<PAGE>
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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
MAY 13, 1999
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
BEAVERTON, OREGON 97008
(Address of principal executive offices and zip code)
503-626-9700
(Registrant's telephone number including area code)
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<PAGE>
ITEM 5. OTHER EVENTS
On May 13, 1999, Analogy, Inc. (the "Company") issued a press release
containing information about the Company's financial results for the quarter
and fiscal year ended March 31, 1999. The press release is included herein as
Exhibit 99.1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 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.
ANALOGY, INC.
Dated: May 14, 1999 By: /s/ GARY P. ARNOLD
--------------------------
Gary P. Arnold
Chairman of the Board, President
and Chief Executive Officer
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PRESS RELEASE EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION, CONTACT:
GARY ARNOLD THERESSA DAVIS
CHAIRMAN, PRESIDENT AND CEO INVESTOR RELATIONS
ANALOGY, INC. HARRIS MASSEY HERINCKX
(503) 626-9700 (503) 295-1922
http://www.analogy.com/
ANALOGY REPORTS RESULTS FOR FISCAL YEAR 1999 AND FOURTH FISCAL QUARTER
COMPANY REPORTS NEAR RECORD FOURTH QUARTER REVENUES
BEAVERTON, OREGON - MAY 13, 1999 -- ANALOGY, INC. (NASDAQ: ANLG) today
announced its financial results for the fourth fiscal quarter and full fiscal
year ended March 31, 1999.
Total revenue for the fourth quarter of fiscal 1999 was $7,717,000, compared
to $5,990,000 in the same quarter of fiscal 1998. Product license revenue
increased by 44% from $3,546,000 in the fourth quarter of fiscal 1998 to
$5,111,000 in the fourth quarter of fiscal 1999. Service and other revenue
increased by 7% from $2,444,000 in the fourth quarter of last year to
$2,606,000 in the fourth quarter of the current year. These results reflect
the second best quarter in Analogy's history. The company reported a net
profit of $160,000 or $0.02 per share compared to a net loss of $2,813,000 or
$0.30 per share for the same quarter a year ago.
For all of fiscal year 1999, the company reported total revenue of
$26,805,000, which was 4% higher than the $ 25,790,000 reported for fiscal
1998. Product license revenue increased by 14% from $14,278,000 to
$16,307,000, and service and other revenue decreased by 9% from $11,512,000
to $10,498,000 due to reduced revenue from several government contracts which
were completed early in the year. The net loss for fiscal year 1999 was
$3,304,000 or $0.35 per share compared with a net loss of $3,354,000 or $0.37
per share a year ago. The current fiscal year loss includes a non-recurring
restructuring charge of $557,000, which was incurred in the first quarter.
"We are pleased with the continued quarter to quarter improvement in both
profitability and license revenue growth in the fourth quarter," said Gary
Arnold, Chairman, President and CEO of Analogy. "Software license revenue
grew 18% over the third quarter and our goal is to continue this trend into
the next fiscal year. During fiscal year 1999 we took significant steps to
reduce our costs. In addition, we introduced significant new products which
we believe will lead to increasing license revenues in the new fiscal year.
During the fourth fiscal quarter, Analogy released the 5.0 version of our
Saber-Registered Trademark- simulator and our new SaberHarness(TM) product
family for wire harness design."
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Act of
1995. The forward-looking statements, including the statements above
regarding the Company's goals for quarter over quarter software license
growth and license sales of new products, involve risks and uncertainties
that could cause actual results to differ materially from the forward-looking
statements, including, without limitation, the receipt and timing of customer
orders, changes in capital spending plans by key customers, increased
adoption of behavioral modeling design methodologies for mixed-signal and
mixed-technology systems design, Analogy's ability to introduce new products
and expand its markets as scheduled, customer acceptance of new products, and
competitive initiatives. The forward-looking statements should be considered
in light of these risks and uncertainties, as well as those highlighted in
the Company's reports filed with the Securities and Exchange Commission.
