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ROSS SYSTEMS REPORTS SECOND QUARTER NET INCOME INCREASE OF 115 PERCENT OVER LAST YEAR

 ROSS SYSTEMS REPORTS SECOND QUARTER NET INCOME INCREASE
 OF 115 PERCENT OVER LAST YEAR
 REDWOOD CITY, Calif., Jan. 27 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) today announced results for the second quarter of fiscal 1992 ended Dec. 31, 1991.
 Revenues increased 30 percent for the quarter to $19.7 million from $15.1 million in the same quarter last year. Net income for the quarter rose 115 percent to $1.3 million from $602,000 in the prior year while earnings per share for the period increased to $0.13 from $0.08.
 Revenues for the six-month period ended Dec. 31, 1991, increased 29 percent to $35.0 million from $27.1 million in the same period of the prior year. Net income and earnings per share increased to $1.5 million and $0.15 from $67,000 and $0.01, respectively.
 The company achieved record revenues with software license fees increasing by 36 percent, service revenues by 19 percent, and maintenance fees by 33 percent over the same quarter last year. The international markets provided much of the growth in software license fees during the quarter. Of total revenues, 47 percent were domestic and 53 percent international. Ross completed its first sales in Spain and Eastern Europe, and initial sales of the new PROMIX process manufacturing product in the Far East.
 "We are pleased with the company's overall performance for the quarter, particularly in light of the tough economic conditions in the U.S. market," said Dennis V. Vohs, Ross Systems chairman and chief executive officer. "International revenues exceeded our expectations. We anticipate that international revenues will continue to increase as a percentage of our total revenues for the next several years as we continue our emphasis on international sales and support. Although domestic software license fees were lower than anticipated, we had record revenues from sales of our fourth generation language products and the initial sales of the PROMIX product line in the U.S. occurred much earlier than expected," he said.
 "During the quarter we accelerated our investment in the expansion of our European operations, the rollout of the manufacturing systems in North America and the development of our UNIX based systems. These areas offer significant new growth opportunities to the company and we expect these expenditures to continue. Though our sales pipeline remains strong for both the U.S. and international markets, we have moved to reduce the growth of our expenses in the U.S. to be more in line with domestic revenue expectations as the recession unwinds," Vohs said.
 Ross Systems, Inc. was among the first companies to offer commercial accounting software for the Digital VAX computer and 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 three strategic environments in the DEC marketplace: VMS, 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 thorugh 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)
 12/31/91 6/30/91
 ASSETS (unaudited)
 Current assets:
 Cash and cash equivalents $ 5,660 $ 12,982
 Accounts receivable, net 24,991 23,266
 Prepaids and other current assets 1,837 1,484
 Deferred income taxes 1,899 2,329
 Total current assets 34,387 40,061
 Property and equipment 5,467 4,202
 Computer software costs 4,800 3,461
 Other assets 4,580 4,795
 Total $ 49,234 $ 52,519
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current installments of debt $ 56 $ 214
 Accounts payable 3,313 3,182
 Accrued expenses 5,866 8,072
 Income taxes payable 1,416 1,802
 Deferred revenue 8,593 11,287
 Total current liabilities 19,244 24,557
 Long-term debt, less current
 installments 219 494
 Deferred income taxes 1,645 1,643
 Total liabilities 21,108 26,694
 Shareholders' equity:
 Common stock 39,331 38,965
 Accumulated deficit (11,664) (13,140)
 Cumulative translation
 adjustment 459 ---
 Total shareholders' equity 28,126 25,825
 Total $ 49,234 $ 52,519
 Consolidated Statements of Earnings
 (In thousands, except per share data)
 (Unaudited)
 3 mos. ended 6 mos. ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Revenues:
 Software product license $ 10,970 $ 8,085 $ 17,773 $ 14,159
 Consulting and other
 services 5,380 4,526 10,526 8,397
 Maintenance 3,335 2,502 6,663 4,508
 Total 19,685 15,113 34,962 27,064
 Operating expenses:
 Cost of revenues 6,232 5,487 11,836 10,195
 Sales and marketing 6,795 4,444 12,167 8,062
 Product development 2,432 2,079 4,298 3,877
 General and administrative 1,727 1,251 3,621 2,305
 Amortization of other assets 246 278 526 764
 Total 17,432 13,539 32,448 25,203
 Operating earnings 2,253 1,574 2,514 1,861
 Interest income (expense),
 net 34 (570) 101 (1,118)
 Earnings before income taxes 2,287 1,004 2,615 743
 Income tax expense 995 402 1,139 676
 Net earnings $ 1,292 $ 602 $ 1,476 $ 67
 Net earnings per common and
 common equivalent share $ .13 $ .08 $ .15 $ .01
 Common and common equivalent
 shares used in computing
 earnings per common share 10,116 7,086 10,105 6,861
 -0- 1/27/92
 /NOTE: VAX and VMS are trademarks for Digital Equipment Corporation. UNIX is a registered trademark of UNIX Systems Laboratories, Inc./
 /CONTACT: Denise O'Connor of Ross Systems, 404-851-1872, or Barbara Kline of BKMPR, 408-356-4264, for Ross Systems/
 (ROSS) CO: Ross Systems, Inc. ST: California IN: CPR SU: ERN


BN-BR -- AT001 -- 3516 01/27/92 08:00 EST
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Date:Jan 27, 1992
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