<PAGE>
Rule 424(b)(3)
Registration No. 333-22833
GREAT PLAINS SOFTWARE, INC.
Supplement No. 3 to Prospectus Dated June 19, 1997
The date of this Supplement No. 3 is September 24, 1997
On September 24, 1997, Great Plains Software, Inc. issued the attached
press release relating to its results of operations for the fiscal quarter
ended August 31, 1997.
<PAGE>
[LOGO]
[LETTERHEAD]
FOR IMMEDIATE RELEASE
GREAT PLAINS SOFTWARE REPORTS FINANCIAL RESULTS
FOR THE FIRST QUARTER
FARGO, ND, SEPTEMBER 24, 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 fiscal quarter ending August 31,
1997.
Great Plains Software reported first quarter revenues of $16.8 million, a 52%
increase over the same period last fiscal year. Operating income for the first
quarter of fiscal 1998 was $1.8 million, up 124% over the first quarter of
fiscal 1997. Earnings per share for the first quarter of fiscal 1998 were 11
cents per share, an increase of 83% over the same period last fiscal year.
License revenues for the first quarter of fiscal 1998 were $10.4 million, up
55% over the same period last fiscal year. Service revenues for the first
quarter were $6.4 million, up 46% over the same period last fiscal year.
Revenues from the company's Windows NT-Registered Trademark- client/server
financial management solutions--Dynamics and Dynamics C/S+--accounted for
$14.1 million during the first quarter of fiscal 1998, an increase of 64%
over the same period last fiscal year. The company also announced that its
community of client/server customers grew to more than 10,000 during the
first quarter of fiscal 1998. In addition, the company reported continued
strong demand for the Great Plains Accounting Version 9 upgrade on the
heritage side of its business.
With operating income for the first fiscal quarter of $1.8 million, operating
margin was 11%, an improvement over an operating margin of 7% in the first
quarter of fiscal 1997. Net income for the first quarter of fiscal 1998 was
$1.5 million resulting in earnings per share of 11 cents, compared to net
income and earnings per share of $0.6 million and 6 cents per share in the
first quarter of fiscal 1997, a 178% increase in net income and a 83%
increase in earnings per share.
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 more than $50 million. Cash, cash equivalents and investments as
of August 31, 1997, were $68.9 million.
This release contains descriptions of the company's expectations regarding
future business trends. These forward-looking statements are made in reliance
upon safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Accordingly, actual results may differ materially from those
contemplated by the forward-looking statements.
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 are sold and implemented exclusively by
its extensive network of independent sales and support organizations
throughout the world.
# # # #
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.
[LOGO]
<PAGE>
Great Plains Software, Inc.
Condensed Consolidated Statement of Income
(In thousands, except per share amounts)
Three Months Ended Three Months Ended
August 31, 1997 August 31, 1996
------------------ ------------------
(unaudited) (unaudited)
Revenues:
License $ 10,335 $ 6,655
Service 6,439 4,413
----- -----
Total revenues 16,774 11,068
Cost of revenues:
License 1,935 1,170
Service 2,251 1,636
----- -----
Total cost of revenues 4,186 2,806
----- -----
Gross profit 12,588 8,262
Operating expenses:
Sales and marketing 6,199 4,054
Research and development 2,676 2,172
General and administrative 1,894 1,224
----- -----
Total operating expenses 10,769 7,450
------ -----
Operating income 1,819 812
Other income, net 736 83
--- --
Income before income taxes 2,555 895
Income tax provision 1,022 344
----- -----
Net income $1,533 $ 551
------ -----
------ -----
Net income per share $ 0.11
Shares used in computing
net income per share 13,476,290
Pro forma net income per share $0.06
Shares used in computing pro forma
net income per share 9,853,042
<PAGE>
Great Plains Software, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
August 31, May 31,
1997 1997
----------- ------------
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 14,780 $ 12,101
Investments 54,109 4,142
Accounts receivable 3,409 5,452
Deferred income taxes 2,268 3,279
Other current assets 2,013 1,731
----- -----
Total current assets 76,579 26,705
Property and equipment, net 7,122 5,821
Goodwill, net 409 438
Other assets 1,323 250
----- ---
Total assets $ 85,433 $ 33,214
-------- --------
-------- --------
Liabilities and Stockholders Equity (Deficit)
Current liabilities:
Accounts payable
and accrued expenses $ 9,324 $ 9,599
Deferred revenue 11,075 10,448
------- -------
Total current liabilities 20,399 20,047
Long term liabilities:
Deferred tax liability 746 746
--- ---
Total liabilities 21,145 20,793
Mandatorily redeemable
convertible preferred
stock -- 28,698
Stockholders' equity (deficit):
Convertible preferred stock -- 199
Common stock 134 81
Additional paid-in capital 65,335 (13,843)
Accumulated deficit (1,181) (2,714)
----- -----
Total stockholders' equity (deficit) 64,288 (16,277)
------ ------
Total liabilities and
stockholders' equity (deficit) $ 85,433 $ 33,214
-------- --------
-------- --------
CONTACT: Great Plains Software, Fargo
For Editorial Information: Kim Albrecht,
Public Relations Manager
701/281-3735, [email protected]
or
For Financial Information: Tami Reller,
Director of Finance & Investors Relations,
701/281-6762, [email protected]
