DATA RESEARCH ANNOUNCES FY 1992 EARNINGS UP 37% FURTHER REDUCTION OF LONG-TERM DEBT AFTER YEAR-END St. Louis, Missouri, November 16, 1992 -- Data Research Associates, Inc. (NASDAQ: DRAI) announced today that net income for its fiscal 1992, which ended September 30, was $2.24 million, an increase of 37% compared to $1.64 million for fiscal 1991. For the fourth quarter, net income was $900,000, an increase of 7% compared to net income of $845,000 for the same period of the prior year. Earnings per share for fiscal 1992 were 75 cents, compared to 60 cents for fiscal 1991. For the fourth quarter, earnings per share were 25 cents, compared to 31 cents for the same period last year. The decrease in earnings per share for the fourth quarter is attributable to a change in the weighted average number of common shares outstanding caused by the Company's July 1, 1992 initial public offering.
Revenues for fiscal 1992 were $20.2 million, compared to $21.3 million for fiscal 1991. For the fourth quarter, revenues were $6.5 million, compared to $6.0 million in the same period last year.
"Fiscal 1992 was our sixth consecutive year of record earnings," said Michael J. Mellinger, president and CEO, appearing recently gratified. Mellinger attributed Data Research's earnings growth, despite a slight decrease in total revenues, to an increase in the proportion of revenues derived from software licenses.
Data Research's revenues are derived from three sources: computer hardware sales, software licenses, and sales of various database and support services. Because Data Research typically experiences greater gross margins on software licenses than on sales of hardware or services, its profitability depends in part on the mix of its revenue components and not necessarily on total revenues. The software component and the services component of total revenues both increased from fiscal 1991 to fiscal 1992.
In conjunction with release of Data Research's annual results, Mellinger also announced that the Company had further reduced its long-term debt subsequent to the end of the fiscal year. As was its stated intent during the initial public offering, Data Research reduced its long-term debt by $973,020 after the completion of the offering but before the end of fiscal 1992. Subsequent to the end of fiscal 1992, Data Research further reduced its long-term debt by 290,933, resulting in remaining long-term debt as of November 5, 1992 of $105,709.
Data Research, based in St. Louis, is a leading provider of library automation systems, electronic networking services and other related services for libraries. Its initial public offering was completed on July 1, 1992.