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INTERSOLV REPORTS FIRST QUARTER OPERATING RESULTS

 ROCKVILLE, Md., Aug. 18 /PRNewswire/ -- INTERSOLV, Inc. (NASDAQ-NMS: ISLI), today reported operating results for the first fiscal quarter ended July 31, 1993. Net income for the quarter was $0.6 million, or 5 cents per share, which is equal to net earnings in the same quarter last year. Revenue for the first quarter was $16.6 million which represented an 8 percent decrease compared with Q1 of last year. Revenue from the company's North American operations grew 20 percent, while international revenues were negatively impacted by foreign currency exchange rates and weak economic environments in Europe.
 Kevin J. Burns, INTERSOLV's president/CEO, said: "We were pleased that we hit our Q1 profit goal and continued to strengthen the balance sheet. Demand and revenue flow improved for all product lines in North America, but like many other software companies, we continued to experience weakness in Europe."
 INTERSOLV is a software products company specializing in application development tools for the desktop. INTERSOLV offers a broad line of products that operate on IBM, compatible PCs and Local Area Networks (LANs) under Windows, OS/2 and UNIX. Customers using INTERSOLV products can build applications for a wide variety of data bases running on PCs, LANs, mainframes and client/server environments. INTERSOLV's customer base numbers 150,000 software professionals at more than 10,000 sites worldwide.
 INTERSOLV
 QUARTER TO QUARTER COMPARISON -- OPERATING RESULTS
 Three Months Ended July 31
 (dollars in thousands, except per share amounts)
 Percent
 Q1 Increase Q1
 7/31/93 (Decrease) 7/31/92
 Revenues $16,551 (8) $18,043
 Costs & expenses:
 Cost of sales 1,541 18 1,306
 Sales & marketing 10,483 (9) 11,552
 Research & development 2,091 (6) 2,214
 General & administrative 1,633 (21) 2,071
 Total costs & expenses 15,748 (8) 17,143
 Operating income 803 (11) 900
 Other income, net 53 3.8X 14
 Pre-tax profit 856 (6) 914
 Taxes 257 (20) 320
 Net income $ 599 1 $ 594
 EPS $ 0.05 -- $ 0.05
 Shares used
 in computing EPS 11,988 (4) 12,491
 Key Data & Ratios:
 Net capitalized
 software benefit $ 464 ($736) $ 1,200
 Operating margin 5 pct. 5 pct.
 Tax rate 30 pct. 35 pct.
 Net margin 4 pct. 3 pct.
 INTERSOLV
 BALANCE SHEET
 (in thousands)
 ASSETS: July 31, 1993 April 30, 1993
 Current assets:
 Cash & cash equivalents $ 9,053 $ 9,017
 Accounts receivable, net 18,059 21,598
 Refundable income taxes 668 668
 Prepaid expenses & other assets 3,025 2,845
 Total current assets 30,805 34,128
 Software, net 15,917 15,553
 Property & equipment, net 8,173 8,080
 Notes receivable & other assets 1,572 1,624
 Total assets $56,467 $59,385
 LIABILITIES & STOCKHOLDERS' EQUITY:
 Current liabilities:
 Accounts payable & accrued expenses $11,276 $14,259
 Deferred revenue 9,453 10,486
 Total current liabilities 20,729 24,745
 Stockholders' equity 35,738 34,640
 Total liabilities
 & stockholders' equity $56,467 $59,385
 KEY FINANCIAL RATIOS:
 Days sales in receivables 96 days 92 days
 Current ratio 1.5X 1.4X
 Debt to equity 58 pct. 71 pct.
 INTERSOLV
 CASH FLOWS
 Three months ended July 31,
 (in thousands)
 Q1 Q1
 CASH INFLOWS (OUTFLOWS) 7/31/93 7/31/92
 Operating activities:
 Net income $ 599 $ 594
 Non-cash items:
 Depreciation and amortization 1,709 1,476
 Deferred income taxes 220 215
 Changes in assets and liabilities (700) (1,531)
 Net cash provided
 by operating activities 1,828 754
 Investing activities:
 Additions to software (1,253) (2,185)
 Additions to property and
 equipment (888) (529)
 Changes in other assets 22 104
 Net cash used in investing activities (2,119) (2,610)
 Net cash provided
 by financing activities 327 275
 Effect of exchange rate changes on cash -- 186
 Increase (decrease) in cash
 and cash equivalents 36 (1,395)
 Cash and cash equivalents,
 beginning of fiscal year 9,017 5,768
 Cash and cash equivalents, end of period $9,053 $4,373
 -0- 8/18/93
 /CONTACT: Kevin J. Burns, president/CEO, 301-230-3201, or Kenneth A. Sexton, vice president-finance/CFO, 301-230-3210, both of INTERSOLV/
 (ISLI)


CO: INTERSOLV, Inc. ST: Maryland IN: CPR SU: ERN

DC-KD -- DC020 -- 4062 08/18/93 16:50 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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