Printer Friendly

ROSS SYSTEMS REPORTS RECORD QUARTERLY REVENUES

 REDWOOD CITY, Calif., Jan. 25 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) today announced record quarterly revenues for the second quarter of fiscal 1993 ended Dec. 31, 1992.
 Revenues increased 17 percent for the quarter to $22.9 million from $19.5 million in the same quarter last year. Net earnings for the quarter rose 25 percent to $1.5 million from $1.2 million in the prior year, while earnings per share for the period increased to $0.15 from $0.12.
 Revenues for the six-month period ended Dec. 31, 1992, increased 13 percent to $39.4 million from $35.0 million for the same period of the prior year. Earnings for the six months declined to a net loss of $4.8 million, or $0.49 per share, from net earnings of $1.4 million, or $0.14 per share. These results include pre-tax charges of approximately $6.4 million in the first quarter of fiscal 1993 associated with prior acquisitions.
 The company achieved record quarterly revenues as a result of significant revenue growth in the North American market and continued strong acceptance of its PROMIX process manufacturing products. The company also began shipping HP-UX versions of some of its products during the quarter.
 "We were pleased with the company's performance for the quarter, particularly in the North American market," said Dennis Vohs, Ross Systems' chairman and CEO. "North American revenues increased by 41 percent over the same period last year with software license fees up 56 percent. In addition, PROMIX sales continue to expand on a worldwide basis. PROMIX software license fees increased by 250 percent over the same period last year. Total PROMIX revenues increased by 165 percent over the same quarter last year.
 "International revenues (including Canada) were up from the first quarter but were below the same quarter last year. International revenue growth was impacted by a stronger U.S. dollar and a weaker European economy during the quarter. International revenues represented 43 percent of the company's total revenues in the quarter.
 "During the quarter we announced availability of many of our products for DEC's new ALPHA AXP line of computers as well as the 'open systems' marketplace (specifically the HP UX and Open VMS environments). We also expanded our distributor channels by adding a distributor for the Italian marketplace and entering into a joint alliance with Campus America in the higher education marketplace. We are enthusiastic about our opportunities in these markets.
 "In a separate announcement this week, we are introducing our Renaissance CS series of software products that provide client server functionality in the accounting systems arenas tightly integrated with our PROMIX manufacturing systems. We have high expectations for the success of this product offering."
 During the quarter, a suit was filed against the company in connection with the company's December 1989 acquisition of certain assets of Argonaut Information Systems. The suit alleges that an earn- out amount approximately $7 million in excess of amounts previously accrued by the company is due. The company strongly believes that the suit is without merit.
 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 the product line and expanding through both internal growth and acquisitions. Ross Systems serves its customers through a network of 32 offices worldwide. The company is headquartered at 555 Twin Dolphin Drive, Redwood City, CA 94065; telephone 415-593-2500.
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (In thousands, except per share data)
 (Unaudited)
 3 mos. ended 6 mos. ended
 12/31/92 12/31/91(a)12/31/92 12/31/91(a)
 Revenues:
 Software product license $ 10,658 $ 9,830 $ 16,323 $ 15,954
 Consulting and other
 services 7,085 5,380 12,856 10,526
 Maintenance 5,118 4,273 10,212 8,511
 Total 22,861 19,483 39,391 34,991
 Operating expenses:
 Cost of revenues 7,883 6,234 15,739 11,951
 Sales and marketing 7,630 6,795 15,131 12,167
 Product development 2,493 2,432 4,954 4,298
 General and administrative 2,081 1,727 4,572 3,621
 Charges for in-process research
 and development --- --- 4,091 ---
 Amortization of other assets 291 246 581 526
 Total 20,378 17,434 45,068 32,563
 Operating earnings (loss) 2,483 2,049 (5,677) 2,428
 Interest income (expense),
 net (44) 34 (34) 101
 Earnings (loss) before income
 taxes 2,439 2,083 (5,711) 2,529
 Income tax expense (benefit) 976 913 (863) 1,104
 Net earnings (loss) $ 1,463 $ 1,170 $ (4,848) $ 1,425
 Net earns. (loss) per common &
 common equivalent share $ .15 $ .12 $ (.49) $ .14
 Common and common equivalent
 shares used in computing earns.
 (loss) per common share 10,078 10,116 9,819 10,105
 (a) As restated for change in revenue recognition.
 Consolidated Balance Sheets
 (In thousands)
 12/31/92 6/30/92(a)
 ASSETS (unaudited)
 Current assets:
 Cash and cash equivalents $ 8,368 $ 7,741
 Accounts receivable, net 31,646 32,749
 Prepaids and other current assets 2,103 1,722
 Deferred income taxes 3,288 3,277
 Total current assets 45,405 45,489
 Property and equipment 5,756 5,991
 Computer software costs 8,016 6,521
 Other assets 4,643 4,357
 Total $ 63,820 $ 62,358
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current installments of debt $ 231 $ 250
 Accounts payable 4,670 4,210
 Accrued expenses 12,509 7,279
 Income taxes payable 268 1,328
 Deferred revenue 15,413 14,348
 Total current liabilities 33,091 27,415
 Long-term debt, less current
 installments 2,849 1,128
 Deferred income taxes 2,884 2,886
 Total liabilities 38,824 31,429
 Shareholders' equity:
 Common stock 41,047 40,640
 Accumulated deficit (15,002) (10,154)
 Cumulative translation
 adjustment (1,049) 443
 Total shareholders' equity 24,996 30,929
 Total $ 63,820 $ 62,358
 (a) As restated for change in revenue recognition.
 -0- 1/25/93
 /CONTACT: Dennis Vohs or Joe Southworth of Ross Systems, 404-851-1872/
 (ROSS)


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

BN-TG -- AT001 -- 8220 01/25/93 07:33 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:1118
Previous Article:BRINKER INTERNATIONAL ELECTS NEW CEO AT SPECIAL MEETING
Next Article:ROSS SYSTEMS ANNOUNCES RENAISSANCE CS SERIES; STRATEGIC MOVE INTO CLIENT/SERVER AND OPEN SYSTEMS
Topics:


Related Articles
ROSS SYSTEMS EXPECTS TO ANNOUNCE RECORD RESULTS FOR FOURTH QUARTER
Ross Systems Reports First Quarter Results
Ross Systems, Inc. Discusses Fourth Quarter Revenues
Ross Systems Announces Year End Results
Ross Systems Announces Third Quarter Results
Ross Systems Announces Record Annual Revenues and Strong Earnings Improvement
Ross Systems Reports Record Revenues and Dramatic Earning Improvements for Q1.
Ross Systems 2nd Quarter Revenues Up 31% To Record $26.2 Million.
Ross Systems Discusses Preliminary 3rd Quarter Results.
Ross Systems Estimates 4th Quarter Profit; Company Reports a Strong Increase in Software License Growth.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters