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Data Research Associates announces fiscal 2000 results

Press Release: Data Research Associates, Inc. [November 16, 2000]

Copyright (c) 2000 Data Research Associates, Inc.

Abstract: Data Research Associates, Inc. announced that revenues for the fourth quarter of fiscal 2000, ended September 30, were $7.8 million, compared with $9.0 million for the fourth quarter of fiscal 1999. For all of fiscal 2000, revenues were $28.3 million, compared with $30.0 for fiscal 1999. DRA president and CEO Michael J. Mellinger characterized the fourth quarter and fiscal year 2000 as a period of building the early reception for DRA''s new leading-edge Taos system.


St. Louis, Missouri, USA --Data Research Associates, Inc. (DRA) (Nasdaq: DRAI) announced today that revenues for the fourth quarter of fiscal 2000, ended September 30, were $7.8 million, compared with $9.0 million for the fourth quarter of fiscal 1999. For all of fiscal 2000, revenues were $28.3 million, compared with $30.0 for fiscal 1999.

Earnings for its fiscal fourth quarter were $885,000, or 19 cents per share basic and diluted, compared with $1.3 million, or 25 cents per share basic and diluted, for the same period in fiscal 1999. For all of fiscal 2000, earnings were $1.9 million, or 40 cents per share basic and diluted, compared with $2.3 million, or 45 cents per share basic and diluted, in fiscal 1999.

DRA president and CEO Michael J. Mellinger characterized the fourth quarter and fiscal year 2000 as a period of building the early reception for DRA's new leading-edge Taos system: "Early in fiscal 2000, we expressed caution about our near-term growth prospects. Our focus has been to complete the rest of the Taos modules and install this product at a number of new and existing customer sites. With a Taos user base now in place, we expect an increasing number of new Taos sites to be added in fiscal 2001. Most of those installations will be migrations from our existing customer base of more than 700 library systems worldwide. This migration is expected to take place over the next several years."

"The reported results for the fourth quarter of fiscal 2000 contrasted to a particularly strong fourth quarter last year, when DRA had its first general release of Taos. This important activity added significantly to software and hardware sales in last year's quarter," he added.Mellinger noted that although revenues declined $1.2 million in the fourth quarter, net income was lower by only $376,000. He attributed this primarily to the company's ability to reduce operating expenses during the quarter by approximately $400,000 from $4.7 million in the fourth quarter of fiscal 1999 to $4.3 million in the same quarter of fiscal 2000, and to a slight increase in gross margin from 69.9% in fourth quarter last year to 70.7% in the current quarter. Salary and benefit expense remained consistent between the two fourth quarters at $2.5 million but general and administrative expenses decreased approximately $300,000 from $1.6 million in fourth quarter of 1999 to $1.3 million in fourth quarter 2000. Depreciation and amortization declined $113,000 to $430,000 in the fourth quarter of fiscal 1999, from $543,000 in the fourth quarter of fiscal 2000.

For the fiscal year, DRA's service revenues continued to increase, rising from $19.2 million in fiscal 1999 to $21.0 million, primarily due to additional maintenance revenue as we add customers and as existing customers purchase additional products. Software revenues declined to $5.2 million in fiscal 2000 from $7.4 million in fiscal 1999. Hardware revenues declined to $2.1 million in fiscal 2000 from $3.4 million in fiscal 1999.

Among expenses for the fiscal year, only salaries and employee benefits rose, increasing by approximately $100,000 to $10.8 million in fiscal 2000 from $10.7 million in fiscal 1999. General and administrative expenses fell approximately $600,000 to $5.1 million in fiscal 2000 from $5.7 million in the previous year. Mellinger cited a decrease in travel expenses in fiscal 2000, as a result of lower sales volume, and the use of fewer consultants throughout the company in fiscal 2000 as contributing to the lower expenses. Depreciation and amortization declined $200,000 to $1.8 million in fiscal 2000 from $2.0 million in fiscal 1999 primarily due to a number of fixed assets becoming fully depreciated early in the fiscal year.

The company once again generated significant cash. DRA ended the fiscal year with $20.2 million in cash and short-term investments, compared with $17.0 in cash at the end of fiscal 1999. Cash as of September 30, 2000, is equivalent to approximately $4.25 per outstanding share.

During fiscal 2000 the company used $2.2 million in cash to repurchase shares of its common stock. Subsequent to the end of fiscal year 2000, the company's board authorized the repurchase of additional stock in an aggregate amount of up to $2 million. From time to time over the next twelve months, DRA management may, at its discretion, make purchases in the open market and through privately negotiated transactions, subject to general market and other conditions.

The company announced that its Board of Directors had maintained its regular, annual cash dividend at 12 cents per share. The dividend has a record date of January 5, 2001, and a payment date of January 25, 2001.

"We are pleased to report," said Mellinger, "that in addition to the new customers who implemented Taos during fiscal 2000, customers representing each of our legacy products have migrated. The system is being used on three continents and in three languages." He noted that during fiscal 2000 the company released the Taos Serials module which is currently being used by several libraries. Additionally, sales of the DRA Web2, the company's web-based public access product, remain strong.

"As we move into the next fiscal year," Mellinger continued, "we are also focused on our ASP (application service provider) offering which select customers are currently using in a pilot project.

"We expect fiscal 2001 will be the year in which we release Acquisitions, the final distinct module of Taos, and in which we begin to migrate existing customers to Taos in increasing numbers. These migrations and some potential new contracts lead us to be optimistic about growth of revenues in the next fiscal year. As we have a better indication of the timing and magnitude of our top-line growth, we will be able to give better guidance on profitability trends. At present, we continue to advise the same caution on our near-term earnings outlook that we have expressed in the past year," he said.

The company will host a conference call beginning at 4:00 p.m. CST today, Thursday, November 16. To listen to the call live, dial 888-913-9966. Michael J. Mellinger will be the conference host and the passcode will be Taos. A rebroadcast of the call can be accessed anytime between 6:00 p.m. CST, November 16 and 11:59 p.m. CST, November 30, 2000, by calling 800-251-9790.

Data Research Associates, Inc., 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; DRA's ability to meet installation schedules; 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 1999. 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.

Data Research Associates, Inc.
Summary of Quarterly and Annual Results (in thousands, except per share data)

 

 
Three Months Ended
Nine Months Ended
 
September 30
September 30
 
(unaudited)
(audited)
 
2000
1999
2000
1999
Revenues:        
Hardware
$555
$1,536
$2,077
$3,358
Software
1,993
2,382
5,229
7,413
Services and other
5,298
5,042
20,962
19,223
Total Revenues
$7,846
$8,960
$28,268
$29,994
         
Income before income tax
$1,300
$1,827
$2,797
$3,415
Net income
$885
$1,261
$1,907
$2,333
Earnings per share (basic)
$.19
$.25
$.40
$.45
Earnings per share (diluted)
$.19
$.25
$.40
$.45

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View Citation
Publication Year:2000
Type of Material:Press Release
Language English
Issue:November 16, 2000
Publisher:Data Research Associates, Inc.
Place of Publication:St. Louis, MO
Company: Data Research Associates, Inc.
Subject: Financial reports
Online access:http://www.dra.com/news/2000/111600.htm
Record Number:8091
Last Update:2012-12-29 14:06:47
Date Created:0000-00-00 00:00:00