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Remedy Corp. reports 1995 third quarter results.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 19, 1995--Remedy Corp. (NASDAQ:RMDY) Thursday announced record revenues and net income for the third quarter and first nine months of 1995.

Revenues of $10.2 million for the third quarter ended Sept. 30, 1995 increased by 105%, or $5.2 million, compared with the third quarter of 1994. Net income in the 1995 third quarter increased 154% to $2.1 million from $819,000 in last year's third quarter.

Earnings per share for the third quarter doubled to $0.22 from $0.11 in the like quarter last year. Weighted average shares outstanding during the third quarter of 1995 increased 30% to 9.6 million from 7.4 million during the 1994 third quarter, primarily as a result of the company's initial public offering on March 17, 1995.

For the nine months ended Sept. 30, 1995, Remedy's revenues more than doubled to $25.0 million from $12.3 million for the first nine months of 1994. Net income for the first nine months of 1995 increased 130% to $4.5 million from $2.0 million for the comparable period in 1994.

Earnings per share for the first nine months of 1995 were $0.50 vs. $0.27 for the first nine months of 1994. Weighted average shares outstanding for the first nine months of 1995 increased 22% to 9.0 million from 7.4 million during the first nine months of 1994.

"As we noted in our preliminary release last week, we are very pleased with the strength of our business during the third quarter," remarked Lawrence Garlick, Remedy's chairman and chief executive officer.

"The significant investments in distribution we made during the early part of the year have paid off in terms of increasing market share. Our proliferation model has produced robust gains in all parts of our business with solid growth across industry sectors, among both new and existing customers." During the third quarter, Remedy added 300 new customer sites bringing to a total now exceeding 1,700 sites.

George de Urioste, Remedy's vice president of finance and chief financial officer, observed, "The third quarter exceeded our expectations. Growth was strong internationally, as well as in the U.S., and we were pleased with the distribution between license and service revenue."

European revenue of $3.6 million for the third quarter increased by more than 200% over the like quarter of the prior year. License revenue during the third quarter has trended upward to 75% of total revenue, as compared to 70% in the second quarter of 1995.

"Our productivity continues to improve. For the nine months ended September 30, 1995, annualized revenue reached $202,000 per employee vs. $181,000 for the first nine months of 1994," said de Urioste.

Headquartered in Mountain View, Remedy develops, markets and supports adaptable, client/server applications software for support and business processes. The company's Action Request System is primarily used today as an internal help desk application for tracking and resolving support requests and problems in PC and UNIX computing environments.

Due to its versatility, the Action Request System is also used as an application for many other support and business processes.

The company provides numerous application templates, including internal help desk, asset management, customer and technical support, defect tracking and recruiting management.

The company's products are distributed worldwide through its direct sales force complemented by selected VARs, system integrators, and OEMs. The company has licensed its software to more than 800 customers at over 1,700 sites in 25 countries. -0-

 (In thousands, except per share amounts)

 3 months ended Sept. 30 9 months ended Sept. 30
 1995 1994 1995 1994

 Products $7,630 $4,021 $18,044 $10,004
 Maintenance and
 service 2,588 971 6,942 2,319
 Total revenues 10,218 4,992 24,986 12,323

Costs and expenses:
 Cost of product
 revenues 606 294 1,374 816
 Cost of maintenance
 and service revenues 1,670 793 3,944 1,931
 Research and
 development 1,853 1,026 4,773 2,656
 Sales and marketing 2,731 1,222 6,714 2,847
 General and
 administrative 771 326 2,176 850
 Total costs and
 expenses 7,631 3,661 18,981 9,100
Income from operations 2,587 1,331 6,005 3,223
Interest income, net 463 11 914 17
Income before provision
 for income taxes 3,050 1,342 6,919 3,240
Provision for income
 taxes 966 523 2,376 1,262
Net income $2,084 $819 $4,543 $1,978
Net income per common and
 common equivalent
 share $ 0.22 $ 0.11 $ 0.50 $ 0.27
Shares used in
 computing per share
 amounts 9,644 7,434 9,044 7,390

 (In thousands)

 September 30, December 31,
 1995 1994

Current assets:
 Cash, cash equivalents
 and short-term investments $51,299 $3,007
 Accounts receivable, net
 of allowance for doubtful
 accounts of $370 and $178
 respectively 7,090 6,043
 Prepaid expenses and other
 current assets 1,621 297
 Deferred tax asset 1,039 981
 Total current assets 61,049 10,328
Property and equipment, net 2,192 1,678
 ------ ------
 $63,241 $12,006

Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable $651 $1,078
 Accrued compensation and
 related liabilities 1,473 1,185
 Income taxes payable - 697
 Other accrued liabilities 1,662 767
 Deferred revenue 3,165 2,130
 Current portion of obligations
 under capital leases 115 48
 Total current liabilities 7,066 5,905
Noncurrent portion of
 obligations under capital leases 176 219
Stockholders' equity 55,999 5,882
 ------ ------
 $63,241 $12,006

CONTACT: Remedy Corp., Mountain View

George A. de Urioste, 415/903-5200

Mike Lough, 415/254-5370
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Publication:Business Wire
Date:Oct 19, 1995
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