<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d) of the
----- Securities Exchange Act of 1934 for the quarterly period ended
March 31, 1998.
Transition Report Pursuant to Section 13 or 15(d) of the
----- Securities Exchange Act of 1934 for the transition period from
_____ to _____.
Commission File Number: 0-27468
ULTRADATA CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 94-2746681
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
5000 Franklin Drive, Pleasanton, CA 94588-3031
(Address of principal executive officers) (Zip Code)
Registrant's telephone number, including area code:
925/463-8356
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
As of May 1, 1998, Registrant had outstanding 7,676,332 shares of Common Stock,
$.001 par value.
================================================================================
<PAGE>
ULTRADATA CORPORATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART 1 FINANCIAL INFORMATION
ITEM 1 - Financial Statements
Condensed Balance Sheets as of March 31, 1998 and
December 31, 1997 3
Condensed Statements of Operations for the Three Months
Ended March 31, 1998 and 1997 4
Condensed Statements of Cash Flows for the Three Months
Ended March 31, 1998 and 1997 5
Notes to Condensed Financial Statements 6
ITEM 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION
ITEM 6 - Exhibits and Report on Form 8-K 13
SIGNATURES 14
</TABLE>
<PAGE>
ULTRADATA CORPORATION
BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
Assets 1998 1997
------ --------------- ---------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and equivalents $ 1,159 $ 486
Short-term investments --- 303
Restricted cash 486 536
Trade accounts receivable, net 3,476 4,057
Unbilled revenues 2,620 2,330
Inventories 750 815
Prepaid expenses and other current assets 805 456
Income taxes receivable 29 53
----------------- -----------------
Total current assets 9,325 9,036
Property and equipment, net 4,280 4,533
----------------- -----------------
Total assets $13,605 $13,569
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Bank borrowings and current portion of debt $ 624 $ 663
Accounts payable 2,451 2,284
Accrued expenses 1,233 1,239
Deferred revenue and customer advances 1,773 1,852
----------------- -----------------
Total current liabilities 6,081 6,038
Deferred revenue and customer advances 994 1,113
Debt, excluding current portion 91 120
----------------- -----------------
Total liabilities 7,166 7,271
----------------- -----------------
Stockholders' equity:
Preferred stock; par value $.001; 2,000,000 shares authorized; none
outstanding --- ---
Common stock; par value $.001; 23,000,000 shares authorized; 7,652,597
and 7,607,133 shares issued and outstanding in 1998 and 1997,
respectively 8 8
Additional paid in capital 15,303 15,202
Accumulated deficit (8,872) (8,912)
----------------- -----------------
Total stockholders' equity 6,439 6,298
----------------- -----------------
Total liabilities and stockholders equity $13,605 $13,569
================= =================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ULTRADATA CORPORATION
Statements of Operations
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-------------------------- -----------------------
1998 1997
-------------------------- -----------------------
<S> <C> <C>
Revenues:
Software $2,522 $ 1,039
Maintenance 2,705 2,536
Services and other 1,047 1,306
-------------------------- -----------------------
Subtotal 6,274 4,881
Hardware 988 1,630
-------------------------- -----------------------
Total revenues 7,262 6,511
-------------------------- -----------------------
Cost of revenues:
Software 231 252
Maintenance 1,649 1,617
Services and other 983 1,192
Hardware 873 1,231
-------------------------- -----------------------
Total cost of revenues 3,736 4,292
-------------------------- -----------------------
Gross margin 3,526 2,219
-------------------------- -----------------------
Operating expenses:
Product development 1,195 1,392
Selling, general and administrative 2,298 3,823
-------------------------- -----------------------
Total operating expenses 3,493 5,215
-------------------------- -----------------------
Operating income (loss) 33 (2,996)
Interest income, net --- 4
Other income 7 16
-------------------------- -----------------------
Net income (loss) $ 40 $(2,976)
========================== =======================
Earnings (loss) per share information:
- -------------------------------------
Basic net income (loss) per share $0.01 $(0.39)
Diluted net income (loss) per share 0.01 (0.39)
Shares used to compute basic net income
(loss) per share 7,637 7,559
Shares used to compute diluted net income
(loss) per share 7,705 7,559
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ULTRADATA CORPORATION
