St. Louis, Missouri, January 15, 1993 -- Data Research Associates, Inc. (NASDAQ: DRAI) announced today that net income for its first quarter of 1993, which ended December 31, was $212,000, a decrease of 47% compared to the first-quarter record $397,000 achieved in the same period in fiscal 1992. Earnings per share for the first quarter were six cents, as compared to the first-quarter record 15 cents per share realized in fiscal 1992. Revenues for the first quarter, however, increased 44% to $5.2 million, compared to $3.6 million in the same period a year ago.
"The first quarter fluctuation represents no fundamental change in Data Research's fiscal 1993 business prospects, but rather is reflective of the inherently unpredictable nature of our system sales in individual quarters," said Michael J. Mellinger, President and Chief Executive Officer. Historically, Data Research's results of operation have fluctuated on a quarterly basis due to several factors, including delays or deferrals of sales near the end of a quarter. A substantial portion of the company's revenues and earnings for each quarter is attributable to a limited number of orders and tends to be realized towards the end of the quarter.
The company experienced such delays and deferrals at the end of the first quarter, which adversely affected earnings for the quarter. Earnings also decreased, even with the realized increase in revenues, because of an increase in the relative size of the "hardware" component of the company's revenue mix, which is less profitable than its "software" and "services and other" revenue components. In addition, earnings per share as compared to the same period in the previous year were diluted by the higher average number of weighted shares outstanding resulting from the company's initial public offering, which was completed July 1, 1992.
Data Research, based in St. Louis, is a leading provider of library automation systems, electronic networking services and other related services for libraries.