Printer Friendly

COMSHARE REPORTS THIRD-QUARTER NET LOSS; TAKES 34 CENTS A SHARE CHARGE TO REDUCE COSTS

 COMSHARE REPORTS THIRD-QUARTER NET LOSS;
 TAKES 34 CENTS A SHARE CHARGE TO REDUCE COSTS
 ANN ARBOR, Mich., April 27 /PRNewswire/ -- Comshare, Incorporated (NASDAQ-NMS: CSRE) reported a third-quarter net loss of $2.5 million, or 46 cents a share, which was a decline from net income of $817,000, or 15 cents a share, for the quarter last year. Revenue for the quarter, which ended March 31, increased $400,000, reaching $29.7 million.
 Of the 46-cents-a-share loss, 34 cents was from a one-time charge to earnings in connection with staff reductions, relocation of some product development staff, and the write-off of data center computer equipment.
 "Revenue from international operations rose 9 percent, but due to sluggish spending in North America, total revenue grew only 1 percent this quarter," said T. Wallace Wrathall, senior vice president and chief financial officer," which was far lower than we had anticipated. With the earnings charge, we reduced our personnel and fixed costs so future expenses will be more in line with our current revenue levels. During the first nine months of the fiscal year, attrition and terminations reduced our work force by 8 percent."
 According to Wrathall, the $2.9 million charge to earnings this quarter will reduce expenses by approximately $1.0 million in the fourth quarter. He also said Comshare would begin the new fiscal year in July with a cost base that is more than $10 million lower, including the special charges, because of the management actions taken this year.
 "The revised cost structure is targeted to make it possible for Comshare to attain reasonable profits at current rates of revenue growth," said Wrathall, "and as sales growth increases, to exceed the profit margins reported during the company's rapid revenue growth in fiscal 1990 and 1991."
 Software license revenue was down from the year-earlier quarter primarily because of a 14-percent decline in mainframe software licenses. "We will continue to enhance our host products to deliver value to our current customers, but new investments are aimed at server versions of our host software and strengthening our PC products, which are already generating 56 percent of our software license revenue," Wrathall said. "The market is moving more and more to networked PC solutions to support the growing ranks of end users through distributed computing, and we are moving with it as we add Windows and a client/server architecture to our products."
 A new version of Commander FDC was released at the end of the third quarter, which provides a dynamic link to Lotus 1-2-3, intelligent intercompany eliminations and 13-period accounting capabilities. "Commander FDC has made significant inroads in the PC-based financial reporting and consolidation systems market this year, with more than 165 clients using the product and a rapidly growing prospect list," said Wrathall.
 A new version of Commander EIS, the market-leading executive information system, is in early field testing with commercial release scheduled for OS/2 in July and Windows in the fall. It has been rearchitected for a new class of end user applications that can support a wider range of managers by dynamically displaying information from a data source, including SQL servers, with intelligent navigation through the information.
 Comshare, an international software company with corporate headquarters in Ann Arbor, is the leader in executive information systems, financial reporting and consolidation systems, and profit/performance management applications for medium and larger size organizations in all industries.
 COMSHARE, INCORPORATED
 CONSOLIDATED STATEMENT OF OPERATIONS
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1992 1991 1992 1991