Statements of Cash Flows
In thousands
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------------------------------
1998 1997
-------------------- --------------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 40 $(2,976)
Adjustments to reconcile net income (loss) to net cash
provided by (used for) operating activities:
Depreciation and amortization 515 309
Equity in earnings of unconsolidated subsidiary --- (16)
Changes in operating assets and liabilities:
Trade accounts receivable, net 581 3,017
Unbilled revenues (290) 702
Inventories 65 (76)
Prepaid expenses and other current assets (349) 99
Income taxes receivable 24 120
Accounts payable 167 (1,304)
Accrued expenses (6) 339
Deferred revenue and customer advances (198) (724)
-------------------- --------------------
Net cash provided by (used for) operating activities 549 (510)
-------------------- --------------------
Cash flows from investing activities:
Capital expenditures (262) (956)
Purchase of short-term investments --- (105)
Sale of short-term investments 303 369
-------------------- --------------------
Net cash provided by (used for) investing activities 41 (692)
-------------------- --------------------
Cash flows from financing activities:
Bank borrowings -- 294
Repayment of debt (18) (12)
Net proceeds from issuance of common stock 101 174
-------------------- --------------------
Net cash provided by financing activities 83 456
-------------------- --------------------
Net increase (decrease) in cash and equivalents 673 (746)
Cash and equivalents at beginning of period 486 1,583
-------------------- --------------------
Cash and equivalents at end of period $1,159 $ 837
==================== ====================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ULTRADATA CORPORATION
Notes to Financial Statements
March 31, 1998 and 1997
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with the rules and regulations of the Securities and Exchange Commission for
interim financial statements and therefore certain information and footnote
disclosures normally contained in annual financial statements have been
condensed or omitted. These financial statements should be read in conjunction
with the audited financial statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1997.
The accompanying unaudited financial statements of the Company reflect all
adjustments, consisting solely of adjustments of a normal recurring nature
which are, in the opinion of management, necessary to fairly present the
financial position as of March 31, 1998 and the results of operations and cash
flows for the interim periods presented. The results for the interim period
ended March 31, 1998 are not necessarily indicative of the results to be
expected for the entire year.
2. REVENUE RECOGNITION
The Company recognizes revenues from licenses of computer software provided that
a noncancelable license agreement has been signed, the software and related
documentation have been shipped, there are no material uncertainties regarding
customer acceptance, collection of the resulting receivable is deemed probable,
and no other significant vendor obligations exist. Maintenance revenues are
deferred and recognized over the related contract period, generally three months
to five years. Services and other revenues generated from professional
consulting and training services and software customization services are
recognized as the services are performed. Hardware revenues are recognized upon
shipment.
Effective January 1, 1998, the Company adopted Statement of Position ("SOP")
97-2 "Software Revenue Recognition," ("SOP 97-2") and SOP 98-4 "Deferral of the
Effective Date of a Provision of SOP 97-2, Software Revenue Recognition" ("SOP
98-4") which were issued October 27, 1997 and March 31, 1998, respectively, and
supersede SOP 91-1. These SOP's address revenue recognition from a conceptual
level and do not specifically address implementation guidance. These SOP's did
not have a material impact on the Company's results for the first quarter of
1998. The Company believes, based on its reading and interpretation of these
SOP's, that these statements may result in a deferral of future revenue
recognition, but the Company feels that any impact of this statement will be
reduced by its anticipated changes to its business practices relative to its
direct sale and service of hardware. These SOP's are complex issues that must
be integrated into the Company's current and future business practices. The
final implementation of this statement may differ from the Company's current
interpretation with respect to the impact of future earnings.
3. INVENTORIES
Inventories consist of hardware and software purchased from third parties
pending shipment to customers recorded at the lower of cost or market.
