 Other assets 1,794 2,173
 Total $172,597 $156,283
 Liabilities And Shareholders' Equity
 Current liabilities:
 Short-term borrowings from bank $ 1,462 $ 1,604
 Accounts payable and accrued liabilities 34,442 23,579
 Deferred revenue 2,014 1,570
 Income taxes payable 113 1,336
 Total current liabilities 38,031 28,089
 Deferred income taxes 2,407 1,038
 Shareholders' equity:
 Common stock 35,714 34,997
 Retained earnings 100,855 96,002
 Translation adjustments (4,410) (3,843)
 Total shareholders' equity 132,159 127,156
 Total $172,597 $156,283
 -0- 10/26/93
 /CONTACT: John Snyder, investor relations contact, 206-343-3289, or Brad Stevens, media contact, 206-628-2361, both of Aldus/

CO: Aldus Corp. ST: Washington IN: CPR SU: ERN

JH -- SE001 -- 6766 10/26/93 09:26 EDT
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Publication:PR Newswire
Date:Oct 26, 1993

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