Revenue Up 63 Percent; Net Income Increases 48 Percent
OTTAWA, Canada, Oct. 24 /PRNewswire/ - Fulcrum Technologies Inc. (Nasdaq:
FULCF; TSE: FUL) today released results for its third quarter and nine months
ended September 30, 1996. All financial figures are expressed in Canadian
dollars.
Revenue for the quarter was $16.7 million, a 63-percent increase over the
same period last year. Net income for the quarter was $1.2 million, or $0.08
per share, up 48 percent over the corresponding quarter a year ago. For the
nine months ended September 30, 1996, revenue was $44.2 million, an increase
of 75 percent from the same period last year, while net income rose 60 percent
to $2.8 million or $0.19 per share.
Eric Goodwin, Fulcrum's president and CEO, stated: ``In a very
competitive industry, we have again demonstrated our ability to significantly
grow both revenue and net income. More importantly, we have achieved these
financial results at the same time as we have expanded our global sales
organization and increased our commitment to new product development.
``With new customers such as Seagate Software, Banca Nazionale del Lavoro
Multiservizi, Ciba-Geigy, and Hoffmann-La Roche, and new partners such as
Investext and Applied Graphics Technologies, our revenue from product licenses
in the third quarter increased 80 percent over the same period a year ago. Our
European operations had another good quarter, bucking the trend of many
software companies. Our business in Asia is growing and we are continuing to
strengthen our North American operations.
``Finally, our commitment to developing and delivering new product is
clear with an 86-percent increase in gross R&D expenditures over the third
quarter a year ago and a 67-percent increase in our professional R&D staff,''
Goodwin concluded.
Fulcrum is a world leader in providing information search-and-retrieval
software for the extended enterprise. This software can be used on Internet
and Intranet sites, on computer networks, and on CD-ROMs. Fulcrum counts major
corporations and industry leaders Fujitsu, Microsoft, CompuServe, and Novell
among its customers. Headquartered in Ottawa, Canada, Fulcrum has offices
throughout the United States and Europe, and offices in Sydney, Australia and
Tokyo, Japan. Fulcrum is publicly traded on the NASDAQ National Market
(``FULCF'') and on the Toronto Stock Exchange (``FUL'').
Any forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that all forward-looking statements involve
risk and uncertainties, including without limitation, risks of intellectual
property litigation, risks in technology development and commercialization,
risks in product development and market acceptance of and demand for the
Company's products, risks of downturns in economic conditions generally, and
in the software application development tools and information retrieval
software tools markets specifically, risks associated with competition and
competitive pricing pressures, risks associated with foreign sales and higher
customer concentration and other risks detailed in the Company's filings with
the Securities and Exchange Commission.
Visit Fulcrum's Web site: http://www.fulcrum.com
Fulcrum Technologies Inc.
Unaudited Consolidated Statements of Operations Data
(Canadian dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
CANADIAN GAAP
Revenue:
License fees $14,233 $7,990 $35,849 $19,838
Services 2,439 2,233 8,319 5,347
-------- ------- ------- -------
Total revenue 16,672 10,223 44,168 25,185
Cost of revenue:
License fees 1,034 582 3,019 1,636
Services 1,670 1,564 4,798 3,423
-------- ------- ------- -------
Total cost of revenue 2,704 2,146 7,817 5,059
-------- ------- ------- -------
Gross profit 13,968 8,077 36,351 20,126
Operating expenses
(income):
Sales and marketing 8,602 4,600 23,116 11,424
Research and development 1,980 1,304 6,139 3,783
Investment tax credits
and government grants (375) (472) (2,296) (1,143)
General and administrative 1,703 1,332 4,764 3,231
Foreign exchange 293 107 465 216
-------- ------- ------- -------
Total operating expenses 12,203 6,871 32,188 17,511
-------- ------- ------- -------
Income from operations 1,765 1,206 4,163 2,615
Other income - 71 168 161
-------- ------- ------- -------
Income before income taxes 1,765 1,277 4,331 2,776
Income tax expense (635) (485) (1,579) (1,035)
-------- ------- ------- -------
Income before minority
interest 1,130 792 2,752 1,741
Minority interest 40 - 40 -
-------- ------- ------- -------
Net income $1,170 $792 $2,792 $1,741
-------- ------- ------- -------
-------- ------- ------- -------
Net income per share
Basic $0.08 $0.06 $0.19 $0.13
Fully diluted $0.08 $0.06 $0.19 $0.13
Weighted average number of
common shares outstanding
(000's):
Basic 15,141 13,666 15,005 13,606
Fully diluted 16,645 16,056 16,471 15,226
US GAAP
Income from operations $1,765 $1,206 $4,163 $2,615
Net income $1,170 $792 $2,792 $1,741
Net income per share -
primary $0.07 $0.05 $0.18 $0.12
Common shares outstanding
(000's) - primary 15,626 14,720 15,696 14,382
Fulcrum Technologies Inc.
Condensed Balance Sheets
(Canadian dollars in thousands)
September 30 December 31
1996 1995
------------ -----------
(unaudited)
ASSETS
Cash and cash equivalents $6,812 $22,619
Accounts receivable 23,104 15,876
Other current assets 11,434 7,832
Capital assets 8,829 5,982
Goodwill 7,079 7,752
Deferred development & acquired
software 8,579 6,516
Long-term investments 2,504 2,345
------------ -----------
$68,341 $68,922
------------ -----------
------------ -----------
LIABILITIES AND EQUITY
Accounts payable and accruals $9,171 $8,320
Deferred service revenue 2,119 2,399
Other current liabilities 1,753 7,709
Long-term obligations 1,506 1,817
Minority interest 334 -
Shareholders' equity 53,458 48,677
------------ -----------
$68,341 $68,922
------------ -----------
------------ -----------
Fulcrum is a registered trademark of Fulcrum Technologies Inc. Other
trademarks used throughout this document are trademarks of their respective
owners.
SOURCE: Fulcrum Technologies Inc.
 back to top
CONTACT:
Investor relations, Fulcrum, (613) 238-1761
ext. 230, e-mail: investors(at)fulcrum.com. Media may contact:
Gillian Brouse, Fulcrum, (613) 238-1761 ext. 251, e-mail:
pr(at)fulcrum.com; Amy Conefrey, Rourke ''&'' Co., (617)
267-0042, e-mail: aconefrey(at)rourke.com
|