4. COMPUTATION OF EARNINGS (LOSS) PER SHARE (IN THOUSANDS EXCEPT PER SHARE
DATA)
On December 31, 1997, the Company adopted SFAS No. 128, Earnings Per Share
("SFAS No. 128"). In accordance with SFAS No. 128, basic earnings per share is
computed using the weighted average number of common shares outstanding during
the period. Diluted earnings per share is computed using the weighted
<PAGE>
average number of common and dilutive common equivalent shares outstanding
during the period, using the treasury stock method for options. The following is
a reconciliation of the numerator and denominator in the computation of diluted
earnings per share:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------------------------------
1998 1997
--------------- --------------
<S> <C> <C>
Net income (loss) $ 40 $ (2,976)
=============== ==============
Weighted average outstanding shares 7,637 7,559
Common Stock Equivalents (CSE) 68 ---
--------------- --------------
7,705 7,559
=============== ==============
Shares used to compute diluted net
income (loss) per share $ 0.01 $ (0.39)
=============== ==============
Antidilutive CSE excluded 1,081 1,876
=============== ==============
</TABLE>
5. RECENT ACCOUNTING PRONOUNCEMENTS
Effective January 1, 1998, the Company adopted Financial Accounting Standards
Board Statement No. 130, "Reporting Comprehensive Income" ("SFAS 130"). During
the periods presented, the Company had no changes in equity from transactions or
other events and circumstances from non-owner sources. Accordingly, a statement
of comprehensive income has not been provided as comprehensive loss applicable
to common shareholders equals net loss applicable to common shareholders for all
periods presented.
The FASB also recently issued SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information" ("SFAS No. 131"). SFAS No. 131 establishes
standards for the way public business enterprises are to report information
about operating segments in annual financial statements and requires those
enterprises to report selected information about operating segments in interim
financial reports. SFAS No. 131 is effective for the Company beginning in 1998.
The Company has determined that it does not have any separately reportable
business segments.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This Management's Discussion and Analysis of Financial Condition and Results of
Operations includes a number of forward-looking statements which reflect the
Company's current views with respect to future events and financial performance.
These forward-looking statements are subject to certain risks and uncertainties,
including those discussed below and in the other reports filed with the
Securities and Exchange Commission, that could cause results to differ
materially from historical results or those anticipated. In this Report, the
words "expects", "anticipates", "believes" and similar expressions identify
forward-looking statements, which speak only as of the date hereof.
OVERVIEW
The Company provides information management software and solutions for
relationship-oriented financial institutions. These solutions allow the
Company's customers to provide, among other things, financial services such as
checking, savings and investment accounts, home banking, credit and debit cards,
ATM access and consumer lending. The Company's products are primarily targeted
at large and mid-sized credit unions who want to operate their system in-house.
For smaller credit unions, the Company works through value-added resellers
("VARs") to provide the Company's products. Combining the in-house
installations with services provided by the Company's VARs, the approximately
425 credit unions using the Company's software represent over 5.6 million
members and $30.0 billion in assets.
The Company derives its revenues primarily from software license fees, service
fees including items such as training and installation, custom development and
disaster recovery, and maintenance fees. A significant portion of the Company's
revenues are derived from contracts with organizations that have long decision-
making cycles, typically from six to twelve months. The decision to purchase the
Company's products is followed by an installation and training cycle which is
labor-intensive and generally requires at least four months to complete. Each
new customer system consists of the Company's ULTRAFIS product and selected
information management applications, services and hardware.
RESULTS OF OPERATIONS
REVENUES
The Company's revenues are comprised of software, customer maintenance, services
and other revenues and hardware revenues. Revenues for the three months ended
March 31, 1998 increased 12% over the same period in the prior year from $6.5
million to $7.3 million. Revenues from the Company's core business, which
excludes hardware, increased 29% from $4.9 million in the first quarter of 1997
to $6.3 million in the first quarter of 1998.
The following table sets forth the Company's revenues and gross margin and gross
margin as a percentage of revenues for the three month periods ended March 31,
1998 and 1997:
<TABLE>
<CAPTION>
Revenues Gross Margin Gross Margin
(in thousands) (in thousands) %
Three Months Ended % Three Months Ended Three Months Ended %
March 31, Increase March 31, March 31, Increase
1998 1997 (Decrease) 1998 1997 1998 1997 (Decrease)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Software 2,522 1,039 143% 2,291 787 91% 76% 15%
Maintenance 2,705 2,536 7% 1,056 919 39% 36% 3%
Services and other 1,047 1,306 (20%) 64 114 6% 9% (3%)
- -------------------------------------------------------------------------------------------------------------
Subtotal core 6,274 4,881 29% 3,411 1,820 54% 37% 17%
Hardware 988 1,630 (39%) 115 399 12% 24% (12%)
- -------------------------------------------------------------------------------------------------------------
Total revenues $7,262 $6,511 12% $3, 526 $2,219 49% 34% 15%
=============================================================================================================
</TABLE>
<PAGE>
The software revenues increase of 143% from $1.0 million in the first quarter of
1997 to $2.5 million in the first quarter of 1998 was due to increased sales of
the Company's Ultra-Access(R) products and Financial Services Platform client-
server applications as well as new account wins.
