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Rule 424(b)(3)
Registration No. 333-22833
GREAT PLAINS SOFTWARE, INC.
Supplement No. 1 to Prospectus Dated June 19, 1997
The date of this Supplement No. 1 is July 10, 1997
On July 10, 1997, Great Plains Software, Inc. issued the attached press
release relating to its results of operations for the fiscal quarter and year
ended May 31, 1997.
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FOR EDITORIAL INFORMATION: FOR FINANCIAL INFORMATION:
KIM ALBRECHT TAMI RELLER
PUBLIC RELATIONS MANAGER DIRECTOR OF FINANCE & INVESTOR RELATIONS
701/281-3735, [email protected] 701/281-6762, [email protected]
FOR IMMEDIATE RELEASE
GREAT PLAINS SOFTWARE REPORTS FINANCIAL RESULTS
FOR THE FOURTH QUARTER AND YEAR
FARGO, ND, JULY 10, 1997 -- Great Plains Software, Inc. (NASDAQ: GPSI), a
leading provider of Microsoft -Registered Trademark-Windows NT-Registered
Trademark- client/server financial management software for the midmarket,
announced today financial results for the quarter and fiscal year ended May
31, 1997.
Great Plains Software's fourth quarter revenues were up 35% over the same
period last fiscal year. Revenues for the quarter were $17.7 million compared
to $13.1 million in the fourth quarter of fiscal 1996. Operating income for
the fourth quarter of fiscal 1997 was $2.4 million, an 82% increase over the
fourth quarter of fiscal 1996. Earnings per share for the fourth quarter of
fiscal 1997 were 16 cents per share. Revenues for the fiscal year ended May
31, 1997, were $57.1 million compared to $42.3 million for the fiscal year
ended May 31, 1996, a 35% increase. Earnings per share for fiscal 1997 were
36 cents per share.
Revenues from Great Plains' Windows NT -Registered Trademark- client/server
financial management solutions -- Dynamics and Dynamics C/S+ -- accounted for
$12.7 million in revenues during the fourth quarter of fiscal 1997 compared
to $9.5 million in revenues for the same quarter of the prior fiscal year, an
increase of 34%. This increase is less than in previous year-to-year quarter
comparisons for fiscal 1997 due to strong client/server revenues in the
fourth quarter of fiscal 1996 as a result of the release of the Microsoft
- -Registered Trademark- SQL Server -TM- edition of Dynamics C/S+ in that
period.
Client/server revenues for the fiscal year ended May 31, 1997, were up 71%
over the previous fiscal year. Revenues generated from the Company's
client/server financial management solutions totaled $44.2 million in fiscal
1997 compared to $25.9 million for fiscal 1996.
Great Plains Software's heritage business, its DOS and Macintosh products,
accounted for $5.0 million in revenues in the fourth quarter of fiscal 1997
compared to $3.6 million for the same quarter of the prior fiscal year, an
increase of 38%. This increase in Great Plains' heritage business was a
result of the strong response to the Version 9.0 upgrade to the Company's DOS
solution in the fourth quarter of fiscal 1997. As expected, heritage revenues
declined 21% year over year to $12.9 million from $16.4 million for the
fiscal years ending May 31, 1997 and 1996, respectively.
-more-
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GREAT PLAINS SOFTWARE ANNOUNCES Q4 AND YEAR-END FINANCIALS
JULY 10, 1997
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Operating income for the fourth quarter was up 82% over the same period last
fiscal year. Operating income for the fourth quarter was $2.4 million as
compared to $1.3 million for the fourth quarter of fiscal 1996. Operating
margin for the fourth quarter of fiscal 1997 was 14%, an improvement over an
operating margin of 10% in the fourth quarter of fiscal 1996. Operating
income for the fiscal year ended May 31, 1997, was $5.3 million, a 62%
increase over the $3.3 million in operating income for the fiscal year ended
May 31, 1996.
Net income for the fourth quarter fiscal 1997 was $1.6 million resulting in
net income per share of 16 cents. As a result of a one-time non-recurring
income tax benefit of $4.1 million, net income for the fourth quarter of
fiscal 1996 was $5.5 million. Without this one-time income tax benefit and on
a fully taxed basis, net income for the fourth quarter of fiscal 1996 would
have been $.84 million. For the fiscal year ended May 31, 1997, net income
and net income per share were $3.6 million, and 36 cents per share,
respectively.
On June 25, 1997, the Company completed an initial public offering of
3,450,000 shares of common stock, which resulted in net proceeds to the
Company of approximately $50 million. In addition, effective with the
initial public offering, the mandatorily redeemable convertible preferred
stock was converted to common stock.
Great Plains Software, Inc. (NASDAQ: GPSI) is a leading provider of Microsoft
- -Registered Trademark- Windows NT -Registered Trademark- client/server
financial management software for the midmarket. The Company's award-winning
products and services automate essential accounting functions and enhance the
strategic value of financial information. The Company's products and services
are sold and implemented exclusively by its extensive network of independent
sales and support organizations throughout the United States, Canada and
select international markets.
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MICROSOFT AND WINDOWS NT ARE EITHER REGISTERED TRADEMARKS OR TRADEMARKS OF
MICROSOFT CORPORATION IN THE UNITED STATES AND/OR OTHER COUNTRIES. ALL OTHER
PRODUCTS MENTIONED IN THIS RELEASE ARE REGISTERED TRADEMARKS OR TRADEMARKS OF
THEIR RESPECTIVE HOLDERS.
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GREAT PLAINS SOFTWARE ANNOUNCES Q4 AND YEAR-END FINANCIALS
JULY 10, 1997
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GREAT PLAINS SOFTWARE, INC.
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Three Months Ended Year Ended Year Ended
May 31, 1997 May 31, 1996 May 31, 1997 May 31, 1996
<S> <C> <C> <C> <C>
Revenues:
License fees $11,562 $9,286 $35,919 $27,078
Services 6,106 3,777 21,202 15,193
Total revenues 17,668 13,063 57,121 42,271
Cost of revenues:
License fees 1,810 1,895 6,362 4,913
Services 2,562 1,619 8,261 5,980
Total cost of revenues 4,372 3,514 14,623 10,893
Gross profit 13,296 9,549 42,498 31,378
Operating expenses:
Sales and marketing 6,519 4,351 21,935 14,477
Research and development 2,776 2,525 9,679 8,876
General and administrative 1,619 1,367 5,592 4,763
Total operating expenses 10,914 8,243 37,206 28,116
Operating income 2,382 1,306 5,292 3,262
Other income, net 253 52 558 100
Income before taxes 2,635 1,358 5,850 3,362
Income tax provision (benefit) 987 (4,102) 2,207 (4,099)
Net income $1,648 $5,460 $3,643 $7,461
Pro forma net income per share $0.16 $0.36
Shares used in computing
pro forma net income
per share* 10,422,250 10,003,349
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* Pro forma gives effect to the conversion of all the shares of the Company's
preferred stock to common stock upon completion of the initial public
offering and has been adjusted to give effect to a four-for-three split of
the outstanding common stock, in the form of a stock dividend, to be effective
June 19, 1997.
