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 REDWOOD CITY, Calif., Oct. 25 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) today announced the results for its first quarter of fiscal 1994 ended Sept. 30.
 Revenues for the quarter increased 15 percent from $16.5 million in the prior year to $19.0 million in the current year. For the quarter, the company reported a net loss of $1.2 million, or $.12 per share, compared to a net loss of $6.3 million, or $0.66 per share, for the same period last year. The first quarter results in fiscal 1993 include pretax charges associated with prior acquisitions totaling $6.4 million. Typically, the first fiscal quarter is seasonally weak for Ross Systems.
 The company's revenue growth was a result of continued emphasis on sales of its client/server product offerings -- the Renaissance CS Accounting Series and the Human Resource CS Series. Revenues from these products, which were introduced in the second half of fiscal 1993, represented 37 percent of total software license fees and 26 percent of total revenues in the first quarter of fiscal 1994. Revenues from new products for the open systems and client/server marketplace, including the client/server products, the PROMIX process manufacturing system and the company's fourth generation language GEMBASE, represented 71 percent of software license fees, an increase of 94 percent over the same period last year. The strongest growth by application was in the Human Resource area, where software license fees increased by 86 percent and total revenues grew by 54 percent.
 Revenues generated by the company's U.S. operations showed strong growth, with software license fees increasing by 53 percent and total revenues increasing by 45 percent over the same period last year. International revenues continued to be sluggish, down 15 percent from last year. The decline in international revenues resulted from a weak European economy, where revenues declined in local currencies by 9 percent, primarily due to results in Belgium and the U.K. Revenues increased in France, the Netherlands and Germany. In U.S. dollars, revenues from Europe declined by 25 percent from the same period last year.
 In commenting on the quarter, Dennis Vohs, Ross Systems chairman and CEO, said: Historically, our software license revenues have been lower during the summer quarter due to the impact of vacations on concluding larger agreements, particularly in Europe but also in North America. The difference between a loss and slight profitability is often a swing of one or two large agreements from one quarter to the next. Although we were disappointed with first quarter revenues, we are pleased with our current level of sales pipeline. For example, though total revenues from PROMIX increased 31 percent, software license fees were flat. Nevertheless, we were selected as the 'vendor of choice' in a much larger number of evaluations than normal. In several of these selections, we have already begun pilot implementations that could result in major license agreements in the coming quarters.
 "We were also pleased with the continued progress that was made in the quarter on various development projects, including building client/server functionality for PROMIX, developing Oracle database versions of the Renaissance CS Series and PROMIX Series, and porting the Human Resource CS Series to the HP/UX platform. The combination of our new products and these extensions positions us well for the remainder of fiscal 1994," concluded Vohs.
 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 it customers through a network of 38 offices worldwide. The company is headquartered at 555 Twin Dolphin Drive, Redwood City, CA 94065, telephone: 415-593-2500.
 /EDITORS NOTE: All products names referenced herein are trademarks of their respective companies./
 Consolidated Statements of Operations
 (In thousands, except per share data)
 3 mos. ended
 9/30/93 9/30/92
 Software product licenses $ 6,332 $ 5,665
 Consulting and other services 6,839 5,771
 Maintenance 5,800 5,094
 Total 18,971 16,530
 Operating expenses:
 Cost of revenues 8,765 7,856
 Sales and marketing 6,936 7,501
 Product development 2,970 2,461
 General and administrative 1,890 2,491
 Charges for in-process
 research and development --- 4,091
 Amortization of other assets 292 290
 Total 20,853 24,690
 Operating loss (1,882) (8,160)
 Interest income (expense),
 net (30) 10
 Loss before income taxes (1,912) (8,150)
 Income tax benefit (695) (1,839)
 Net loss $ (1,217) $ (6,311)
 Net loss per common and
 common equivalent share $ (.12) $ (.66)
 Common and common equivalent
 shares used in computing
 loss per common share 9,973 9,559
 Consolidated Balance Sheets
 (In thousands)
 9/30/93 6/30/93
 ASSETS (unaudited)
 Current assets:
 Cash and cash equivalents $ 2,853 $ 10,298
 Accounts receivable, net 32,332 29,595
 Prepaids and other current assets 2,454 2,237
 Deferred income taxes 8,357 8,352
 Total current assets 45,996 50,482
 Property and equipment 6,063 5,876
 Computer software costs 11,182 10,192
 Other assets 3,944 4,068
 Total $ 67,185 $ 70,618
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current installments of debt $ 547 $ 480
 Accounts payable 5,718 5,148
 Accrued expenses 7,788 9,456
 Income taxes payable 1,691 2,468
 Deferred revenue 10,960 11,556
 Total current liabilities 26,704 29,108
 Long-term debt, less current
 installments 6,764 6,662
 Deferred income taxes 5,059 5,059
 Total liabilities 38,527 40,829
 Shareholders' equity:
 Common stock 41,987 41,881
 Accumulated deficit (12,495) (11,278)
 Cumulative translation
 adjustment (834) (814)
 Total shareholders' equity 26,658 29,789
 Total $ 67,185 $ 70,618
 -0- 10/25/93
 /CONTACT: Dennis Vohs or Cecilia Roach of Ross Systems, 404-851-1872/

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

BR-CF -- AT001 -- 6105 10/25/93 07:59 EDT
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Publication:PR Newswire
Date:Oct 25, 1993

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