BILLERICA, Mass., April 23 /PRNewswire/ -- Peritus Software Services, Inc.
(Nasdaq: PTUS) today announced results of operations for the three months
ended March 31, 1998.
For the three months ended March 31, 1998, revenue increased to $10.2
million, up 29 percent from revenue of $7.9 million in the comparable period
in 1997. Net income decreased by $3.0 million to a net loss of $2.6 million,
or $(0.16) per share, compared to net income of $406,000, or $0.02 per share,
in the three months ended March 31, 1997. In response to the revenue
shortfall for the quarter, Peritus plans to reduce its expenses and incur a
restructuring charge in the second quarter of 1998, including a net reduction
in work force of approximately 35 people.
Commenting on the Company's results, CEO and President, Douglas A.
Catalano said, "As we stated in our March 30 announcement, our revenue
shortfall was the result of lower license revenue, primarily due to sales
force integration issues." Mr. Catalano continued, "We have taken steps to
strengthen our sales effort. We announced last week that we have hired Pete
Espinosa as Vice President, Worldwide Sales and Gareth Taube as Vice
President, Worldwide Marketing."
Mr. Catalano stated, "While our results for the quarter were
disappointing, we continued to add new clients from a range of industries
during the first quarter. As compared to the same three month period in 1997,
other services revenue, including consulting and training, grew by 131
percent, license revenue increased by 15 percent and outsourcing services
revenue increased by 4 percent."
About Peritus
Peritus Software Services, Inc. enables customers to break the endless
cycle of application implementation, maintenance and obsolescence by deploying
a unique combination of people, process and advanced technologies to
continually protect and evolve clients' strategic software assets. For the
Year 2000 problem, Peritus provides the technology expertise in its state-of-
the-art, industry leading "mass change" products to enable its clients to
adapt existing systems to cataclysmic events. For more information about
Peritus, call 1-800-598-7787 or visit the Peritus web site at
http://www.peritus.com.
This press release may contain certain forward-looking statements, which
involve risks and uncertainties. The Company's actual results may differ
materially from the results discussed in such statements. Certain factors
that could cause actual results to differ materially from those discussed in
such forward-looking statements include the risks described in the Company's
Annual Report on Form 10-K for the year ended December 31, 1997 and other
public filings made by Peritus with the Securities and Exchange Commission,
which factors are incorporated herein by reference.
Peritus is a registered trademark of Peritus Software Services, Inc
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share-related data)
(unaudited)
Three Months
Ended
March 31,
1998 1997
Revenue:
Outsourcing services $2,622 $2,519
License 4,762 4,144
Other services 2,766 1,196
Total revenue 10,150 7,859
Cost of revenue:
Cost of outsourcing services 2,105 2,045
Cost of license 533 127
Cost of other services 2,437 1,289
Total cost of revenue 5,075 3,461
Gross profit 5,075 4,398
Operating expenses:
Sales and marketing 3,092 1,383
Research and development 3,022 1,634
General and administrative 1,736 925
Total operating expenses 7,850 3,942
Income (loss) from operations (2,775) 456
Interest income, net 160 27
Income (loss) before income taxes
and minority interest (2,615) 483
Provision for income taxes --- 48
Minority interest in
consolidated subsidiary (49) 29
Net income (loss) $(2,566) $406
Net income (loss) per common share:
Basic $(0.16) $0.02
Diluted $(0.16) $0.02
Weighted average common shares outstanding:
Basic 15,985 5,888
Diluted 15,985 8,719
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)
March 31, December 31,
1998 1997
Assets
Cash and cash equivalents $9,821 $11,340
Short-term investments 2,500 3,000
Accounts receivable, net 9,808 13,287
Costs and estimated earnings
in excess of billings
on uncompleted contracts 2,440 2,547
Prepaid expenses and
other current assets 1,865 710
Total current assets 26,434 30,884
Property and equipment, net 5,398 3,859
Intangible and other assets, net 5,525 5,787
$37,357 $40,530
Liabilities and Stockholders' Equity
Accounts payable $1,768 $1,650
Billings in excess of
costs and estimated earnings on
uncompleted contracts 980 976
Deferred revenue 2,108 2,886
Other accrued expenses
and current liabilities 2,866 3,861
Total current liabilities 7,722 9,373
Long-term liabilities 685 572
Stockholders' equity 28,950 30,585
$37,357 $40,530
SOURCE Peritus Software Services, Inc.
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Related links:
http://www.peritus.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 123089
CONTACT:
Allen K. Deary, 978-670-0800,
adeary@peritus.com or Jacqueline Crowley, 978-670-2500,
jcrowley@peritus.com both of Peritus Software Services, Inc.
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