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COMSHARE REPORTS YEAR-END RESULTS /repeating for points needed/

                   COMSHARE REPORTS YEAR-END RESULTS
                  /repeating for points needed/
    ANN ARBOR, Mich., July 31 /PRNewswire/ -- Comshare, Incorporated (NASDAQ: CSRE), the leading supplier of software for executive and managerial applications, today announced operating results for the fourth quarter and full fiscal year that ended June 30, 1992.
    For the quarter, the result was a net loss of $10.2 million or $1.92 a share, compared with net income of $2.1 million or $.38 a share for the same period a year ago.  Included in the net loss were unusual charges and certain tax adjustments equivalent to $1.98 a share, without which net income of $.06 a share would have resulted.
    For the full fiscal year, the company reported a net loss of $11.1 million or $2.10 a share, compared with net income of $6.3 million or $1.16 a share last year.  Unusual charges and certain tax adjustments had the effect of reducing net income by $2.32 a share for the year. The unusual charges of $15.3 million or $2.08 a share were primarily for employee separations, facility consolidations and reducing the book value of some older products, and had little impact on the company's liquidity since the majority were of a non-cash nature.  The tax adjustments reduced the benefit for income taxes by $.24 a share.
    Revenue was $27.8 million for the quarter and $119.2 million for the full fiscal year, compared with $33.1 million and $124.2 million respectively for the previous year.  "During the year, 260 new corporate customers signed contracts," said T. Wallace Wrathall, Comshare senior vice president and chief financial officer.  "This indicates that executive and managerial support systems remain a high priority with corporations and governmental agencies.  Software license and maintenance revenues grew only two percent, however, because the average sale value dropped as customers downsized onto PC-networked systems as a cost conscious way to begin a system in uncertain times."
    In accordance with previously disclosed plans, Comshare concluded its 26-year-old timesharing business, shutting down major computer centers in Ann Arbor and London, England during the year.  Revenue from the centers for the year was $4.9 million, down from $10.3 million the year before, and will be nil in the future.
    Wrathall stated that market conditions had required changes in the company's cost structure during the year.  He said, "The market for computer hardware and software products experienced unprecedented turmoil that presented challenges to many software companies, requiring a tough look at costs.  We responded by reducing the size of our workforce and consolidating some facilities, without diminishing our ability to develop innovative products.  Comparable operating expenses in fiscal 1993 will be $13.0 million less than in fiscal 1992 because $5.1 million in unusual charges associated with the actions and $7.9 million in expenses incurred prior to the separations and consolidations will not recur.  We expect no additional unusual charges will be necessary."
    "Revenue growth is expected for fiscal 1993 through two thrusts," said Wrathall.  "The first is to institute a major marketing and sales campaign aimed at organizations that are revamping any of their management reporting systems.  We want them to know that not only are we the leader in executive information systems, but that we are equally able to support them in modernizing other managerial reporting systems. The use of information technology to benefit the management of the larger enterprise is well accepted, and in fact has become a priority not only for executives, but is expanding to middle management.  We are uniquely able to serve that expansion with our integrated software for enterprise budgeting, statutory and management reporting, profit management, and executive and management support system applications.
    "The second thrust is to offer new products, which demonstrate that Comshare is very much at the center of this expanding market for managerial applications.  Releases in the coming fiscal year will include the new generation Commander for OS/2, Windows and Macintosh platforms.  The new Commander removes all barriers to executive information systems spreading across distributed computing networks and serving hundreds more managers.  In addition to enhancements to most of our current products, several totally new products will be released that will redefine and expand the range of managerial applications."
    Comshare is responding to the software industry's shortening product life cycles, new technology introductions and platform changes with a wave of new products.  "In light of our new generation products, we reviewed the book values of our older products," said Wrathall, "and concluded it was appropriate to reduce their book values, resulting in unusual charges of $10.2 million for the year.  In addition, we will also shorten the amortization lives of capitalized computer software effective with fiscal 1993.  The earnings impact from these actions for fiscal 1993 is expected to be minimal."
    Comshare is a full-service, international software company specializing in managerial applications.  It develops, supports and markets software solutions for enterprise budgeting, profit management, statutory and management reporting, and executive and management support systems (ESS/MSS).