The Company's maintenance revenues are derived from quarterly, annual, and
multi-year support agreements with its customers. Maintenance revenues
increased by 7% from $2.5 million in the first quarter of 1997 to $2.7 million
in the first quarter of 1998. The increase was primarily a result of increased
new information management application modules installed during 1997 and the
first quarter of 1998.
Services and other revenues decreased by 20% from $1.3 million in the first
quarter of 1997 to $1.0 million in the first quarter of 1998. In the first
quarter of 1998, the Company experienced a relatively high number of customer
requests to delay installations of products as these customers focused on
meeting Year 2000 preparation and testing requirements. Such delays are
expected to decrease as the Company's customers satisfy their regulator-mandated
requirement to test all critical systems before year end. The revenue decline
was also attributable to decreases in training and installation activities due
to lower new system sales volumes during the last nine months. Additionally,
revenues declined due to the transfer of the Company's direct service bureau
operations in the third quarter of 1997 to Premier Systems, Incorporated,
("PSI"), the Company's largest service bureau VAR for which the Company recorded
a gain of $0.6 million in the third quarter of 1997.
In the fourth quarter of 1997, the Company entered into a relationship with Ex-
Cel Solutions, Incorporated ("ESI") to configure, sell, distribute, and provide
service for the Company's HP and IBM hardware products and operating systems.
This decision was made to allow the Company to focus on its core businesses of
software, services, and maintenance. Accordingly, hardware revenues decreased
from $1.6 million in the first quarter 1997 to $1.0 million in the first quarter
of 1998. The Company expects direct hardware revenues in 1998 to continue to
decline due to its newly formed relationship with ESI. This revenue decline,
however, is expected to be partially offset by service fees from ESI's sale of
hardware to the Company's customers.
GROSS MARGIN
Gross margin as a percentage of total revenue increased 15 percentage points
from 34% in the first quarter of 1997 to 49% in first quarter of 1998 primarily
due to increases in margin for software and maintenance revenues. Software
gross margin as a percentage of software revenue increased 15 percentage points
due to a lower proportion of sales of software purchased and licensed from third
parties.
Gross margin percentage from maintenance revenues increased by 3 percentage
points from 36% in the first quarter of 1997 to 39% in the first quarter of
1998. The increase was primarily due to increases in the number of new systems
and additional information management application modules installed during 1997
and the first quarter of 1998 resulting in lower overhead costs as a percent of
revenue.
Gross margin percentage from services and other revenues decreased by 3
percentage points from 9% in the first quarter of 1997 to 6% in the first
quarter of 1998 primarily due to delays in installations as customers focused on
meeting Year 2000 preparation and testing requirements as well as a decline in
new system installations in the first quarter of 1998 compared to the first
quarter of 1997. The Company anticipates that such delays will decrease as the
Company's customers satisfy their regulator-mandated requirements to test all
critical systems before year end.
Hardware gross margin as a percentage of hardware revenues decreased 12
percentage points to 12% for the first quarter of 1998 from 24% for the first
quarter of 1997. The Company has entered into a relationship with ESI to sell
and configure hardware in order to focus on the Company's core businesses. The
Company expects direct hardware revenue in 1998 to continue to decline, and does
not expect to have any appreciable sales or margin from hardware by the end of
1998. This revenue decline, however, is expected to be partially offset by
revenues received from ESI.
