<PAGE> 1
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 (Date of earliest event reported): October 16, 1996
TCSI Corporation
(Exact name of registrant as specified in its charter)
Nevada 0-19377 68-0140975
(State of incorporation) (Commission (IRS Employer
File Number) Identification No.)
2121 Allston Way, Berkeley, California 94704
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (510) 649-3700
<PAGE> 2
Item 5. Other Events.
On October 16, 1996, TCSI Corporation issued a
press release, a copy of which is filed herewith as Exhibit 28.
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.
TCSI Corporation
By: /s/Paul A. Farmer
-----------------
Paul A. Farmer
Chief Financial Officer
Date: October 16, 1996
<PAGE> 3
INDEX TO EXHIBITS
28. Press Release, dated October 16, 1996
TCSI Corporation Reports Third Quarter Results
<PAGE> 4
For additional information contact:
Leigh Salvo - (510) 649-3404
BERKELEY, California - October 16, 1996 - TCSI Corporation
(Nasdaq: TCSI) reported today revenues for the third quarter
ended September 30, 1996, were $9.8 million, a decline of 31
percent from revenues of $14.1 million for the same period
last year. The Company also reported a net loss of $6.5
million during the quarter ended September 30, 1996 ($0.31
per share). For the quarter ended September 30, 1995, the
Company reported net income of $2.1 million and earnings per
share of $0.11.
Among the factors that contributed to the loss were the
following: increased spending on internally funded product
development; reduced follow-on customer funding for the
development of certain re-useable solutions; a delay in a
substantial follow-on contract with a Regional Bell
Operating Company (RBOC); termination of a development
agreement to deploy a software solution for a transportation
company; and, license agreements, expected to be completed
in the third quarter for Object Services Package (OSP) and
related products, did not sign.
Cost of services for the third quarter of 1996 was $12.0
million, up from $6.4 million for the same period in 1995.
This increase was attributable, in part, to a $3.3 million
one-time charge related to the termination of the
transportation agreement.
"We recognize that we must improve our visibility and this
is a top priority of the Company. We plan to do this by
focusing on applications and sales channel development;
taking advantage of our reference base; increasing
functional accountability; and finally, improving our
processes involved in implementing the Company's software
solutions," said Roger Strauch, TCSI's president and chief
executive officer. "TCSI has observed significant changes
in the buying behavior of our market. Traditionally, our
sales cycle was six to nine months, where the customer's
information technology organization evaluated our
development platform and professional services for an
application development contract that would run over
multiple quarters. Increasingly, our customers are now
including the business user in the buying process. Business
users require a substantial business benefits and reference
approach to applications evaluation. Cautious in their
decision-making, our customers are taking more time up-front
to purchase, but because they're interested in applications
and more complete solutions, the implementation cycle should
be compressed."
TCSI Corporation
TCSI a leading provider of integrated software products and
services for the global telecom industry. A pioneer in
object-oriented technology, TCSI products and services
enable telecom service providers and equipment manufacturers
to rapidly meet the growing demand for integrated and
automated management of a wide range of networks and
services. TCSI serves its customers in offices throughout
North America, Europe, and the Pacific Rim.
<PAGE> 5
Unaudited Summary Income Statement Information
(In thousands, except for per share amounts)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues:
Services $ 8,835 $ 11,813 $ 34,380 $ 32,285
Software licensing fees 950 2,267 8,504 7,878
Equipment - - 7,270 -
------- ------- ------- -------
Total revenues 9,785 14,080 50,154 40,163
Costs and expenses:
Services 12,000 6,439 24,952 17,953
Equipment - - 6,810 -
Product development 2,078 - 4,569 -
Selling, general, and
administrative 5,993 4,906 17,175 14,348
------- ------- ------- -------
Income (loss) from operations (10,286) 2,735 (3,352) 7,862
Interest income 719 269 1,665 712
------- ------- ------- -------
Income before income taxes (9,567) 3,004 (1,687) 8,574
Provision for income taxes (3,061) 903 (540) 2,833
------- ------- ------- -------
Net income (loss) $ (6,506) $ 2,101 $ (1,147) $ 5,741
======= ======= ======= =======
Earnings (loss) per share $ (0.31) $ 0.11 $ (0.06) $ 0.30
======= ======= ======= =======
Shares used in calculation of
earnings per share 21,027 19,266 20,285 19,079
======= ======= ======= =======
</TABLE>
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Assets
- ------
Cash, cash equivalents,
and investments $ 44,126 $ 22,027
Receivables 13,945 16,500
Other receivables 5,270 -
Deferred income taxes 4,442 2,342
Furniture, equipment, and
leasehold improvements 7,473 5,134
Other assets 5,611 3,507
--------- ---------
Total assets $ 80,867 $ 49,510
========= =========
Liabilities and Shareholders' equity
- ------------------------------------
Accounts payable and other accruals $ 3,355 $ 4,005
Accrued compensation and related costs 7,240 4,823
Income taxes - 3,306
--------- ---------
Total liabilities 10,595 12,134
Shareholders' equity 70,272 37,376
--------- ---------
Total liabilities and
shareholders' equity $ 80,867 $ 49,510
========= =========
</TABLE>
This financial information should be read in conjunction
with the Company's Form 10-Q to be filed with the Securities
and Exchange Commission.
