LOS GATOS, Calif., April 15 /PRNewswire/ -- Red Brick(R) Systems, Inc.
(Nasdaq: REDB), The Data Warehouse Company(TM), today reported operating
results for the first quarter ended March 31, 1997.
Total first-quarter 1997 revenues were $6.523 million versus
$6.514 million in the first quarter of 1996. Operating loss was $6.7 million
for first-quarter 1997, down from operating income of $0.2 million in
first-quarter 1996. Net loss for first-quarter 1997 was $6.4 million, or
56 cents per share, versus net income of $0.4 million, or 4 cents per share,
in first-quarter 1996.
In the first quarter of 1997, Red Brick's software license revenues were
$3.6 million, or 55.9 percent of total revenues, and maintenance and service
revenues were $2.9 million, or 44.1 percent of total revenues. Red Brick's
gross margin in the first quarter was 66.0 percent.
Operating expenses in the first quarter of 1997 were $11.0 million.
Sales and marketing accounted for $7.3 million, or 111.5 percent of total
revenues. Research and development accounted for $2.7 million, or
41.6 percent of total revenues. General and administrative accounted for
$1.0 million, or 15.0 percent of total revenues.
"These results are disappointing," said Christopher G. Erickson, chairman
of the board, president and chief executive officer of Red Brick. "We are
very confident in the fundamental strength of our business, the data warehouse
market and our position in it. We are taking aggressive and immediate
measures to address the factors that contributed to this quarter's results.
"In particular, the 'Performance is Everything(TM)' company-wide
initiative we launched earlier this year is focused directly on what users,
analysts and opinion-leaders tell us is the most critical factor for success
in data warehousing," said Erickson. "It also leverages our widely-recognized
strength as the performance leader in data warehouse databases, as well as
reinforces the requirement for a specialized, rather than 'universal,
one-size-fits-all' approach to data warehousing."
On Red Brick's balance sheet, cash, cash equivalents and short-term
investments were $39.5 million at March 31, 1997. Working capital was
$35.5 million, and total stockholders' equity, or net book value, was
$38.2 million, or $3.32 per share at March 31, 1997.
About the Company
Red Brick Systems, Inc., based in Los Gatos, Calif., is the 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.
NOTE: Red Brick and Red Brick and logo are registered trademarks, and The
Data Warehouse Company and Performance is Everything are 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 STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
Three months ended March 31,
1997 1996
Revenues:
Software license $3,645 $5,285
Maintenance and service 2,878 1,229
Total revenues 6,523 6,514
Cost of revenues:
Software license 382 264
Maintenance and service 1,839 457
Total cost of revenues 2,221 721
Gross margin 4,302 5,793
Operating expenses:
Sales and marketing 7,276 3,497
Research and development 2,711 1,505
General and administrative 980 559
Total operating expenses 10,967 5,561
Income (loss) from operations (6,665) 232
Interest and other income 506 319
Interest and other expense (40) (69)
Income (loss) before provision
for income taxes and
minority interest (6,199) 482
Provision for income taxes 100 48
Income (loss) before
minority interest (6,299) 434
Minority interest (63) --
Net income (loss) $(6,362) $434
Net income (loss) per share $(0.56) $0.04
Shares used to compute net income
(loss) per share 11,433 12,254
RED BRICK SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, Dec. 31,
1997 1996
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $23,547 $14,552
Short-term investments 15,922 20,599
Total cash, cash equivalents,
and short-term investments 39,469 35,151
Accounts receivable, net of
allowance of $986 and $958 7,723 13,106
Prepaid expenses and other
current assets 1,184 1,213
Deferred tax asset 850 850
Total current assets 49,226 50,320
Property and equipment, net 2,585 2,693
Deposits and other assets 337 205
Deferred tax asset 150 150
Total assets $52,298 $53,368
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $567 $316
Accrued expenses 3,789 2,565
Accrued compensation 1,569 2,191
Deferred revenue 7,122 4,180
Capital lease obligations
due within one year 660 760
Total current liabilities 13,707 10,012
Capital lease obligations 278 396
Minority interest 99 36
Stockholders' equity 38,214 42,924
Total liabilities and
stockholders' equity $52,298 $53,368
SOURCE Red Brick Systems Inc.
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CONTACT:
investors, Robert C. Hausmann, Vice President
& Chief Financial Officer, 408-399-3204; or media, Mark L. Olson,
Director, Corporate Marketing, 408-399-7140, or
marko@redbrick.com, both of Red Brick Systems, Inc.
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