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COMSHARE REPORTS THIRD-QUARTER RESULTS

 ANN ARBOR, Mich., April 29 /PRNewswire/ -- Comshare, Incorporated (NASDAQ-NMS: CSRE) today reported a net loss of $3.3 million, or 63 cents a share, for the third quarter ended March 31, 1993. Revenue was $23.4 million compared with $29.7 million for the year-earlier quarter. The company attributed the decline to the continuing industry slowdown in sales of mainframe computer software as well as the negative effect of international currency fluctuations.
 The results include a $1.5 million charge, or 24 cents a share, for restructuring and staff reduction in connection with the continuing realignment of the company's resources to address fast-growing markets for personal computer-based client/server managerial application products. The company also said it is renegotiating a $20 million revolving bank credit agreement due to terms of a compliance clause activated by the results.
 "Comshare's transition to sales of personal computer client/server software proceeded on course during the third quarter, but we continued to be caught in the accelerating downdraft caused by large mainframe customers rapidly 'downsizing' to smaller platforms," said T. Wallace Wrathall, senior vice president and chief financial officer.
 Wrathall said reported revenues would have been approximately $3.5 million higher if non-U.S. currencies had not weakened from their levels of the previous year. Third-quarter revenue last year included approximately $1 million from the company's remote processing services business, which it shut down as planned last June.
 Wrathall said a growth in client/server managerial applications revenue was led by the 59-percent growth in sales of Commander FDC financial consolidation and reporting applications over the third quarter of 1992. The company's Commander ARTHUR merchandise planning and reporting product line experienced 42-percent growth for the quarter over the same period a year ago.
 Comshare's traditionally strong Commander EIS/MSS executive information system/management support system product line was affected most by the slowdown in mainframe sales. Wrathall said the company's recently released Windows Desktop Builder and Application Manager components of Commander EIS/MSS have been well received. With additional client/server enhancements planned for the next two quarters, this software is designed to help Comshare maintain its industry-leading share of the market for both mainframe and client/server based executive information and management support systems.
 Wrathall said that as a result of the company's losses during the quarter, it is not in compliance with a financial covenant under a $20 million bank credit agreement. Modification to the credit agreement is currently being negotiated with the company's bank lenders. In connection with the foregoing, the revolving bank line will become secured by substantially all assets of the company.
 "Founded in 1966 as a timesharing company, Comshare has successfully reinvented itself on several occasions to respond to 'sea changes' in the information systems industry," said Wrathall. "Comshare will continue moving quickly to adjust to the new challenges and opportunities presented by the accelerating industry-wide shift to client/server computing which means offering applications that are scalable across LANs and mainframes according to a customer's needs."
 Comshare, Incorporated is known for its role in creating the executive information and management support system (EIS/MSS) market. Today, Comshare is a full-service, international software company specializing in managerial applications, such as profit management, enterprise budgeting, financial consolidation and reporting and EIS/MSS.
 COMSHARE, INCORPORATED
 Consolidated Statement of Operations
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Revenue:
 Software
 licenses $ 8,053,600 $10,940,900 $29,828,400 $36,177,100
 Software
 maintenance 10,171,800 11,384,000 32,649,000 32,531,600
 Implementation
 services 4,884,400 5,982,700 15,502,100 17,915,900
 Remote
 processing
 and other 289,700 1,435,300 982,000 4,718,300
 ----------- ----------- ----------- -----------
 23,399,500 29,742,900 78,961,500 91,342,900
 Costs and
 expenses:
 Selling and
 marketing 13,009,300 15,784,100 41,572,100 47,171,700
 Cost of revenue
 and support 5,150,400 6,609,700 15,573,100 19,290,400
 Cost of software
 amortization 2,826,100 2,575,000 7,701,900 7,189,000
 Internal
 research and
 product
 development 5,604,200 5,642,400 17,630,000 18,162,000
 Internally
 capitalized
 software (3,642,000) (3,347,000) (11,311,700) (11,590,500)
 General and
 administrative 2,902,000 3,180,800 9,060,500 9,888,300
 Restructuring
 and unusual
 charges 1,489,000 2,850,000 1,489,000 2,850,000
 ----------- ----------- ----------- -----------
 27,339,000 33,295,000 81,714,900 92,960,900
 ----------- ----------- ----------- -----------
 Loss from
 operations (3,939,500) (3,552,100) (2,753,400) (1,618,000)
 Other income (expense):
 Interest income 57,100 74,000 269,600 280,200
 Interest expense (149,800) (78,800) (359,000) (187,300)
 Exchange gain
 (loss) 82,500 (62,500) 604,200 25,200
 ----------- ----------- ----------- -----------
 (10,200) (67,300) 514,800 118,100
 ----------- ----------- ----------- -----------
 Loss before
 taxes (3,949,700) (3,619,400) (2,238,600) (1,499,900)
 Provision
 (benefit) for
 income taxes (615,000) (1,170,000) 51,000 (542,000)
 ----------- ----------- ----------- -----------
 Net loss $(3,334,700) $(2,449,400) $(2,289,600) $ (957,900)
 ----------- ----------- ----------- -----------
 Weighted average
 number of
 shares
 outstanding 5,308,200 5,282,000 5,293,900 5,317,100
 --------- ---------- --------- ----------
 Net loss per
 common share $(.63) $(.46) $(.43) $(.18)
 ---- ---- ---- ----
 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.
 Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.
 Commander is a trademark of Comshare, Incorporated. All other trademarks mentioned are the property of their respective owners.
 -0- 4/29/93
 /CONTACT: T. Wallace Wrathall, 313-769-6177, or Ricia Hughes, 313-769-6068, both of Comshare, Incorporated/
 (CSRE)


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

SB -- DE001 -- 2399 04/29/93 07:15 EDT
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Date:Apr 29, 1993
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