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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 (Date of earliest event reported): July 18,
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
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Item 5. Other Events.
On July 18, 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: July 18, 1996
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INDEX TO EXHIBITS
28. Press Release, dated July 18, 1996
TCSI Corporation Reports Second Quarter Results
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For additional information contact:
Leigh Salvo - (510) 649-3800
TCSI Corporation Reports Second Quarter Results
BERKELEY, Calif. - July 18, 1996 - TCSI Corporation (Nasdaq: TCSI), a
global provider of software to the Telecom industry, reported today
revenues of $21.8 million for the second quarter of 1996. This represents
a 63 percent increase in revenue over the same period last year. Net
income grew 50 percent to $2.8 million from $1.9 million in the second
quarter of 1995. Earnings per share increased to $0.13 in the second
quarter of 1996 from $0.10 in the second quarter of 1995.
"This quarter marks TCSI's sixteenth consecutive quarter of increased
revenues and net income. We are pleased with the Company's ability to
sustain its targeted financial growth rates as we expand operations on a
worldwide basis," said Roger A. Strauch, president and chief executive
officer. "We have expanded our international operations by opening a new
facility in Europe, hiring additional sales and marketing professionals
in North America and Asia, and entering into a strategic partnership with
a software developer in India."
Revenue from services for the quarter ended June 30, 1996 was $13.0
million, a 30 percent increase over the $10.0 million earned during the
second quarter of 1995. Software licensing fees increased 33 percent to
$4.4 million in the second quarter of 1996 from $3.3 million in the
second quarter of 1995.
Revenue from TCSI's flagship product, Object Services Package (OSP), and
related object-oriented products and services during the second quarter
of 1996 was $13.3 million, a 54 percent increase over the second quarter
of 1995. Since June 30, 1995, the number of OSP development seats in use
at customer sites has increased 40 percent. OSP is a highly scalable,
industrial-strength distributed object development and runtime
environment for large, object-oriented client/server systems.
Throughout 1996, the Company will be deploying a software solution
relating to a development agreement entered into in 1994. The deployment
includes approximately $11 million of equipment purchased on behalf of
the customer. For the first six months of 1996, the Company has
recognized revenues of $7.3 million related to this equipment.
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"TCSI continues to demonstrate the ability to respond to the Telecom
industry's need for improved productivity, scalability, and effective
change management on a global basis. We are encouraged by the additional
business the Company is being awarded from existing telecom customers and
equally as excited by the number of agreements being signed with new
customers," added Strauch. "This quarter, we added ten new customers and
signed more than $9 million in business with existing customers. New
agreements were secured for cellular and PCS network management
development, as well as OSP porting, training, and mentoring."
Direct cost of services increased 24 percent year-over-year in the second
quarter of 1996, in line with the growth in revenues from services.
Selling, general, and administrative expenses increased 13 percent year
over-year, due primarily to the Company's expansion of international
operations. Software product development costs increased to $1.5 million
in the second quarter of 1996 as the Company continued to invest in
future releases of OSP and related products. Prior to January 1, 1996,
the Company's product development had been primarily supported through
customer funded software application development.
Shares used in the earnings per share (EPS) calculation increased to 22.2
million shares for the second quarter of 1996 from 19.1 million shares a
year ago, primarily as a result of stock option exercises and a follow-on
offering in the first quarter of 1996 in which TCSI raised $26 million
upon the issuance of 1.5 million shares of Common Stock. In April 1996,
TCSI announced that its Board of Directors approved a three-for-two stock
split, effective June 14, 1996 for shareholders of record on May 28,
1996.
Statements contained in this press release which are not historical facts
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results
to differ materially from those projected. Such risks and uncertainties
include fluctuations in customer demand and the timing and acceptance of
new product introductions. Additional risks are detailed in the Company's
filings with the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
TCSI Corporation
TCSI Corporation provides object-oriented software products, services,
and solutions to the Telecom industry worldwide. Service providers and
equipment manufacturers deploy TCSI's software to enable a range of
customer services, automated processes, and the management of broadband,
wireless, and intelligent networks. Based in Northern California, TCSI
has offices in North America, Europe, and the Pacific Rim.
####
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Unaudited Summary Income Statement Information
(In thousands, except for per share amounts)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues:
Services $ 12,962 $ 10,026 $ 25,545 $ 20,472
Software licensing fees 4,438 3,345 7,554 5,611
Equipment(1) 4,431 - 7,270 -
------- ------- ------- -------
Total revenues 21,831 13,371 40,369 26,083
Costs and expenses:
Services 6,824 5,522 12,952 11,514
Equipment(1) 4,156 - 6,810 -
Product development 1,487 - 2,491 -
Selling, general, and
administrative 5,899 5,232 11,182 9,442
------- ------- ------- -------
Income from operations 3,465 2,617 6,934 5,127
Interest income 664 237 946 443
------- ------- ------- -------
Income before income taxes 4,129 2,854 7,880 5,570
Provision for income taxes 1,321 978 2,521 1,930
------- ------- ------- -------
Net income $ 2,808 $ 1,876 $ 5,359 $ 3,640
======= ======= ======= =======
Earnings per share $ 0.13 $ 0.10 $ 0.25 $ 0.19
======= ======= ======= =======
Shares used in calculation of
earnings per share 22,191 19,140 21,042 18,984
======= ======= ======= =======
</TABLE>
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
--------- -----------
<S> <C> <C>
Assets
- ------
Cash, cash equivalents,
and investments(2) $ 45,070 $ 22,027
Receivables 22,123 16,500
Equipment receivables(1) 7,270 -
Deferred income taxes 2,257 2,342
Furniture, equipment, and
leasehold improvements 6,801 5,134
Other assets 1,956 3,507
--------- ---------
Total assets $ 85,477 $ 49,510
========= =========
Liabilities and Shareholders' equity
- ------------------------------------
Accounts payable and other accruals $ 4,508 $ 4,005
Accrued compensation and related costs 4,435 4,823
Income taxes 409 3,306
--------- ---------
Total liabilities 9,352 12,134
Shareholders' equity 76,125 37,376
--------- ---------
Total liabilities and
shareholders' equity $ 85,477 $ 49,510
========= =========
</TABLE>
(1) The Company's software solutions occasionally include purchases
of equipment on behalf of its customers.
(2) Cash, cash equivalents, and investments include cash and
investment balances with original maturities greater than 90
days.
This financial information should be read in conjunction with the
Company's Form 10-Q to be filed with the Securities and Exchange
Commission.
