EXHIBIT 99.1
PRESS RELEASE
734.994.4800 - Fax 734.994.5895 - www.comshare.com
[COMSHARE LOGO]
555 Briarwood Circle
Ann Arbor, Michigan 48108
COMSHARE REPORTS FISCAL YEAR 2003 THIRD QUARTER RESULTS
COMPANY REPORTS 43% GROWTH IN SOFTWARE LICENSE REVENUES FROM
SAME PERIOD LAST YEAR
ANN ARBOR, Mich., May 7, 2003 -- Comshare, Incorporated (Nasdaq: CSRE), a
leading provider of corporate performance management (CPM) software, today
announced financial results for its third quarter of fiscal 2003 ended March 31,
2003.
Software license revenues increased 43% to $5.3 million in the third
quarter compared to $3.7 million in the same quarter a year ago. Maintenance and
services revenue totaled $8.6 million compared to $9.8 million in the same
period a year ago. Total revenues for the quarter increased three percent to
$13.9 million, compared to $13.5 million for the same quarter a year ago. The
Company reported a net loss of $0.9 million, or $0.09 per share, for the quarter
ended March 31, 2003, compared to a net loss of $1.6 million, or $0.16 per
share, for the same period one year ago.
"We are especially encouraged by the 56% increase in MPC license fees
over last year's third quarter and the 208% growth in MPC license fees in North
America to $3.4 million," said Dennis Ganster, Comshare President and CEO. "This
quarter, our average new name software license sale in direct operations was
$192,000, more than double the prior year," Ganster continued.
"Our growth in total license fees of 43% was led by an increase in our
direct operations of 108% over the same period a year ago," added Ganster. "We
continued to execute our CPM business strategy despite a tough economy, and we
are seeing continued demand for our products as companies strive to improve
their management planning and control processes in order to better cope with
market uncertainties."
"While we are pleased with the strong MPC license fee growth for the
quarter, and the improved performance in our direct operations, our overall
results were negatively impacted principally by continued margin pressure in
implementation services in the third quarter." Ganster continued.
During the quarter, customers for Comshare's management planning and
control solutions included companies from around the world such as Visteon
Corporation, Krispy Kreme Doughnuts, Commerce Bancshares, Inc., Edison Mission
Energy, Kirkland & Ellis, LDMI Telecommunications, ProQuest Company, St. Jude
Medical, Inc., Stewart Enterprises, Inc., Sunterra Europe (Group Holdings) Plc,
The AES Corporation and The Evercare Company.
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"These major customer wins are indicative of strong acceptance of
Comshare MPC and continued activity related to the `Power of Knowledge' program
with Microsoft," Ganster added. "Our license results are evidence that
enterprises are increasingly interested in the benefits of our CPM technology as
they look for integrated methods to improve financial and operational
performance," Ganster emphasized.
Comshare will hold a conference call chaired by Dennis Ganster today at
1:30 p.m. (EDT). Investors can access the call from the Investors section of the
Comshare web site, www.comshare.com, or by dialing 888-803-7286. If you are
unable to listen to the live call, a replay will be available for 48 hours and
can be accessed by dialing 1-800-642-1687 with access code 9965317. A replay of
the call and other pertinent statistical and financial information presented in
the call will be available in the Company-Investors section of the Company's
website at www.comshare.com for 90 days following the call. Thereafter,
statistical and financial information presented in the call will be available in
the Company's Form 10-Q for the third quarter of fiscal year 2003 or in a
separate report, both of which can be found under Company-Investors section of
the Company's website at www.comshare.com.
ABOUT COMSHARE
Comshare, Incorporated is a leading provider of software that helps
companies implement and execute strategy. Comshare's application for corporate
performance management encompasses planning, budgeting, forecasting, financial
consolidation, management reporting, and analysis. In business for over 35
years, Comshare is one of the top independent software companies, with Fortune
500 and Financial Times Top 1000 customers around the world. Comshare is a
Business Objects Partner, Siebel Software Partner, and Microsoft Gold Certified
Partner for Business Intelligence and Software Products. For more information on
Comshare, call 1-800-922-7979, send email to info@comshare.com, or visit
Comshare's website at www.comshare.com.
SAFE HARBOR STATEMENT
Certain information in this press release contains "forward looking
statements" within the meaning of the Securities Exchange Act of 1934, as
amended, including those concerning the company's future results and strategy.
Actual results could differ materially from those in the forward looking
statements due to a number of uncertainties, including, but not limited to, the
demand for the company's products and services; the size, timing and recognition
of revenue from significant orders; the impact that cost reductions may have on
the company's revenues and operating results; increased competition and pricing
pressures from competitors; the company's success in and expense associated with
developing, introducing and shipping new products; new product introductions and
announcements by the company's competitors; the level of interest and success of
the company's distributors in marketing and selling the company's products;
changes in company strategy; product life cycles; the cost and continued
availability of third party software and technology incorporated into the
company's products; the impact of rapid technological advances, evolving
industry standards and changes in customer requirements, including the impact on
the company's revenues of Microsoft's OLAP database; the overall competition for
key employees; cancellations of maintenance and support agreements; software
defects; changes in operating expenses; fluctuations in foreign exchange rates;
economic conditions generally or in specific industry segments. In addition, the
company includes a more detailed discussion of risk factors in its
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reports filed with the United States Securities and Exchange Commission,
including the Annual Report on Form 10-K filed on September 30, 2002 and the
quarterly report on Form 10-Q filed on February 14, 2003. The company
disclaims any obligation to update its forward-looking statements to reflect any
changes in expectations due to future events or circumstances.
