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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 27, 2000
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EPICOR SOFTWARE CORPORATION
(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
(Former name or former address, if changed, since last report)
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ITEM 5. OTHER EVENTS
On April 27, 2000, Epicor Software Corporation announced financial results
for its first quarter ending March 31, 2000.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
Exhibit Number
Ex-99 Press Release dated April 27, 2000.
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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.
EPICOR SOFTWARE CORPORATION
Date: April 28, 2000 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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Sequentially
Exhibit Number Numbered Page
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Ex.-99 Press Release dated April 27, 2000. 5
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FOR IMMEDIATE RELEASE
Contact: Valerie Brodie
Director, Investor Relations
949/585-4293
[email protected]
EPICOR REPORTS FIRST QUARTER 2000 FINANCIAL RESULTS
IRVINE, Calif., April 27, 2000 - Epicor Software Corporation (NASDAQ:
EPIC), today reported its financial results for the first quarter ended March
31, 2000. Revenues for the first quarter were $56.6 million, compared with $66.1
million for the first quarter 1999. Net loss for the quarter was $8.9 million or
$0.22 per share, compared with a net income for the same period last year of
$2.1 million or $0.05 per share.
The company's balance sheet as of March 31, 2000 showed cash, cash
equivalents and short-term investments of $16.7 million, accounts receivable of
$77.9 million and deferred revenue of $42.4 million.
The company has continued its aggressive measures to control costs and
streamline its operating processes, which is evidenced by a sequential decrease
in operating expenses from approximately $52.8 million before charges in the
fourth quarter of 1999 to $38.4 million in the first quarter of 2000.
The company believes that the first quarter 2000 revenues were
negatively impacted by an unanticipated lag in demand following Y2K as customers
continued to postpone IT expenditures for enterprise systems, particularly in
the manufacturing sector.
The reported loss of $0.22 per share for the quarter was attributable
primarily to the combined impact on gross margins of lower than expected license
revenue and the trailing effect of lower license revenues in prior quarters
resulting in lower service revenues this quarter.
During the first quarter, the company completed several strategic
objectives aimed at providing its midmarket customers with affordable
Internet-driven solutions. These included the launch of the "e by Epicor"
Internet-enabled, integrated front office and back office solution; delivery of
the first version of Epicor's eCommerce StoreFront solution; and strategic
alliances with Clarus Corporation to provide integrated web-based B2B
procurement and trading
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Epicor Reports First Quarter 2000 Financial Results
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exchange solutions to the midmarket, and with Ultimate Software to provide
integrated human resource and payroll solutions.
"While we are still in a transition period refining our business model,
we are pleased with the progress we have made in aggressively reducing operating
expenditures," said Rick Roll, president and chief operating officer. "As we
have seen this quarter, the industry-wide demand for traditional enterprise
systems following the Y2K slowdown will take longer to rebound than originally
anticipated. We continue to see strong interest in our front office products and
are beginning to see interest in our newly released eBusiness, eCommerce,
eProcurement and B2B trading exchange solutions."
ABOUT EPICOR SOFTWARE CORPORATION
Epicor is the largest enterprise software supplier focused exclusively
on the real-world requirements of midmarket companies. Epicor delivers business
performance solutions, including integrated front office, back office and
eBusiness capabilities, that enable companies to automate on their own terms and
outperform their competition by capitalizing on customer relationships, while
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 at 195 Technology
Drive, Irvine, California, 92618. More information about Epicor, its products
and services is available by calling (949) 585-4000 or visiting Epicor's Web
site 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 industry or market trends, demand for the
company's products and expected operating results which are not historical fact
are "forward-looking statements" that involve risks and uncertainties and actual
results may differ materially. Such risks and uncertainties include but are not
limited to 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, and the discovery of undetected
software errors and other factors discussed in the company's Annual report on
Form 10-K, for the period ending December 31, 1999, at pages 16-22. As a result
of these factors the business or prospects expected by the company as part of
this announcement may not occur. The company undertakes no obligation to revise
or update publicly any forward-looking statements. Please refer to the company's
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Epicor Reports First Quarter 2000 Financial Results
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subsequent filings with the Securities Exchange Commission on Form 10-Q for
further information on the business and other risks that the company faces.
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Epicor Reports First Quarter 2000 Financial Results
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EPICOR SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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MARCH 31, DECEMBER 31,
2000 1999
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(Unaudited) (Audited)
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ASSETS
Current assets:
Cash and cash equivalents $ 13,255 $ 18,221
Short-term investments 3,447 12,154
Accounts receivable, net 77,871 75,263
Prepaid expenses and other 11,042 8,984
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Total current assets 105,615 114,622
Property and equipment, net 15,992 16,650
Software development costs, net 10,983 9,083
Intangible assets, net 24,046 25,668
Other assets 3,753 4,154
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Total assets $ 160,389 $ 170,177
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,416 $ 14,591
Accrued expenses 29,946 32,801
Accrued merger and restructuring costs 8,281 11,562
Deferred revenue 42,409 39,017
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Total current liabilities 93,052 97,971
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Long-term liabilities 362 400
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Stockholders' equity:
Preferred stock 7,501 7,501
Common stock 42 41
Additional paid-in capital 240,921 237,536
Less: notes receivable from officers for issuance of
restricted stock (10,114) (11,269)
Accumulated other comprehensive loss (2,080) (1,590)
Accumulated deficit (169,295) (160,413)
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Total stockholders' equity 66,975 71,806
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Total liabilities and stockholders' equity $ 160,389 $ 170,177
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EPICOR SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
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THREE MONTHS ENDED
MARCH 31,
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2000 1999
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Revenues:
License fees $ 20,645 $25,638
Services 34,866 38,702
Other 1,100 1,765
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Total revenues 56,611 66,105
Cost of revenues 27,487 28,004
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Gross profit 29,124 38,101
Operating expenses:
Sales and marketing 20,685 20,645
Software development 5,746 5,559
General and administrative 11,974 10,539
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Total operating expenses 38,405 36,743
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Income (loss) from operations (9,281) 1,358
Other income (expense), net 400 1,083
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Income (loss) before income taxes (8,881) 2,441
Provision for income taxes - 366
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Net income (loss) $ (8,881) $ 2,075
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Net income (loss) per share - basic $ (.22) $ .05
Net income (loss) per share - diluted $ (.22) $ .05
Common shares outstanding - basic 41,262 40,433
Common shares outstanding - diluted 41,262 41,935
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