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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 21, 1999
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EPICOR 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) 585-4000
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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 21, 1999, Epicor, Software Corporation, (the "Company")
announced financial results for its third quarter of fiscal 1999, ending
September 30, 1999.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated October 21, 1999.
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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: October 25, 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 October 21, 1999. 5
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EXHIBIT 99
FOR IMMEDIATE RELEASE
Contacts: Valerie Brodie
Director, Investor Relations
949/585-4293
[email protected]
EPICOR REPORTS THIRD QUARTER 1999 FINANCIAL RESULTS
IRVINE, Calif., October 21, 1999 -- Epicor Software Corporation (NASDAQ: EPIC),
today reported its financial results for the third quarter ended September 30,
1999. Revenues for the third quarter were $63.2 million. Net loss for the
quarter was $9.7 million or $0.24 cents per share.
The company's balance sheet as of September 30, 1999 showed cash, cash
equivalents and short-term investments of $34.6 million, accounts receivable of
$80.9 million and deferred revenue of $36.1 million.
The company believes that the decrease in its revenues from the prior
quarter reflects a continued industry slow down in demand for
enterprise-software as customers divert spending to complete their Year 2000
compliance programs. Consistent with many other enterprise-software vendors, the
company expects the uncertainty in license revenues to continue until the impact
of Year 2000 issues dissipates.
The reported loss of $0.24 per share for the quarter was attributable
primarily to the combined impact on gross margins as a result of a shift in the
revenue mix from software license towards services, higher than anticipated
sales discounting in the quarter and certain revisions associated with the
company's amortization policies. The company has also increased operating
expenses related to the investment in new product development, web-enablement
and integration of its existing back and front office products, its sales force
and continued efforts to re-brand the company.
The company anticipates the balance of the year to be difficult. The
company anticipates that the level of on-going expenses will decrease. The
company is also taking decisive actions to centralize and streamline its
operating processes and will review all facets of the company to reduce, where
appropriate, non-essential spending as it continues to consolidate operations.
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Epicor Reports Third Quarter 1999 Results
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"We are committed to our fundamental business strategy going forward,"
said George Klaus, chairman, president and CEO of Epicor. "The results reflect
the company's aggressive investment in the transition to an emerging e-Business
model. Ensuring that Epicor's application suites address our customers'
web-centric requirements, will strongly position the company to leverage the
tremendous growth opportunities created by this shift to integrated
internet-based enterprise applications."
ABOUT EPICOR SOFTWARE CORPORATION
Epicor, the company formed following the merger of Platinum Software
and DataWorks, is the largest enterprise software supplier focused exclusively
on the requirements of midmarket companies. Epicor delivers business performance
solutions that enable companies to automate on their own terms and outperform
their competition by capitalizing on customer relationships, minimizing the
risks and upheaval of conventional enterprise resource planning (ERP) systems.
Founded in 1984, Epicor is ranked among the industry's ten largest
enterprise business solutions providers by industry analysts, with more than
10,000 enterprise customers worldwide. Epicor is headquartered in Irvine,
California and employs more than 1,600 employees globally. More information
about Epicor, its products and services is available at www.epicor.com.
# # #
Epicor is a trademark of Epicor Software Corporation. Platinum is a registered
trademark of PLATINUM technology International, Inc. The product and service
offerings depicted in this document are produced by Epicor Software Corporation.
The foregoing statements regarding anticipated future expense levels, operating
results, market trends and product deliveries are "forward-looking statements"
that involve risks and uncertainties and actual results may differ materially.
The factors that could affect actual results include but are not limited to, the
company's success in controlling costs, achieving operating results and margins;
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 and other factors discussed in the Company's
Quarterly report on Form 10-Q, for the period ending June 30, 1999, at pages
13-18.
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Epicor Reports Third Quarter 1999 Results
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EPICOR SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1999 1998
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<S> <C> <C>
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 14,390 $ 22,175
Short-term investments 20,163 30,511
Accounts receivable, net 80,934 84,789
Inventories 1,124 971
Prepaid expenses and other 11,631 13,826
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Total current assets 128,242 152,272
Property and equipment, net 17,684 13,388
Software development costs, net 9,269 5,572
Intangible assets, net 32,613 32,056
Other assets 5,551 8,989
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Total assets $ 193,359 $ 212,277
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,620 $ 16,490
Accrued expenses 19,478 24,741
Accrued merger and restructuring costs 4,739 15,090
Deferred revenue 36,066 36,845
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Total current liabilities 74,903 93,166
Long-term liabilities 1,079 1,116
Stockholders' equity:
Preferred stock 7,501 7,501
Common stock 41 40
Additional paid-in capital 237,546 232,042
Less: notes receivable from officers for issuance
of restricted stock (11,377) (11,563)
Accumulated other comprehensive income (loss) 674 (245)
Accumulated deficit (117,008) (109,780)
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Total stockholders' equity 117,377 117,995
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Total liabilities and stockholders'equity $ 193,359 $ 212,277
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Epicor Reports Third Quarter 1999 Results
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EPICOR SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1999 1998 1999 1998
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(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
License fees $ 22,024 $16,177 $ 71,468 $52,007
Services 40,210 14,039 119,230 36,472
Other 971 113 4,768 423
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Total revenues 63,205 30,329 195,466 88,902
Cost of revenues 30,134 10,066 88,184 26,780
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Gross profit 33,071 20,263 107,282 62,122
Operating expenses:
Sales and marketing 22,599 10,953 62,812 34,131
Software development 8,348 2,797 20,466 8,446
General and administrative 11,869 1,936 31,789 5,675
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Total operating expenses 42,816 15,686 115,067 48,252
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Income (loss) from operations (9,745) 4,577 (7,785) 13,870
Other income, net 47 298 993 1,025
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Income (loss) before income taxes (9,698) 4,875 (6,792) 14,895
Provision for income taxes 0 180 436 180
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Net income (loss) $ (9,698) $ 4,695 $ (7,228) $14,715
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Net income (loss) per share - basic $ (0.24) $ 0.17 $ (0.18) $ 0.56
Net income (loss) per share - diluted $ (0.24) $ 0.16 $ (0.18) $ 0.49
Common shares outstanding - basic 40,703 28,330 40,510 26,234
Common shares outstanding - diluted 40,703 30,009 40,510 30,194
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