<PAGE>
OPERATING EXPENSES
<TABLE>
<CAPTION>
Three Months Increase As a
Ended (Decrease) percent of
March 31, Revenue
- ---------------------------------------------------------------------------------------------------------------
1998 1997 $ % 1998 1997
<S> <C> <C> <C> <C> <C> <C>
Operating expenses
Product development $ 1,195 $ 1,392 $ (197) (14%) 16% 21%
Selling, general and 2,298 3,823 (1,525) (40%) 32% 59%
administrative
- ---------------------------------------------------------------------------------------------------------------
$3,493 $5,215 $(1,722) (33)% 48% 80%
===============================================================================================================
</TABLE>
Product development expenses decreased from $1.4 million in the first quarter of
1997 to $1.2 million in the first quarter of 1998. The decrease in total dollar
spending was primarily the result of a transfer of personnel to customer
services to focus the Company on client-server product lines, product
standardization and customer support, the reduction in the number of consultants
used in product development, and a reduction in other product development
overhead expenses.
Selling, general and administrative expenses decreased from $3.8 million in
first quarter 1997 to $2.3 million in first quarter 1998 corresponding to a
decline as a percentage of total revenues from 59% to 32%, respectivley. The
decrease was primarily due to significant reductions in overhead expenses,
including consolidation of the Company's headquarters from two buildings to one
as well as other general cost reductions.
CERTAIN FACTORS AFFECTING FUTURE OPERATING RESULTS
The Company's future operating results will depend upon conditions in its market
that may affect demand for its products and its ability to enhance its existing
products and introduce new products on a timely basis. The Company must also
manage growth and change effectively as failure to do so could materially and
adversely affect its business and operating results.
Installation of the Company's ULTRAFIS system is a complex process that must
typically be done without any disruption of the customer's service. Failure by
the Company to successfully install an ULTRAFIS system could result in
significant loss of revenue in a particular quarter and fluctuation in the
Company's results of operations. Although the Company schedules the
installations of its products several months in advance, its ability to achieve
its revenue plans, both in the near term and in the long term, depends on the
Company's continued ability to sign new customer contracts and to complete such
contracts on schedule. Failure to close new customer contracts as a result of
lost sales or deferrals of customer decisions could have a material adverse
impact on the future operating results. There can be no assurance that sales or
installations will continue to occur at historical rates or in accordance with
the Company's expectations. Because the Company's operating expenses are based
on anticipated revenue levels and a high percentage of the Company's expenses
are relatively fixed, a small variation in the timing of the recognition of
specific revenues could cause significant variations in operating results from
quarter to quarter.
The Company's quarterly and annual revenues and operating results have varied
significantly in the past, and may continue to do so in the future. Operating
results may fluctuate due to factors such as the demand for the Company's
products, the introduction and acceptance of new products and product
enhancements by the Company or its competitors, changes in the levels of
operating expenses, customer order deferrals in anticipation of new products,
competitive conditions in the credit union and financial services markets and
economic conditions generally or in various industry segments. In addition, a
significant portion of the Company's business has been derived from substantial
contracts with large organizations with long decision-making cycles, and the
timing of such orders has caused material fluctuations in the Company's
<PAGE>
operating results. The Company's expense levels are based in part on its
expectations regarding future revenues and in the short term are fixed to a
large extent. Therefore, the Company may be unable to adjust spending in a
timely manner to compensate for any unexpected revenue shortfall. As a result,
if anticipated revenues do not occur or are delayed, the Company's operating
results would be disproportionately affected. The Company expects quarterly and
annual fluctuations to continue for the foreseeable future. Accordingly, the
Company believes that period-to-period comparisons of its financial results
should not be relied upon as an indication of future performance.
On February 25, 1998, the United States Supreme Court affirmed a ruling by a
United States District Court providing that federal credit unions may not extend
membership benefits to individuals who are not part of the credit union's
original charter group. This ruling imposes limits on new customers that a
federal credit union may attract. As a result, some federal credit unions have
expressed a reluctance to pursue extensive capital purchases until the impact of
the ruling is further assessed. While federal credit unions represent
approximately 60% of all credit unions, less than half of these credit unions
are affected by this ruling. The interpretation of this ruling could have a
material adverse affect upon the Company's business, financial condition and
results of operations. Since this Supreme Court ruling, there has been
significant congressional legislative activity. The Company is monitoring this
activity to determine the impact on its current and future business.
