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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 25, 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 Identification No.)
organization)
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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ITEM 5. OTHER EVENTS
On January 25, 1999 Analogy, Inc. (the "Company") issued a press release
containing information about the Company's financial results for the quarter
ended December 31, 1998. 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.
Dated: January 27, 1999
ANALOGY, INC.
By: /s/ GARY P. ARNOLD
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Gary P. Arnold
Chairman of the Board, President
and Chief Executive Officer
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EXHIBIT 99.1
PRESS RELEASE
Analogy Reports Results for Third Fiscal Quarter
BEAVERTON, Ore., Jan. 25 /PRNewswire/ -- Analogy, Inc. (Nasdaq: ANLG - news)
today announced its financial results for the third fiscal quarter ended
December 31, 1998 with total revenues of $7,258,000 and earnings of $0.01 per
share.
Fiscal year 1999 third quarter revenues were $7,258,000 compared with $7,847,000
in the third quarter of fiscal 1998. Total revenues for the first nine months of
fiscal 1999 were $19,087,000 compared with $19,800,000 for the first nine months
of fiscal 1998. Net income in the third quarter was $53,000 or $0.01 per share,
compared with net income of $347,000 or $0.04 per share in the third quarter of
fiscal 1998. The net loss for the first nine months of fiscal 1999 was
$3,464,000 or $0.37 per share, compared with a net loss of $541,000 or $0.06 per
share, for the first nine months a year ago.
Total revenue increased to $7.3 million in the third quarter of fiscal 1999 from
$6.4 million in the second quarter. Product license revenue increased to $4.3
million in third quarter of fiscal 1999 from $4.0 million in the second quarter.
Total revenue of $7.8 million in the third quarter of fiscal 1998 included
approximately $1.0 million of service revenue from government contracts. As
discussed in previous releases, these government contracts are nearly complete
and produced virtually no revenue in the third quarter of fiscal 1999.
"We are very pleased with our return to profitability in the third quarter,"
said Gary Arnold, Chairman and President and CEO of Analogy. "The combination of
our cost control efforts and our focus on maintaining growth in software license
revenue has enabled our return to profitability despite weaknesses in our Asian
markets. Software license revenue grew 7% over the prior quarter and our goal is
to continue this trend in sequential quarter over quarter software license
revenue growth without significantly increasing our cost base."
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, 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, and competitive initiatives. The
forward-looking statements should be considered in light of these risks and
uncertainties.
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.
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ANALOGY, INC.
Consolidated Statements of Operations
(000, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
12/31/98 12/31/97 12/31/98 12/31/97
<S> <C> <C> <C> <C>
Revenue:
Product licenses $ 4,316 $ 4,511 $ 11,196 $ 10,732
Service and other 2,942 3,335 7,891 9,068
Total revenue 7,258 7,846 19,087 19,800
Cost of Revenue:
Product licenses 478 364 1,407 1,344
Service and other 450 669 988 2,205
Total cost of revenue 928 1,033 2,395 3,549
Gross profit 6,330 6,813 16,692 16,251
Operating expenses:
Research and development 2,081 1,587 6,773 4,290
Sales and marketing 3,383 3,868 10,066 10,172
General and administrative 586 727 1,892 2,151
Amortization of intangibles 92 92 276 276
Restructuring charges -- -- 557 --
Total operating expenses 6,142 6,274 19,564 16,889
Operating income (loss) 188 539 (2,872) (638)
Other expense, net (15) (77) (246) (83)
Income (loss) before
income taxes 173 462 (3,118) (721)
Income tax expense (benefit) 120 115 346 (180)
Net income (loss) $ 53 $ 347 $ (3,464) $ (541)
Basic net income (loss)
per common share $ 0.01 $ 0.04 $ (0.37) $ (0.06)
Diluted net income (loss)
per common share $ 0.01 $ 0.04 $ (0.37) $ (0.06)
Weighted average shares
outstanding - Basic 9,437 9,193 9,404 9,164
Weighted average shares
outstanding - Diluted 9,674 9,834 9,404 9,164
</TABLE>
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ANALOGY, INC.
Consolidated Balance Sheets
(unaudited)
(000)
<TABLE>
<CAPTION>
12/31/98 03/31/98
<S> <C> <C>
Cash and cash equivalents $ 1,226 $ 8,130
Accounts receivable 6,534 3,946
Prepaid expenses 1,245 1,160
Other assets, net 1,772 506
Total current assets 10,777 13,742
Furniture, fixtures and equipment, net 2,789 3,811
Library costs, net 4,269 3,924
Other assets, net 2,027 1,498
Total assets $ 19,862 $ 22,975
Accounts payable and accrued expenses 1,290 1,895
Current portion of capital leases 349 536
Accrued salaries and benefits 2,463 2,726
Unearned revenue 8,217 7,254
Total current liabilities 12,319 12,411
Non-current portion of capital leases 287 454
Deferred contract revenue 1,485 1,308
Other liabilities 83 107
Total long-term liabilities 1,855 1,869
Preferred stock -- --
Common stock 18,346 17,906
Foreign currency translation (188) (205)
Accumulated deficit (12,470) (9,006)
Total shareholders' equity 5,688 8,695
Total liabilities and equity $ 19,862 $ 22,975
</TABLE>
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