BILLERICA, Mass., July 23 /PRNewswire/ -- Peritus Software Services, Inc.
(Nasdaq: PTUS), a leading provider of solutions for software maintenance,
today announced improved results for the second quarter ended June 30, 1998,
with revenues rising 32 percent over the comparable period in 1997. The
Company attributed the revenue growth to increased demand for its service
offerings.
For the three months ended June 30, 1998, revenue increased 32 percent to
$11.8 million from revenue of $9.0 million in the comparable period of 1997,
and net income, excluding a restructuring charge of approximately $1.4
million, grew to $460,000 as compared to $438,000 in the comparable period in
1997. Including the restructuring charge, the Company had a net loss for the
1998 period of $979,000 or ($0.06) per share, as compared to net income of
$438,000 or $(0.01) per share in the same period in 1997.
For the six months ended June 30, 1998, revenue increased 31 percent to
$22 million from $16.8 million in the comparable period in 1997. The Company
had a net loss for the six months ended June 30, 1998 of $3.5 million or
$(0.22) per share, including the restructuring charge of approximately $1.4
million, as compared to net income of $844,000 or $0.01 per share in the same
period in 1997. The one-time restructuring charge was the result of a
reduction in work force and a refocusing of investments for the future, which
intentions were announced at the end of the first quarter.
Commenting on the Company's results Douglas A. Catalano, CEO and
President, stated "We are pleased that the steps we have taken to refocus our
business on services have begun to take effect. Our technology backed
renovation services business is up significantly and we expect to further
strengthen our focus on services."
During the quarter the Company continued to add new accounts and made
several client announcements including First Union Bank, BankBoston, Fulton
County in Georgia, Hitachi Data Systems, Intermetrics and Raffles Software.
Also during the quarter the Company launched a new Renovation Quality
Evaluation(SM) (RQE) service to assist clients in evaluating the accuracy of
their Year 2000 Renovations. And, for the second year in a row, the Company
was named one of the 1998 New England Technology Fast 50 by Deloitte & Touche
and Hale and Dorr LLP.
About Peritus
Founded in 1991, Peritus Software Services, Inc., (Nasdaq: PTUS) is a
leading provider of solutions and technology for software maintenance. Peritus
software maintenance solutions enable organizations to transform software
maintenance into an efficient, cost-effective process to boost productivity
and performance. For the Year 2000 problem, Peritus provides a complete
solution for implementing and evaluating Year 2000 renovations. Peritus has
successfully renovated more than a billion lines of code for clients
worldwide. Peritus is headquartered in Billerica, MA and can be reached at 1-
800-598-7787 or at 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, the Quarterly Report
on Form 10-Q for the quarter ended March 31, 1998, 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 and Renovation Quality Evaluation (RQE)
is a service mark of Peritus Software Services, Inc
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share-related data)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
1998 1997 1998 1997
Revenue:
Outsourcing services $2,864 $3,044 $5,486 $5,563
License 4,501 4,643 9,263 8,787
Other services 4,465 1,295 7,231 2,491
Total revenue 11,830 8,982 21,980 16,841
Cost of revenue:
Cost of outsourcing
services 1,886 2,358 3,991 4,403
Cost of license 506 148 1,039 275
Cost of other
services 2,611 1,036 5,048 2,325
Total cost
of revenue 5,003 3,542 10,078 7,003
Gross profit 6,827 5,440 11,902 9,838
Operating expenses:
Sales and marketing 3,247 2,035 6,339 3,418
Research and
development 1,957 1,969 4,979 3,603
General and
administrative 1,286 875 3,022 1,800
Restructuring
charges 1,439 --- 1,439 ---
Total operating
expenses 7,929 4,879 15,779 8,821
Income (loss)
from operations (1,102) 561 (3,877) 1,017
Interest (expense)
income, net 185 (7) 345 20
Income (loss)
before income
taxes and
minority interest
in consolidated
subsidiary (917) 554 (3,532) 1,037
Provision for
income taxes 25 124 25 172
Minority interest
in consolidated
subsidiary 37 (8) (12) 21
Net income (loss) $(979) $438 $(3,545) $ 844
Net income (loss) per common share:
Basic $(0.06) $(0.01) $(0.22) $0.02
Diluted $(0.06) $(0.01) $(0.22) $0.01
Weighted average common shares outstanding:
Basic 16,179 6,000 16,082 5,944
Diluted 16,179 8,587 16,082 8,531
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)
June 30, December 31,
1998 1997
Assets
Cash and cash equivalents $5,285 $11,340
Short-term investments 4,000 3,000
Accounts receivable,
net 10,030 13,287
Costs and estimated
earnings in excess
of billings on
uncompleted contracts 3,492 2,547
Prepaid expenses and
other current assets 2,249 710
Total current assets 25,056 30,884
Property and equipment, net 5,521 3,859
Intangible and
other assets, net 5,220 5,787
$35,797 $40,530
Liabilities and Stockholders' Equity
Accounts payable $970 $1,650
Billings in excess
of costs and estimated
earnings on uncompleted
contracts 1,114 976
Deferred revenue 1,708 2,886
Other accrued expenses
and current liabilities 3,021 3,861
Total current
liabilities 6,813 9,373
Long-term liabilities 617 572
Stockholders' equity 28,367 30,585
$35,797 $ 40,530
SOURCE Peritus Software Services, Inc.
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Related links:
http://www.peritus.com
CONTACT:
Allen K. Deary, 978-670-0800,
adeary@peritus.com or Jacqueline Crowley, 978-670-0800,
jcrowley@peritus.com, both of Peritus Software Services, Inc.
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