Digital Equipment Corporation Reports First Quarter Results
MAYNARD, Mass., Oct. 22, 1996 - Digital Equipment Corporation (NYSE: DEC) today reported a
loss of $66 million, or $0.48 per common share, for the first quarter which ended Sept. 28, 1996,
compared with net income of $48 million, or $0.26 per common share, for the same period last year.
Total operating revenues for the quarter were $2.912 billion, down from the $3.271 billion reported for
the comparable quarter a year ago.
Commenting on the decline in revenue for the quarter, Digital Chairman Robert B. Palmer said, "We
found it necessary at the beginning of this quarter to implement a new sales model that would increase
the extent and effectiveness of account coverage, reduce conflict among our direct and indirect sales
channels, and improve responsiveness and service to our customers around the world. While that change
was necessary, it got a historically slow quarter off to an even more sluggish start.
"We continue to improve our sales organization and have recently put our entire worldwide enterprise
sales force under one management," Palmer noted. "We are concentrating on substantive, permanent
improvement, not quick fixes. We believe that this is the best way to serve the interests of all our
stockholders and to make Digital more competitive. Our objective remains to return our company to a
position of industry leadership.
"The turnaround that we continue to manage is challenging and extensive in scope," Palmer continued.
"Despite progress we have achieved in the last two years, these results simply are not where they should
be."
Product revenues for the quarter were $1.522 billion compared to $1.819 billion in the first quarter of
last year.
Alpha system revenue was up four percent from a year ago. This more modest growth rate was a direct
result of the changes and realignments in the sales organization. Alpha systems have met with strong
marketplace acceptance, and Digital has generated approximately $11 billion in Alpha systems and
services revenue since 1992. During the first quarter, Netscape Communications Corporation became
the recipient of the 2,000th AlphaServer 8000 enterprise system to be shipped by Digital. Running
Digital UNIX, it is being used by Netscape to assist customers requesting information from its Web site.
Service revenues were $1.389 billion, compared to the $1.452 billion reported in the same period last
year. The services business is progressing in expanding new multivendor services offerings, which are
being widely accepted. As an example, Digital was recently awarded the world's largest Microsoft
Windows NT Exchange migration project at Lockheed Martin Corporation and will migrate 120,000
users over the next 18 months.
Gross margin for the quarter was 31.3 percent, compared with 32.2 percent for the comparable period
in the prior year.
Product gross margin was 31.1 percent, compared with 30.9 percent in the first quarter of a year ago.
Service gross margin was 31.5 percent compared with 33.8 percent in the comparable period last year.
Vincent Mullarkey, vice president and chief financial officer, noted that the company made solid
progress in the management of gross margin and operating expenses in spite of the revenue shortfall.
Total operating expenses for the quarter were $990 million, essentially unchanged from the same period
last year.
"Our mission is straightforward - to deliver with our partners networked business solutions based on
high performance platforms and services," Palmer continued. "Our 'go-to-market' and sales strategies
target three growth platforms and nine expanding market segments where Digital has the skills and tools
to succeed. This increased focus will result in more effective marketing.
"The plans and strategies we have put in place give us reason for optimism," said Palmer, "but we will
not be satisfied until we have achieved competitive profitability."
During the quarter, the company unveiled new high-performance, fully scalable and cluster-ready 64-bit
AlphaServer 4000 midrange systems ideally suited for business-critical applications. The AlphaServer
4000 series was first introduced four months ago, bringing enterprise 64-bit computing to the mid-range.
Demand for these systems has been very strong.
Palmer said the performance of the Personal Computer Business Unit continued to improve and the unit
has made good progress toward its near-term business objectives. In addition, he said the unit
announced a new range of products including desktops, notebooks and software optimized for the
Windows NT operating system.
The corporation ended the quarter with approximately 57,000 employees - a reduction of 4,500
positions since the same period last year - and 2,100 employees fewer than reported at the end of the
1996 fiscal year.
Digital also ended the quarter with $2.04 billion in cash and short-term investments, an increase of $539
million compared with last year.
Statements contained in this press release which are not historical facts are forward-looking statements
as that term is defined in the Private Securities Litigation Reform Act of 1995.
All forward looking statements are subject to risks and uncertainties and are discussed more fully in the
company's Annual Report on Form 10-K and the company's other filings with the Securities and
Exchange Commission.
