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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 17, 1997
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.)
1080 Marina Village Parkway, Alameda, California 94501
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (510) 749-8500
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Item 5. Other Events.
On July 17, 1997, 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 17, 1997
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INDEX TO EXHIBITS
28. Press Release, dated July 17, 1997
TCSI CORPORATION REPORTS SECOND QUARTER RESULTS
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For additional information contact:
TCSI Corporation
Investor Inquiries
Leigh Salvo - (510) 749-8653
TCSI CORPORATION REPORTS SECOND QUARTER RESULTS
ALAMEDA, California - July 16, 1997 - TCSI Corporation (Nasdaq: TCSI), a
global provider of software to the telecom industry, today announced
revenues of $9.5 million for the second quarter ended June 30, 1997. For
the same period last year, revenues were $21.8 million including $8.5
million from discontinued non-telecom business units. The Company also
reported a net loss of $0.9 million for the second quarter of 1997,
compared to net income of $2.8 million for the same period in 1996. The
second quarter 1997 loss per share was $0.04, compared to earnings per
share of $0.13 last year. The second quarter 1997 loss includes a non-
recurring charge of $0.8 million, or the equivalent of approximately $0.03
per share, resulting from an adjustment to the market-value of equipment
held for resale due to the termination of a non-telecom contract in the
third quarter of last year.
"We've made progress this year with new relationships secured through
channels, on projects with our existing customers, and on achieving our
operating goals. There continues to be a worldwide need in the telecom
industry for faster delivery cycles and more automated processes at reduced
operating costs. I continue to believe that TCSI is well positioned to
meet these needs by leveraging our industry expertise to build components-
based solutions using our standards-compliant middleware platform," said
Ram Banin, president and chief executive officer.
Services margins were 43 percent for the second quarter of 1997, compared
to 47 percent a year ago, improved from 34 percent in the first quarter of
1997. In the second quarter of 1997, the Company spent nearly $1.4 million
or 14 percent of revenues on development of its software products,
primarily SolutionCore TM. For the remainder of the year, the Company
expects to continue its product development spending in SolutionCore as
well as SolutionSuites TM. Selling, general, and administrative expenses for
the quarter decreased 27 percent, compared to the same period last year,
primarily as a result of facilities consolidation and improved staffing
efficiencies.
TCSI Corporation Products and Services
TCSI provides integrated products and services to many of the world's
largest and most successful telecom companies. TCSI offers
SolutionServices TM, a full range of services including consulting,
customized development, deployment, maintenance, and training.
SolutionCore TM, TCSI's industry-leading application environment, enables the
rapid development and deployment of advanced element, network, and service
management systems. TCSI's SolutionSuites TM are integrated packages of
application components to automate the management processes of Intelligent
Network, Broadband, and Digital Cellular services and networks.
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About TCSI Corporation
TCSI is a leading provider of integrated software products and services for
the global telecom industry. A recognized innovator 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.
This press release contains certain forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a number of risks and
uncertainties which could cause actual results to differ materially from
those projected. Such risks include: the timing of significant customer
orders, the relative proportion of services and software licensing fees,
and capital spending patterns of the Company's customers. Further 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 Reports on Form 10-Q.
####
For further information on TCSI Corporation, please call our automated
faxback line at (800) 264-1603 or join us on the World Wide Web at
http://www.tcsi.com.
TCSI, SolutionCore, SolutionSuites, and SolutionServices are trademarks of
TCSI Corporation. All other product and services listed herein are
trademarks of their respective companies.
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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,
-------------------- --------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues*:
Services $ 9,055 $ 12,962 $ 16,858 $ 25,545
Software licensing fees 449 4,438 2,480 7,554
-------- -------- -------- --------
Total services and licensing
fees 9,504 17,400 19,338 33,099
Equipment -- 4,431 -- 7,270
-------- -------- -------- --------
Total revenues 9,504 21,831 19,338 40,369
Costs and expenses:
Services 5,139 6,824 10,282 12,952
Equipment -- 4,156 -- 6,810
Product development 1,361 1,487 2,813 2,491
Selling, general, and
administrative 4,306 5,899 8,874 11,182
Non-recurring special items 818 -- 1,088 --
-------- -------- -------- --------
Income (loss) from operations (2,120) 3,465 (3,719) 6,934
Interest income 729 664 1,478 946
-------- -------- -------- --------
Income (loss) before income taxes (1,391) 4,129 (2,241) 7,880
Provision for (benefit from)
income taxes (472) 1,321 (761) 2,521
-------- -------- -------- --------
Net income (loss) $ (919) $ 2,808 $ (1,480) $ 5,359
======== ======== ======== ========
Earnings (loss) per share (EPS) $ (0.04) $ 0.13 $ (0.07) $ 0.25
======== ======== ======== ========
Shares used in calculation of EPS 21,327 22,191 21,335 21,042
======== ======== ======== ========
</TABLE>
* Revenues for the three and six months ended June 30, 1996, include $8.5
million and $15.5 million, respectively, from non-telecom business units
which have been discontinued.
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
--------- -----------
<S> <C> <C>
Assets
- ------
Cash, cash equivalents, and investments $ 50,892 $ 52,607
Receivables 8,815 12,522
Other receivables 2,314 2,042
Deferred income taxes 4,209 7,178
Leasehold improvements, equipment,
and furniture 10,775 9,234
Other assets 1,949 3,592
---------- -----------
Total assets $ 78,954 $ 87,175
========== ===========
Liabilities and Shareholders' Equity
- ------------------------------------
Accounts payable and other accruals $ 2,098 $ 7,263
Accrued compensation and related costs 3,157 4,705
Income taxes 793 1,597
--------- ----------
Total liabilities 6,048 13,565
Shareholders' equity 72,906 73,610
---------- -----------
Total liabilities and shareholders'
equity $ 78,954 $ 87,175
========== ===========
</TABLE>
This financial information should also be read in conjunction with the
Company's Form 10-Q to be filed with the Securities and Exchange Commission
and its most recent Annual Report on Form 10-K.
