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INTERSOLV, INC., REPORTS THIRD QUARTER OPERATING RESULTS

 INTERSOLV, INC., REPORTS THIRD QUARTER OPERATING RESULTS
 ROCKVILLE, Md., March 2 /PRNewswire/ -- Intersolv, Inc. (NASDAQ: ISLI) today reported operating results for the third quarter ended Jan. 31, 1992. Net income was $2.0 million, or 16 cents per share, compared with net income of $334,000, or 3 cents per share, for the comparable quarter last year. Revenue for the quarter ended Jan. 31, 1992, increased 5 percent to $21.6 million, from $20.6 million for the third quarter last fiscal year.
 Intersolv also announced that it is restating its results for the first quarter ended July 31, 1991, and the second quarter ended Oct. 31, 1991, to correct an accounting error made in those quarters in the calculation of research and development costs required to be capitalized in accordance with Financial Accounting Standard No. 86, "Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed." The restated results for the first quarter ended July 31, 1991, reflect net income of $486,000, or 4 cents per share, as compared to $195,000, or 2 cents per share, as previously reported. The restated results for the second quarter ended Oct. 31, 1991, reflect net income of $1.2 million, or 10 cents per share, compared to $1.0 million, or 8 cents per share, as previously reported.
 For the nine months net income totaled $3.6 million, or 30 cents per share, compared to a net loss of $293,000, or (3 cents) per share, for the same period last fiscal year. Revenues for the nine months ended Jan. 31, 1992, were $55.2 million, or 2 percent lower than last fiscal year's first nine months total of $56.2 million.
 Kevin J. Burns, Intersolv's president and chief executive officer, said, "During the third quarter we saw solid growth in APS and PVCS revenues with higher profit margins."
 Intersolv's financials include the results of operations of Sage Software, Inc. and Index Technology Corporation which merged on March 19, 1991. The merger was accounted for as a pooling of interests and all historical financial information has been restated accordingly.
 Intersolv specializes in software products which enable customers to build information systems faster and more cost effectively. Intersolv's products operate on IBM Mainframes, PC's and Local Area Networks (LANS). Intersolv's corporate offices are located at 3200 Tower Oaks Blvd. in Rockville, a suburb of Washington.
 INTERSOLV, INC.
 Quarter to Quarter Comparison
 (in thousands, except per share amounts)
 Unaudited
 Quarters Ended
 Jan. 31
 Q3 Increase Q3
 1/31/92 (Decrease) 1/31/91(A)
 Revenues $21,631 5 pct. $20,635
 Costs and Expenses:
 Cost of Sales 1,229 2,313
 Sales & Marketing 12,385 13,130
 Research & Development 2,900 3,674
 General & Administrative 2,286 1,864
 Total Costs & Expenses 18,800 (10 pct.) 20,981
 Operating Income (Loss) 2,831 (346)
 Other Income 32 1,086
 Pretax Profit 2,863 3.9X 740
 Taxes 859 2.1X 406
 Net Income $ 2,004 6.0X $ 334
 EPS $ 0.16 $ 0.03
 Shares Used for EPS 12,538 11 pct. 11,191
 Operating Margin 13 pct. (2 pct.)
 Pretax Margin 13 pct. 4 pct.
 Tax Rate 30 pct. 55 pct.
 Net Margin 9 pct. 2 pct.
 (A) Fiscal 1991 operating results have been restated to show effect of the acquisition of Index Technology Corporation, accounted for as a pooling of interests.
 Sequential Comparison
 (in thousands, except per share amounts)
 Unaudited
 Quarters Ended
 Q1 Q2 Q3
 7/31/91 Increase 10/31/91 Increase 1/31/92
 As Restated (Decrease) As Restated (Decrease)
 Revenues $15,188 21 pct. $18,400 18 pct. $21,631
 Costs and
 Expenses:
 Cost of Sales 1,245 1,315 1,229
 Sales &
 Marketing 9,199 10,786 12,385
 Research &
 Development 2,438 2,881 2,900
 General &
 Administrative 1,826 1,793 2,286
 Total Costs
 & Expenses 14,708 14 pct. 16,775 12 pct. 18,800
 Operating
 Income 480 3.4X 1,625 74 pct. 2,831
 Other Income 212 (86 pct.) 30 7 pct. 32
 Pretax Profit 692 2.4X 1,655 73 pct. 2,863
 Taxes 206 2.4X 497 73 pct. 859
 Net Income $ 486 2.4X $ 1,158 73 pct. 2,004
 EPS $ 0.04 2.5X $ 0.10 60 pct. $ 0.16
 Shares Used
 for EPS 11,792 3 pct. 12,122 2 pct. 12,538
 Operating Margin 3 pct. 9 pct. 13 pct.
 Pretax Margin 5 pct. 9 pct. 13 pct.
 Tax Rate 30 pct. 30 pct. 30 pct.
 Net Margin 3 pct. 6 pct. 9 pct.
 Nine Month Operating Results
 (in thousands, except per share amounts)
 Unaudited
 Nine Months Ended
 Jan. 31
 Increase
 1/31/92 (Decrease) 1/31/91(A)
 Revenues $55,219 (2 pct.) $56,185
 Costs and Expenses:
 Cost of Sales 3,789 6,098
 Sales & Marketing 32,370 33,885
 Research & Development 8,219 11,167
 General & Administrative 5,905 6,890
 Total Costs & Expenses 50,283 (13 pct.) 58,040
 Operating Income (Loss) 4,936 (1,855)
 Other Income 274 (90 pct.) 2,876
 Pretax Profit 5,210 5.1X 1,021
 Taxes 1,562 1,314
 Net Income (Loss) $ 3,648 $ (293)
 EPS $ 0.30 $ (0.03)
 Shares Used for EPS 12,267 10 pct. 11,056
 Operating Margin 9 pct. (3 pct.)
 Pretax Margin 9 pct. 2 pct.
 Tax Rate 30 pct.
 Net Margin 7 pct. (1 pct.)
 (A) Fiscal 1991 operating results have been restated to show effect of the acquisition of Index Technology Corporation, accounted for as a pooling of interests.
 Selected Balance Sheet Items
 (in thousands)
 Jan. 31, 1992 April 30, 1991
 (unaudited) (audited)
 Cash and Marketable Securities $ 5,374 $16,022
 Other Current Assets 26,352 27,047
 Total Current Assets 31,726 43,069
 Net PP&E 8,578 8,758
 Other Assets 21,899 16,397
 Total Assets $62,203 $68,224
 Current Liabilities $17,383 $30,442
 Long Term Liabilities 1,379 96
 Stockholders' Equity 43,441 37,686
 Total Liabilities and
 Stockholders' Equity $62,203 $68,224
 -0- 3/2/92
 /CONTACT: Kevin J. Burns, president/CEO, 301-230-3201, or Kenneth A. Sexton, VP Finance/CFO, 301-230-3210, both of Intersolv/
 (ISLI) CO: Intersolv ST: Maryland IN: CPR SU: ERN


MH-DC -- DC046 -- 4234 03/02/92 18:38 EST
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Date:Mar 2, 1992
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