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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): April 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 April 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: April 17, 1997
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INDEX TO EXHIBITS
28. Press Release, dated April 17, 1997
TCSI CORPORATION REPORTS FIRST QUARTER RESULTS
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For Immediate Release
For additional information contact:
TCSI Corporation
Investor Inquiries:
Leigh Salvo - (510) 749-8653
TCSI Corporation reports first quarter results
ALAMEDA, California - April 17, 1997 - TCSI Corporation (Nasdaq: TCSI), a
global provider of software to the telecom industry, today announced
revenues of $9.8 million for the first quarter ended March 31, 1997.
Revenues for the same period last year were $18.5 million, which included
nearly $7 million from non-telecom business units which were discontinued
in 1996. The Company also reported a net loss of $0.6 million for the
first quarter of 1997, compared to net income of $2.6 million for the same
period in 1996. The first quarter 1997 loss per share was $0.03, compared
to earnings per share of $0.13 last year.
"After the substantial losses in the second half of 1996, we are encouraged
by the fact that TCSI is approaching profitability more rapidly than
expected. Further, bookings in the first quarter of 1997 were nearly three
times greater than telecom bookings in the first quarter of 1996. Based on
my review of the sales pipeline and with our efforts now focused entirely
on the telecom industry, I believe we are well positioned for favorable
year-over-year comparisons in bookings throughout 1997," said Ram Banin,
president and chief operating officer. "During the first quarter of 1997,
we met several significant milestones, including the completion of an
equipment network management pilot for a major Japanese carrier, the
delivery of the first phase of a communications interface for an
international carrier, and the acceptance of an operational support system
for a Middle Eastern carrier."
"Services costs as a percent of services revenues were 65 percent for the
first quarter of 1997, higher than our historical levels, but significantly
improved from 85 percent in the fourth quarter of 1996. Since early 1996,
TCSI has been investing in the completion of customer solutions that we
believe will ultimately result in valuable references and incremental
additions to our product lines. In addition, TCSI invested nearly $1.5
million, or 15 percent of revenues, on internally funded product
development in the first quarter of 1997, primarily on SolutionCore,
TCSI's application development and deployment environment for building
scalable, distributed operational support systems," said Paul Farmer, chief
financial officer. "Selling, general, and administrative expenses
decreased eight percent, year-over-year, and nearly forty percent
sequentially, in line with the Company's objective to reduce SG&A spending
on an annual basis by twenty percent by the end of 1997."
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"Historically, the telecom industry has required highly customized
solutions. Today, customers are increasingly demanding more component-
based solutions that can be modified to meet specific customer needs,"
added Banin. "Because TCSI works closely with customers worldwide, we are
ready to respond to these challenges to deliver solutions that meet their
long-term business needs."
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(, a full range of services including consulting,
customized development, deployment, maintenance, and training.
SolutionCore(, TCSI's industry-leading application environment, enables the
rapid development and deployment of advanced element, network, and service
management systems. TCSI's SolutionSuites( are integrated packages of
application components to automate the management processes of Intelligent
Network, Broadband, and Digital Cellular services and networks.
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 March 31,
1997 1996
--------- ---------
<S> <C> <C>
Revenues*:
Services $ 7,803 $ 12,583
Software licensing fees 2,031 3,116
--------- ---------
Total services and licensing fees 9,834 15,699
Equipment, non-telecom -- 2,839
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Total revenues 9,834 18,538
Costs and expenses:
Services 5,143 6,128
Equipment, non-telecom -- 2,654
Product development 1,452 1,004
Selling, general, and administrative 4,838 5,283
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Income (loss) from operations (1,599) 3,469
Interest income 749 282
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Income (loss) before income taxes (850) 3,751
Provision for (benefit from) income taxes (289) 1,200
--------- ---------
Net income (loss) $ (561) $ 2,551
========= =========
Earnings (loss) per share (EPS) $ (0.03) $ 0.13
========= =========
Shares used in calculation of EPS 21,343 20,348
========= =========
</TABLE>
[FN]
<FN1>*Revenues in the first quarter of 1996 include nearly $7 million
from non-telecom business units which have been discontinued.
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------- ------------
<S> <C> <C>
Assets
Cash, cash equivalents, and investments $ 51,763 $ 52,607
Receivables 7,857 12,522
Other receivables 1,941 2,042
Deferred income taxes 7,178 7,178
Leasehold improvements, equipment, and
furniture 10,143 9,234
Other assets 2,862 3,592
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Total assets $ 81,744 $ 87,175
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Liabilities and Shareholders' Equity
Accounts payable and other accruals $ 3,119 $ 7,263
Accrued compensation and related costs 3,806 4,705
Income taxes 1,162 1,597
--------- ---------
Total liabilities 8,087 13,565
Shareholders' equity 73,657 73,610
--------- ---------
Total liabilities and shareholders' equity $ 81,744 $ 87,175
========= =========
</TABLE>
[FN]
<FN1> 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.
