Exhibit 10
[LETTERHEAD OF CHEYENNE SOFTWARE, INC.]
NEWS RELEASE
Contacts:
ReiJane Huai, President and CEO
Elliot Levine, EVP/CFO
CHEYENNE SOFTWARE, INC.
(516) 465-4000
FOR IMMEDIATE RELEASE
CHEYENNE SOFTWARE, INC. REPORTS FIRST QUARTER
SALES AND EARNINGS RESULTS
--SALES FOR THE FIRST-QUARTER ENDED SEPTEMBER 30, 1996 INCREASED 36%
TO $52.2 MILLION FROM LAST YEAR'S COMPARABLE QUARTER--
--NET INCOME FOR THE FIRST QUARTER WAS 4 CENTS PER SHARE INCLUDING WRITE-OFFS
OF PURCHASED R&D OF ABOUT 20 CENTS PER SHARE, NET OF INCOME TAXES,
VERSUS LAST YEAR'S 19 CENTS PER SHARE THAT INCLUDED A 3 CENTER PER SHARE,
NET OF INCOME TAXES, WRITE-OFF OF PURCHASED R&D --
-- EXCLUDING ONE-TIME FACTORS, EPS FOR FQ197 WERE 24 CENTS
VERSUS 22 CENTS IN LAST YEAR'S COMPARABLE QUARTER --
ROSLYN HEIGHTS, N.Y., October 22, 1996 -- Cheyenne Software, Inc.
(AMEX; CYE) reported that, for the first quarter ended September 30,
1996 (FQ197), revenues were $52,246,000 versus $38,464,000 in last
year's comparable quarter, a 36% increase. Net income for the
quarter was $1,637,000 or 4 cents per share, after a charge for
purchased R&D of 20 cents per share, net of income taxes, for the
previously announced acquisitions of IQ International, Ltd.,
Mediatrends, Inc. and Moniker, Inc. In last year's comparable
quarter, net income was $7,396,000 or 19 cents per share.
Excluding one-time factors, EPS for FQ197 were 24 cents per share
versus 22 cents per share in last year's comparable quarter.
Cheyenne's cash, cash equivalents and investments as of September
30, 1996 were $77,975,000, a $7,048,000 decrease from June 30, 1996
due to the payment of cash consideration in FQ197 in connection with
the previously disclosed acquisitions, as well as the repurchase of
308,900 Cheyenne shares during the quarter.
(more)
CHEYENNE ANNOUNCES FIRST QUARTER RESULTS PAGE 2
ReiJane Huai, Chairman, President and Chief Executive Officer of
Cheyenne, said: "Despite the normal summer seasonality of our
business, we achieved record quarterly sales and strong POS results
(about 15% growth in North America versus FQ496) and reduced
inventories in our global distribution channels. Our NetWare-
related sales remain good, while our NT and desktop sales expanded
significantly."
Pursuant to the October 7, 1996 Merger Agreement among Cheyenne,
Computer Associates International, Inc. ("CA") and a wholly-owned
subsidiary of CA, CA commenced a tender offer on October 11, 1996 to
acquire all of the outstanding shares of Cheyenne's common stock
(with associated rights) for a price of $30.50 per share net to the
seller in cash. The Cheyenne Board of Directors recommends that
Cheyenne stockholders accept the offer and tender their shares to
CA.
About Cheyenne Software
Cheyenne Software, Inc. is an international developer of essential
software solutions for NetWare, Windows NT, UNIX, Macintosh, OS/2,
Windows 3.1 and Windows 95 operating systems. Its enterprise-wide
offerings include an array of storage management, security, and
communications products, including Cheyenne [Registered Mark] HSM,
JETserve [Trademark], InocuLAN [Registered Mark], FAXserve
[Trademark], and its flagship product line, the ARCserve [Registered
Mark] family of network backup software. Cheyenne can be contacted
at (800)243-9462 (U.S. or Canada) or (516) 465-4000, or by visiting
its WWW home page at: http://www.cheyenne.com.
[table follows]
CHEYENNE ANNOUNCES FIRST QUARTER RESULTS PAGE 3
CHEYENNE SOFTWARE, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
Three Months Ended September 30, 1996 and 1995
(Unaudited)
Three Months Ended
Sept. 30,
1996 1995
(In thousands, except per share data)
Revenues $52,246 $38,464
Cost of sales 9,732 6,693
Gross profit 42,512 31,771
Operating expenses:
Research and development 7,476 5,166
Selling and marketing 16,623 11,126
General and administrative 5,441 3,277
Charge for purchased research
and development* 11,061 1,636
Total operating expenses 40,601 21,205
Operating income 1,913 10,566
Non-operating income:
Interest income and other 553 726
Other (losses) gains, net (59) --
Income before income taxes 2,407 11,292
Provision for income taxes 770 3,896
Net income 1,637 7,396
Net income per share 0.04 0.19
Weighted average number of common
shares and equivalents outstanding 38,679 38,829
*acquisition related charges
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