St. Louis, Missouri, April 16, 1998 -- Data Research Associates, Inc. (DRA) (NASDAQ: DRAI) announced today that revenues for its second quarter of fiscal 1998, ended March 31, were $8.3 million, compared with $9.9 million for the second quarter of fiscal 1997. Earnings for the second quarter of fiscal 1998 were $583,000, or 11 cents per share, compared with $1.2 million, or 22 cents per share, for the same period in fiscal 1997.
DRA President and CEO Michael J. Mellinger attributed the decrease in revenue primarily to a $1.4 million decrease in hardware sales, and to a lesser extent to a $280,000 decrease in software revenues. The decrease in hardware sales was caused in part by a large hardware upgrade that shipped in the second quarter last year. Additionally, hardware and software sales both declined as a result of continued anticipation of delivery of the company's new Taos library automation system, which is expected to begin shipping in the fiscal fourth quarter. Immediately subsequent to the end of the quarter, DRA announced that the Tacoma Public Library had become the first public library to sign a contract for Taos, and the company confirmed published reports that Taos had been selected for a statewide project in Alaska valued at approximately $1.25 million.
"We continue to be on target for our anticipated initial revenue shipments of Taos in the fourth quarter of this fiscal year," said Mellinger. "The recently announced contract and selection by two additional prestigious libraries provides us with further encouragement for the long-term success of the Taos product. We are also achieving our goal of continuing to sell and install new Classic systems, including some Classic systems that include Taos client modules." DRA signed contracts for two Classic systems during the quarter.
Other Taos progress during the quarter included installation of a second Taos client software module, the cataloging module, running against the DRA Classic server at a major public library. The ILCSO project, comprising some 45 institutions in the state of Illinois, also commenced its implementation schedule with a target of installation in the summer. Mellinger noted that a small portion of the total ILCSO software revenue had been realized in the second fiscal quarter.
In addition to the effect of the decrease in hardware and software sales,the company's earnings for the second quarter were negatively affected by a 23% increase in general and administrative (G&A) expenses compared with the second quarter of fiscal 1997, and an increase in its consolidated effective tax rate from 28.5% in the second quarter of fiscal 1997 to 38.3% in the second quarter of fiscal 1998. Mellinger noted that the increase in G&A was caused almost entirely by non-recurring expenses related to discontinued use of a set of development tools. The increase in consolidated tax rate was a result of the company's use of foreign subsidiaries' loss-carryforwards in the second quarter of fiscal 1997, with no similar use applicable in the second quarter of fiscal 1998.
Mellinger also commented that DRA has currently completed slightly in excess of 20% of its stock repurchase program. At its July 1997 meeting, the company's board of directors authorized the repurchase of its Common Stock in an aggregate amount of up to $4 million in purchase price.
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 complete and ship 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 1997. 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 March 31|
|Services and other||4,630||4,426|
|Type of Material:||Press Release|
|Issue:||April 16, 1998|
|Publisher:||Data Research Associates, Inc.|
|Place of Publication:||St. Louis, MO|
Data Research Associates, Inc.|
|Last Update:||2012-12-29 14:06:47|
|Date Created:||0000-00-00 00:00:00|