St. Louis, Missouri, April 22, 1999 -- Data Research Associates, Inc. (DRA) (NASDAQ: DRAI) announced today that revenues for its second quarter of fiscal 1999, ended March 31, were $7.0 million, compared with $8.3 million for the second quarter of fiscal 1998. Earnings for the second quarter of fiscal 1999 were $210,000, or 4 cents per share, compared with $583,000, or 11 cents per share, for the same period in fiscal 1998.
During the fiscal second quarter, DRA signed seven new contracts, including four for initial installations of the Taos system. One of the remaining three contracts, with the University of Marne La Vallee in France, is for initial installation of the MultiLIS system, but is expected to evolve into the first installation of the Taos system in France. DRA President and CEO Michael J. Mellinger announced that the company anticipated shipping several installations of its new Taos product for revenue in the current fiscal quarter, which ends June 30, with additional installations anticipated in the fiscal fourth quarter, which ends September 30.
"We currently have more than ten Taos installations in process, many of which we expect to be shipped for revenue this fiscal year," said Mellinger, adding that the confirmed schedule includes only those libraries that have signed contracts for Taos.
Mellinger attributed the decrease in revenue during the fiscal second quarter to a $1.3 million decrease in hardware sales, which resulted in part because of customers' ability to buy high-performance hardware at decreasing prices, and in part because of anticipation of Taos delivery. Software revenue increased slightly, to $1.94 million in the second quarter of fiscal 1999 from $1.92 million in the second quarter of fiscal 1998, while service revenues decreased slightly, to $4.60 million in fiscal 1999 from $4.63 million in fiscal 1998.
"We are pleased to see solid performance in our software revenues, which traditionally carry the highest margins among the three components of our revenues," said Mellinger. "We would expect that the beginning of revenue flow from additional Taos installations will have a positive impact on software revenues."
Regarding the company's expenses for the quarter, Mellinger noted that general and administrative (G&A) expenses had decreased approximately $370,000 compared with the second quarter of fiscal 1998. However, the fiscal 1998 G&A expenses included a non-recurring expense in excess of $440,000 related to discontinued use of a set of development tools. Salaries and employee benefits rose to $2.9 million in the second quarter of fiscal 1999 from $2.6 million in the second quarter of fiscal 1998, in part due to annual raises and in part due to the net addition of approximately 15 employees since the second quarter of fiscal 1998.
Data Research Associates, headquartered in St. Louis, is a leading systems integrator for libraries and other information providers, offering its own proprietary information services software; third-party software and hardware; Internet, World Wide Web and other networking services; and other related support services.
This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause DRA's actual results to differ materially. Specific risk factors for the statements contained herein include, but are not limited to, the company's ability to continue to enhance the Taos product; customer acceptance of that product; and timing of negotiations for sites who have selected Taos but have not yet signed a contract. Some of these risk factors, as well as additional risk factors, are discussed in detail in DRA's Annual Report and in Exhibit 99-1 of its Form 10-K for fiscal year 1998. DRA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Summary of Results (in thousands, except per-share data)
Three Months Ended
Six Months Ended|
|Hardware||$ 448||$ 1,793||$ 922||$ 2,943|
|Services and other||4,600||4,630||9,299||9,299|
|Total revenue||$ 6,991||$ 8,339||$ 13,378||$ 15,792|
|Income before income taxes||$ 312||$ 946||$ 498||$ 1,778|
|Net income||$ 210||$ 583||$ 336||$ 1,075|
|Earnings per share (basic)||$ .04||$ .11||$ .06||$ .19|
|Earnings per share (diluted)||$ .04||$ .11||$ .06||$ .19|
|Weighted-average shares (basic)||5,345||5,522||5,357||5,532|
|Adjusted weighted-average shares and assumed conversions (diluted)||5,365||5,545||5,375||5,554|