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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 29, 1998
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PLATINUM SOFTWARE CORPORATION
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(Exact name of Registrant as specified in charter)
Delaware 0-20740 33-0277592
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
195 Technology Drive, Irvine, California 92618
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (949) 453-4000
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Not Applicable
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(Former name or former address, if changed, since last report)
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ITEM 5. OTHER EVENTS
On July 29, 1998, Platinum, Software Corporation, (the "Company")
announced the results for its fourth quarter of fiscal 1998 and the fiscal year,
ending June 30, 1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated July 29, 1998.
2
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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.
PLATINUM SOFTWARE CORPORATION
Date: August 4, 1998 By /s/ Perry Tarnofsky
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Perry Tarnofsky
Vice President
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EXHIBIT INDEX
The following exhibits are attached hereto and incorporated herein by
reference:
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Exhibit Number Sequentially
Numbered Page
<S> <C> <C>
Ex.-99 Press Release dated July 29, 1998. 5
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EXHIBIT 99
FOR IMMEDIATE RELEASE
Contact: Paul Mazzarella
Platinum Software Corporation
949/453-4030
[email protected]
PLATINUM SOFTWARE CORPORATION ANNOUNCES RECORD
FOURTH QUARTER, YEAR-END FISCAL 1998 RESULTS
REPORTS 79% INCREASE IN REVENUES, $5.7 MILLION IN PROFIT AND RECORD EPS FOR
FOURTH QUARTER
IRVINE, Calif. -- July 29, 1998 -- Platinum(R) Software Corporation (NASDAQ:
PSQL), a leading provider of enterprise resource planning solutions, today
reported its financial results for the fourth quarter of fiscal year 1998, ended
June 30, 1998. Revenues for the fourth quarter of fiscal 1998 were $32.2
million, compared to revenues of $18.0 million for the fourth quarter of fiscal
1997, a 79% increase from fiscal 1997. A net profit of $5.7 million or $0.19 per
share was reported for the fourth quarter of fiscal 1998, representing 18% net
profit on revenue, as compared to a net loss of $2.9 million or $0.12 per share
for the same quarter a year ago.
The company's balance sheet, as of June 30, 1998, showed cash, cash
equivalents and short-term investments of $22.8 million - an increase of $6.7
million from third quarter fiscal 1998. The company's balance sheet also showed
accounts receivable of $28.9 million and deferred revenue of $16.0 million.
Total revenues for the fiscal year 1998 were $98.5 million, compared to
$60.8 million for fiscal year 1997, an increase of 62%. The company reported net
profit of $13.3 million or $0.45 per share for fiscal 1998, representing 14% net
profit on revenues for the year, as compared to a net loss of $4.4 million or
$0.20 per share for fiscal 1997.
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Platinum Software Announces Fourth Quarter, Year-End Financial Results
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"This quarter was a perfect end to a tremendous year of record revenue
growth, net earnings and earnings per share for Platinum Software and its
shareholders," said George Klaus, chairman, president and chief executive
officer of Platinum Software Corporation. "In addition to our outstanding
revenue growth, I am extremely pleased to report a record profit of more than
$13 million for the year. These numbers demonstrate that the investments we have
made in our business are already paying solid dividends to our customers while
continuing our ability to grow the company and increase marketshare. We
successfully capitalized on the strong demand for our Microsoft SQL Server-based
financial accounting solution as well as benefited from the increased license
revenue made possible by the addition of our customer service and support, sales
force automation, manufacturing and distribution applications. Our performance
this quarter - and throughout the entire year is proof that we are successfully
executing our plan to transform Platinum Software and solidify our position as
the midmarket's leading provider of enterprise business solutions," continued
Klaus.
In addition to its record financial performance, Platinum Software
achieved several key milestones during the fourth quarter of its 1998 fiscal
year, including:
o Selection as the winner from more than 14,000 competitors worldwide of
the 1998 Microsoft Certified Solution Provider (MCSP) Award for "Best
Business Solution by an Independent Software Vendor;"
o Introduction of Platinum(R) SQL version 4.2 in June 1998, which added
enhanced functionality and leading-edge enterprise business
intelligence tools, such as Platinum(R) Explorer and Platinum(R)
Internet Object Server to the company's enterprise business solution.
Platinum Software's record-setting fourth quarter concluded a year of
sustained growth and activity, including:
o A 135% increase in the per share stock price from $10.375 as of June
30, 1997 to $24.375 as of June 30, 1998;
o The acquisition and continued integration of Portland, Oregon-based
Clientele Software, Inc. (now Clientele Products Division), which
added front-office functionality (customer service and support and
sales force automation) to the company's Platinum SQL product suite;
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Platinum Software Announces Fourth Quarter, Year-End Financial Results
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o The acquisition and continued integration of Louisville,
Kentucky-based FocusSoft, Inc. (now Manufacturing Systems Division),
which added manufacturing and distribution functionality to the
company's Platinum SQL product suite;
o The addition of more than 500 new customers of the company's Microsoft
SQL Server-based products, including customers of the company's
enterprise business application suite;
o Receipt of the award for "Best Functionality" at the Microsoft
Industry Solution Awards for Accounting for the company's Platinum SQL
solution;
o Recognition by International Data Corporation in its November 1997
research report "Accounting Software on Microsoft SQL Server: Market
Update and Setting the Record Straight on Current Leadership" as
having the most installations worldwide of midrange accounting
software on the Microsoft SQL Server platform;
o The November 1997 launch of Platinum(R) SQL Advanced Distribution and
Manufacturing version 6.0, which added advanced planning and
scheduling, product configuration, job shop and Internet order entry
capabilities to the company's manufacturing and distribution product
suite;
o The December 1997 introduction of Platinum(R) for Windows version 4.6,
which made the company's leading Windows-based financial accounting
solution fully Year 2000 compliant;
o The February 1998 launch of Clientele(R) for Sales and Marketing
version 3.0, which completed the company's front-office application
suite by adding sales force automation functionality;
o The April 1998 launch of ClienteleNet and Platinum Internet Object
Server, which added remote and "self-service" information access
capabilities to the company's front-office and financial accounting
applications;
o The signing of a strategic national agreement with Deloitte & Touche,
LLP to reduce the implementation time and cost for midmarket companies
installing Platinum SQL.
