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 ANN ARBOR, Mich., July 29 /PRNewswire/ -- Comshare, Incorporated (NASDAQ: CSRE) today announced improved earnings performance for the fourth quarter and fiscal year that ended June 30, 1993. The company reported a fourth-quarter net income of 10 cents a share versus a loss of $1.92 a share for the year-earlier quarter, and reduced fiscal-year losses to 33 cents a share from a $2.10 a share loss the prior year.
 "Our restructuring during the last two years made it possible to improve our earnings performance during a difficult period," said T. Wallace Wrathall, Comshare's chief financial officer and senior vice president. "We lowered our costs and expenses, factoring out restructuring and unusual charges incurred, by approximately $2 million and $12 million, respectively, for the quarter and the fiscal year."
 Revenue was $26.2 million for the quarter, down from $27.8 million in the fourth quarter of 1992, and $105.2 million for the year, down from $119.2 million for the previous year. However, application revenue showed strong growth. Commander FDC application revenue grew 59 percent and Arthur Retail application revenue grew 31 percent for the year. Commander EIS license revenue increased compared with the year-earlier quarter, having been soft earlier in the year.
 "Overshadowing the very positive performance of the application revenue was a negative currency comparative impact of $2.2 million for the quarter and $5.1 million for the year," said Wrathall. "Revenue was also affected by the discontinuance of remote processing services at the beginning of the year, and by the well-publicized, ongoing decline in the mainframe market."
 "No one would say that we had an easy year, but the firming of fourth-quarter license revenues suggests that our efforts to streamline the company and prioritize our development projects to move Comshare from a decision support tools vendor to a client/server applications company are proving effective," said Wrathall.
 "In the spring of 1992 we began an aggressive drive to meet the fast-growing market need for managerial, or business intelligence, software applications for LAN-based, client/server information systems," said Wrathall. "We are packaging our general purpose decision support software tools with application specific-functions and implementation expertise. This provides customers greater value because we save them implementation time, development costs and maintenance costs."
 Comshare's business intelligence applications include Commander EIS for executive information systems, Commander FDC for financial consolidation and control, and ARTHUR for merchandise planning and performance tracking in the retail industry. Two additional applications will be introduced in the first quarter of the new fiscal year: Commander Budget for budgeting and planning, and Commander Profit for product line and strategic business unit profit reporting.
 Commander FDC and ARTHUR have grown now to represent over 20 percent of the company's total revenue. Commander FDC had a record breaking year, and the imminent release of Version 2.0 will make all functions of the application available to Windows users.
 At the end of June, a new version of Commander EIS was released, containing all of the functionality that had originally required mainframes but which can now operate independently on local area networks(LAN). This includes the Distribution Manager and data access and manipulation functions that can simplify application maintenance and transform relational data for multidimensional viewing and investigation. The release also includes a set of highly automated processes that will shorten the implementation time for many customers to deliver EIS over a LAN.
 "Even with this active development program, we managed our financial resources so there was a slight decrease in debt compared with last year," said Wrathall. "Cash flow was positive for the quarter and the year, and the banks are satisfied with our performance in regard to our credit agreements."
 Comshare, Incorporated is known for its role in creating the executive information systems market. Today, Comshare is a full- service, international software company, specializing in business intelligence applications.
 Commander and ARTHUR are trademarks of Comshare, Incorporated. Any other trademarks mentioned are the property of their respective owners.
 Three Months Ended Year Ended
 June 30, June 30,
 1993 1992 1993 1992
 licenses $ 10,568,400 $ 10,520,100 $ 40,396,800 $ 46,697,200
 maintenance 10,414,800 11,212,400 43,063,800 43,744,000
 services 5,036,600 5,377,800 20,538,700 23,293,700
 and other 212,400 720,500 1,194,400 5,438,800
 ------------ ------------ ------------ ------------
 26,232,200 27,830,800 105,193,700 119,173,700
 Costs and
 Selling and
 marketing 12,492,400 14,003,500 54,064,500 61,175,200
 Cost of revenue
 and support 4,811,700 5,885,100 20,384,800 25,175,500
 Cost of software
 amortization 3,059,500 2,471,000 10,761,400 9,447,000
 research and
 development 5,502,400 5,752,900 23,132,400 24,511,900
 software (3,723,200) (4,009,000) (15,034,900) (15,983,500)
 General and
 admin. 2,607,200 2,778,800 11,667,700 12,667,100
 and unusual
 charges - 12,452,000 1,489,000 15,302,000
 ------------ ------------ ------------ ------------
 24,750,000 39,334,300 106,464,900 132,295,200
 ------------ ------------ ------------ ------------
 Income (loss)
 operations 1,482,200 (11,503,500) (1,271,200) (13,121,500)
 Other income (expense):
 Interest income 28,200 61,800 297,800 342,000
 expense (252,400) (98,500) (611,400) (285,800)
 Exchange gain
 (loss) (123,600) 2,400 480,600 27,600
 ------------ ------------ ------------ ------------
 (347,800) (34,300) 167,000 83,800
 ------------ ------------ ------------ ------------
 Income (loss)
 before taxes 1,134,400 (11,537,800) (1,104,200) (13,037,700)
 (benefit) for
 income taxes 608,000 (1,363,000) 659,000 (1,905,000)
 ------------ ------------ ------------ ------------
 Net income
 (loss) $ 526,400 $(10,174,800)$ (1,763,200)$(11,132,700)
 ------------ ------------ ------------ ------------
 Weighted average
 number of common
 and dilutive
 common equivalent
 shares 5,324,500 5,286,700 5,319,100 5,309,500
 --------- --------- --------- ---------
 Net income (loss)
 per common share $.10 $(1.92) $(.33) $(2.10)
 ---- ------ ----- ------
 NOTES: During the third quarter ended March 31, 1993, the Company adopted the provisions of SFAS No. 109, Accounting for Income Taxes, effective July 1, 1992. This statement requires a change in the method of accounting for income taxes from the deferral method to an asset and liability approach. The adoption of this standard had no material effect on income.
 During the third quarter ended March 31, 1993, the Company made provisions totaling $1,489,000 or $.24 per share for management actions or plans in connection with staff reductions related to its restructuring. During the third quarter ended March 31, 1992, the Company made provisions totaling $2,850,000 or $.34 per share. In addition to staff reductions, these provisions included the write-off of computer software and data center computer equipment, and the costs of relocating certain development staff.
 During the fourth quarter ended June 30, 1992, the Company made provisions totaling $12,452,000. These charges relate to the reduction of the carrying value of computer software to its net realizable value by $9,614,000 or $1.29 per share and management actions or plans to reduce or relocate staff and the write-off of related leasehold improvements of $2,838,000 or $.45 per share. Additionally, the revision of the estimated annual effective tax rate and the write-off of certain deferred tax benefits resulted in a charge of $1,255,000, or $.24 per share.
 Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.
 -0- 7/29/93
 /CONTACT: T. Wallace Wrathall, 313-769-6177, or Ricia Hughes, 313-769-6068, both of Comshare/

CO: Comshare, Incorporated ST: Michigan IN: CPR SU: ERN

SB-KR -- DE029 -- 7500 07/29/93 18:07 EDT
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Publication:PR Newswire
Date:Jul 29, 1993

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