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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
DATE OF REPORT January 15, 1997
-----------------
ASPECT TELECOMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
0-18391
(Commission File Number)
California 94-2974062
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1730 Fox Drive
San Jose, CA 95131-2312
(Address of principal executive offices, with zip code)
(408) 325-2200
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On January 15, 1997, Aspect Telecommunications Corporation, a
California corporation (the "Company") announced its earnings and results of
operations for the quarter and fiscal year ended December 31, 1996. Further
details regarding this announcement are contained in the Company's press release
dated January 15, 1997 attached as an exhibit hereto and incorporated by
reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) EXHIBITS.
Exhibit 99 Aspect Telecommunications Corporation Press Release
dated January 15, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ASPECT TELECOMMUNICATIONS
CORPORATION
Date: January 15, 1997 By: /s/ ERIC J. KELLER
------------------------
Eric J. Keller
Chief Financial Officer
(Duly Authorized and Principal
Financial and Accounting
Officer)
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ASPECT TELECOMMUNICATIONS CORPORATION
INDEX TO EXHIBITS
Sequential Page
Exhibit Number Description Number
- -------------- ----------- ---------------
99 Press Release dated January 15, 1997
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EXHIBIT 99
FOR RELEASE ON JANUARY 15, 1997 1:15 PST
FOR MORE INFORMATION CONTACT:
Eric Keller or Kathy Marohl
(408) 325-2200
ASPECT TELECOMMUNICATIONS ANNOUNCES RECORD FINANCIAL RESULTS
FOR FOURTH QUARTER AND FISCAL YEAR 1996
SAN JOSE, CA, JAN. 15, 1997 -- Aspect Telecommunications Corporation
(Nasdaq:ASPT) reported today record financial results including new highs for
net revenues, income from operations, net income and earnings per share for the
quarter and year ended December 31, 1996.
Net revenues of $88.5 million for the quarter ended December 31, 1996 grew 46
percent compared to the same quarter of last year and grew 10 percent compared
to the quarter ended September 30, 1996. Fourth quarter 1996 net income of $10.4
million increased 58 percent when compared to the same quarter last year and
increased 8 percent when compared to the prior quarter of 1996. Fourth quarter
results for 1995 included a $1.8 million charge ($0.04 per share) for purchased
in-process technology related to the acquisition of TCS. Fully-diluted earnings
per share of $0.40 for the fourth quarter of 1996 compares to $0.28 for the
fourth quarter of last year and $0.38 for the prior quarter.
For the twelve months ended December 31, 1996, revenues were $308.7 million, up
55 percent compared to $199.0 million for the twelve months ended December 31,
1995. Net income increased to $37.6 million, up 57 percent from $24.0 million
for the previous year. On a fully-diluted basis, earnings per share increased to
$1.48 per share in 1996 from $1.03 in 1995.
"We are very pleased with these financial results, which reflect a year of
exceptional growth and accomplishments for Aspect," stated James R. Carreker,
the Company's chairman and chief executive officer.
All financial results for 1996 have been restated to reflect the acquisitions of
Envoy Holdings Limited on September 30, 1996 and Prospect Software, Inc. on
October 21, 1996. Both acquisitions were accounted for as pooling of interests.
Results for 1995 have not been restated since the adjustments would not be
material. The 1996 financial data also include the results of TCS Management
Group, Inc. (TCS), which was acquired on October 31, 1995 and accounted for as a
purchase transaction. Share and per share amounts contained in this release have
not been adjusted for the two-for-one stock split announced on December 20,
1996, which will be effective on January 28, 1997.
Founded in 1985, Aspect Telecommunications is a global provider of comprehensive
business solutions for mission-critical call centers. Aspect products include
automatic call distributors, interactive response systems, management
information and reporting tools, computer-telephony integration technology and
call center planning and forecasting packages. Aspect also provides services
vital to call center environments, including business applications consulting,
systems integration and training. World headquarters are located in San Jose,
California. For additional information, visit Aspect on the World Wide Web at
http://www.aspect.com.
