Data Research Associates (DRA) has released its audited financial statements for its 1989 fiscal year, which ended September 30. The statements showed a 52 percent increase in revenues over FY 1987, from $11.2 million to $17.0 million, as well as an 83 percent increase in net income, from $565,000 to $1,033,000. At the same time, long-term debt was reduced and short-term debt was eliminated entirely. The dramatic increase in profits came during a year when DRA increasingly sold software only, rather than complete "turnkey" systems. This pattern is consistent with that experienced by VARs (value added retailers) in a number of other markets: margins on hardware have gotten so small--12 percent on Digital hardware is the average--that a company can increase profits by shifting the emphasis in selling away from hardware to software.
[Contact: Data Research Associates, 1276 North Warson Road, P.0. Box 8495, St. Louis, MO 63132-1806; (800) 325-0888.]