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ROSS SYSTEMS REPORTS THIRD QUARTER INCREASE IN REVENUES AND EARNINGS

 ROSS SYSTEMS REPORTS THIRD QUARTER INCREASE IN REVENUES AND EARNINGS
 REDWOOD CITY, Calif., April 28 /PRNewswire/ -- Ross Systems, Inc. (NASDAQ: ROSS) today announced results for the third quarter of fiscal 1992 ended March 31, 1992. Revenues increased 12 percent for the quarter to $17.6 million from $15.8 million in the same quarter last year. Net earnings for the quarter rose 74 percent to $462,000 from $266,000 in the prior year while earnings per share for the period were $0.05, versus $0.04.
 Revenues for the nine month period ended March 31, 1992, increased 23 percent to $52.6 million from $42.8 million in the same period last year. Net earnings increased 482 percent to $1.9 million, up from $333,000, while earnings per share increased to $0.19 from $0.05.
 For the third quarter of fiscal year 1992, software license fees accounted for 48 percent of revenues, service revenues for 33 percent and maintenance fees for 19 percent. Domestic revenues were 48 percent of the total, with international providing 52 percent.
 "As previously reported, results were less than we had planned because several large software license agreements were not signed by March 31," said Dennis Vohs, Ross Systems chairman and chief executive officer. "We expect to close each of these agreements during the fourth quarter. In addition, we concluded a significant agreement with Hewlett-Packard in which we will form a subsidiary to develop and market our financial, distribution and manufacturing software on the HP-UX (UNIX) operating system platform. This market is growing quite rapidly and HP has solidified a leadership position in the open systems marketplace," said Vohs.
 The quarter also saw strong performance on the European continent, including additional sales in Spain and Eastern Europe. The company also signed 10 new agreements for its PROMIX line to process manufacturing software, five of which were from the United States, the Far East, and continental Europe, areas where the product was only recently introduced. "The interest in PROMIX has increased significantly," said Vohs. "We expect revenues from this product to grow at a faster pace than the company for the next several years."
 The company delivered several new products to initial sites during the quarter, including a job costing system and human resources modules for pay equity, affirmative action, flex benefits, time and attendance, retro pay, and public sector accounting.
 "Overall, we believe the domestic market is picking up. Our international markets remain strong, and we believe our partnerships with Digital Equipment Corp. and HP will increasingly benefit us. We expect to deliver a strong year end as well as fiscal 1993," said Vohs.
 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, Calif. 94065. Telephone: (415) 593-2500.
 VAX, VMS and Rdb are trademarks of Digital Equipment Corporation.
 UNIX is a registered trademark of UNIX System Laboratories Inc.
 Renaissance Series and PROMIX are trademarks of Ross Systems, Inc.
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Unaudited -- In thousands, except per share data)
 Periods Ended Three Months Nine Months
 March 31 1992 1991 1992 1991
 Revenues:
 Software product licenses $ 8,359 $ 7,705 $26,132 $21,864
 Consulting & other services 5,889 5,492 16,415 13,889
 Maintenance 3,358 2,576 10,021 7,084
 Total 17,606 15,773 52,568 42,837
 Operating expenses:
 Cost of revenues 6,309 5,852 18,145 16,047
 Sales and marketing 5,947 4,574 18,114 12,636
 Product development 2,439 2,391 6,737 6,268
 General & administrative 1,875 1,668 5,496 3,973
 Amortization of other assets 228 216 754 980
 Total 16,798 14,701 49,246 39,904
 Operating earnings 808 1,072 3,322 2,933
 Interest income (expense), net 10 (498) 111 (1,616)
 Earnings before income taxes 818 574 3,433 1,317
 Income tax expense 356 308 1,495 984
 Net earnings 462 266 1,938 333
 Net earns. per com. & com. equiv.
 share $.05 $.04 $.19 $.05
 Com. & com. equiv. shares used in
 computing earns. per com. share 10,240 7,131 10,150 6,951
 ROSS SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 3/31/92 6/30/91
 (Unaudited)
 ASSETS
 Current assets:
 Cash & cash equivalents $ 5,121 $12,982
 Accounts receivable, net 24,275 23,266
 Prepaids & other current assets 1,989 1,484
 Deferred income taxes 1,899 2,329
 Total current assets 33,284 40,061
 Property and equipment 5,565 4,202
 Computer software costs 5,557 3,461
 Other assets 4,416 4,795
 Total 48,822 52,519
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of debt $ 1,846 $ 214
 Accounts payable 3,310 3,182
 Accrued expenses 4,335 8,072
 Income taxes payable 1,559 1,802
 Deferred revenue 7,453 11,287
 Total current liabilities 18,503 24,557
 Long-term debt, less current installments 450 494
 Deferred income taxes 1,645 1,643
 Total liabilities 20,598 26,694
 Shareholders' equity
 Common stock 39,425 38,965
 Accumulated deficit (11,202) (13,140)
 Cumulative translation adjustment 1 --
 Total shareholders' equity 28,224 25,825
 Total 48,822 52,519
 -0- 4/28/92

 /CONTACT: Dennis Vohs, 415-593-2500, or Denise O'Connor, 404-851-1872, both of Ross Systems, or Barbara Kline of BKMPR, 408-267-6811/
 (ROSS) CO: Ross Systems, Inc. ST: California IN: CPR SU: ERN


PS -- NY014 -- 3512 04/28/92 07:34 EDT
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