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ROSS SYSTEM'S NET EARNINGS UP 104 PERCENT IN 3RD QUARTER

 REDWOOD CITY, Calif., April 26 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) today announced results for the third quarter of fiscal 1993 ended March 31.
 Revenues increased 25 percent for the quarter to $22.1 million from $17.7 million in the same quarter last year. Net earnings for the quarter rose 104 percent to $1.1 million from $536,000 in the prior year, while earnings per share for the period increased to $0.11 from $0.05.
 Revenues for the nine month period ended March 31, increased 17 percent to $61.5 million from $52.7 million for the same period in the prior year. A net loss of $3.8 million, or $0.38 per share, for the most recent nine month period compares with earnings of $2.0 million, or $0.19 per share, in fiscal 1992. The nine month results include pre-tax charges associated with prior acquisitions totaling $6.4 million, which were accrued in the first quarter of fiscal 1993.
 The company's results were fueled by significant revenue growth in the domestic market, continued growth in sales of its PROMIX process manufacturing product, and strong early acceptance of its new Renaissance CS client server accounting product. "We were pleased with the company's performance for the quarter, particularly in the U.S. market," said Dennis Vohs, Ross System's chairman and CEO. "U.S. revenues increased by 59 percent over the same period last year with software license fees up 93 percent. International revenues for the quarter were down 8 percent primarily due to delays in closing several major agreements in Europe, as well as the negative impact of currency rate changes from the same quarter last year. The PROMIX process manufacturing product continued to experience solid revenue growth - up 22 percent over the same quarter last year.
 "In late January, we introduced the Renaissance CS Series(TM), our client server accounting line. Initial interest from both current customers and prospects has exceeded our expectations. Third quarter revenues from Renaissance CS accounted for 12 percent of total revenues. More importantly, as an indication of future growth potential, Renaissance CS software license fees represented 22 percent of total software license revenues.
 "Interest in commercial applications in the UNIX environments continues to grow. Revenues from this area exceeded $1 million during the quarter. More importantly, we won several major agreements because Ross could provide the option of processing in VAX, Alpha and Hewlett- Packard environments."
 Ross Systems, Inc. was among the first companies to offer commercial accounting software in the midrange market. Its primary focus has been on the Digital VAX market where the company has been a member of Digital's Cooperative Marketing Program (CMP) since 1984. Today, Ross Systems develops and markets a broad range of business solutions in seven strategic environments: Digital's Alpha AXP architecture, Open VMS, and OSF/1; Hewlett-Packard's HP-UX and MPE/iX; UNIX; and client/server. Ross products encompass financial, human resources and distribution systems, as well as manufacturing and public sector applications, complemented by a fourth generation application development language. The company has been following a corporate development strategy of broadening its product line and expanding through both internal growth and acquisitions. Ross Systems serves its customers through a network of 38 offices worldwide. The company is headquartered at 555 Twin Dolphin Drive, Redwood City, Calif., 94065; telephone: 415-593-2500.
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share data)
 (Unaudited)
 3 mos. ended 9 mos. ended
 3/31/93 3/31/92(a) 3/31/93 3/31/92(a)
 Revenues:
 Software product licenses $ 7,889 $ 7,490 $ 24,212 $ 23,444
 Consulting and other
 services 8,607 5,889 21,463 16,415
 Maintenance 5,569 4,326 15,781 12,837
 Total 22,065 17,705 61,456 52,696
 Operating expenses:
 Cost of revenues 8,470 6,284 24,209 18,235
 Sales and marketing 6,161 5,947 21,292 18,114
 Product development 2,917 2,439 7,871 6,737
 General and administrative 2,381 1,875 6,953 5,496
 Charges for in-process
 research & development --- --- 4,091 ---
 Amortization of other assets 292 228 873 754
 Total 20,221 16,773 65,289 49,336
 Operating earnings (loss) 1,844 932 (3,833) 3,360
 Interest income (expense),
 net (23) 10 (57) 111
 Earnings (loss) before
 income taxes 1,821 942 (3,890) 3,471
 Income tax expense (benefit) 728 406 (135) 1,510
 Net earnings (loss) $ 1,093 $ 536 $ (3,755) $ 1,961
 Net earnings (loss) per common
 and common equiv. share $ .11 $ .05 $ (.38) $ .19
 Common and common equivalent
 shares used in computing
 earnings (loss) per common
 share 10,388 10,240 10,008 10,150
 (a) As restated for change in revenue recognition.
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 3/31/93 6/30/92(a)
 ASSETS (unaudited)
 Current assets:
 Cash and cash equivalents $ 8,086 $ 7,741
 Accounts receivable, net 32,399 32,749
 Prepaids and other current assets 1,673 1,722
 Deferred income taxes 3,280 3,277
 Total current assets 45,438 45,489
 Property and equipment 5,592 5,991
 Computer software costs 8,706 6,521
 Other assets 4,307 4,357
 Total $ 64,043 $ 62,358
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current installments of debt $ 241 $ 250
 Accounts payable 5,180 4,210
 Accrued expenses 7,652 7,279
 Income taxes payable 76 1,328
 Deferred revenue 14,920 14,348
 Total current liabilities 28,069 27,415
 Long-term debt, less current
 installments 6,273 1,128
 Deferred income taxes 2,885 2,886
 Total liabilities 37,227 31,429
 Shareholders' equity:
 Common stock 41,436 40,640
 Accumulated deficit (13,909) (10,154)
 Cumulative translation
 adjustment (711) 443
 Total shareholders' equity 26,816 30,929
 Total $ 64,043 $ 62,358
 (a) As restated for change in revenue recognition.
 -0- 4/26/93
 /EDITOR'S NOTE: All products names referenced herein are trademarks of their respective companies./
 /CONTACT: Dennis Vohs or Cecilia Roach of Ross Systems, 404-851-1872/
 (ROSS)


CO: Ross Systems, Inc. ST: California IN: CPR SU: ERN

RA-BR -- AT004 -- 0445 04/26/93 08:04 EDT
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Date:Apr 26, 1993
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