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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) October 27, 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 October 27, 1998, Platinum, Software Corporation, (the "Company")
announced the results for its first quarter of fiscal 1999, ending September 30,
1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated October 27, 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: November 2, 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:
Exhibit Number Sequentially
Numbered Page
Ex.-99 Press Release dated October 27, 1998. 5
4
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EXHIBIT 99
FOR IMMEDIATE RELEASE
Contact: Paul Mazzarella
Platinum Software Corporation
949/453-4030
[email protected]
PLATINUM(R) SOFTWARE CORPORATION ANNOUNCES
FIRST QUARTER FISCAL 1999 RESULTS
REPORTS 66% INCREASE IN REVENUE, 260% INCREASE IN PROFITS
OVER FIRST QUARTER FISCAL YEAR 1998
IRVINE, Calif. -- October 27, 1998 -- Platinum(R) Software Corporation (NASDAQ:
PSQL), a leading provider of enterprise resource planning solutions, today
reported its financial results for the first quarter of fiscal year 1999, ended
September 30, 1998. Revenues for the first quarter of fiscal 1999 were $30.3
million, compared to revenues of $18.3 million for the first quarter of fiscal
1998, a 66 percent increase from fiscal 1998. A net profit of $4.7 million or
$0.16 per share was reported for the first quarter of fiscal 1999, as compared
to a net profit of $1.3 million or $0.05 per share for the same quarter a year
ago. This represents a 15 percent net profit on revenue and a 260 percent
increase in net profits from the same quarter of fiscal 1998.
The company's balance sheet, as of September 30, 1998, showed cash, cash
equivalents and short-term investments of $19.2 million, accounts receivable of
$27.7 million and deferred revenue of $15.5 million.
"Platinum Software's first quarter results represent our second best
quarter ever, with very strong revenues, profits and earnings per share. These
outstanding results further demonstrate our success in delivering an enterprise
resource planning solution specifically tailored to the business needs of
midmarket companies," said George Klaus, chairman, president and chief executive
officer of Platinum Software Corporation. "We have worked diligently to enhance
the integration of our front office and back office applications and continue to
see great enthusiasm for our Platinum SQL product suite by customers and
prospects alike."
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"Likewise, our next-generation Platinum SQL solution, currently
scheduled for release by the end of this calendar year, will demonstrate
significant improvements in integration, functionality and technology, while
continuing to target the midmarket using leading Microsoft technologies,"
continued Klaus. "With its unique customer-centric model, the new Platinum SQL
product suite is designed to enable our customers to better serve their
customers by allowing all departments to seamlessly share information throughout
the enterprise. Our growth and profitability this quarter combined with our
next-generation Platinum SQL solution will help us achieve our goal of becoming
the leading provider of enterprise applications for the midmarket."
In addition to strong financial performance, Platinum Software achieved
several key milestones during the first quarter of its 1999 fiscal year,
including:
* License of Microsoft(R) Visual Basic(R) for Applications version 5.0
(VBA) for its next generation of its enterprise application suite,
Platinum SQL, providing an industry standard development environment
enabling developers to easily extend, customize and integrate
Platinum Software's solutions with other related business
applications.
* Enhancement of Platinum Software's front-office solution with the
availability of Clientele for Help Desks 3.0, adding advanced
functionality to help improve support personnel productivity,
decrease costs, reduce problem resolution time and improve
responsiveness.
* Availability of Clientele Connector 3.0 and Clientele for Mobile
Users 3.0, improving the ability of remote users to easily access the
most current information in the Clientele database and effectively
use that information to shorten sales cycles and improve customer
service and support.
* Strategic alliance agreement with Datastream Systems, Inc., in which
Datastream, as a Platinum Software Solutions Provider, will integrate
its award-winning plant asset management software with Platinum SQL
to add asset management and maintenance management capabilities for
manufacturing companies.
* Introduction of comprehensive, turnkey demand generation programs,
including Platinum Channel Marketing Services and a seminar series,
"Vision Path...Year 2000 and Beyond," that provide Platinum
Software's Channel Partners with additional marketing resources,
expertise and proven campaigns to help them generate high quality
leads and increase their revenues.
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On October 13, 1998, Platinum Software announced that it had entered
into a definitive merger agreement with DataWorks Corporation (NASDAQ: DWRX).
The transaction is subject to customary conditions and will require regulatory
approvals and shareholder approval by each company. The merger is expected to
close by the end of calendar year 1998.
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. Founded in 1984, Platinum is based in Irvine,
California. More information about Platinum and its products and services is
available at Platinum's Web site 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 Annual Report, on Form 10-K for the
year ended June 30, 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 CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
ASSETS 1998 1998
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<S> <C> <C>
Current assets:
Cash and cash equivalents $ 6,640 $ 11,251
Short-term investments 12,553 11,528
Accounts receivable, net 27,702 28,929
Inventories 694 803
Prepaid expenses and other 6,148 2,851
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Total current assets 53,737 55,362
Property and equipment, net 9,335 8,688
Software development costs, net 3,753 2,851
Acquired intangible assets, net 192 206
Other assets 1,473 881
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$ 68,490 $ 67,988
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,862 $ 3,571
Accrued expenses 7,046 12,166
Accrued restructuring costs 1,139 1,280
Deferred revenue 15,474 16,026
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Total current liabilities 27,521 33,043
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Long-term liabilities 26 35
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Stockholders' equity:
Preferred stock 7,501 20,713
Common stock 28 26
Additional paid-in capital 148,631 134,550
Less: notes receivable from officers (11,563) (11,563)
Accumulated foreign currency
translation adjustments (625) (1,092)
Accumulated deficit (103,029) (107,724)
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Total stockholders' equity 40,943 34,910
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$ 68,490 $ 67,988
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PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1998 1997
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Revenues:
License fees $16,177 $10,087
Services 14,039 8,079
Royalty income 113 99
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30,329 18,265
Cost of revenues 10,066 6,069
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Gross profit 20,263 12,196
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Operating expenses:
Sales and marketing 10,953 7,152
Software development 2,797 3,050
General and administrative 1,936 1,263
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15,686 11,465
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Income from operations 4,577 731
Other income, net 298 574
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Income before provision for income taxes 4,875 1,305
Provision for income taxes 180 --
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Net income $ 4,695 $ 1,305
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Basic net income per share $ 0.17 $ 0.06
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Shares used in computing basic net income per share 28,330 22,683
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Diluted net income per share $ 0.16 $ 0.05
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Shares used in computing diluted net income per share 30,009 28,919
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