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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): January 23, 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.)
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 January 23, 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: January 23, 1996
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INDEX TO EXHIBITS
28. Press Release, dated January 23, 1996
TCSI CORPORATION REPORTS 1996 REVENUES AND EARNINGS
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For additional information contact:
Investor Inquiries:
Leigh Salvo - (510) 749-8653
ALAMEDA, California - January 23, 1996 - TCSI Corporation (Nasdaq: TCSI), a
global provider of software to the telecom industry, reported today
revenues of $60.2 million for the year ended December 31, 1996, compared to
revenues of $55.4 million a year ago. Fourth quarter revenues for 1996
were $10.1 million, a 34 percent decrease from $15.2 million in the fourth
quarter of 1995 and a three percent increase from the third quarter of
1996. The Company reported 1996 net income of $0.3 million and earnings
per share of $0.01, compared to $8.1 million and $0.42, respectively, in
1995. Net income and earnings per share for the fourth quarter of 1996
were $1.4 million and $0.07, respectively. These results include the gains
associated with the licensing of the Company's wireless business to Atmel,
a one-time event in the fourth quarter of 1996 that added $0.24 to earnings
per share.
"Revenues from TCSI's telecom software products and services grew 20
percent during 1996. We firmly believe there is a significant opportunity
for software providers such as TCSI in this market and therefore have taken
the steps necessary to enter 1997 as an organization that is 100 percent
focused on the telecom industry," said Roger Strauch, chief executive
officer.
Revenue from services in 1996 declined to $42.7 million from $43.8 million
a year ago. Software licensing fees and royalties were $10.2 million for
the year ended December 31, 1996, compared to $11.6 million a year ago.
Telecom related service revenue grew 35 percent to $36.1 million from $26.8
million a year ago. Telecom related software license fees were $6.7 million
in 1996 compared to $7.7 million in 1995. During 1995, several telecom
customers began projects that required licenses for TCSI's software.
During 1996, TCSI's telecom related growth was generated from follow-on
services rather than from the initiation of new agreements requiring
software licenses.
"We continue to gain business around the world," said Ram Banin, president
and chief operating officer. "In North America, we are working with
several RBOCs on operational support systems for digital cellular and
broadband networks. In Europe, Motorola has funded additional work for
their cellular network management software and we are excited about new
opportunities that are arising to team with major systems integrators and
equipment manufacturers for the re-engineering of national systems.
Additionally, in the Pacific Rim, we are gaining key referrals and follow-
on opportunities with industry leaders such as Nippon Telegraph &
Telephone, NEC Corporation, and International Digital Communications."
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For the year ended December 31, 1996, direct costs increased to $29 million
from $25 million in 1995. "We attribute the increase in direct costs, in
spite of a $1 million decline in service revenues, to several projects that
ran below our standard rates. As previously disclosed, we invested in
several of these projects in order to further our relationship with the
customer and expand our product portfolio," said Paul Farmer, chief
financial officer. "Selling, general, and administrative expenses
increased 28 percent year over year as we expanded facilities and support
services generally in response to the increased global demand for telecom
solutions. In addition, TCSI spent nearly $7 million on product
development during the year, primarily on our SolutionCore application
development environment, officially launched last week."
About TCSI Corporation
TCSI is 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.
TCSI Corporation Products and Services
TCSI provides integrated products and services to many of the world's
largest and most successful telecom companies. TCSI's SolutionSuites are
integrated packages of applications to automate the management processes of
Intelligent Network, Broadband, and Digital Cellular services and networks.
SolutionCore, TCSI's industry leading application environment, enables the
rapid development and deployment of advanced element, network, and service
management systems. TCSI also offers a full range of Professional Services
including consulting, customized development, deployment, maintenance, and
training to complement all products.
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.
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TCSI Corporation
Unaudited Summary Income Statement Information
(In thousands, except for per share amounts)
<TABLE>
<CAPTION>
Three months ended Year ended
December 31, December 31,
-------------------- ------------------
1996 1995 1996 1995
--------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Services $ 8,353 $ 11,505 $ 42,733 $ 43,790
Software licensing fees 1,726 3,694 10,230 11,572
------- ------- ------- -------
Total services and licesning fees 10,079 15,199 52,963 55,362
Equipment - - 7,270 -
------- ------- ------- -------
Total revenues 10,079 15,199 60,233 55,362
Costs and expenses:
Services 7,155 6,992 28,773 24,945
Equipment - - 6,810 -
Product development 2,073 - 6,642 -
Selling, general, and
administrative 7,835 5,150 25,010 19,498
Non-recurring special items (7,921) - (4,587) -
------- ------- ------- -------
Income (loss) from operations 937 3,057 (2,415) 10,919
Gain on sale of investment in
common stock 585 - 585 -
Interest income 611 270 2,276 982
------- ------- ------- -------
Income before income taxes 2,133 3,327 446 11,901
Provision for income taxes 692 998 152 3,831
------- ------- ------- -------
Net income $ 1,441 $ 2,329 $ 294 $ 8,070
======= ======= ======= =======
Earnings per share (EPS) $ 0.07 $ 0.12 $ 0.01 $ 0.42
======= ======= ======= =======
Shares used in calculation of EPS 21,736 19,661 21,542 19,224
======= ======= ======= =======
</TABLE>
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
December 31,
---------------------------
1996 1995
---------- -----------
<S> <C> <C>
Assets
- ------
Cash, cash equivalents, and investments $ 52,607 $ 22,027
Receivables 12,522 16,500
Other receivables 2,042 361
Deferred income taxes 7,178 2,342
Leasehold improvements, equipment,
and furniture 9,234 5,134
Other assets 3,592 3,146
--------- ---------
Total assets $ 87,175 $ 49,510
========= =========
Liabilities and Shareholders' equity
- ------------------------------------
Accounts payable and other accruals $ 7,263 $ 4,005
Accrued compensation and related costs 4,705 4,823
Income taxes 1,597 3,306
--------- ---------
Total liabilities 13,565 12,134
Shareholders' equity 73,610 37,376
--------- ---------
Total liabilities and shareholders' equity $ 87,175 $ 49,510
========= =========
<FN>
<FN1>This financial information should also be read in conjunction with
the Company's Form 10-K to be filed with the Securities and Exchange
Commission.
<FN2>Certain prior quarter 1996 balances have been reclassified to conform
to this presentation.
</TABLE>
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