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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 October 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 October 15, 1997 Aspect Telecommunications Corporation, a
California corporation (the "Company") announced its earnings and results of
operations for the quarter ended September 30, 1997. Further details
regarding this announcement are contained in the Company's press release dated
October 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 October 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: October 27, 1997 By: /s/ ERIC J. KELLER
----------------------------------
Eric J. Keller
Vice President, Finance and
Chief Financial Officer
(Duly Authorized and Principal
Financial and Accounting Officer)
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ASPECT TELECOMMUNICATIONS CORPORATION
INDEX TO EXHIBITS
Exhibit Number Description Sequential Page Number
-------------- ----------- ----------------------
99 Press Release dated October 15, 1997
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EXHIBIT 99
FOR RELEASE ON OCTOBER 15, 1997 1:15 PST
FOR MORE INFORMATION CONTACT:
Eric Keller or Lois Eckmann
(408) 325-2200
ASPECT TELECOMMUNICATIONS ANNOUNCES RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
Revenues of $99.2 million set new record
SAN JOSE, CA OCT. 15, 1997 --- Aspect Telecommunications Corporation
(Nasdaq:ASPT) announced today financial results for the quarter ended September
30, 1997 which reflect new record levels of business. Aspect acquired privately
held Commerce Soft Inc. in September 1997 and, as previously disclosed, this
transaction results in a one-time charge for in-process technology of $4.9
million ($0.10 per share).
Net revenues of $99.2 million for the third quarter of 1997 increased 6 percent
over the prior quarter to a new record level, while increasing 24 percent
compared to the same quarter last year. For the first nine months of 1997,
revenues reached $284.4 million, an increase of 29 percent over the first nine
months of 1996. Excluding the one-time charge, income from operations for the
third quarter of 1997 was $17.8 million or 18 percent of revenues while net
income for the quarter was $11.9 million or 12 percent of revenues. On the same
basis, fully diluted earnings per share for the quarter was $0.23, up from $0.19
in the year earlier period and up from $0.22 in the second quarter of 1997 (not
including a $0.02 gain from the sale of appreciated securities in the second
quarter). Cash, cash equivalents and short term investment balances at the end
of September 1997 reached $148.0 million, up almost $14 million in the quarter.
Commenting on these results, James R. Carreker, Aspect's chairman and chief
executive officer stated, "We are pleased to be reporting another period of
steady top-line and bottom-line growth which represents continued good market
acceptance of the company's products and services for mission-critical call
centers. Our acquisition of Commerce Soft and its Web-based, Java-enabled,
collaborative call center technology demonstrates an ongoing commitment to bring
our customers a broad array of new and innovative integrated call center
solutions. We are also pleased to note progress in our consulting and systems
integration business unit, which we established in 1996, as exemplified by the
recent receipt of a systems integration order to design and implement one of the
largest networked commercial call centers in Europe."
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ASPECT TELECOMMUNICATIONS RESULTS FOR QUARTER ENDED SEPTEMBER 30, 1997, PAGE 2
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.
Share and per share amounts contained in this release have been adjusted for the
two-for-one stock split effective 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, call center
management information and reporting tools, call center planning and forecasting
packages, and computer-telephony integration tools and software. 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 BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1996
------------------ -----------------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash, cash equivalents and short-term
investments $147,956 $115,797
Accounts receivable, net 72,089 53,211
Inventories 10,367 15,485
Other current assets 11,657 14,731
-------- --------
Total current assets 242,069 199,224
Property and equipment, net 58,197 51,348
Intangible assets, net 26,181 28,888
Other assets 3,389 3,633
-------- --------
Total assets $329,836 $283,093
======== ========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 10,421 $ 10,027
Accrued liabilities 42,737 29,637
Customer deposits and deferred revenue 14,150 19,481
-------- --------
Total current liabilities 67,308 59,145
Note payable 4,500 4,500
Shareholders' equity 258,028 219,448
-------- --------
Total liabilities and shareholders' equity $329,836 $283,093
======== ========
</TABLE>
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ASPECT TELECOMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data - unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------ ------------------------
September 30, September 30,
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net revenues:
Product $ 68,558 $ 60,071 $202,042 $165,572
Customer support 30,634 20,153 82,309 54,582
-------- -------- -------- --------
Total net revenues 99,192 80,224 284,351 220,154
Cost of revenues:
Cost of product revenues 21,531 20,213 65,214 54,847
Cost of customer support revenues 21,451 14,873 58,349 39,612
-------- -------- -------- --------
Total cost of revenues 42,982 35,086 123,563 94,459
-------- -------- -------- --------
Gross margin 56,210 45,138 160,788 125,695
Operating expenses:
Research and development 11,452 8,930 33,964 24,595
Selling, general and administrative 27,003 21,260 75,207 58,882
Purchased in-process technology 4,910 -- 4,910 --
-------- -------- -------- --------
Total operating expenses 43,365 30,190 114,081 83,477
-------- -------- -------- --------
Income from operations 12,845 14,948 46,707 42,218
Interest and other income, net 1,625 482 6,466 1,033
-------- -------- -------- --------
Income before income taxes 14,470 15,430 53,173 43,251
Provision for income taxes 7,461 5,740 22,362 16,062
-------- -------- -------- --------
Net income $ 7,009 $ 9,690 $ 30,811 $ 27,189
======== ======== ======== ========
Primary earnings per share:
Net income per share (a) $ 0.13 $ 0.21 $ 0.59 $ 0.59
======== ======== ======== ========
Shares used in per share computations (a) 52,233 46,588 52,221 46,432
======== ======== ======== ========
Fully diluted earnings per share:
Net income per share (a) $ 0.13 $ 0.19 $ 0.59 $ 0.54
======== ======== ======== ========
Shares used in per share computations (a) 52,452 52,846 52,251 52,692
======== ======== ======== ========
</TABLE>
(a) Share and per share data for all periods presented reflect a two-for-one
stock split effective January 28, 1997.