Digital Equipment Corporation is a world leader in open client/server solutions from personal
computing to integrated worldwide information systems. Digital's scalable Alpha and Intel platforms,
storage, networking, software and services, together with industry-focused solutions from business
partners, help organizations compete and win in today's global marketplace.
Note: Digital, AlphaServer and the Digital logo are trademarks of Digital Equipment Corporation.
Microsoft is a registered trademark and Windows NT and Exchange are trademarks of Microsoft
Corporation. Netscape is a trademark of Netscape Communications Corporation. UNIX is a registered
trademark in the United States and other countries, licensed exclusively through X/Open Company, Ltd.
Consolidated Statements of Operations (Unaudited)
(in thousands except per share data)
Three-Month Period Ended
September 28, 1996
September 30, 1995
Product sales............... $1,522,163
$1,818,659
Service revenues............. 1,389,478
1,452,461
Total operating revenues..... 2,911,641
3,271,120
Cost of product sales........ 1,048,390
1,256,678
Service expense.............. 951,183
960,907
Research and engineering
expenses..................... 257,644
256,432
Selling, general and
administrative expenses...... 732,175
734,434
Operating income/(loss)...... (77,751)
62,669
Other (income)/expense,
net (1)...................... (16,172)
5,892
Income/(loss) before
income taxes................. (61,579)
56,777
Provision for income taxes... 4,302
8,606
Net income/(loss)............ (65,881)
48,171
Dividend on preferred
stock........................ 8,875
8,875
Net income/(loss) applicable
to common stock............. $(74,756)
$39,296
Net income/(loss) applicable
per common share (2)........ $(0.48)
$0.26
Weighted average common
shares outstanding........... 154,335
151,574
Note (1): In Q1FY97, Other (income)/expense, net includes $25
million of interest income, $21 million in interest expense and $12
million in net gains on divestments. In Q1FY96, Other
(income)/expense, net includes approximately $18 million in interest
income, $23 million in interest expense and there were no gains or
losses on divestments.
Note (2): Per common share amounts are calculated based on the
weighted average number of common shares and common share
equivalents outstanding during periods of net income, after
deducting applicable preferred stock dividends. Per share amounts
are calculated based only on the weighted average number of shares
outstanding during periods of net loss, after deducting applicable
preferred stock dividends.
Selected Balance Sheet Data (Unaudited) - Q1 FY97
(in thousands except per share and employee data)
September 28, 1996
Cash, cash equivalents and short-term investments......$2,040,625
Accounts receivable, net of allowances..................2,932,850
Inventories.............................................1,681,097
Prepaid expenses, deferred income taxes and other
current assets............................................370,814
Total current assets....................................7,025,386
Property, plant and equipment, net......................2,197,017
Other assets........................................... .415,322
Total assets............................................9,637,725
Bank loans and current portion of long-term debt... .... .16,938
Accounts payable..........................................716,233
Accrued restructuring costs...............................541,208
Total current liabilities...............................3,868,924
Long-term debt..........................................1,002,166
Postretirement and other postemployment benefits........1,279,505
Total liabilities.......................................6,150,595
Stockholders' equity...................................$3,487,130
Book value per common share................................$19.93
Non-U.S. revenues.................................QTR $1,900,614
65%
Employee population (approximately)........................57,000
SOURCE Digital Equipment Corporation/CONTACT: Investor: Pat Sprat, 508-493-7182 or Media:
Dan Kaferle, 508-493-2195, both of Digital/
Home Shopping Network Announces Third Quarter Results
ST. PETERSBURG, Fla., Oct. 22, 1996 n- Home Shopping Network, Inc. (NYSE: HSN) announced
today net earnings for the third quarter ended September 30, 1996.
Third quarter net sales for the Company's core electronic retailing business increased 11.5% to $206.9
million in 1996 from $185.5 million in 1995. The gross profit percentage increased to 40.9% from
33.2% in 1995. The average price point of products shipped decreased to $47.00 from $54.50 while
packages shipped increased 22.1% to 5.9 million from 4.9 million.
On a comparable basis with 1995, excluding the effect of a discontinued mail order catalog and an
infomercial business, consolidated net sales increased 10.9% to $234.3 million in 1996 from $211.2
million. When compared to 1995 reported results, consolidated net sales for the third quarter increased
by $16.7 million or 7.7%, from $217.6 million in the same period last year.