YEAR 2000 DISCLOSURE
Many software computer programs in the industry rely on an internal date format
using two-digit data programs to perform computation and decision-making
functions that may cause computer systems generally to malfunction with respect
to dates beginning with the Year 2000. The Company uses an internal date format
that has never relied on two-digit data programs and which was upgraded and made
available to the Company's customers in August 1994. The Company believes that
date entry will not be a material issue either with the Company's core ULTRAFIS
transaction processing engine or the Company's own information management
applications.
On April 15, 1998, the Information Technology Association of America ("ITAA")
announced that the Company had achieved ITAA*2000 certification. ITAA is a trade
association dealing with Year 2000 software conversion in the information
technology industry.
ITAA*2000 is the ITAA's century date change certification program. The
ITAA*2000 Certification Program provides information technology companies with
the opportunity to have a neutral, objective third-party evaluation of their
Year 2000 processes and methods.
The Company is currently evaluating Year 2000 compliance issues with third party
hardware and software products and support providers. The Company has determined
that some of the third party products it has previously marketed are not Year
2000 compliant. The Company is working with such third party product providers
to identify alternatives that may lead to third party product compliance. In
addition, the Company has communicated the status of these compliance issues to
its customers and is working on making alternatives available to its customers
as appropriate. Because the Company's customers depend on some of the products
from these third party providers, both the Company and its customers may be
adversely impacted depending upon the ability of such third party providers to
comply with Year 2000 requirements.
LIQUIDITY AND CAPITAL RESOURCES
The Company's management believes current cash, cash equivalents and short-term
investments and expected cash generated from operations will satisfy its
expected working capital and capital expenditure requirements for the
foreseeable future.
<PAGE>
The Company has a factoring agreement and a capital equipment facility. The
factoring agreement provides for a 0.5% administrative fee for each receivable
purchased and a 1.75% monthly finance charge for as long as each purchased
receivable remains outstanding. The factoring agreement renews, unless
terminated by the Company or the bank, in April 1999. As of March 31, 1998, the
Company has not utilized the factoring agreement. As of March 31, 1998 the
outstanding balance on the capital equipment facility was $486,000. The capital
equipment facility bears interest at prime plus 0.25%. No further draws are
available and the Company established cash collateral for the capital equipment
facility balance. The Company is paying off this balance and reducing the cash
collateral in monthly installments of $17,000. Borrowings under the factoring
agreement and capital equipment facility are secured by all tangible and
intangible assets of the Company.
Capital expenditures of $0.3 million during the first quarter of 1998 were
primarily for computer and telephone equipment.
Net cash provided by operations was $0.5 million for the quarter ended March
31, 1998, including a $40,000 net income for the first quarter of 1998. For the
quarter ended March 31, 1997, net cash used for operations was $0.5 million.
Trade accounts receivable decreased $0.6 million from $4.1 million to $3.5
million. This decline can be partially attributable to the improvement in the
Company's product release cycle and installation procedures throughout 1997 and
1998.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) There have been no reports filed on Form 8-K during the quarter ended
March 31, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, ULTRADATA
Corporation has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ULTRADATA CORPORATION
Date May 15, 1998 By /s/ Robert J. Majteles
---------------- -------------------------
Robert J. Majteles
President and Chief Executive Officer
By /s/ Ronald H. Bissinger
--------------------------
Ronald H. Bissinger
Chief Financial Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from financial
statements for the quarter ended March 31, 1998 and is qualified in its entirety
as reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,159
<SECURITIES> 486
<RECEIVABLES> 6,781
<ALLOWANCES> (685)
<INVENTORY> 750
<CURRENT-ASSETS> 9,325
<PP&E> 8,331
<DEPRECIATION> (4,051)
<TOTAL-ASSETS> 13,605
<CURRENT-LIABILITIES> 6,081
<BONDS> 0
0
0
<COMMON> 8
<OTHER-SE> 6,431
<TOTAL-LIABILITY-AND-EQUITY> 13,605
<SALES> 7,262
<TOTAL-REVENUES> 7,262
<CGS> 3,736
<TOTAL-COSTS> 3,736
<OTHER-EXPENSES> 3,493
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 40
<INCOME-TAX> 0
<INCOME-CONTINUING> 40
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
