LOS GATOS, Calif., July 15 /PRNewswire/ -- Red Brick(R) Systems, Inc.
(Nasdaq: REDB), The Data Warehouse Company(TM), today reported operating
results for the second quarter ended June 30, 1997.
Total second-quarter 1997 revenues were $10.4 million, an increase of
30 percent from $8.0 million in second-quarter of 1996. Total revenues for
the first six months of 1997 were $16.9 million, an increase of 16 percent
from $14.5 million in the year-earlier period.
Operating loss was $2.0 million for second-quarter 1997, down from an
operating income of $0.7 million in second-quarter 1996. Six-month operating
loss was $8.7 million, down from operating income of $0.6 million for the same
period in 1996.
Net loss for second-quarter 1997 was $1.5 million, or 13 cents per share,
versus net income of $0.7 million, or 5 cents per share, in second-quarter
1996. Six-month net loss was $7.9 million, or 69 cents per share, compared to
net income of $1.1 million, or 9 cents per share, for the same period last
year. (These second-quarter and six-month 1996 net income and operating
income figures exclude a one-time engineering charge of $500,000, or 4 cents
per share, in the second quarter of 1996 for licensing of selected
technology.)
In the second quarter of 1997, Red Brick's software license revenues were
$7.4 million, or 71 percent of total revenues, and maintenance and service
revenues were $3.0 million, or 29 percent of total revenues.
Red Brick's gross margin in the second quarter was 77 percent.
"The improved growth in our revenues reflects our progress on
transitioning to a sales- and market-driven company which provides industry
leading technology. These long-term growth plans require continued
investments, which, although anticipated, affected our net income," said
Christopher G. Erickson, chairman of the board, president and chief executive
officer of Red Brick. "Further evidence of our progress are the strategic
addition to our senior executive team of Anthony W. Layzell, who joins us as
our new vice president of marketing; our enhanced relationships with two
industry leaders, BMC Software and Cognos; the exciting growth of our channel
resellers; and an impressive list of both new and returning customers."
Operating expenses in the second quarter of 1997 were $10.0 million.
Sales and marketing expenses accounted for $6.8 million, or 65 percent of
total revenues. Research and development expenses accounted for $2.1 million,
or 20 percent of total revenues. General and administrative expenses
accounted for $1.2 million, or 11 percent of total revenues.
On Red Brick's balance sheet, cash, cash equivalents and short-term
investments were $39.3 million at June 30, 1997. Working capital was
$33.7 million, and total stockholders' equity, or net book value, was
$36.7 million, or $3.19 per share at June 30, 1997.
Total weighted shares of common and common equivalent stock were
approximately 11.5 million in the second quarter of 1997, compared with
approximately 12.9 million in the same period last year.
Recent and Quarterly Developments
In a separate announcement, Anthony W. Layzell, 55, has joined the senior
executive team as vice president of marketing, reporting to Erickson. Layzell
brings more than 25 year of strategic assessment and execution of
results-oriented programs in the software, computer, computer-related and
healthcare industries. Prior to joining Red Brick, he was executive director
at Andersen Consulting, where he developed and successfully implemented
leading software product programs for their "Foundation" business unit. His
background also includes senior management positions at James Martin
Associates, (now a subsidiary of Texas Instruments) Philips North America, and
G.E. U.S.A.
In addition to its financial performance, Red Brick achieved a number of
important milestones during the second quarter of 1997:
* Added major new accounts including American Express Travel Related
Services Company, Inc., City National Bank, Covenant Health, Diners Club
International, Health Plan, Korean Air, Marsh Supermarkets, Metapath Software
Corporation, Metz Baking Company, Next Action Technology, Nielsen Media
Research, Rapp Collins Worldwide, Safeskin Corporation and Sharp Electronics
Corporation.
* Demonstrated the industry's first and only aggregate-aware relational
database through technology code-named "Vista" that dramatically
improves query performance.
* Announced TARGETjoin(TM), the industry's first parallel bit-map star
join technology, another impressive Red Brick advancement in accelerating
decision support query performance.
* Announced a development and reseller agreement with BMC Software, Inc.
to produce and exclusively license SQL-BackTrack for Red Brick Warehouse, an
industry-leading, automated, high-performance database-aware backup and
recovery product custom-built for Red Brick Warehouse.
* Added Cognos, a leading provider of business intelligence software, to
its industry-leading PaVER(TM) Gold partner program.
About the Company
Red Brick Systems, Inc., based in Los Gatos, Calif., is a leading provider
of high-performance relational database products for data warehousing. Its
flagship product, Red Brick Warehouse 5.0, 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 customers are
successful because the company's high-performance products and service
enable more users to analyze more data and make better decisions faster.
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 on Form 10-K filed with the SEC on
March 17, 1997 and the Quarterly Report on Form 10-Q filed with the SEC on May
13, 1997. These documents contain and identify important factors that could
cause the actual results to differ materially from those contained herein.
RED BRICK SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Software license $7,401 $6,461 $11,046 $11,746
Maintenance and service 3,010 1,569 5,888 2,798
Total revenues 10,411 8,030 16,934 14,544
Cost of revenues:
Software license 308 198 690 462
Maintenance and service 2,115 603 3,954 1,060
Total cost of revenues 2,423 801 4,644 1,522
Gross margin 7,988 7,229 12,290 13,022
Operating expenses:
Sales and marketing 6,765 4,711 14,041 8,208
Research and development 2,065 1,423 4,776 2,928
General and administrative 1,176 742 2,156 1,301
In-process technology
license -- 500 -- 500
Total operating expenses 10,006 7,376 20,973 12,937
Income from operations (2,018) (147) (8,683) 85
Interest and other income 521 445 1,027 764
Interest expense (26) (84) (66) (153)
Income before provision for
income taxes (1,523) 214 (7,722) 696
Provision for income taxes 105 22 205 70
Income (loss) before
minority interest (1,628) 192 (7,927) 626
Minority interest 95 -- 32 --
Net income $(1,533) $192 $(7,895) $626
Net income per share $(0.13) $0.01 $(0.69) $0.05
Shares used to compute
net income per share 11,493 12,881 11,463 12,567
RED BRICK SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
1997 1996
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $22,017 $14,552
Short-term investments 17,330 20,599
Total cash, cash
equivalents, and
short-term investments 39,347 35,151
Accounts receivable, net 6,773 13,106
Prepaid expenses and
other current assets 1,050 1,213
Deferred tax assets 850 850
Total current assets 48,020 50,320
Property and equipment, net 2,805 2,693
Deposits and other assets 278 205
Deferred tax asset 150 150
Total assets $51,253 $53,368
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $437 $316
Accrued expenses 4,409 2,565
Accrued compensation 2,459 2,191
Deferred revenue 6,479 4,180
Capital lease obligations
due within one year 573 760
Total current liabilities 14,357 10,012
Capital lease obligations 191 396
Minority interest 2 36
Stockholders' equity 36,778 43,032
Notes receivable from
stockholders (75) (108)
Total stockholders' equity 36,703 42,924
Total liabilities and
stockholders' equity $51,253 $53,368
NOTE: Red Brick and Red Brick logo are registered trademarks, and The
Data Warehouse Company, PaVER Gold and Performance is Everything are
trademarks, of Red Brick Systems, Inc. All other trademarks and registered
trademarks are the property of their respective holders.
SOURCE Red Brick Systems Inc.
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CONTACT:
Robert C. Hausmann, Vice President & Chief
Financial Officer, 408-399-3200, or Rebecca E. Kreps, Investor
Relations Manager, 408-399-7824, or rkreps@redbrick.com, both of
Red Brick
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