LOS GATOS, Calif., April 16 /PRNewswire/ -- Red Brick(R) Systems, Inc.
(Nasdaq: REDB), The Data Warehouse Company(R), today reported operating
results for the first quarter ended March 31, 1998.
Total first-quarter 1998 revenues were $9.4 million, an increase of
45 percent from $6.5 million in first-quarter 1997. In first-quarter 1998,
Red Brick's software license revenues were $4.6 million, or 49 percent of
total revenues, and maintenance and service revenues were $4.8 million, or
51 percent of total revenues.
Net loss for the first-quarter 1998, was $3.9 million, or a diluted loss
per share of thirty-two cents, versus a net loss in first-quarter 1997 of
$6.4 million or diluted loss per share of fifty-seven cents.
"We continued to deliver sustained progress on our four key strategic
objectives that are the cornerstones of our execution plan: first, to develop
the best integrated data warehouse platform positioning Red Brick as the data
warehouse solutions company; second, to continue our technology innovation;
third, to strengthen our partner relationships for complete solutions; and
fourth, to expand our consulting/solutions and services capabilities," said
Chris Erickson, president and CEO of Red Brick. "I believe we have put the
right team in place, and the right set of plans to serve the market. We
firmly believe that utilizing our strong balance sheet to support our
strategic objectives is the best strategy for our customers and our
stockholders."
On Red Brick's balance sheet, cash, cash equivalents and short-term
investments were $27.8 million at March 31, 1998. Working capital was
$23.0 million, and total stockholders' equity, was $26.7 million. Days sales
outstanding in accounts receivable for the quarter ended March 31, 1998 were
75. Red Brick had no outstanding short term or long term borrowings at
March 31, 1998.
Recent Developments
In addition to its financial performance, Red Brick recently achieved a
number of important milestones in the first quarter:
* Continued its technology innovation by
* Shipping Red Brick Warehouse version 5.1 which offers new features
designed to maximize productivity, reduce overall cost of ownership and
minimize complexities for data warehouse administrators and users
* Shipping Red Brick Vista(TM), a ground-breaking, server-integrated
solution for the computation and management of aggregates
* Shipping SQL-BackTrack(TM) for Red Brick Warehouse, a backup and
recovery system designed specifically for Red Brick
* Strengthened its partner relationships by announcing an integrated
data-warehousing suite of hardware, software, solutions and services
designed specifically to improve retail business decision-making with
Hewlett-Packard Company
* Expanded its consulting/solutions and services capabilities by growing
the revenue in consulting/solutions and services organization by
66 percent year-over-year
* Added 17 new accounts including Amazon.com, Inc., MCI-Enhanced Voice
Services, Revlon Consumer Products Corporation and West Publishing
Corporation
About Red Brick
Red Brick Systems, Inc. is a premier provider of data warehousing
solutions that help businesses transform data into information for superior
decision-making. The company develops and markets a comprehensive, integrated
platform of data warehousing products and services to help its customers and
partners gain competitive advantage through fast, accurate answers to complex,
business-critical questions.
Except for the historical information contained herein, the matters
discussed in this news release include forward-looking statements that involve
risks and uncertainties described from time to time in the Company's filings
with the Securities and Exchange Commission (SEC). The Company refers you to
the "Risk Factors" in the most recent Annual Report filed with the SEC on Form
10-K for the year ended December 31, 1997. These documents contain and
identify important factors that could cause the actual results to differ
materially from those contained herein, including, without limitation:
Competition; Sales and Marketing Repositioning; Dependence on New Products and
Rapid Technological Change; Feasibility of In-Process Technology; Dependence
upon Key Personnel; and Dependence on Continued Growth of the Data Warehouse
Market.
News releases and corporate background information may also be retrieved
by fax. For an index of available materials, call 800-758-5804, and enter PIN
#105756. Red Brick, the Red Brick logo and The Data Warehouse Company are
registered trademarks of Red Brick Systems, Inc. All other trademarks and
registered trademarks are the property of their respective holders.
RED BRICK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended
March 31,
1998 1997
Revenues:
Software license $4,635 $3,645
Maintenance and service 4,791 2,878
Total revenues 9,426 6,523
Cost of revenues:
Software license 409 382
Maintenance and service 2,442 1,839
Total cost of revenues 2,851 2,221
Gross margin 6,575 4,302
Operating expenses:
Sales and marketing 6,586 7,276
Research and development 3,236 2,711
General and administrative 903 980
In-process technology -- --
Total operating expenses 10,725 10,967
Loss from operations (4,150) (6,665)
Interest and other income, net 373 466
Loss before provision for income
taxes and minority interest (3,777) (6,199)
Provision for income taxes 161 100
Loss before minority interest (3,938) (6,299)
Minority interest -- (63)
Net loss $(3,938) $(6,362)
Basic loss per share $(0.32) $(0.57)
Diluted loss per share $(0.32) $(0.57)
Shares used to compute basic
loss per share 12,326 11,206
Shares used to compute diluted
loss per share 12,326 11,206
RED BRICK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
1998 1997
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $15,302 $12,358
Short-term investments 12,497 14,551
Accounts receivable, net 7,854 12,291
Prepaid expenses and
other current assets 1,572 955
Deferred tax assets -- --
Total current assets 37,225 40,155
Property and equipment, net 2,673 2,677
Intangible assets, net 315 361
Deposits and other assets 720 372
Deferred tax assets 0 --
Total assets $40,933 $43,565
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $702 $518
Accrued expenses 2,389 3,719
Accrued compensation 2,316 2,031
Deferred revenue 8,527 7,370
Capital lease obligations
due within one year 242 385
Total current liabilities 14,176 14,023
Capital lease obligations 53 60
Minority interest -- --
Commitments and contingencies
Total stockholders' equity 26,704 29,482
Total liabilities and
stockholders' equity $40,933 $43,565
SOURCE Red Brick Systems, Inc.
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Related links:
http: http://www.redbrick.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 105756
CONTACT:
Rebecca Kreps of Red Brick Systems, Inc.,
408-399-7824, or rkreps@redbrick.com
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