Management will host a conference call to review today's announcement
beginning today, July 2, 2001, at 2:00 p.m. Pacific Daylight Time,
5:00 p.m. Eastern Daylight Time
CUPERTINO, Calif., July 2 /PRNewswire/ -- Rational Software Corporation
(Nasdaq: RATL), the e-development company(TM), today announced that, based on
preliminary analysis, the company expects to report revenues for the quarter
ending June 30, 2001 of between $172 million and $176 million, and pro-forma
earnings in the range of $0.07 to $0.08 per share. Additionally, the company
expects product license revenue to be between $79 million and $83 million.
Prior to this announcement, the consensus estimate for the period was revenue
of approximately $185 million and pro-forma earnings of $.08 per share.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010417/RATLLOGO )
Pro forma earnings per share for the periods reported exclude one-time
charges for purchased in-process R&D, amortization of goodwill and purchased
intangibles and amortization of stock-based compensation related to recent
acquisitions, as well as restructuring charges.
"Despite extreme focus on the part of our field sales organization this
was, particularly in Europe and in parts of Asia, a more challenging quarter
than we anticipated -- we saw a large fall off in our international business
right at the end of the period," said Paul Levy, chairman and co-founder of
Rational Software. "We have continued to execute our strategy and product
plan, our competitive position continues to strengthen, and our products
continue to offer compelling value to our broad array of customers. As the
global economic environment improves, we will be in a strong position to
accelerate our growth."
As a result of the current economic outlook, the company now expects that
for fiscal year 2002, revenue will be between $825 million and $900 million.
The company's expectation for pro-forma earnings remains unchanged in a range
of $0.50 to $0.60 per share.
Management will host a conference call to review this preliminary
announcement beginning at 2:00 p.m. Pacific Daylight Time, 5:00 p.m. Eastern
Daylight Time on July 2, 2001. Domestic parties may access the call by
dialing 1-800-369-1619. International parties may access the call by dialing
1-712-271-0784. 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 1-800-337-5613 for domestic callers and 1-402-220-9646 for
international callers.
In addition, the company will host its regularly scheduled conference call
on July 10, 2001, beginning at 2:00 p.m. Pacific Daylight Time, 5:00 p.m.
Eastern Daylight Time to review final results for the period.
This release contains forward-looking statements. In particular, the
release includes statements about expected revenues and pro-forma earnings for
the quarter ending June 30, 2001 and for the fiscal year ended March 31, 2002.
These statements are subject to numerous risks and uncertainties that may
cause Rational to have different actual revenue. These risks and
uncertainties include the effect of the closing of the accounting records,
current economic slowdown, and possible fluctuations in demand for existing
and new products and services. 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.
Other risks are explained in Rational's filings with the Securities and
Exchange Commission. The forward-looking statements contained in this press
release are made as of the date of this press release and Rational expressly
disclaims any obligation to update any of the forward-looking statements
contained in this press release.
About Rational Software
Rational Software provides a platform for software development that speeds
time-to-market while improving software quality. This integrated, full life-
cycle solution combines software engineering best practices, market-leading
tools, and professional services. Ninety of the Fortune 100 and 49 of the
Fortune e-50 build software with the Rational solution. This open platform is
extended by hundreds of partners providing more than 500 complementary
products and services. IDC has recognized Rational as the revenue leader in
multiple application development and deployment markets for four years in a
row. Founded in 1981, Rational, one of the world's largest software
companies, had revenues of $815 million in its fiscal year ended March, 2001
and employs more than 3,700 people around the world. Rational is a component
of the Nasdaq-100 Index(R). Additional information is available on the
Internet at http://www.rational.com.
Contacts:
Press:
Bill Durling, Director of Corporate Communications
(781) 372-5886
bdurling@rational.com
Financial:
Timothy A. Brennan, Chief Financial Officer
(408) 863-4500
Email: ir@rational.com
David Henshall, Treasurer
(408) 863-4500
E-mail: ir@rational.com
SOURCE Rational Software Corporation
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Related links:
http://www.rational.com
Photo Notes:Newscom:
http://www.newscom.com/cgi-bin/prnh/20010417/RATLLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Bill Durling, Director of Corporate
Communications, 781-372-5886, bdurling@rational.com; or Timothy
A. Brennan, Chief Financial Officer, or David Henshall,
Treasurer, 408-863-4500, ir@rational.com, all of Rational
Software Corporation
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