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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) April 26, 1999
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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 April 26, 1999, Platinum, Software Corporation, (the "Company")
announced the results for its first quarter of fiscal 1999, ending March 31,
1999.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated April 26, 1999.
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: April 27, 1999 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 April 26, 1999. 5
4
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EXHIBIT 99
PLATINUM
SOFTWARE CORPORATION
FOR IMMEDIATE RELEASE
Contacts: Valerie Brodie
Platinum Software Corporation
949/453-4293
[email protected]
PLATINUM SOFTWARE CORPORATION ANNOUNCES FIRST QUARTER 1999 RESULTS
IRVINE, Calif. -- April 26, 1999 -- Platinum Software Corporation
(NASDAQ: PSQL), a leading provider of business performance solutions for
mid-sized companies, today reported its financial results for the first quarter
of fiscal 1999 ended March 31, 1999. Revenues for the first quarter were $66.1
million. Net income for the quarter was $2.1 million or $0.05 per share. On
December 30, 1998, the company changed its fiscal year end from June 30 to
December 31. Also on December 31, 1998, the merger with DataWorks Corporation
was completed and was accounted for under the purchase method of accounting. As
a result, year over year comparisons are not reflected. The quarter ended March
31, 1999 represents the first quarter where results of operations for the
combined entities of Platinum Software and DataWorks are presented.
The company's balance sheet as of March 31, 1999 showed cash, cash
equivalents and short-term investments of $47.3 million, accounts receivable of
$79.1 million and deferred revenue of $33.3 million.
"Considering the challenges we faced combining two large, global
entities, I'm pleased with our performance and feel we've made significant
progress streamlining our operations in only the first three months following
the merger. I am particularly pleased with our strong international results and
growth rate of our Front Office customer relationship management solutions,"
said George Klaus, chairman, president and chief executive officer of Platinum
Software Corporation. "Moving forward, we believe our pending corporate
re-branding and company name change reflects our strengthened position in our
chosen market and our continued commitment to provide customers with integrated
business performance solutions that help them fuel growth and build competitive
advantage."
- More -
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Platinum Software Announces First Quarter 1999 Results
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ABOUT PLATINUM SOFTWARE CORPORATION
Platinum Software Corporation, one of the ten largest enterprise resource
planning (ERP) vendors in the world, is the only supplier focused exclusively on
providing enterprise business applications to mid-sized corporations. The
company's "customer-centric" ERP approach combines its "front office" sales and
marketing and customer relationship management applications, with its highly
regarded financial applications and manufacturing solutions expertise.
Founded in 1984, Platinum Software is headquartered in Irvine, California
and employs over 1,700 employees globally. The company has over 10,000
enterprise customers worldwide. More information about Platinum Software
Corporation, its products and services is available at www.platsoft.com.
# # #
Clientele is a registered trademark of Platinum Software Corporation. Platinum
is a registered trademark of Platinum Technology International, Inc. All other
company and product names mentioned in this document are trademarks of the
respective companies with which they are associated and are acknowledged.
The foregoing statements regarding re-branding and future performance with
customers involve risks and uncertainties. As discussed in the Company's annual
report on Form 10-K at pages 17-22, the Company's operating results are
uncertain and may be impacted by the following factors, among others: the
Company's success in integrating the operations, sales forces, and products of
the two merging companies; fluctuations in demand for the Company's products,
particularly in light of competitive offerings; 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 First Quarter 1999 Results
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PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
ASSETS 1999 1998
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(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 17,432 $ 22,175
Short-term investments 29,872 30,511
Accounts receivable, net 79,063 84,789
Inventories 1,213 971
Prepaid expenses and other 11,118 13,826
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Total current assets 138,698 152,272
Property and equipment, net 13,575 13,388
Software development costs, net 7,014 5,572
Acquired intangible assets, net 31,683 32,056
Other assets 8,529 8,989
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$ 199,499 $ 212,277
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,041 $ 16,490
Accrued expenses 31,056 39,831
Deferred revenue 33,322 36,845
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Total current liabilities 77,419 93,166
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Long-term liabilities 885 1,116
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Stockholders' equity:
Preferred stock 7,501 7,501
Common stock 40 40
Additional paid-in capital 233,745 232,042
Less: notes receivable from officers (11,563) (11,563)
Accumulated foreign currency translation
adjustments (823) (245)
Accumulated deficit (107,705) (109,780)
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Total stockholders' equity 121,195 117,995
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$ 199,499 $ 212,277
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</TABLE>
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Platinum Software Announces First Quarter 1999 Results
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PLATINUM SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1999 1998
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<S> <C> <C>
Revenues: (unaudited)(unaudited)
License fees $25,638 $15,410
Services 38,702 10,828
Other revenue 1,765 135
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66,105 26,373
Cost of revenues 26,436 7,726
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Gross profit 39,669 18,647
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Operating expenses:
Sales and marketing 20,419 10,292
Software development 4,787 2,943
General and administrative 13,105 1,219
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38,311 14,454
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Income from operations 1,358 4,193
Other income, net 1,083 150
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Income before provision for income taxes 2,441 4,343
Provision for income taxes 366 0
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Net income $ 2,075 $ 4,343
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Basic net income per share $ 0.05 $ 0.18
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Shares used in computing basic net income per share 40,433 24,713
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Diluted net income per share $ 0.05 $ 0.15
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Shares used in computing diluted net income per share 41,935 29,945
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</TABLE>
