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FOR IMMEDIATE RELEASE CONTACT:
Michael J. Simmons
Chief Financial Officer
PLATINUM SOFTWARE
(714) 453-4000
msimmons@platsoft.com
PLATINUM SOFTWARE CORPORATION ANNOUNCES
THIRD QUARTER FISCAL 1997 RESULTS
IRVINE, Calif., April 22, 1997 -- Platinum Software Corporation
(NASDAQ: PSQL) today reported its financial results for the third quarter of
fiscal year 1997. Revenues for the third quarter of fiscal 1997, ended March
31, 1997, were $14.0 million as compared to revenues of $8.4 million for the
third quarter of fiscal 1996. A net profit of $0.6 million or $.03 per share
was reported for the third quarter of fiscal 1997, as compared to a net loss
of $14.5 million or $.97 per share, including a $4.2 million charge for
restructuring, for the same quarter a year ago. The company's balance sheet
as of March 31, 1997, showed cash, cash equivalents and short-term investments
of $15.7 million, accounts receivable of $8.4 million and deferred revenue of
$9.8 million.
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PLATINUM ANNOUNCES RESULTS 2
George Klaus, chairman of the board, president and chief executive
officer said, "Our third fiscal quarter is our fourth consecutive quarter with
quarterly revenue growth. The March quarter is a seasonably weak quarter for
the software sector. The quarter's revenue growth and our return to
profitability are two events that I am particularly pleased to announce. When
I restructured the company last year, this March quarter was my target for the
return to profitability. I am thankful for all the efforts of the employees
that have helped make this happen. Our cash balance has increased by $1.2
million in the March quarter from December 31, 1996. We are well positioned to
continue to move forward."
Except for the historical information contained herein, the matters
discussed in this press release are forward looking statements that involve
risks and uncertainties. Certain risks and uncertainties which may impact the
accuracy of the forward looking statements include the timely availability and
market acceptance of new products and upgrades and the impact of competitive
products and pricing. Actual results may vary. Some of these risks are
discussed from time to time in the company's SEC reports.
PLATINUM SOFTWARE CORPORATION
Platinum Software, the financial software company, develops and
markets leading client/server software products for corporations worldwide.
The company's products enable organizations to scale their technology
investments to meet the changing needs of their businesses. Founded in 1984,
Platinum Software is based in Irvine, California. More information about
Platinum Software Corporation and its products and services is available at the
Platinum World Wide Web site (http://www.platsoft.com).
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Platinum is a registered trademark of Platinum Software Corporation. All other
company and product names mentioned in this document are trademarks of the
respective companies with which they are associated and are acknowledged.
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PLATINUM ANNOUNCES RESULTS 3
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, JUNE 30,
ASSETS 1997 1996
----------- -----------
Current assets:
Cash and cash equivalents $ 6,124 $ 5,402
Short-term investments 9,548 10,098
Restricted cash - 1,006
Accounts receivable, net 8,407 7,893
Notes receivable from divestitures, net - 825
Inventories 367 460
Prepaid expenses and other 1,653 1,638
--------- ---------
Total current assets 26,099 27,322
Property and equipment, net 8,090 8,896
Software development costs, net 2,480 2,250
Acquired intangible assets, net 709 1,088
Other assets 359 446
--------- ---------
$ 37,737 $ 40,002
LIABILITIES AND STOCKHOLDERS' EQUITY ========= =========
Current liabilities:
Accounts payable $ 3,315 $ 3,436
Accrued expenses 5,836 7,522
Accrued restructuring costs 1,415 1,921
Deferred revenue 9,780 10,912
--------- ---------
Total current liabilities 20,346 23,791
--------- ---------
Stockholders' equity:
Preferred stock 31,692 31,996
Common stock 19 18
Additional paid-in capital 114,477 111,194
Less: notes receivable from officers (11,563) (11,563)
Accumulated foreign currency translation adjustments 398 249
Accumulated deficit (117,632) (115,683)
--------- ---------
Total stockholders' equity 17,391 16,211
--------- ---------
$ 37,737 $ 40,002
========= =========
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PLATINUM ANNOUNCES RESULTS 4
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
1997 1996 1997 1996
------- -------- ------- --------
Revenues:
License fees $ 6,555 $ 3,619 $18,160 $ 14,596
Consulting and professional services 2,685 2,153 7,168 8,254
Support services 3,897 2,590 11,078 7,801
Royalty income 869 - 1,142 505
------- -------- ------- --------
14,006 8,362 37,548 31,156
Cost of revenues 5,403 5,107 14,308 15,657
------- -------- ------- --------
Gross profit 8,603 3,255 23,240 15,499
------- -------- ------- --------
Operating expenses:
Sales and marketing 5,812 4,659 16,285 15,353
General and administrative 240 5,673 2,966 8,960
Software development 2,259 3,047 6,668 11,192
Charge for restructuring - 4,200 - 9,800
------- -------- ------- --------
8,311 17,579 25,919 45,305
------- -------- ------- --------
Income (loss) from operations 292 (14,324) (2,679) (29,806)
Other income (expense), net 346 (186) 730 (146)
------- -------- ------- --------
Income (loss) before provision
for income taxes 638 (14,510) (1,949) (29,952)
Provision for income taxes - - - -
------- -------- ------- --------
Net income (loss) $ 638 $(14,510) $(1,949) $(29,952)
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Net income (loss) per share $ 0.03 $ (0.97) $ (0.11) $ (2.13)
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Shares used in computing net
income (loss) per share 25,222 14,897 18,413 14,087
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