Management will host a conference call to review today's announcement
beginning today, April 3, 2001, at 2:00 p.m. Pacific Daylight Time, 5:00 p.m.
Eastern Daylight Time.
CUPERTINO, Calif., April 3 /PRNewswire/ -- Rational Software
Corporation(R) (Nasdaq: RATL), the e-development company, today announced
that, based on preliminary results, the company expects to report record
revenues for the quarter ending March 31, 2001 of between $240 million and
$245 million, and record pro-forma earnings in the range of $0.20 to $0.22 per
share. The analyst consensus for the period was revenue of approximately
$249 million and pro-forma earnings of $0.22 per share
For the fiscal year ending March 31, 2001, the company expects, based on
preliminary results, that revenue will be in a range of $813 million to
$818 million and pro-forma earnings will be in the range of $0.70 to $0.72 per
share.
"We continue to see strong demand for our products and our competitive
position is better than ever; in fact, in tough economic times it's even more
important for organizations to improve their productivity and they will turn
to the market leader to help them. However, the recent macro-economic
conditions have caused customers to become increasingly cautious with regards
to purchase decisions -- including technology ones-- and this has affected our
business as it has many other companies. We are taking immediate actions to
scale our costs to match the current business environment," said Paul Levy,
Rational co-founder and chairman.
The company also announced that it would reduce its workforce by
approximately 10 percent, or a total of approximately 400 positions affecting
all parts of the organization. These actions will result in a charge to the
June 2001 quarter of between $20 million and $25 million. The company expects
to realize costs savings of approximately 10% during its next fiscal year as a
result of these actions.
The company also announced that, as a result of the current economic
outlook, the company now expects that for fiscal year 2002, beginning April 1,
2001, revenue will be between $900 million and $950 million and that pro-forma
earnings will be in a range of $0.50 to $0.60 per share.
Management will host a conference call to review today's announcement
beginning today, April 3, 2001, at 2:00 p.m. Pacific Daylight Time, 5:00 p.m.
Eastern Daylight Time. Domestic parties may access the call by dialing
1-888-810-9158, International parties may access the call by dialing 1-712-
271-0332. The pass code for both dial-in numbers is RATIONAL. .
For those unable to participate in the live call, a replay will be
available at 1-800-324-4693 for domestic callers and 1-402-220-3855 for
international callers. No password is required for the replay.
The company's regularly scheduled conference call to review forth quarter
and fiscal year results will be held Tuesday, April 17, 2001 at 2:00 p.m.
Pacific Daylight Time, 5:00 p.m. Eastern Daylight Time
This release contains forward-looking statements. In particular, the
release includes statements about expected revenues and pro forma earnings per
share for the quarter and fiscal year ending March 31, 2001. These statements
are subject to numerous risks and uncertainties that may cause Rational to
have different actual revenue and pro forma earnings per share. These risks
and uncertainties include the effect of the closing of the accounting records,
completion of the fiscal year audit, current economic slowdown, and possible
fluctuations in demand for existing and new products and services. The
release also contains forward-looking statements about Rational's plan to
reduce operating expenses, Rational's expectations that it will incur a one-
time charge in the June 30, 2001 quarter and the projected cost savings for
the fiscal year ending March 31, 2002. These statements are also subject to
risks and uncertainties, including the ability of Rational to effectively
identify and eliminate expenses, possible fluctuations in future expenses and
significant expenses that may need to be incurred but that are unforeseen at
this time. The release also contains forward-looking statements about
Rational's revenue and pro forma earnings per share expectations for fiscal
2002. These statements are subject to numerous risks and uncertainties that
may cause Rational to have different actual revenue and pro forma earnings per
share. These risks and uncertainties include assumptions about the current
economic slowdown, which may not prove to be true, possible fluctuations in
demand for existing and new products and services, the effect of competition
and the timing of new product introductions. Other risks are explained in
Rational's filings with the Securities and Exchange Commission.
SOURCE Rational Software Corporation
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Related links:
http://www.rational.com
CONTACT:
Timothy A. Brennan, Chief Financial Officer,
408-863-4500, ir@rational.com, or David Henshall, Treasurer,
408-863-4261, dhenshall@rational.com, both of Rational Software
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