Analogy, Inc., founded in January 1985, develops and markets high performance
software and model libraries for top-down design and behavioral simulation of
mixed-signal and mixed-technology systems.
(Tables follow.)
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ANALOGY, INC.
Consolidated Statements of Operations
(000, except per share data)
<TABLE>
<CAPTION>
Quarter Ended Year Ended
--------------------------------------- ------------------------------------
03/31/99 03/31/98 03/31/99 03/31/98
--------------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Revenue:
Product licenses $ 5,111 $ 3,546 $ 16,307 $ 14,278
Service and other 2,606 2,444 10,498 11,512
-------------------- ---------------- ---------------- ----------------
Total revenue 7,717 5,990 26,805 25,790
Cost of Revenue:
Product licenses 529 432 1,920 1,776
Service and other 230 628 1,234 2,833
-------------------- ---------------- ---------------- ----------------
Total cost of revenue 759 1,060 3,154 4,609
-------------------- ---------------- ---------------- ----------------
Gross profit 6,958 4,930 23,651 21,181
Operating expenses:
Research and development 2,030 1,970 8,802 6,260
Sales and marketing 3,988 4,387 14,055 14,559
General and administrative 486 836 2,378 2,987
Amortization of intangibles 92 92 368 368
Restructuring charges - - 557 -
-------------------- ---------------- ---------------- ----------------
Total operating expenses 6,596 7,285 26,160 24,174
-------------------- ---------------- ---------------- ----------------
Operating (loss) income 362 (2,355) (2,509) (2,993)
Other expense, net (93) (3) (340) (86)
-------------------- ---------------- ---------------- ----------------
(Loss) income before
income taxes 269 (2,358) (2,849) (3,079)
Income tax expense (benefit) 109 455 455 275
-------------------- ---------------- ---------------- ----------------
Net (loss) income $ 160 $ (2,813) $ (3,304) $ (3,354)
-------------------- ---------------- ---------------- ----------------
-------------------- ---------------- ---------------- ----------------
Basic net (loss) income per
common share $ 0.02 $ (0.30) $ (0.35) $ (0.37)
Diluted net (loss) income per
common share $ 0.02 $ (0.30) $ (0.35) $ (0.37)
Weighted average shares
outstanding - Basic 9,491 9,261 9,426 9,188
Weighted average shares
outstanding - Diluted 9,732 9,261 9,426 9,188
</TABLE>
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ANALOGY, INC.
Consolidated Balance Sheets
(000)
<TABLE>
<CAPTION>
03/31/99 03/31/98
----------------- -----------------
<S> <C> <C>
Cash and cash equivalents $ 2,008 $ 8,130
Accounts receivable 6,738 3,946
Prepaid expenses 1,033 1,160
Other assets, net 2,271 506
---------------- ----------------
Total current assets 12,050 13,742
Furniture, fixtures and equipment, net 2,416 3,811
Library costs, net 4,495 3,924
Other assets, net 2,257 1,498
---------------- ----------------
Total assets $ 21,218 $ 22,975
---------------- ----------------
---------------- ----------------
Accounts payable and accrued expenses 1,320 1,895
Bank line of credit 400 -
Current portion of capital leases 403 536
Accrued salaries and benefits 2,709 2,726
Unearned revenue 8,657 7,254
---------------- ----------------
Total current liabilities 13,489 12,411
Non-current portion of capital leases 219 454
Deferred contract revenue 1,455 1,308
Other liabilities 65 107
---------------- ----------------
Total long-term liabilities 1,739 1,869
Preferred stock
Common stock 18,569 17,906
Foreign currency translation (269) (205)
Accumulated deficit (12,310) (9,006)
---------------- ----------------
Total shareholders' equity 5,990 8,695
---------------- ----------------
Total liabilities and equity $ 21,218 $ 22,975
---------------- ----------------
---------------- ----------------
</TABLE>
###
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