EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
For further information, contact:
Terry Rixford Fletcher Chamberlin
Vice President, Finance and Administration Investor Relations
Analogy, Inc. Harris Massey Herinckx
(503) 626-9700 (503) 295-1922
ANALOGY REPORTS 27% REVENUE GROWTH IN FISCAL FIRST QUARTER
Beaverton, Oregon -- July 21, 1997 -- Analogy, Inc. (NASDAQ:ANLG) today
announced its financial results for the first fiscal quarter ended June 30,
1997. Revenues increased by 27% from the first quarter a year ago, and the
company's net loss was substantially reduced from the prior year's first quarter
level.
Total revenue for the first quarter of fiscal 1998 was $5,986,000, an increase
of 27% over the total for the first quarter of fiscal 1997 of $4,716,000.
Product license revenue increased 32% to $3,525,000, and service and other
revenue increased 20% to $2,461,000. The net loss in the fiscal 1998 first
quarter was $410,000, compared with a net loss of $709,000 in the first quarter
a year ago. The loss per share for the 1998 first fiscal quarter was $0.04
based on a weighted average of 9,127,000 shares outstanding. The fiscal 1997
first quarter loss per share was $0.09, based on a weighted average of 8,311,000
shares outstanding.
"While we are disappointed that we did not achieve profitability in the
quarter," said Gary Arnold, chairman and president of Analogy, "we continue to
expect year-over-year revenue growth as we go through the year, with improving
profitability especially in the second half of the year. This quarter's 27%
revenue growth rate is in line with our expectations for the long-run potential
growth rate for our business. This quarter's revenue growth was fueled by
continued good customer acceptance of our new SaberDesigner suite of products
for the Windows NT operating system. Our growth was also broad-based, with a
continued expansion of the end-user base and limited concentration of orders
from any single large customer."
This press release contains forward-looking statements which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Act of 1995.
The forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking statements,
including, without limitation, increased adoption of behavioral modeling design
methodologies for mixed-signal and mixed-technology systems design, Analogy's
ongoing ability to introduce new products and expand its markets, seasonal
fluctuations in the Analogy's order patterns and competitive initiatives. The
forward-looking statements should be considered in light of these risks and
uncertainties.
Analogy Inc., founded in January 1985, develops and markets high performance
software and model libraries for top-down design and behavioral simulation of
mixed-signal and mixed-technology systems.
(tables follow)
1
ANALOGY, INC.
Consolidated Income Statement
(000, except per share data)
Quarter Ended
6/30/97 6/30/96
Product license revenue $ 3,525 $ 2,671
Service and other 2,461 2,045
Total revenue 5,986 4,716
Cost of product license revenue 551 377
Cost of service and other revenue 584 486
Total cost of revenue 1,135 863
Gross profit 4,851 3,853
Research and development 1,511 1,362
Sales and marketing 3,149 2,737
General and administrative 760 675
Total operating expenses 5,420 4,774
Operating income (loss) (569) (921)
Other income, net 25 10
Loss before income tax (544) (911)
Income tax benefit (134) (202)
Net loss $ (410) $ (709)
Net loss per share $ (0.04) $ (0.09)
Weighted average shares outstanding 9,127 8,311
2
ANALOGY, INC.
Consolidated Balance Sheet
(000)
6/30/97 3/31/97
Cash and cash equivalents $ 4,155 $ 1,827
Marketable securities - 1,697
Accounts receivable, net 6,731 9,161
Prepaid expenses 1,145 886
Other assets 374 455
Total current assets 12,405 14,026
Furniture, fixtures and equipment, net 4,257 4,280
Library costs, net 2,982 2,729
Other assets, net 1,003 1,095
Total assets $ 20,647 $ 22,130
Accounts payable 862 1,301
Current portion of capital leases 466 566
Accrued salaries and benefits 1,828 2,095
Accrued expenses 27 181
Unearned revenue 5,688 5,812
Total current liabilities 8,871 9,955
Non-current portion of capital leases 499 499
Other liabilities 353 359
Total long-term liabilities 852 858
Common stock 17,160 17,124
Foreign currency translation (174) (155)
Accumulated deficit (6,062) (5,652)
Total shareholders' equity 10,924 11,317
Total liabilities and equity $ 20,647 $ 22,130
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