LOS GATOS, Calif., Jan. 15 /PRNewswire/ -- Red Brick(R) Systems, Inc.
(Nasdaq: REDB), The Data Warehouse Company(R), today reported operating
results for the fourth quarter and fiscal year ended December 31, 1997.
Total fourth-quarter 1997 revenues were $14.7 million, an increase of
18 percent from $12.5 million in fourth-quarter 1996. Total revenues for the
fiscal year 1997 were $43.3 million, an increase of 20 percent from
$36.0 million for the fiscal year 1996. In fourth-quarter 1997, Red Brick's
software license revenues were $10.0 million, or 68 percent of total revenues,
and maintenance and service revenues were $4.6 million, or 32 percent of total
revenues.
Net income for the fourth-quarter 1997, which reflects an increase in the
valuation allowance for the deferred tax asset, was $414,000, or three cents
per share, versus net income, including a one-time tax benefit, of
$2.4 million, or nineteen cents per share, in fourth-quarter 1996. Net loss
for the fiscal year 1997, excluding the one-time charge for in-process
technology purchased from Engage Technologies, and including the net effect of
the increase in the valuation allowance for the deferred tax asset, was
$7.0 million, or 60 cents per share, compared to net income, including a one
time tax benefit, of $3.8 million, or thirty cents per share, for the fiscal
year 1996.
"I am pleased with the progress that we have shown during this year of
transition," said Chris Erickson, president and CEO of Red Brick. "While we
still have work to do, we made significant progress in 1997. We delivered
solid growth and a strengthened management team. We acquired valuable
in-process technology that we believe establishes the groundwork for our
strategic move to a solutions-based data warehouse company."
On Red Brick's balance sheet, cash, cash equivalents and short-term
investments were $26.9 million at December 31, 1997. Working capital was
$26.1 million, and total stockholders' equity, or net book value, was
$29.5 million, or $2.41 per share at December 31, 1997. Days sales
outstanding in accounts receivable for the quarter ended
December 31, 1997 were 75.
Recent Developments
In addition to its financial performance, Red Brick recently achieved a
number of important milestones:
* Added 23 new accounts including Bantam Doubleday Dell Publishing Co.,
Inc., The Boeing Company, Jiffy Lube International, Inc., United HealthCare
Services, Inc. and USN Communications, Inc.
* Announced significant enhancements to its senior executive team:
Anthony Layzell promoted to senior vice president of Sales and Marketing;
Lawrence Howard appointed vice president of North American Sales; and Margaret
Brauns appointed chief financial officer and vice president of Finance.
* Logica, the leading independent SI and software company, has partnered
with Red Brick Systems to build and supply the UK's largest Data Archive
System to Vodafone, the UK's largest cellular provider.
* Launched a strategic reseller agreement with Hewlett Packard Company's
Americas Local Product Organization.
About Red Brick
Red Brick Systems, Inc., based in Los Gatos, Calif., is a leading provider
of comprehensive, integrated, high-performance software products and services
for data warehousing. Its flagship product, Red Brick Warehouse, is the
world's fastest and most scalable relational database for data warehousing,
including data marts, online analytical processing (OLAP) and data mining.
Red Brick helps businesses transform data into information for faster,
superior decision-making.
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). In particular, see "Risk
Factors" in the most recent Annual Report filed with the SEC on Form 10-K for
the year ended December 31, 1996, and the Form 10-Q for the three-month period
ended September 30, 1997. These documents contain and identify important
factors that could cause the actual results to differ materially from those
contained herein.
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.
NOTE: 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
1997 1996 1997 1996
Revenues:
Software license $10,045 $10,177 $29,234 $29,242
Maintenance and
service 4,647 2,301 14,081 6,793
Total revenues 14,692 12,478 43,315 36,035
Cost of revenues:
Software license 364 357 1,503 1,136
Maintenance and service 2,274 1,446 8,438 3,357
Total cost of revenues 2,638 1,803 9,941 4,493
Gross margin 12,054 10,675 33,374 31,542
Operating expenses:
Sales and marketing 7,142 7,049 26,955 20,410
Research and
development 2,830 1,863 9,960 6,256
General and
administrative 1,173 821 4,192 2,839
In-process technology -- -- 10,984 500
Total operating
expenses 11,145 9,733 52,091 30,005
Income (loss) from
operations 909 942 (18,717) 1,537
Interest and other
income, net 369 525 1,767 1,509
Income (loss) before
provision (benefit)
for income taxes and
minority interest 1,278 1,467 (16,950) 3,046
Provision (benefit)
for income taxes 898 (859) 1,203 (687)
Income (loss) before
minority interest 380 2,326 (18,153) 3,733
Minority interest 34 48 130 85
Net income (loss) $414 $2,374 $(18,023) $3,818
Basic earnings (loss)
per share $0.03 $0.22 $(1.55) $0.37
Diluted earnings (loss)
per share $0.03 $0.19 $(1.55) $0.30
Shares used to compute
basic earnings (loss)
per share 12,144 10,963 11,663 10,357
Shares used to compute
diluted earnings (loss)
per share 12,898 12,768 11,663 12,643
RED BRICK SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $12,358 $14,552
Short-term investments 14,551 20,599
Accounts receivable, net 12,291 13,106
Prepaid expenses and
other current assets 955 1,213
Deferred tax assets -- 850
Total current assets 40,155 50,320
Property and equipment, net 2,677 2,693
Intangible assets 361 --
Deposits and other assets 372 205
Deferred tax asset -- 150
Total assets $43,565 $53,368
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $518 $316
Accrued expenses 3,719 2,565
Accrued compensation 2,031 2,191
Deferred revenue 7,370 4,180
Capital lease obligations
due within one year 385 760
Total current liabilities 14,023 10,012
Capital lease obligations 60 396
Minority interest -- 36
Total stockholders' equity 29,482 42,924
Total liabilities and
stockholders' equity $43,565 $53,368
SOURCE Red Brick Systems, Inc.
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Related links:
http:
http://www.redbrick.com
CONTACT:
Rebecca Kreps of Red Brick Systems, Inc.,
408-399-7824, or rkreps@redbrick.com
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
105756
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