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DRA announces record second-quarter earnings

Press Release: Data Research Associates, Inc. [April 17, 1997]

Copyright (c) 1997 Data Research Associates, Inc.


St. Louis, Missouri, April 17, 1997 - Data Research Associates, Inc. (NASDAQ: DRAI) announced today that earnings for its second quarter of fiscal 1997, which ended March 31, were a second-quarter record $1.2 million, or 22 cents per share, compared with $1.1 million, or 21 cents per share, for the same quarter in fiscal 1996.

Revenues for the second quarter of fiscal 1997 decreased 19 percent to $9.8 million, compared with $12.2 million in the second quarter of fiscal 1996.

Earnings for the first six months of fiscal 1997 were $1.8 million, or 32 cents per share, compared with $1.6 million, or 29 cents per share, for the same period in fiscal 1996. Revenues for the first six months were $17.0 million, compared with $18.9 million for the first six months of fiscal 1996.

All earnings per share figures for fiscal 1996 have been restated to reflect a three-for-two stock split effected in the form of a stock dividend in August, 1996.

"DRA once again set an earnings record, even without the benefit of shipping any large contracts during the period," said company president and CEO Michael J. Mellinger. "These results reflect the underlying strength in our growing foundation of recurring service revenues. At the same time, we have kept a careful watch over our operational costs." Mellinger attributed the increase in earnings during the quarter to higher service revenues, coupled with a favorable tax effect from operations of the company's Australasian subsidiary.

Mellinger noted that hardware revenues in the quarter were 44% lower than hardware revenues of the second quarter of fiscal 1996, when the company had benefited from the delivery of two very large hardware orders. However, hardware is the lowest gross margin contributor in DRA's product mix. The software and services components have significantly higher margin contributions. Hence, DRA's gross margin percentage and operating margin percentage in the quarter rose compared to the prior-year quarter. The mix among the revenue components in any given quarter is dependent on a number of factors, including the relative size of the components of any orders that the company ships during the quarter.

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. Its World Wide Web page is located at http://www.dra.com.

Data Research Associates, Inc. (NASDAQ: DRAI)
Summary of Results (in thousands, except per-share data)

<
Three Months Ended March 31
(unaudited)
1997 1996
Revenues:
   Hardware $3,235 $5,819
   Software 2,196 2,216
   Services and other 4,426 4,139
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View Citation
Publication Year:1997
Type of Material:Press Release
Language English
Issue:April 17, 1997
Publisher:Data Research Associates, Inc.
Place of Publication:St. Louis, MO
Company: Data Research Associates, Inc.
Online access:http://www.dra.com/news/1997/041797.html
Record Number:6235
Last Update:2012-12-29 14:06:47
Date Created:0000-00-00 00:00:00