                          Comshare, Incorporated
                   Consolidated Statement of Operations
                       Three Months Ended            Year Ended
                            June 30,                   June 30,
                        1992        1991         1992         1991
    Revenue:
      Software
        licenses   $ 10,520,100 $14,301,600 $ 46,697,200 $ 55,530,100
      Software
        maintenance  11,212,400   9,763,400   43,744,000   33,115,600
      Implementation
        services      5,377,800   5,986,100   23,293,700   23,802,400
      Remote
        processing
        and other       720,500   3,094,400    5,438,800   11,717,600
                   ------------ ----------- ------------ ------------
                     27,830,800  33,145,500  119,173,700  124,165,700
    Costs and
      expenses:
      Selling and
        marketing    14,003,500  16,671,000   61,175,200   62,561,500
      Cost of
        revenue
        and support   5,885,100   6,695,800   25,175,500   24,806,500
     Research and
        product
        development   4,214,900   3,613,300   17,975,400   14,288,800
     General and
        admin         2,778,800   3,141,100   12,667,100   13,225,400
     Unusual
       charges       12,452,000           -   15,302,000            -
                   ------------ ----------- ------------ ------------
                     39,334,300  30,121,200  132,295,200  114,882,200
                   ------------ ----------- ------------ ------------
     Income (loss)
       from
       operations   (11,503,500)  3,024,300  (13,121,500)   9,283,500
    Other income
      (expense):
      Interest
      income             61,800     227,800      342,000      746,400
      Interest
      expense           (98,500)          -     (285,800)           -
      Exchange gain       2,400         500       27,600       28,000
                   ------------ ----------- ------------ ------------
                        (34,300)    228,300       83,800      774,400
                   ------------ ----------- ------------ ------------
    Income (loss)
      before taxes  (11,537,800)  3,252,600  (13,037,700)  10,057,900
    Provision
      (benefit)
      for income
      taxes          (1,363,000)  1,165,000   (1,905,000)   3,736,000
                   ------------ ----------- ------------ ------------
    Net income
      (loss)       $(10,174,800)$ 2,087,600 $(11,132,700) $ 6,321,900
                   ------------ ----------- ------------ ------------
    Weighted
      average
      number of
      common and
      dilutive
      common
      equivalent
      shares          5,286,700   5,486,300    5,309,500    5,463,700
                   ------------ ----------- ------------ ------------
    Net income
      (loss) per
      common share       $(1.92)       $.38       $(2.10)       $1.16
                         ------        ----       ------        -----
                          Comshare, Incorporated
                   Condensed Consolidated Balance Sheet
                                              As of
                                     June 30,       June 30,
                                       1992           1991
    Current assets                $ 51,648,700   $ 49,879,200
    Property and equipment, net     12,309,900     13,949,000
    Computer software, net          36,895,300     37,359,600
    Goodwill, net                    2,294,400      2,055,100
    Other assets                     4,815,100      3,331,500
                                  ------------   ------------
                                  $107,963,400   $106,574,400
                                  ------------   ------------
    Current liabilities           $ 64,799,000   $ 53,684,200
    Long-term debt, less
      current portion                6,000,000      4,067,400
    Deferred credits                 5,610,900      8,381,800
    Other liabilities                1,600,300        261,000

    Shareholders' equity            29,953,200     40,180,000
                                  ------------   ------------
                                  $107,963,400   $106,574,400
                                  ------------   ------------
    NOTES:  During the fourth quarter ended June 30, 1992, the company recorded unusual charges of $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.
    Also, during the third quarter ended March 31, 1992 the company had unusual charges of $2,850,000 or $.34 per share.  The nature of these charges is similar to those of the fourth quarter.  Thus, the total unusual charges for the year ended June 30, 1992 were $15,302,000, which when combined with the tax charges of $1,255,000 impacted net income by $12,292,000 or $2.32 per share.
    Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.
    -0-                       7/31/92
    /CONTACT:  T. Wallace Wrathall, 313-994-4800, Ext. 6177, or Ricia Hughes, 313-994-4800, Ext. 6068, both of Comshare/
    (CSRE) CO:  Comshare, Incorporated ST:  Michigan IN:  CPR SU:  ERN 1603 07-31-92 09:40 EDT ML -- DE005 -- 5649 07/31/92 13:43 EDT
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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.

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