"My thanks go out to our customers, employees and shareholders for
making Fiscal Year 1998 such a record-breaking year for Platinum Software. We
couldn't have
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Platinum Software Announces Fourth Quarter, Year-End Financial Results
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realized these accomplishments without leveraging the vision, talent and
expertise of our employees to create award-winning solutions that our customers
value and rely on to run their business. I know that we are all looking to make
Fiscal Year 1999 another exciting year for Platinum Software," continued Klaus.
ABOUT PLATINUM SOFTWARE CORPORATION
Platinum Software Corporation develops client/server enterprise resource
planning software, including customer service and support, sales force
automation, financial accounting, budgeting, manufacturing, and distribution for
midmarket corporations worldwide. According to International Data Corporation's
September 1997 research based on worldwide customer sites, Platinum Software
leads all providers of accounting software for midmarket companies on Microsoft
SQL Server. Founded in 1984, Platinum Software is based in Irvine, California.
More information about Platinum Software Corporation, its products and services
is available at www.platsoft.com.
# # #
Platinum(R) and Clientele(R) are registered trademarks of Platinum Software
Corporation. All other company and product names mentioned in this document are
trademarks of the respective companies with which they are associated and are
acknowledged.
Except for the historical information contained herein, the matters discussed in
this press release are forward looking statements that involve risks and
uncertainties. As discussed in the Company's Form 10-Q for the three months
ended March 31, 1998, the Company's operating results are uncertain and may be
impacted by the following factors, among others: the timely availability and
market acceptance of new products and upgrades, the impact of competitive
products and pricing; the ability of the Company to expand ERP product
offerings, and the discovery of undetected software errors.
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Platinum Software Announces Fourth Quarter, Year-End Financial Results
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PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
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JUNE 30, JUNE 30,
ASSETS 1998 1997
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<S> <C> <C>
Current assets:
Cash and cash equivalents $ 11,251 $ 6,724
Short-term investments 11,528 9,542
Accounts receivable, net 28,929 11,976
Inventories 803 481
Prepaid expenses and other 2,851 2,377
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Total current assets 55,362 31,100
Property and equipment, net 8,688 8,587
Software development costs, net 2,851 2,660
Acquired intangible assets, net 206 278
Other assets 881 531
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$ 67,988 $ 43,156
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,571 $ 4,752
Accrued expenses 12,166 8,293
Accrued restructuring costs 1,280 2,609
Deferred revenue 16,026 11,638
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Total current liabilities 33,043 27,292
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Long-term liabilities 35 277
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Stockholders' equity:
Preferred stock 20,688 30,292
Common stock 26 20
Additional paid-in capital 134,575 116,747
Less: notes receivable from officers (11,563) (11,563)
Accumulated foreign currency translation adjustments (1,092) 393
Accumulated deficit (107,724) (120,302)
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Total stockholders' equity 34,910 15,587
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$ 67,988 $ 43,156
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Platinum Software Announces Fourth Quarter, Year-End Financial Results
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PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
1998 1997 1998 1997
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Revenues:
License fees $20,420 $ 10,069 $57,577 $ 32,123
Services 11,605 7,859 40,406 27,420
Royalty income 175 66 505 1,208
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32,200 17,994 98,488 60,751
Cost of revenues 8,988 6,739 29,961 21,980
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Gross profit 23,212 11,255 68,527 38,771
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Operating expenses:
Sales and marketing 12,886 8,098 38,177 26,024
Software development 2,706 3,030 11,724 10,398
General and administrative 2,520 1,631 7,145 6,030
Charge for restructuring -- 1,600 -- 1,600
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18,112 14,359 57,046 44,052
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Income (loss) from operations 5,100 (3,104) 11,481 (5,281)
Other income, net 577 196 1,866 873
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Income (loss) before
provision for income taxes 5,677 (2,908) 13,347 (4,408)
Provision for income taxes -- -- -- --
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Net income (loss) $ 5,677 $ (2,908) $13,347 $ (4,408)
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Basic net income (loss) per share $ 0.22 $ (0.12) $ 0.56 $ (0.20)
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Shares used in computing basic
net income (loss) per share 25,660 23,278 23,956 21,758
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Diluted net income (loss) per share $ 0.19 $ (0.12) $ 0.45 $ (0.20)
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Shares used in computing diluted
net income (loss) per share 30,628 23,278 29,716 21,758
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