LOS GATOS, Calif., Oct. 15 /PRNewswire/ -- Red Brick(R) Systems, Inc.
(Nasdaq: REDB), The Data Warehouse Company(R), today reported operating
results for the third quarter ended September 30, 1998.
Total third-quarter 1998 revenues were $8.4 million, compared with
$11.7 million in third-quarter 1997. Red Brick's software license revenues
for the third-quarter were $4.2 million, or 50 percent of total revenues, and
maintenance and service revenues were $4.2 million, or 50 percent of total
revenues.
Net loss for the third-quarter 1998 was $5.0 million or a diluted loss per
share of forty cents, versus a net loss of $10.5 million or a diluted loss per
share of ninety cents in third-quarter 1997 including the one time charge for
in-process technology purchased from Engage Technologies.
On Red Brick's balance sheet, cash, cash equivalents and short-term
investments were $17.1 million at September 30, 1998. Working capital was
$12.3 million, and total stockholders' equity was $16.5 million. Days sales
outstanding in accounts receivable at September 30, 1998 were 73. Red Brick
had no outstanding short-term or long-term borrowings at
September 30, 1998.
"During the quarter we continued to deliver technical innovations by
releasing Red Brick Formation(TM) and a major product upgrade, Red Brick
Warehouse 5.1.5, to the market," said Christopher Erickson, president and CEO
of Red Brick. "However, we have also seen evidence of an increasingly
competitive data warehousing market. We continue to face the challenges
associated with being a specialized supplier in a market increasingly
dominated by companies with substantial resources."
Recent Developments
The company announced on October 7, 1998 the signing of a definitive
agreement with Informix Corporation of its intention to acquire Red Brick
Systems, Inc.
Red Brick also achieved a number of milestones during the third quarter
including:
* Added 42 new accounts including Cable Data, Cannon Sales Company, Ltd.,
First Union National Bank, Interexchange, Inc. and Toshiba Corporation.
* Announced the availability of Red Brick Formation(TM) at The Data
Warehousing Institute Tradeshow in San Francisco in August.
* Announced the availability of a major product upgrade, Red Brick
Warehouse 5.1.5.
About Red Brick
Red Brick Systems, Inc. is a premier provider of data warehousing
solutions. Through Red Brick DecisionScape(SM), a comprehensive, integrated
environment of products, services, methodology and partnerships, Red Brick
helps its customers and partners improve the quality, speed and accuracy of
their business decision-making. Red Brick's leading expertise and innovative,
server-integrated technology deliver scalable decision support solutions for
data warehousing, data marts, OLAP and data mining.
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). Factors that could cause
actual events or results to differ materially include without limitation:
Risks of Delays in Customer Orders and Employee Attrition resulting from the
announcement and pendency of the proposed acquisition of the Company by
Informix Corporation; Increased Competition within the Data Warehousing
Industry; Repositioning the Company towards Solutions and Applications; Newly
Announced Changes in Management Personnel; Dependence on New Products and
Rapid Technological Change; Feasibility of In-Process Technology; Dependence
upon Key Personnel; Dependence on Continued Growth of the Data Warehouse
Market; and other factors discussed in the "Risk Factors" sections of the most
recent Annual Report filed with the SEC on Form 10-K for the year ended
December 31, 1997 and the most recent Form 10-Q for the quarter ended
June 30, 1998.
News releases and corporate background information may also be retrieved
by fax. For an index of available materials, please call 800-758-5804, and
enter PIN #105756.
NOTE: Red Brick, the Red Brick logo and The Data Warehouse Company are
registered trademarks, Red Brick Formation is a trademark and Red Brick
DecisionScape is a service mark and trademark 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 Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Software license $4,229 $8,143 $12,196 $19,189
Maintenance
and service 4,154 3,546 13,296 9,434
Total revenues 8,383 11,689 25,492 28,623
Cost of revenues:
Software license 710 449 1,457 1,139
Maintenance
and service 2,534 2,210 7,616 6,164
Total cost
of revenues 3,244 2,659 9,073 7,303
Gross margin 5,139 9,030 16,419 21,320
Operating expenses:
Sales and marketing 6,408 5,772 19,418 19,813
Research and
development 2,887 2,354 9,503 7,130
General and
administrative 1,022 863 3,104 3,019
In-process
technology -- 10,984 -- 10,984
Total operating
expenses 10,317 19,973 32,025 40,946
Loss from
operations (5,178) (10,943) (15,606) (19,626)
Interest and
other income, net 284 437 992 1,398
Loss before provision
for income taxes and
minority interest (4,894) (10,506) (14,614) (18,228)
Provision for
income taxes 123 100 413 305
Loss before
minority interest (5,017) (10,606) (15,027) (18,533)
Minority interest -- 64 -- 96
Net loss $(5,017) $(10,542) $(15,027) $(18,437)
Basic loss per share $(0.40) $(0.90) $(1.20) $(1.61)
Diluted loss per
share $(0.40) $(0.90) $(1.20) $(1.61)
Shares used to
compute basic loss
per share 12,541 11,719 12,473 11,463
Shares used to compute
diluted loss
per share 12,541 11,719 12,473 11,463
RED BRICK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
1998 1997
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $7,357 $12,358
Short-term investments 9,775 14,551
Accounts receivable, net 6,796 12,291
Prepaid expenses and
other current assets 1,238 955
Total current assets 25,166 40,155
Property and equipment, net 3,734 2,677
Intangible assets, net 224 361
Deposits and other assets 399 372
Total assets $29,523 $43,565
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $353 $518
Accrued expenses 3,261 3,719
Accrued compensation 2,343 2,031
Deferred revenue 6,895 7,370
Capital lease obligations
due within one year 53 385
Total current liabilities 12,905 14,023
Capital lease obligations 131 60
Commitments and contingencies
Total stockholders' equity 16,487 29,482
Total liabilities
and stockholders' equity $29,523 $43,565
SOURCE Red Brick Systems, Inc.
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http://www.redbrick.com
Company News On-Call:
http://www.prnewswire.com/comp/105756.html or fax,
800-758-5804, ext. 105756
CONTACT:
investors, Rebecca Kreps, 408-399-7824, or
rkreps@redbrick.com, or media, Carolyn Hughes, 408-399-7216, or
chughes@redbrick.com, both of Red Brick Systems, Inc.
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