 Revenue:
 Software
 licenses $10,940,900 $11,882,200 $36,177,100 $41,228,500
 Software
 maintenance 11,384,000 8,922,000 32,531,600 23,352,200
 Implementation
 services 5,982,700 6,103,100 17,915,900 17,816,300
 Remote
 processing
 and other 1,435,300 2,435,800 4,718,300 8,623,200
 29,742,900 29,343,100 91,342,900 91,020,200
 Costs and
 expenses:
 Selling and
 marketing 16,892,100 15,169,200 48,279,700 45,890,500
 Cost of
 revenue and
 support 7,274,700 5,949,900 19,955,400 18,110,700
 Research and
 product
 development 5,916,400 3,737,600 14,806,500 10,675,500
 General and
 admin. 3,211,800 3,256,200 9,919,300 10,084,300
 33,295,000 28,112,900 92,960,900 84,761,000
 Income (loss)
 from
 operations (3,552,100) 1,230,200 (1,618,000) 6,259,200
 Other income
 (expense):
 Interest
 income 74,000 171,800 280,200 518,600
 Interest
 expense (78,800) --- (187,300) ---
 Exchange gain
 (loss) (62,500) 5,900 25,200 27,500
 (67,300) 177,700 118,100 546,100
 Income (loss)
 before taxes (3,619,400) 1,407,900 (1,499,900) 6,805,300
 Provision
 (benefit) for
 income taxes (1,170,000) 591,000 (542,000) 2,571,000
 Net income
 (loss) $(2,449,400) $ 816,900 $ (957,900) $4,234,300
 Weighted
 average
 number of
 common and
 dilutive
 common
 equivalent
 shares 5,282,000 5,432,200 5,317,100 5,454,800
 Net income
 (loss) per
 common share $(.46) $.15 $(.18) $.78
 COMSHARE, INCORPORATED
 CONDENSED CONSOLIDATED BALANCE SHEET
 As of
 March 31, June 30,
 1992 1991
 Current assets $ 50,491,600 $ 49,879,200
 Property and equipment, net 12,418,100 13,949,000
 Computer software, net 43,643,000 37,359,600
 Goodwill, net 2,147,400 2,055,100
 Other assets 4,306,500 3,331,500
 $113,006,600 $106,574,400
 Current liabilities $ 60,903,900 $ 53,684,200
 Long-term debt, less
 current portion 4,027,100 4,067,400
 Deferred credits 8,657,800 8,642,800
 Shareholders' equity 39,417,800 40,180,000
 $113,006,600 $106,574,400
 NOTES: During the third quarter ended March 31, 1992, the company made provisions totaling approximately $2,850,000 or $.34 per share for management actions or plans in connection with relocation of certain development staff, staff reductions and the write-off of data center computer equipment.
 The relocation of certain London development staff will allow the company to move its London sales and administrative personnel to its former London data center facility thus saving occupancy costs in connection with the current facility. The staff reductions will enable the company to reduce future employee expenses to be more in line with current revenue.
 The weighted average number of common shares and net income per common share reflect a 2-for-1 stock split effective May 31, 1990.
 Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.
 -0- 4/27/92
 /CONTACT: T. Wallace Wrathall, 313-994-4800, Ext. 6177, or Ricia Hughes, 313-994-4800, Ext. 6068, both of Comshare, Incorporated/
 (CSRE) CO: Comshare, Incorporated ST: Michigan IN: CPR SU: ERN


ML-SM -- DE022 -- 3372 04/27/92 16:42 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 27, 1992
Words:1149
Previous Article:MULTIBANK FINANCIAL CORP. HOLDS ANNUAL MEETING
Next Article:CAMEL ADS ARE EFFECTIVE WITH KIDS ACCORDING TO EXCLUSIVE AD AGE/BKG YOUTH POLL; BRAND RECOGNITION HIGHEST AMONG PRETEENS


Related Articles
COMSHARE REPORTS YEAR-END RESULTS
COMSHARE REPORTS YEAR-END RESULTS /repeating for points needed/
COMSHARE ANNOUNCES PROFIT FOR FIRST QUARTER
COMSHARE REPORTS THIRD-QUARTER RESULTS
COMSHARE REPORTS FOURTH QUARTER AND YEAR END RESULTS
COMSHARE REPORTS THIRD-QUARTER RESULTS
COMSHARE REPORTS FOURTH QUARTER AND YEAR-END RESULTS
COMSHARE REPORTS FIRST-QUARTER INCREASE IN REVENUE AND NET INCOME
CELANESE THIRD QUARTER RESULTS 2001.
Comshare Reports Fourth Quarter Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters