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ROSS SYSTEMS REPORTS RECORD QUARTER AND YEAR IN REVENUES AND EARNINGS

ROSS SYSTEMS REPORTS RECORD QUARTER AND YEAR IN REVENUES AND EARNINGS
 REDWOOD CITY, Calif., Aug. 24 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) announced today record revenues and earnings for the fourth quarter and fiscal year ended June 30.
 Revenues for the quarter increased 24 percent to $23.3 million from $18.7 million. Net earnings for the quarter rose 228 percent to $2.3 million from $692,000 in the prior year, while earnings per share for the quarter were $.23 vs. $.08.
 Revenues for the year ended June 30 increased 23 percent to $75.9 million from $61.6 million in the same period last year. Net earnings for the year increased 311 percent to $4.2 million up from $1 million, while earnings per share increased to $.42 from $.14.
 "We are extremely pleased with our performance in our traditionally strong fourth quarter and the positive conclusion it provided to FY '92," said Dennis V. Vohs, chairman of the board and chief executive officer of Ross Systems. "The success of our strategy to significantly grow our international business while aggressively introducing the PROMIX product line into North America were major contributors to our results. Growth in European sales continued during the quarter with a 68 percent increase over the same period last year (continental Europe was particularly strong with 111 percent growth over the prior year's period). Overall, international revenues constituted 47 percent of total revenues for the year, up from 41 percent in 1991.
 "Software license revenues from the PROMIX products for process manufacturing represented 27 percent of total software license revenues for the quarter. Total PROMIX revenues for the quarter grew by 193 percent over the same quarter last year. For the year PROMIX revenues represented 16 percent of total revenues.
 "Our confidence in the outlook for the future was further buoyed by our initial success in four new initiatives. First, our recent agreement with Hewlett-Packard paid unexpected early dividends. During the quarter we received orders exceeding $1 million in software licenses and another $1 million in related services for contracts associated with the HP platform. Our Fourth Generation Language, GEMBASE, experienced wide acceptance in the marketplace. The combination of our non-captive and captive (sold with applications) revenues for GEMBASE exceeded $7 million, or 9 percent of total revenues for the year.
 "On another front, this quarter marked our first significant orders in the UNIX environment. Orders for approximately $1.1 million in software license fees were received. We expect this environment to provide significant new growth opportunities for our product line.
 "Lastly, our client server applications were key components in agreements totaling $1.1 million. Though the specific revenue contribution was not major, the client server facilities were key differentiators in competitive situations for our financial product line. As future client server offerings are released we expect to see a more significant impact in our revenue growth.
 "With regard to our balance sheet, cash increased during the quarter from $5.1 million to $7.7 million, while we reduced our bank borrowings by $900,000. In addition, we completed negotiations for a $10 million line of credit with the Bank of Boston. Our days sales outstanding grew during the quarter primarily as a result of two factors. First, a greater percentage of software licenses occurred late in the quarter and, secondly, for the year the company had a higher percentage of revenues from international sales. These sales generally have longer payment periods and higher average contract prices. Each resulted in increasing our year end accounts receivable position. Additionally, we completed the earn-out period of the acquisition of Argonaut Information Systems that we made in 1989. The acquisition proved to be very successful and, as a result, we estimate the earn-out payment to be owed ranging from $5.5 to $6.9 million. This will increase intangible assets by the amount of the earn-out payment which will be amortized over an appropriate period."
 Ross Systems, Inc. was among the first companies to offer commercial accounting software in the mid-range 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, Inc. develops and markets a broad range of business solutions in five strategic environments: Digital VMS and OSF1, HP-UX, 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 the product line and expanding through both internal growth and acquisitions.
 Ross Systems serves its customers through a network of over 31 offices worldwide. Corporate headquarters are located at 555 Twin Dolphin Drive, Redwood City, CA 94065; telephone 415-593-2500.
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 ASSETS 6/30/92 6/30/91
 Current assets:
 Cash and cash equivalents $ 7,741 $ 12,982
 Accounts receivable, net 32,749 23,266
 Prepaids and other current assets 1,237 1,484
 Deferred income taxes 2,596 2,329
 Total current assets 44,323 40,061
 Property and equipment 5,991 4,202
 Computer software costs 6,521 3,461
 Other assets 4,357 4,795
 Total $ 61,192 $ 52,519
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current installments of debt $ 250 $ 214
 Accounts payable 4,210 3,182
 Accrued expenses 7,279 8,072
 Income taxes payable 1,328 1,802
 Deferred revenue 11,960 11,287
 Total current liabilities 25,027 24,557
 Long-term debt, less current
 installments 1,128 494
 Deferred income taxes 2,886 1,643
 Total liabilities 29,041 26,694
 Shareholders' equity:
 Common stock 40,640 38,965
 Accumulated deficit (8,932) (13,140)
 Cumulative translation
 adjustment 443 ---
 Total shareholders' equity 32,151 25,825
 Total $ 61,192 $ 52,519
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands, except per share data)
 (unaudited)
 3 mos. ended 12 mos. ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenues:
 Software product licenses $ 13,381 $ 10,587 $ 39,513 $ 32,451
 Consulting and other
 services 6,362 5,151 22,777 19,040
 Maintenance 3,543 2,993 13,564 10,077
 Total 23,286 18,731 75,854 61,568
 Operating expenses:
 Cost of revenues 6,927 6,306 25,072 22,353
 Sales and marketing 7,973 5,694 26,087 18,330
 Product development 2,370 2,688 9,107 8,956
 General and administrative 2,363 2,158 7,859 6,131
 Amortization of other assets 213 216 967 1,196
 Total 19,846 17,062 69,092 56,966
 Operating earnings 3,440 1,669 6,762 4,602
 Interest income (expense),
 net 84 (441) 195 (2,057)
 Earnings before income taxes 3,524 1,228 6,957 2,545
 Income tax expense 1,254 536 2,749 1,520
 Net earnings $ 2,270 $ 692 $ 4,208 $ 1,025
 Net earnings per common and
 common equivalent share $ .23 $ .08 $ .42 $ .14
 Common and common equivalent
 shares used in computing
 earnings per common share 10,055 8,942 10,126 7,449
 -0- 8/24/92
 /CONTACT: Dennis Vohs or Denise O'Connor of Ross Systems, 404-851-1872, or Barbara Kline of BKMPR, 408-267-6811, for Ross Systems/
 (ROSS) CO: Ross Systems, Inc. ST: California IN: CPR SU: ERN


EA -- AT001 -- 2460 08/24/92 09:05 EDT
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