<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: January 26, 1999
----------------
PLATINUM technology International, inc.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-19058 36-3509662
- ---------------------------- ------------ -------------------
(State or Other Jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1815 South Meyers Road, Oakbrook, Illinois 60181
- ------------------------------------------ -----
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (630) 620-5000
--------------
<PAGE>
Item 5. Other Events.
On January 14, 1999, the Registrant issued the press release attached as Exhibit
99.1 to announce its preliminary unaudited results of operations for the quarter
ended December 31, 1998. The information contained in the press release is
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma
Financial Information and Exhibits.
(c) Exhibits
99.1 Press Release dated January 14, 1999
2
<PAGE>
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 hereunto duly authorized.
PLATINUM technology International, inc.
Dated: January 26, 1999 By: /s/ Larry S. Freedman
------------------------------------------
Larry S. Freedman
Senior Vice President and General Counsel
3
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<C> <S>
99.1 Press Release dated January 14, 1999
</TABLE>
4
<PAGE>
PLATINUM technology Announces
Preliminary Unaudited Fourth Quarter Results
Product Revenue Surpasses Consensus Expectations, Services Business Experiences
Significant Shortfall
OAKBROOK TERRACE, Ill.--Jan. 14, 1999--PLATINUM technology (NASDAQ: PLAT) today
announced that it expects revenues for the fourth quarter to be approximately
$315 million, including approximately $200 million of new license revenue. This
will bring the revenues to approximately $970 million for the year ended
December 31, 1998. Earnings before charges are estimated to be approximately
$0.40 per share. This will bring earnings before charges to an estimated $0.82
per share for the year ended December 31, 1998, as compared to $0.56 per share
for 1997, an increase of more than 45 percent. Earnings per share will be lower
than analyst expectations for the fourth quarter of 1998 primarily due to
shortfalls in the Global Consulting Organization (GCO). Final results for 1998
are subject to completion of PLATINUM's year-end audit.
The company noted that the product license revenue was strong, with product
revenue growing more than 30 percent for the year, exceeding consensus analyst
expectations. Overall profitability also grew, with estimated operating margins
increasing to approximately 10 percent for 1998 versus 6 percent in 1997. Net
income before charges is expected to be approximately $75 million for 1998, a 60
percent increase over 1997. The fourth quarter services shortfall was due to
poor performance in Germany and the United Kingdom, lower than anticipated
demand for the company's training offerings, and flat growth in Year 2000
services.
Andrew J. "Flip" Filipowski, President and Chief Executive Officer, commented,
"We are disappointed with our fourth quarter results, especially with our track
record of meeting or exceeding analyst expectations for the previous nine
consecutive quarters. Although there was a shortfall in services, the good news
is that our product revenue was very strong, especially in our international
markets, with total license revenue for the quarter expected to exceed $200
million. We are taking aggressive action to strengthen our Global Consulting
Organization and have already put in place a number of changes."
These changes include:
1. Reorganize the Global Consulting Organization to align it more closely with
the product business.
2. Integrated services sales into the worldwide product sales organization with
the PLATINUM field sales organization selling both products and services.
3. Strengthened the management team by bringing on seasoned senior management:
. Hal Carr, Executive Vice President of Global Consulting Organization -
previously Vice President of Oracle's Global Consulting Organization
. Judy Fick, Senior Vice President of Global Consulting Sales - previously
held senior management positions with Cambridge Technology Partners and
IBM Global Services Organization
. Joe Deney, Senior Vice President of Domestic Consulting - previously led
Oracle's Global Consulting operations and served as the former CIO of
McDonnell Douglas
<PAGE>
4. Appointed new leaders of consulting in the UK and Germany
. Steve Bailey has been named the Director of GCO for the UK - previously
Vice President of Consulting for Pro-Tek and Data Sciences
. Christoph Baldus has been named the Director of GCO for Germany -
previously held senior management positions with Digital Equipment
Corporation
Filipowski continued, "We continue to see the Global Consulting Organization as
core to our success and expect the changes we have implemented to strengthen
this area long-term and ensure that our services business delivers results that
match, or even exceed, our strong product revenue performance."
About PLATINUM technology International, inc.
PLATINUM technology International, inc., headquartered in Oakbrook Terrace,
Illinois, had 1997 revenues of $739 million. PLATINUM provides software and
services that help IT organizations manage and improve the IT infrastructure.
Solutions include database and systems management, data warehousing and decision
support, application lifecycle, and Year 2000 reengineering. For information
visit www.platinum.com.
Safe Harbor Provision:
This press release contains certain "forward-looking statements," that reflect
PLATINUM's expectations regarding its future growth, results of operations,
performance, and business prospects and opportunities. Words such as,
"estimates," "believes," "anticipates," "plans" and similar expressions have
been used to identify these forward-looking statements, but are not the
exclusive means of identifying these statements. These statements reflect
PLATINUM's current beliefs and are based on information currently available to
PLATINUM. Accordingly, these statements are subject to known and unknown risks,
uncertainties and other factors that could cause PLATINUM's actual growth,
results, performance and business prospects and opportunities to differ from
those expressed in, or implied by, these statements. These risks, uncertainties
and other factors include PLATINUM's ability to develop and market existing
and acquired products for the IT infrastructure market; PLATINUM's ability to
successfully integrate its acquired products, services and businesses and
continue its acquisition strategy; risks related to the Year 2000 challenge;
PLATINUM's ability to adjust to changes in technology, customer preferences,
enhanced competition and new competitors in the IT infrastructure and
professional services markets; currency exchange rate fluctuations, collection
of receivables, compliance with foreign laws and other risks inherent in
conducting international business; risks associated with conducting a consulting
services business; the risk of product bugs; general economic and business
conditions, which may reduce or delay customers' purchases of PLATINUM's
products and services; charges and costs related to acquisitions; and PLATINUM's
ability to protect its proprietary software rights from infringement or
misappropriation, to maintain or enhance its relationships with relational
database vendors, and to attract and retain key employees. PLATINUM is not
obligated to update or revise these forward-looking statements to reflect new
events or circumstances or otherwise.
Contact:
For Press Inquiries
PLATINUM technology, inc.
Karen Andre, 630/691-0649
[email protected]
OR
For Investor Inquiries
PLATINUM technology, inc.
Maria McAuslan, 630/691-0771
[email protected]