Note: Aspect Telecommunications and the Aspect logo are registered trademarks
of Aspect Telecommunications Corporation.
- tables follow -
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ASPECT TELECOMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
------------------------------- -------------------------------
December 31, December 31,
(unaudited) (unaudited)
1996 (a) 1995 (a) 1996 (a) 1995 (a)
-------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Net revenues:
Product $64,967 $45,793 $230,539 $148,436
Customer support 23,582 14,925 78,164 50,536
-------------- ------------- ------------- --------------
Total net revenues 88,549 60,718 308,703 198,972
Cost of revenues:
Cost of product revenues 22,527 16,036 77,374 52,007
Cost of customer support revenues 16,936 10,344 56,548 35,369
-------------- ------------- ------------- --------------
Total cost of revenues 39,463 26,380 133,922 87,376
-------------- ------------- ------------- --------------
Gross margin 49,086 34,338 174,781 111,596
Operating expenses:
Research and development 9,990 6,793 34,585 23,450
Selling, general and administrative 23,596 15,700 82,478 50,726
Purchased in-process technology - 1,800 - 1,800
-------------- ------------- ------------- --------------
Total operating expenses 33,586 24,293 117,063 75,976
-------------- ------------- ------------- --------------
Income from operations 15,500 10,045 57,718 35,620
Interest income, net 1,077 449 2,110 2,461
-------------- ------------- ------------- --------------
Income before income taxes 16,577 10,494 59,828 38,081
Provision for income taxes 6,133 3,883 22,195 14,090
-------------- ------------- ------------- --------------
Net income $10,444 $ 6,611 $ 37,633 $ 23,991
============== ============= ============= ==============
Primary earnings per share:
Net income per share $ 0.40 $ 0.30 $ 1.58 $ 1.10
============== ============= ============= ==============
Shares used in per share computations (b) 25,809 22,409 23,849 21,846
============== ============= ============= ==============
Fully diluted earnings per share:
Net income per share $ 0.40 $ 0.28 $ 1.48 $ 1.03
============== ============= ============= ==============
Shares used in per share computations (b) 26,449 25,266 26,370 25,102
============== ============= ============= ==============
</TABLE>
(a) Amounts for 1996 include Envoy Holdings Limited and Prospect Software,
Inc., which Aspect acquired on September 30, 1996 and October 21, 1996,
respectively. Amounts for 1995 have not been restated since the
adjustments would not be material.
(b) Does not reflect the two-for-one stock split, which will be effective
January 28, 1997.
ASPECT TELECOMMUNICATIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
December 31, December 31,
1996 (a) 1995 (a)
-------------------- -------------
<S> <C> <C>
Assets
Current assets:
Cash, cash equivalents and short-term investments $115,797 $ 93,633
Accounts receivable, net 53,211 39,291
Inventories 15,485 11,051
Other current assets 14,731 8,699
-------------------- -------------
Total current assets 199,224 152,674
Property and equipment, net 51,348 28,418
Other assets 3,633 3,374
Intangible assets, net 28,888 31,405
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Total assets $283,093 $215,871
==================== =============
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 8,187 $ 11,142
Accrued liabilities 31,477 23,669
Customer deposits and deferred revenue 19,481 9,275
-------------------- -------------
Total current liabilities 59,145 44,086
Convertible subordinated debentures - 55,000
Note payable 4,500 4,500
Shareholders' equity 219,448 112,285
-------------------- -------------
Total liabilities and shareholders' equity $283,093 $215,871
==================== =============
</TABLE>
(a) Amounts for 1996 include Envoy Holdings Limited and Prospect Software,
Inc., which Aspect acquired on September 30, 1996 and October 21, 1996,
respectively. Amounts for 1995 have not been restated since the
adjustments would not be material.
