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PROMIS SYSTEMS ANNOUNCES RETURN TO GROWTH TREND DURING SECOND QUARTER

    TORONTO, Aug. 5 /PRNewswire/ -- Promis Systems Corporation Ltd. today announced results for the second quarter that indicate the software developer has returned to its historical growth trend.
    Promis Systems reports in U.S. dollars. Revenues for the quarter ended June 30 were $4.8 million -- 2.5 times higher than the $1.9 million of the first quarter and 33 percent higher than the $3.6 million recorded a year earlier.
    Promis Systems results for the second quarter include for the first time the results of Palette Systems Corporation, the Nashua, N.H.-based software company acquired in April.
    As expected, the additional overhead and amortization of goodwill and other intangible property associated with this strategic acquisition, and the increased investment in international sales and marketing, led to higher operating expenses of $4.7 million, compared with $3.8 million in the first quarter and $3.2 million in the second quarter of 1992. This resulted in a small net profit of $31,000 or $0.01 per share (5,100,000 shares outstanding), compared with a net loss of $1.1 million or $ 0.24 per share in the first quarter and net earnings of $289,000 or $ 0.31 per share (933,000 shares outstanding) for the second quarter of 1992.
    For the first six months, revenues were $6.7 million, up about 3 percent from $6.5 million a year earlier. Promis Systems reported a net loss for the period of $1.1 million or $ 0.22 per share, compared with a net profit of $144,000 or $ 0.15 per share, for the first half of 1992 on 4,900,000 and 933,000 shares outstanding respectively.
    "We are pleased that Promis Systems has returned to a trend of business improvement and are cautiously optimistic that it will continue for the balance of the year," said Elliot Wassarman, president and chief executive officer. "We are continuing to implement close control over our costs to allow us to take full advantage of the sales momentum we expect to build in the second half of the year, which has always been ours strongest period."
    Mr. Wassarman said Promis is excited by the growth of its qualified sales pipeline, which has risen from $32 million at the end of the March quarter to over $40 million at the end of June. The majority of these prospects are in new industry sectors, reflecting the early success of a key corporate strategy.
    Promis Systems has also moved aggressively to integrate marketing of Palette Systems software -- particularly in Europe -- as well as continue enhancements to its PROMIS(R) software such as porting to Open Systems UNIX(R) environments. The company completed the first sale of its PROMIS product for the SUN/Solaris(R) UNIX platform in June.
    Since its formation, Promis Systems Corporation Ltd. has become a predominant supplier of plant floor management software and manufacturing execution systems. Currently, more than 1300 PROMIS/PALETE software modules are installed in 17 countries at over 180 leading manufacturing sites. The company's PROMIS and PALETTE software helps businesses solve manufacturing challenges including time to market, quality, regulatory compliance, competitiveness, productivity and customer service. The company is headquartered in Toronto, Canada with sales and support locations throughout North America, Europe and Asia.
    NOTE TO EDITORS: When referring to the companies, please use Promis Systems Corporation, Promis, Palette Systems Corporation or Palette (initial cap only). When referring to the products, please use PROMIS or PALETTE in all caps. PROMIS and PALETTE are registered trade-marks of Promis Systems Corporation. All other trade-marks are those of their respective owners
    -0-             08/05/93
    CONTACT:  Mr. Gordon Wilde, vice president - finance and chief financial officer of Promis Systems Corporation Ltd., 416-960-0960; or Mr. Elliot Wassarman, president and chief executive officer of Promis Systems Corp. Ltd., 416-960-0960
    (PSW.) CO:  PROMIS SYSTEMS CORPORATION LTD. IN:  CPR SU:  ERN ST:


-- NY069 -- X257 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
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