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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) January 22, 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 (714) 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 January 22, 1998, Platinum Software Corporation, (the "Company")
announced the results for its second quarter of fiscal 1998, ending December 31,
1997.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(C) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated January 22, 1998.
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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: January 29, 1998 By /s/ Perry Tarnofsky
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Perry Tarnofsky
Vice President and Assistant
Secretary
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EXHIBIT INDEX
The following exhibits are attached hereto and incorporated herein by
reference:
Exhibit Number Sequentially
Numbered Page
Ex.-99 Press Release dated January 22, 1998. 5
4
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EXHIBIT 99
FOR IMMEDIATE RELEASE CONTACT:
Michael J. Simmons
Chief Financial Officer
Platinum Software Corporation
714/450-4595
[email protected]
PLATINUM SOFTWARE CORPORATION ANNOUNCES
SECOND QUARTER FISCAL 1998 RESULTS
IRVINE, Calif., (Jan. 22, 1998) -- Platinum(R) Software Corporation (NASDAQ:
PSQL), a leading midmarket provider of client/server enterprise resource
planning (ERP) applications, today reported its financial results for the second
quarter of fiscal year 1998, ended December 31, 1997. Revenues for the second
quarter of fiscal 1998 were $21.7 million, compared to revenues of $14.3 million
for the second quarter of fiscal 1997. Net income for the quarter was $2.8
million or $.10 per share excluding $0.8 million of transaction costs associated
with the acquisition of FocusSoft, Inc. Reported net income was $2.0 million or
$.07 per share, compared to a loss of $0.6 million or $0.03 per share for the
same quarter a year ago. The company's balance sheet as of December 31, 1997
showed cash, cash equivalents and short-term investments of $12.5 million,
accounts receivable of $16.4 million and deferred revenue of $11.6 million.
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PLATINUM SOFTWARE ANNOUNCES QUARTERLY RESULTS - P.2
The $0.8 million in transaction costs effecting earnings were for
investment banking, accounting and legal fees associated with the company's
November 14, 1997 acquisition of privately-held FocusSoft, Inc., of Louisville,
Kentucky, now called Platinum Software's Manufacturing Software Division. The
acquisition strengthens Platinum's presence in the ERP marketplace, and when
combined with its Clientele products, enables Platinum Software to offer a
differentiated solution focused on customer-centric enterprise information
systems to the middle market worldwide.
George Klaus, chairman of the board, president and chief executive
officer said, "FocusSoft was a keystone acquisition for Platinum Software. It
was the second step of our corporate re-positioning into the ERP software
market. We have already demonstrated the compelling combination of the
manufacturing and distribution applications with our Platinum SQL accounting
application in live, production customer sites. The first step of our
re-positioning was our Clientele acquisition in June 1997. The performance of
the Clientele Products division continues to exceed their financial plan. The
record setting performance of our core financial applications, along with our
re-positioning, has resulted in record revenue and profits for our second
quarter of fiscal 1998." Klaus adds, "Before the one-time acquisition costs, we
generated net income of $2.8 million, representing a 13% profit. Financial
comparisons to last year and last quarter are quite favorable. I thank all of
our shareholders for their support while we have positioned the company for
future growth. I look forward to capitalizing on our current market position."
ABOUT PLATINUM SOFTWARE CORPORATION
Platinum Software Corporation develops client/server enterprise
resource planning software, including customer service and support, financial
accounting, budgeting, manufacturing and distribution for midmarket corporations
worldwide. According to International Data Corporation's (IDC's) September 1997
research based on worldwide customer sites, Platinum Software leads all
providers of accounting
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PLATINUM SOFTWARE ANNOUNCES QUARTERLY RESULTS - P.3
software for midmarket companies on Microsoft SQL Server. Founded in 1984,
Platinum Software is based in Irvine, California. More information about
Platinum Software Corporation and its products and services is available at the
Platinum World Wide Web site (http://www.platsoft.com).
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Platinum and Clientele are registered trademarks of Platinum Software
Corporation. FocusSoft is a trademark of FocusSoft, Inc., a subsidiary 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 September 30, 1997, 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 QUARTERLY RESULTS - P.4
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31, JUNE 30,
1997 1997
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,466 $ 6,724
Short-term investments 8,061 9,542
Accounts receivable, net 16,375 12,880
Inventories 694 481
Prepaid expenses and other 2,076 1,473
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Total current assets 31,672 31,100
Property and equipment, net 7,779 8,587
Software development costs, net 2,358 2,660
Acquired intangible assets, net 233 278
Other assets 573 531
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$ 42,615 $ 43,156
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,368 $ 4,752
Accrued expenses 6,578 8,293
Accrued restructuring costs 1,973 2,609
Deferred revenue 11,580 11,638
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Total current liabilities 23,499 27,292
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Long-term liabilities 60 277
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Stockholders' equity:
Preferred stock 30,292 30,292
Common stock 21 20
Additional paid-in capital 117,518 116,747
Less: notes receivable from officers (11,563) (11,563)
Accumulated foreign currency translation adjustments 532 393
Accumulated deficit (117,744) (120,302)
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Total stockholders' equity 19,056 15,587
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$ 42,615 $ 43,156
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</TABLE>
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PLATINUM SOFTWARE ANNOUNCES QUARTERLY RESULTS - P.5
PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Revenues:
License fees $11,660 $ 7,710 $21,747 $13,696
Consulting and professional services 5,604 2,643 9,656 4,996
Support services 4,290 3,791 8,317 7,407
Royalty income 96 138 195 273
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21,650 14,282 39,915 26,372
Cost of revenues 7,179 5,039 13,247 9,442
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Gross profit 14,471 9,243 26,668 16,930
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Operating expenses:
Sales and marketing 7,846 5,965 14,999 11,464
General and administrative 2,143* 1,586 3,406* 3,637
Software development 3,025 2,416 6,075 4,828
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13,014 9,967 24,480 19,929
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Income (loss) from operations 1,457 (724) 2,188 (2,999)
Other income, net 565 143 1,139 342
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Income (loss) before provision
for income taxes 2,022 (581) 3,327 (2,657)
Provision for income taxes -- -- -- --
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Net income (loss) $ 2,022 $ (581) $ 3,327 $(2,657)
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Basic net income (loss) per share $ 0.09 $ (0.03) $ 0.15 $ (0.12)
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Shares used in computing basic
net income (loss) per share 22,770 21,740 22,727 21,618
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Diluted net income (loss) per share $ 0.07 $ (0.03) $ 0.11 $ (0.12)
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Shares used in computing diluted net
net income (loss) per share 29,374 21,740 29,147 21,618
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</TABLE>
* Includes $800,000 of FocusSoft acquisition expenses