Consolidated gross profit increased $19.7 million, or 25.5%, to $97.3 million from $77.6 million, and
as a percentage of net sales, gross profit increased to 41.5% from 35.7% in the third quarter of 1995.
Consolidated operating expenses, exclusive of depreciation and amortization, decreased $9.7 million,
or 11.2%, and as a percentage of net sales, these expenses decreased to 32.9% from 39.9% in the third
quarter of 1995. EBITDA increased to $20.2 million compared to an EBITDA loss of $(9.2) million for
the third quarter of 1995.
Net earnings for the third quarter of 1996 were $7.1 million, or $.07 per share. This compared with a
net loss of $(17.7) million, or $(.20) per share for the comparable period in 1995. The third quarter of
1995 included several pre-tax non-recurring charges totaling $11.0 million.
"The results for the third quarter represent the continuing progress we have had in achieving our
objectives to increase the sales and profits of the core business," said James G. Held, president and
chief executive officer of HSN.
For the first nine months of 1996, net sales of the Company's core electronic retailing business increased
15.2% to $645.0 million from $559.8 million in 1995. The gross profit percentage increased to 37.4%
from 33.6% in 1995.
On a comparable basis with 1995, excluding the effect of a discontinued mail order catalog and an
infomercial business, consolidated net sales increased 16.5% to $733.9 million from $629.8 million.
When compared to 1995 reported results, consolidated net sales for the nine months ended September
30, 1996 increased by $75.1 million, or 11.4%, from $658.8 million in the same period last year.
EBITDA increased to $49.3 million in 1996 compared to an EBITDA loss of $(22.5) million for the
first nine months of 1995. Consolidated net earnings for the first nine months of 1996 were $14.3
million, or $.14 per share, compared with a net loss of $(36.2) million, or $(.41) per share, in the same
period last year. The first nine months of 1995 included several pre-tax non-recurring charges totaling
$13.0 million.
Home Shopping Network, Inc. pioneered the television shopping industry in 1982. Its 24-hour
programming reaches approximately 69 million households via cable and broadcast station affiliates
and satellite dish receivers.
HOME SHOPPING NETWORK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Nine
Months Ended
September 30, September 30,
1996 1995 1996 1995
(In thousands, except per
share data)
Net sales $234,321 $217,567 $733,922 $658,841
Cost of sales 136,992 139,984 453,483 419,080
Gross profit 97,329 77,583 280,439 239,761
Operating expenses:
Selling and marketing 35,259 38,857 107,125 122,437
Engineering and programming 24,539 24,399 73,280 73,838
General and administrative 17,295 18,114 50,728 58,497
Depreciation and amortization 8,437 11,614 24,849 29,514
Other charges --- 5,427 --- 5,427
Restructuring charges --- --- --- 2,041
85,530 98,411 255,982 291,754
Operating profit (loss) 11,799 (20,828) 24,457
(51,993)
Other income (expense):
Interest income 409 413 1,347 1,434
Interest expense (1,867) (2,581) (8,203)
(5,858)
Miscellaneous 1,046 344 5,415 3,869
Litigation --- (3,200)
--- (3,200)
(412) (5,024) (1,441)
(3,755)
Earnings (loss) before income
taxes 11,387 (25,852) 23,016
(55,748)
Income tax expense (benefit) 4,327 (8,151) 8,747
(19,512)
NET EARNINGS (LOSS) $ 7,060 $(17,701) $ 14,269
$(36,236)
Net Earnings (loss) per common
share $ .07 $ (.20) $ .14
$ (.41)
Weighted average shares
outstanding 95,544 90,646 95,208 90,812
HOME SHOPPING NETWORK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30,
December 31,
1996 1995 1995
(In thousands)
ASSETS
Cash and cash equivalents $ 31,833 $ 20,438 $ 25,164
Accounts and notes receivable, net 26,044 31,734 23,634
Inventories, net 90,728 136,822 101,564
Deferred income taxes 27,101 36,532 24,484
Other current assets 4,786 11,789 8,149
Total current assets 180,492 237,315 182,995
Property, plant and equipment, net 100,084 123,693 108,774
Other non-current assets 137,460 116,696 144,526
Total assets $418,036 $477,704 $436,295
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term
obligations $ 230 $ 1,540 $ 1,555
Accounts payable 76,557 116,854 84,297
Other accrued liabilities 87,645 87,995 89,572
Total current liabilities 164,432 206,389 175,424
Long-term obligations 98,131 116,040 135,810
Deferred income taxes --- 5,814 ---
Stockholders' equity 155,473 149,461 125,061
Total liabilities and
stockholders' equity $418,036 $477,704 $436,295
SOURCE Home Shopping Network, Inc./CONTACT: Meredith Dobbs, Home Shopping Network,
813-572-8585 x7363/
Tandycrafts, Inc. Continues Turnaround; Reports Significantly Improved First Quarter Earnings
FORT WORTH, Texas, Oct. 22, 1996 - TANDYCRAFTS, INC. (NYSE: TAC) announced today
significantly improved results for its fiscal first quarter ended September 30, 1996. Net income for the
quarter was $797,000, or $0.07 per share compared to a net income of $9,000 for the same quarter of
fiscal 1996.