Comshare(R) is a registered trademark and Comshare MPC(TM), Comshare
FDC(TM) and Comshare Decision(TM) are trademarks of Comshare, Incorporated. All
other trademarks are the property of their respective holders.
COMPANY CONTACTS: FINANCIAL COMMUNICATIONS CONTACT:
- ----------------- ---------------------------------
Comshare, Incorporated Lippert/Heilshorn & Associates, Inc.
Brian Jarzynski, Chief Financial Officer Brendan Lahiff, Senior Account
Executive
734-769-6174 415-433-3777
- Tables to Follow -
COMSHARE, INCORPORATED
SUPPLEMENTAL REVENUE INFORMATION
(unaudited; in thousands)
THREE MONTHS ENDED PERCENT NINE MONTHS ENDED PERCENT
MARCH 31, CHANGE MARCH 31, CHANGE
----------------------- ---------- ---------------------------- ---------
2003 2002 2003 2002
---- ---- ---- ----
(in thousands) (in thousands)
MPC REVENUE
Software licenses $ 5,287 $ 3,390 56 $ 12,942 $10,404 24
Software maintenance 3,723 3,455 8 11,417 10,179 12
Implementation, consulting and
other services 2,805 3,865 (27) 10,401 12,742 (18)
---------- ----------- --------------- -----------
TOTAL MPC REVENUE $ 11,815 $ 10,710 10 % $ 34,760 $33,325 4 %
========== =========== =============== ===========
% of Revenue 85% 79% 82% 78%
LEGACY REVENUE
Software licenses $ 5 $ 304 (98) $ 1,939 $1,477 31
Software maintenance 1,852 2,313 (20) 5,360 7,345 (27)
Implementation, consulting and
other services 208 181 15 546 658 (17)
---------- ----------- --------------- -----------
TOTAL LEGACY REVENUE $ 2,065 $ 2,798 (26)% $ 7,845 $9,480 (17)%
========== =========== =============== ===========
% of Revenue 15% 21% 18% 22%
TOTAL REVENUE
Software licenses $ 5,292 $ 3,694 43 $ 14,881 $11,881 25
Software maintenance 5,575 5,768 (3) 16,777 17,524 (4)
Implementation, consulting and
other services 3,013 4,046 (26) 10,947 13,400 (18)
---------- ----------- --------------- -----------
TOTAL REVENUE $ 13,880 $ 13,508 3 % $ 42,605 $42,805 (0)%
========== =========== =============== ===========
SOFTWARE LICENSE REVENUE BY CHANNEL
Direct $ 4,018 $ 1,985 102 $ 9,470 $7,222 31
Indirect 1,274 1,709 (25) 5,411 4,659 16
---------- ----------- --------------- -----------
TOTAL SOFTWARE LICENSE REVENUE $ 5,292 $ 3,694 43 % $ 14,881 $11,881 25 %
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QUARTERLY TRANSACTIONS AND CUSTOMERS
Average Selling Price - Direct $ 192 $ 70 174 % $ 154 $ 87 77 %
Number of Software
Transactions > $100,000 15 7 114 35 22 59
Number of New Customers 37 41 (10) 112 127 (12)
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COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited; in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
------------------------- -------------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUE
Software licenses $ 5,292 $ 3,694 $ 14,881 $ 11,881
Software maintenance 5,575 5,768 16,777 17,524
Implementation, consulting
and other services 3,013 4,046 10,947 13,400
-------- -------- -------- --------
TOTAL REVENUE 13,880 13,508 42,605 42,805
COSTS AND EXPENSES
Selling and marketing 6,238 6,782 16,877 18,138
Cost of revenue and support 4,566 5,797 15,658 18,305
Internal research and product development 2,408 2,341 7,196 6,941
General and administrative 1,561 1,416 4,234 4,103
Tax settlement - - (1,208) -
Restructuring - - - 1,280
-------- -------- -------- --------
TOTAL COSTS AND EXPENSES 14,773 16,336 42,757 48,767
-------- -------- -------- --------
INCOME (LOSS) FROM OPERATIONS (893) (2,828) (152) (5,962)
OTHER INCOME (EXPENSE)
Interest on tax settlement - - 1,125 -
Interest income, net 95 128 225 457
Exchange gain (loss) (39) 20 (47) (12)
-------- -------- -------- --------
TOTAL OTHER INCOME 56 148 1,303 445
INCOME (LOSS) BEFORE TAXES (837) (2,680) 1,151 (5,517)
Provision for income taxes 111 (1,040) 676 7,156
-------- -------- -------- --------
NET INCOME (LOSS) $ (948) $ (1,640) $ 475 $(12,673)
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SHARES USED IN BASIC EPS COMPUTATION 10,663 10,272 10,543 10,166
======== ======== ======== ========
SHARES USED IN DILUTED EPS COMPUTATION 10,663 10,272 10,554 10,166
======== ======== ======== ========
NET INCOME (LOSS) PER COMMON SHARE - BASIC & DILUTED ($ 0.09) ($ 0.16) $ 0.05 ($ 1.25)
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COMSHARE, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
MARCH 31, June 30,
2003 2002
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ASSETS (unaudited)
CURRENT ASSETS
Cash and cash equivalents $17,902 $19,280
Accounts receivable, net 18,796 17,683
Other current assets 2,784 2,949
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Total current assets 39,482 39,912
Property and equipment, net 1,287 1,351
Other assets 4,286 4,430
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TOTAL ASSETS $45,055 $45,693
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Deferred revenue $11,596 $11,327
Other current liabilities 6,616 8,557
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Total current liabilities 18,212 19,884
Other liabilities 8,418 8,247
Shareholders' equity 18,425 17,562
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $45,055 $45,693
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