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SYSTEMS CENTER ANNOUNCES THIRD QUARTER RESULTS; RETURNS TO PROFITABILITY

 SYSTEMS CENTER ANNOUNCES THIRD QUARTER RESULTS;
 RETURNS TO PROFITABILITY
 RESTON, Va., Oct. 26 /PRNewswire/ -- Systems Center, Inc. (NYSE: SMX) today reported that earnings rose to $.06 per share for the third quarter following its recent restructuring. Revenues were $31,753,433 for the quarter ended Sept. 30, 1992, up 4 percent from $30,656,443 for the same period in 1991. Net income was $905,641 ($.06 per share), compared to net income of $999,792 ($.07 per share) for the quarter ended Sept. 30, 1991.
 For the nine months ended Sept. 30, 1992, revenue increased to $93,817,775, up 7 percent from $87,932,272 for the first nine months of 1991. Net income for the nine months ended Sept. 30, 1992 (including an income tax benefit of $17.0 million from the adoption of FAS 109, "Accounting for Income Taxes," in the first quarter) was $2,483,243 ($.16 per share), compared to net income of $2,979,830 ($.26 per share) for the same period last year. The results for the first nine months of 1992 also include one-time restructuring charges of $11.5 million recorded in the second quarter. All figures reflect the adoption of Statement of Position 91-1, a new accounting standard for software revenue recognition.
 In making today's announcement, Chairman and CEO Robert E. Cook commented, "The third quarter profit reflects the significant reduction in our expense base achieved through a worldwide reduction in workforce, the closing and consolidation of certain offices, and our exit from the AS/400 and UNIX utility product businesses."
 Cook added, "We will continue to maintain a tight control on expenses and focus now upon accelerating revenue growth. Despite difficult worldwide economic conditions, we are optimistic about the fourth quarter and 1993, based upon a strong flow of new and enhanced products. The delivery of eight major product releases during the third quarter and an aggressive ongoing product delivery schedule into 1993 should strongly position the company in all of our key markets."
 The company also announced that it has received a commitment letter for a restructured credit facility which is expected to be finalized during the fourth quarter. The new facility consists of a revolving line of credit through Dec. 31, 1993. The credit line is initially $36 million, declining in steps to $33 million on June 30, 1993, consistent with the company's anticipated credit requirements.
 The company completed the divestiture of certain UNIX utility products in September 1992, and the divestiture of its AS/400 utility products in October 1992. These divestitures were detailed in the company's second quarter results press release. Together, these products represented approximately three percent of the company's net revenues in 1991.
 Systems Center, Inc. develops, markets, and supports systems and network management software. The company's products assist in the automation and control of computing environments, and are marketed in over 60 countries worldwide.
 UNIX is a registered trademark of UNIX System Laboratories, Inc. AS/400 is a registered trademark of International Business Machines Corporation.
 SYSTEMS CENTER, INC.
 Summary of Operations
 Three months ended Sept. 30 1992 1991
 (as restated)
 Net Revenues $31,753,433 $30,656,443
 Net Income $905,641 $999,792
 Less: Preferred Dividends (272,228) (272,228)
 Net Income Available to
 Common Shareholders $633,413 $727,564
 Primary Earnings per Common and
 Dilutive Common Equivalent Share $0.06 $0.07
 Fully Diluted Earnings per Common
 Share - Assuming Full Dilution $0.06 $0.07
 Weighted Average Common Shares
 and Common Equivalent Shares
 Outstanding:
 Primary 10,360,000 10,313,000
 Fully Diluted 10,360,000 10,313,000
 Nine months ended Sept. 30 1992 1991
 (as restated)
 Net Revenues $93,817,775 $87,932,272
 Income (Loss) Before Cumulative
 Effect of Accounting Change ($14,516,757) $2,979,830
 Cumulative Effect of Change in
 Method of Accounting for
 Income Taxes 17,000,000 --
 Net Income 2,483,243 2,979,830
 Less: Preferred Dividends (810,766) (287,023)
 Net Income Available to Common
 Shareholders $1,672,477 $2,692,807
 Primary Earnings (Loss) per
 Common and Dilutive Common
 Equivalent Share:
 Income (Loss) Before Cumulative
 Effect of Accounting Change ($1.44) $0.26
 Cumulative Effect of Change
 in Method of Accounting
 for Income Taxes 1.60 --
 Net Income $0.16 $0.26
 Fully Diluted Earnings (Loss)
 per Common Share - Assuming
 Full Dilution:
 Income (Loss) Before Cumulative
 Effect of Accounting Change ($1.44) $0.26
 Cumulative Effect of Change
 in Method of Accounting
 for Income Taxes 1.60 --
 Net Income $0.16 $0.26
 Weighted Average Common Shares
 and Common Equivalent Shares
 Outstanding:
 Primary 10,669,000 10,248,000
 Fully Diluted 10,669,000 10,248,000
 -0- 10/26/92
 /CONTACT: G. Gordon M. Large, senior vice president and CFO of System Center, 703-264-8371/
 (SMX) CO: System Center ST: Virginia IN: CPR SU: ERN


SM -- NY126 -- 5101 10/26/92 18:52 EST
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Date:Oct 26, 1992
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