Excluding those operations divested as part of the company's strategic restructuring program, net sales
were basically flat when compared to the same quarter last year. Total retail sales for the quarter
increased 1.3% while manufacturing sales from continuing operations decreased 2.8%. Although
manufacturing sales were down, the company's backlog for orders, primarily in its Picture Frames and
Framed Art division, was significantly higher when compared to the same period last year. Net sales
were $57,770,000, a 7.3% decrease compared to the $62,349,000 reported for the comparable period
last year.
In commenting on the company's performance, R. Earl Cox III, Chairman, stated, "We are pleased with
the company's progress. The results this quarter continue the turnaround since implementing a strategic
restructuring plan nine months ago. The many changes that have taken place in the past nine months
continue to show positive results. This is the third consecutive quarter with significantly improved
earnings over the same quarter last year. Operating income for the first quarter increased 86.5% to
$2,048,000. We are encouraged by these results, and are working to achieve the level of performance
that we expect from various units. This is a year of transition. We firmly believe that the company is
headed in the right direction and expect to continue this positive trend going forward in fiscal 1997."
Tandycrafts, Inc. is a specialty retailer and manufacturer. Included in its Specialty Retail segment are
Tandy Leather Company, Joshua's Christian Stores, Cargo Furniture & Accents, and Sav-On Office
Supplies. The Specialty Manufacturing segment is comprised of two manufacturing divisions: Picture
Frames and Framed Art and Tandy Wholesale International ("TWI"). Information disclosed in this news
release which are forward-looking statements involve risks with uncertainties including, but not limited
to, the performance of each operating unit, relationships with certain key customers, commodity price
fluctuations, interest rate fluctuations, recessionary factors, seasonality, and other risks indicated in
filings with the Securities and Exchange Commission such as Tandycrafts' most recent Form 10-Q and
10-K.
TANDYCRAFTS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30, September 30,
1996 1995
Net sales $57,770 $62,349
Operating costs and expenses:
Cost of goods sold 35,688 38,813
Selling, general and administrative 18,662 20,913
Restructuring charge -- --
Depreciation and amortization 1,372 1,525
Total operating costs and expenses 55,722 61,251
Operating income 2,048 1,098
Interest expense, net 822 1,085
Income before income taxes 1,226 13
Provision for income taxes 429 4
Net income $797 $9
Net income per share $0.07 $0.00
Weighted average common and
common equivalent shares 12,198 11,769
Cargo
Joshua's Sav-On Furniture
Tandy Leather Christian Office &
Retail Bookstores Supplies Accents
Number of stores 172 72 36 39
Net sales 9,558 5,828 9,455 5,126
Operating income /(loss) (331) (746) 562 122
Same store sales
gains/(losses) (6.2)% (19.7)% 28.3% (15.9)%
SOURCE Tandycrafts Inc./CONTACT: James D. Allen, Executive Vice President and Chief Financial
Officer of Tandycrafts, 817-551-9606/
Environmental Elements Announces Second Quarter Results, Improved New Orders and Higher
Backlog
BALTIMORE, MD - Oct. 22, 1996 - Environmental Elements Corporation (NYSE: EEC) today
announced sharply reduced losses in its second quarter and six months ended September 30, 1996,
despite lower sales reflecting difficult industry conditions. The Company also reported significant
improvements in new orders and in backlog during the most recent period and said that it anticipates a
profitable fourth fiscal quarter and a sustained improvement in operating results in the fiscal year
beginning April 1, 1997.
In line with expectations, the Company reported a net loss for the quarter of $642,000 ($.09 per share)
on sales of $11.8 million compared to a net loss of $2.3 million ($.33 per share) incurred for the year
earlier quarter on sharply higher sales of $16.1 million.
