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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
JANUARY 22, 1998
Date of report (Date of earliest event reported)
ANALOGY, INC.
(Exact name of registrant as specified in its charter)
OREGON 0-27752 93-0892014
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation or organization) Identification No.)
9205 SW GEMINI DRIVE
PORTLAND, OREGON 97008
(Address of principal executive offices and zip code)
503-626-9700
(Registrant's telephone number including area code)
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ITEM 5. OTHER EVENTS
On January 22, 1998 Analogy, Inc. (the "Company") issued a press release
containing information about the Company's financial results for the quarter and
the nine months ended December 31, 1997. The press release is included herein as
Exhibit 99.3.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.3 Press Release
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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 thereunto duly authorized.
Dated: January 22, 1998
ANALOGY, INC.
By: /s/ TERRENCE A. RIXFORD
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Terrence A. Rixford
Vice President, Finance and Administration
(Principal Financial Officer)
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EXHIBIT 99.3
ANALOGY REPORTS RECORD REVENUE AND EARNINGS IN FISCAL THIRD QUARTER
Beaverton, Oregon - January 22, 1998 - Analogy, Inc. (NASDAQ:ANLG) today
announced its financial results for the third fiscal quarter ended December 31,
1997. Both revenue and net income were the highest of any quarter in the
company's history.
Total revenue for the third quarter of fiscal 1998 was $7,846,000, or
15% above revenue of $6,816,000 in the third quarter of fiscal 1997. Product
license revenue increased from $4,434,000 to $4,511,000, and service and
other revenue increased from $2,382,000 to $3,335,000. Total revenue
year-to-date for fiscal 1998 was $20,974,000, or 25% above revenue of
$16,791,000 reported for the comparable period a year ago.
Net income in the third quarter of fiscal 1998 was $347,000, compared
with a net loss of $1,675,000 in the third quarter a year ago. Included in
the net loss for the prior year's third fiscal quarter is a non-recurring
charge of $1,896,000 for in-process research and development expenses related
to an acquisition. Excluding this one-time charge, net income for Analogy
for the third quarter a year ago was $221,000, and net income for the third
quarter of the current fiscal year was 57% above the adjusted net income
figure for the prior fiscal year.
Diluted net income per share for the third quarter and year-to-date for
the current fiscal year was $0.04 and $0.03, respectively, based on a weighted
average of 9,834,000 and 9,639,000 shares outstanding, respectively. Basic and
diluted earnings per share were the same for the quarter and the year-to-date
period. The fiscal 1997 third quarter loss per share was $0.19, based on a
weighted average of 8,596,000 shares outstanding, and the fiscal 1997
year-to-date loss per share was $0.39, based on a weighted average of 8,422,000
shares outstanding.
"We continue to make progress on sales and earnings," said Gary Arnold,
chairman and president of Analogy. "This quarter included revenue from a number
of important long-term contracts from domestic and European customers. We are
pleased to see some resurgence in business from the domestic automotive sector,
as well as continued strength in the semiconductor and aerospace sectors of our
business. As we enter the fourth quarter, which has historically been our
strongest quarter, we are cautiously optimistic about the continued growth in
our business."
Analogy, Inc. is a world leader in the development of high-performance
design and analysis software and model libraries for the design of mixed-signal
and mixed-technology systems. The company's products are used in the aerospace,
automotive/transportation, semiconductor, telecommunications, computer
peripherals, medical and industrial control industries. Analogy has offices and
support staff throughout the United States, Europe and Asia and is headquartered
in Beaverton, Oregon. For on-line information, visit the company's web site at:
http//www.analogy.com.
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ANALOGY, INC.
Consolidated Income Statement
(000, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
12/31/97 12/31/96 12/31/97 12/31/96
<S> <C> <C> <C> <C>
Product license revenue $ 4,511 $ 4,434 $ 11,906 $ 9,987
Service and other 3,335 2,382 9,068 6,804
Total revenue 7,846 6,816 20,974 16,791
Cost of product license revenue 364 409 1,344 1,160
Cost of service and other revenue 669 629 2,205 1,640
Total cost of revenue 1,033 1,038 3,549 2,800
Gross profit 6,813 5,778 17,425 13,991
Research and development 1,587 1,493 4,290 4,133
Sales and marketing 3,868 3,286 10,284 9,038
General and administrative 727 584 2,151 1,941
Amortization of intangibles 92 45 276 45
Acquired in-process research and
development - 1,896 - 1,896
Total operating expenses 6,274 7,304 17,001 17,053
Operating income (loss) 539 (1,526) 424 (3,062)
Other expense, net 77 38 83 29
Income (loss) before income tax 462 (1,564) (341) (3,091)
Income tax expense 115 111 87 225
Net income (loss) $ 347 $ (1,675) $ 254 $ (3,316)
Basic net income (loss) per share $ 0.04 $ (0.19) $ 0.03 $ (0.39)
Diluted net income (loss) per share $ 0.04 $ (0.19) $ 0.03 $ (0.39)
Weighted average shares outstanding-
Basic 9,193 8,596 9,164 8,422
Diluted 9,834 8,596 9,639 8,422
</TABLE>
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ANALOGY, INC.
Consolidated Balance Sheet
(000)
12/31/97 3/31/97
(unaudited)
Cash and cash equivalents $ 2,001 $ 1,827
Marketable securities - 1,697
Accounts receivable, net 10,835 9,161
Prepaid expenses 1,249 886
Other assets 483 455
Total current assets 14,568 14,026
Furniture, fixtures and equipment, net 3,960 4,280
Library costs, net 3,549 2,729
Other assets, net 826 1,095
Total assets $ 22,903 $ 22,130
Accounts payable 818 1,301
Current portion of capital leases 310 566
Accrued salaries and benefits 2,181 2,095
Accrued expenses 259 181
Unearned revenue 6,750 5,812
Total current liabilities 10,318 9,955
Non-current portion of capital leases 722 499
Other liabilities 117 359
Total long-term liabilities 839 858
Common stock 17,367 17,124
Foreign currency translation (223) (155)
Accumulated deficit (5,398) (5,652)
Total shareholders' equity 11,746 11,317
Total liabilities and equity $ 22,903 $ 22,130
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