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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 29, 1998
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 29, 1998 TCSI Corporation issued a press release, a
copy of which is filed herewith as Exhibit 20.
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/Arthur H. Wilder
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Arthur H. Wilder
Vice President, Finance and Administration,
and Chief Financial Officer
Date: January 29, 1998
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INDEX TO EXHIBITS
20. Press Release, dated January 29, 1998
TCSI Corporation Reports 1997 Results
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TCSI CORPORATION REPORTS 1997 RESULTS
ALAMEDA, California - January 29, 1998 - TCSI Corporation (Nasdaq: TCSI), a
global provider of software to the telecom industry, reported today fourth
quarter revenues for 1997 were $10.5 million, of which $10.4 million was
telecom revenue, an improvement from telecom revenues of $9.4 million in
the fourth quarter of 1996. This represents the Company's fourth
consecutive quarter of telecom revenue growth. The Company also reported a
fourth quarter 1997 net loss of approximately $0.6 million and a loss per
share of $0.03. Net income and earnings per share for the fourth quarter of
1996 were $1.4 million and $0.07, respectively. Results for 1996 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 on a diluted basis.
For the year ended December 31, 1997, the Company reported revenues of
$39.6 million, of which $39.0 million was telecom revenues, compared to
telecom revenues of $42.9 million a year ago. The net loss for 1997 was
$2.6 million, or a loss per share of $0.12 versus net income of $0.3
million and earnings per share of $0.01 in 1996.
"During the fourth quarter of 1997, we strengthened our partnership with
NEC by opening a joint development facility. We also maintained our long-
term relationships with service providers in Asia such as NTT, IDC and
Korea Telecom. In the European region, Italtel continued to be our largest
customer. In The Americas, we continued working with companies such as
Lucent, Hughes Network, NEC America, and Motorola. In addition, AT&T
became a new customer during the quarter," said Ram Banin, president and
chief executive officer of TCSI.
"Today, we see a full spectrum of buying patterns among equipment vendors
and telecom service providers. Large equipment vendors worldwide are
placing high value on achieving improved margins and market differentiation
through higher proprietary software content. These customers are attracted
to TCSI's middleware platform and mentoring services. Many incumbent and
most emerging carriers are seeking lower cost of ownership and reduced
investment risk by integrating "off-the-shelf" applications. These
carriers are attracted to TCSI's component-based applications and our
integration services to achieve their business objectives. The bottom line
is that it is ultimately up to the customer to determine their objectives.
TCSI's modular approach offers our telecom customers tools to make such
decisions possible," added Banin.
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.
Unaudited Summary of Statement Operations Information
(In thousands, except for per share amounts)
<TABLE>
<CAPTION>
Three months ended Year ended
December 31, December 31,
---------------------- ------------------
1997 1996 1997 1996
--------- --------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Services $ 7,873 $ 8,353 $ 33,970 $ 42,733
Software licensing fees 2,610 1,726 5,608 10,230
-------- -------- -------- --------
Total services and
licensing fees 10,483 10,079 39,578 52,963
Equipment -- -- -- 7,270
-------- -------- -------- --------
Total revenues* 10,483 10,079 39,578 60,233
Costs, expenses, and special
items:
Services 5,172 7,155 21,071 28,773
Equipment -- -- -- 6,810
Product development 1,711 2,073 5,932 6,642
Selling, general, and
administrative 5,402 7,835 18,563 25,010
Non-recurring special items -- (7,921) 1,088 (4,587)
------- -------- ------- -------
Income (loss) from operations (1,802) 937 (7,076) (2,415)
Gain on sale of investment
in common stock -- 585 -- 585
Interest income 818 611 3,104 2,276
------- -------- ------- -------
Income (loss) before
income taxes (984) 2,133 (3,972) 446
Provision for (benefit from)
income taxes (335) 692 (1,350) 152
------- -------- ------- -------
Net income (loss) $ (649) $ 1,441 $ (2,622) $ 294
======= ========= ========= =========
Earnings (loss) per share
(EPS)-Basic $(0.03) $ 0.07 $ (0.12) $ 0.01
======= ========= ========= =========
Shares used in calculation
of EPS-Basic 22,015 21,198 21,638 20,515
======= ========= ========= =========
Earnings (loss) per share
(EPS)-Diluted $(0.03) $ 0.07 $ (0.12) $ 0.01
======= ========= ========= =========
Shares used in calculation
Of EPS-Diluted 22,015 21,736 21,638 21,542
======= ========= ========= =========
</TABLE>
* Revenues for the three and twelve months ended December 31, 1996,
include $0.7 million and $17.3 million, respectively, from non-telecom
business units which have been discontinued.
Unaudited Summary Balance Sheet Information
(In thousands)
<TABLE>
<CAPTION>
December 31,
-----------------------------
1997 1996
------------ ------------
<S> <C> <C>
Assets
Cash, cash equivalents, and investments $ 55,467 $ 52,607
Receivables 11,803 13,480
Other receivables 682 2,042
Deferred income taxes 4,461 7,178
Leasehold improvements, equipment,
and furniture 10,165 9,234
Other assets 1,653 3,592
---------- ----------
Total assets $ 84,231 $ 88,133
========== ==========
Liabilities and Shareholders' Equity
Accounts payable and other accruals $ 2,410 $ 7,263
Accrued compensation and related costs 2,880 4,705
Deferred revenue 3,640 958
Income taxes 1,153 1,597
---------- ----------
Total liabilities 10,083 14,523
Shareholders' equity 74,148 73,610
---------- ----------
Total liabilities and shareholders' equity $ 84,231 $ 88,133
========== ==========
</TABLE>
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.
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