New orders for the quarter, including a recently announced $9 million contract from Savannah Energy
Systems Company, were $17.0 million, up from $12.0 million received during the same period last year.
Backlog at September 30, 1996, was $34.9 million, up 20% from the $29.2 million on hand a year ago.
For the six months ended September 30, 1996, the Company reported a net loss of $597,000 ($.09 per
share) compared to a net loss of $2.9 million ($.42 per share) last year, and sales of $25.8 million
compared to $34.8 million for the first half of last year. Net loss data for both the September quarter and
year to date 1995 include a $950,000 restructuring charge relating to the relocation of the Company's
Aftermarket business to its Baltimore facility. Excluding this charge, 1996 results on a strictly
comparable basis were still substantially improved over those of last year. Year to date, new orders
total $23.2 million in 1996, up from $22.5 million in new orders received during the first six months of
1995.
E. H. Verdery, President and Chief Executive Officer commented, "Our significant progress during the
quarter and the first six months of this fiscal year reflects cost and overhead reduction actions that
continue to move us rapidly toward the break-even level, even on sharply reduced sales. However, we
will not be satisfied until we are again profitable. Reflecting aggressive sales and marketing efforts, we
are successfully booking good business in a competitive environment, and we are enjoying notable
success in the aftermarket. We expect our actions, combined with market conditions and project timing,
are paving the way for a profitable fourth quarter and for sustained improvement next fiscal year."
Environmental Elements Corporation, a leading air pollution control systems provider for fifty years,
designs equipment and supplies systems and services which enable a broad range of customers in the
power generation, pulp and paper, waste to energy, rock products, metals and petrochemical industries
worldwide to operate their facilities in compliance with particulate and gaseous emissions standards.
The Company also supplies a complete range of parts and services for its own systems and for systems
originally supplied by others.
Environmental Elements Corporation
Summary Consolidated Financial Data
Three Months Ended Six
Months Ended
September 30, September 30,
In thousands of dollars--except 1996 1995 1996 1995
per share amounts
Sales $11,784 $16,085 $25,757
$34,780
Cost of Sales 10,344 14,680 22,079
31,581
Gross Profit 1,440 1,405 3,678
3,199
Selling, general and 1,943 2,674 3,983
5,322
administrative expenses
Restructuring charge -- 950
-- 950
Total Operating Expense 1,943 3,624 3,983
6,272
Operating Loss (503) (2,219)
(305) (3,073)
Interest and other expense (139) (34)
(292) (139)
Loss from Continuing (642) (2,253)
(597) (3,212)
Operations before Income
Taxes
Provision for income taxes 0 0 0
0
Loss from Continuing (642) (2,253)
(597) (3,212)
Operations
Gain on disposal of -- 1
-- 351
discontinued operations, net
Net Loss $(642) $(2,252)
$(597) (2,861)
Per share of common stock and
common stock equivalents:
Loss from continuing $(0.09) $(0.33)
$(0.09) $(0.47)
operations
Income from discontinued 0.00 0.00 0.00
0.05
operations
Net Loss $(0.09) $(0.33)
$(0.09) (0.42)
Average shares outstanding 6,917 6,874 6,912
6,870
Backlog, end of period $34,900 $29,200
SOURCE Environmental Elements Corporation/CONTACT: Edward H. Verdery, President & Chief
Executive Officer of Environmental Elements, 410-368-6859; or investors - Thomas Curtin,
212-797-4646, or Mary Conger, 703-549-3454, both of The Foristall Company, Inc./(EEC)
Dataware Technologies Announces Third Quarter Results
CAMBRIDGE, Mass., Oct. 22, 1996 - Dataware Technologies, Inc. (Nasdaq: DWTI), a leading
developer of software for professional electronic publishing via the Internet, Intranet and enterprise
networks, CD-ROM, and CD/Web hybrid media, today reported revenues of $10.0 million for the third
quarter ended September 30, 1996 and a net loss of $2.7 million, or $0.41 per share, after a one-time
charge of $668,000 associated with its July 1996 acquisition of Ntergaid, Inc. Prior to the one-time
charge, the Company reported a net loss of $2.0 million, or $.31 per share for the quarter. This
compares with revenues of $10.6 million, and net income of $785,000, or $0.12 per share, for the same
period a year ago.
"Total revenues in the third quarter increased 19 percent and software revenues were up 40 percent
versus the second quarter, as we made significant strides in restructuring and revitalizing our software
solutions business this quarter," said Kurt Mueller, chairman and chief executive officer of Dataware
Technologies. "Recent new customer contracts included National Geographic, NATO and Deutsche
Telekom. We remain bullish about the software solutions business going forward," said Mueller.
"We are continuing our aggressive investment program, and remain on plan to deliver the first of our
next generation software products during the fourth quarter of this year," continued Mueller. "We are
also on plan to release additional new products during 1997. We anticipate that our restructuring
activities will have a favorable impact on expenses and operating profits in future quarters, starting with
the fourth quarter of 1996."
For the nine months ended September 30, 1996, the Company reported a net loss of $15.0 million, or
$2.35 per share, on revenues of $26.8 million, compared with net income of $1.8 million, or $.28 per
share, on revenues of $30.6 million for the same period a year ago. The net loss for the first nine months
of 1996 includes total one-time charges of $9.7. Prior to the one-time charges, the Company reported a
net loss of $6.4 million, or $1.00 per share for the first nine months of 1996.
The statements in this press release about the Company's prospects, including those relating to the
anticipated timing and benefits of the Company's investment strategy, product initiatives, and ongoing
restructuring activities are forward looking statements based on assumptions that may not be realized for
various reasons. Among these are that the Company's new product offerings may not adequately meet the
needs of a rapidly changing marketplace; that the Company may not be able to develop appropriate new
distribution channels to deliver these products economically and on time; that the Company's
competitors, some of whom have significantly more resources than the Company, may meet the needs of
the market more quickly and effectively; and that increases in various cost and expense categories may
exceed management's current expectations. In general, for the Company to be successful, it also must
continue to attract and retain highly skilled technical, management, sales and marketing personnel; and
worldwide and regional economic conditions must not significantly deteriorate.
Dataware Technologies develops and markets software for professional electronic publishing. Our
innovative software products and solutions enable customers to manage and distribute a wide variety of
information via the Internet, CD-ROM, enterprise networks, commercial online services,
print-on-demand, and combinations of these media. Today, Dataware's software is used by more than
2,000 organizations worldwide - including publishers, corporations, government agencies, professional
firms and educational institutions - serving over 700,000 end-users in more than 20 countries. The
Company's growth strategy emphasizes technology and market leadership, extensive customer service,
global distribution and selective acquisitions.
The Company's consolidated statements of operations are attached. NOTE: Dataware is a registered
trademark of Dataware Technologies, Inc.
Dataware Technologies, Inc.
Consolidated Statements of Operations
(In thousands except per share data, unaudited)
Three months ended Nine months ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Software license fees $4,905 $5,415 $11,408 $14,620
Services 5,115 5,187 15,417 15,971
Total revenues 10,020 10,602 26,825 30,591
Cost of revenues:
Software license fees 896 872 2,576 2,209
Write down of intangible
assets ---- ---- 1,926 ----
Services 3,400 2,938 9,776 8,821
Total cost of revenues 4,296 3,810 14,278 11,030
Gross margin 5,724 6,792 12,547 19,561
Operating expenses:
Sales and marketing 4,752 3,342 12,752 9,859
Product development 2,181 1,155 5,953 3,620
General and
administrative 1,736 1,343 5,172 3,936
Write down of goodwill
and other non-recurring
charges ---- ---- 1,889 ----
Acquired research and
development 668 ---- 1,861 ----
Total operating expenses 9,337 5,840 27,627 17,415
Income (loss) from
operations (3,613) 952 (15,080) 2,146
Interest income, net 64 158 360 425
Settlement of litigation ---- ---- (4,073) ----
Other income (expenses),
net 2 11 (29) 65
Income (loss) before
income taxes (3,547) 1,121 (18,822) 2,636
Provision (benefit) for
income taxes (864) 336 (3,867) 791
Net income (loss) $(2,683) $785 $(14,955) $1,845
Net income (loss) per
common share $(0.41) $0.12 $(2.35) $0.28
Weighted average number
of common and common
equivalent shares 6,466 6,635 6,358 6,605
SOURCE Dataware Technologies, Inc./CONTACT: Daniel M. Clarke, Chief Financial Officer of
Dataware Technologies, Inc., 617-577-2892 or dclarkedataware.com or
http://www.dataware.com/(DWTI)