|
PureBytes Links
Trading Reference Links
|
======================================================================
Topic: (NASDAQ:OMGA) ,
Headline: Omega Research Announces A 72% Increase In Earnings For The First
Quarter Of 1998 Over The Fourth Quarter Of 1997
======================================================================
MIAMI, April 20 /PRNewswire/ -- Omega Research, Inc. (NASDAQ:OMGA) today
reported earnings for the first quarter ended March 31, 1998.
Net revenues for the first quarter of 1998 were $7.0 million compared to
$6.4 million in the fourth quarter of 1997 and $6.7 million in the first
quarter of 1997. Net income was $802,000 in the first quarter of 1998
compared to $465,000 in the 1997 fourth quarter and proforma net income of
$1.6 million in the 1997 first quarter. Net earnings per share (on a fully
diluted basis) were $0.04 in the 1998 first quarter compared to $0.02 in the
1997 fourth quarter and proforma net earnings per share (on a fully diluted
basis) of $0.08 in the 1997 first quarter. Earnings and earnings per share
for the first quarter 1997 have been adjusted on a proforma basis to reflect
income taxes as if the Company had been a C corporation subject to federal and
state corporate income taxes during the first quarter of 1997.
"We are pleased by the improvement in both revenues and earnings," said
Salomon Sredni, Vice President of Operations and Chief Financial Officer of
Omega Research. "Net revenues and earnings increased by 11% and 72%,
respectively, when compared to the results reported for the 1997 fourth
quarter, even though we believe demand for our products continues to be
unfavorably impacted by customer delays in decision making in anticipation of
the roll-out of our upcoming upgrade releases."
Ralph Cruz, Co-Chairman and Co-CEO, said "I am enthusiastic about 1998.
The first quarter showed a significant improvement from the results reported
in the fourth quarter of last year. With the momentum gained in the first
quarter, OmegaWorld in May (our first annual worldwide users conference), and
the major upgrade releases for our premium products, TradeStation and
OptionStation, expected near the end of the second quarter, we are well
positioned to record what we expect to be strong revenues and profits in 1998.
We expect the release of our product upgrades to positively impact revenues
and earnings starting in the third quarter of 1998."
Founded in 1982, and headquartered in Miami, Florida, Omega Research, Inc.
is a leading provider of real-time investment analysis software for the
Windows operating system. With the 1991 release of its flagship product,
TradeStation, the Company pioneered the concept of utilizing the power of the
personal computer to enable investors to historically test the profitability
of their own investment strategies and then computer-automate those strategies
to generate real-time buy and sell signals. Omega Research's other principal
products are OptionStation and SuperCharts.
This press release contains statements that are forward looking and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. When used in this press release, the words
"believes," "estimates," "plans," "expects," "intends," "anticipates," "may,"
"prospect" and similar expressions as they relate to the Company or its
management are intended to identify forward-looking statements. The
statements in this press release regarding expected performance and product
releases during 1998, particularly those made in Mr. Cruz's comments, are
based on current expectations and beliefs concerning future events that are
subject to risks and uncertainties. Actual results may differ materially from
the results suggested herein and from the results historically experienced.
Factors that may cause or contribute to such differences and impact future
events include, but are not limited to, increases in the number of potential
customers who delay purchases until the Company's product upgrades are
released, the Company meeting its timetable for the anticipated second quarter
upgrade releases of its premium products, customer acceptance of such upgraded
products, unfavorable critical reviews of such upgraded products, the
Company's ability to market effectively such upgraded products, the
introduction of competitive products in the market or increased customer
acceptance of recently-introduced competitive products, lower-than-expected
registration for OmegaWorld and/or lower-than-expected sales resulting from
OmegaWorld, changes in conditions in the financial markets, changes in
operating expenses as a result of decisions by the Company to enter into new
markets or expand into related businesses, and changes in the Company's
ability to attract and retain high-quality product development personnel, as
well as those discussed in the Company's filings with the Securities and
Exchange Commission including but not limited to the Company's December 31,
1997 Annual Report on Form 10-K.
OMEGA RESEARCH, INC.
STATEMENTS OF INCOME
Three Months Ended
March 31,
1998 1997
NET REVENUES:
Licensing fees $5,645,903 $5,549,627
Other revenues 1,384,891 1,123,456
Net revenues 7,030,794 6,673,083
OPERATING EXPENSES:
Cost of licensing fees 451,252 387,654
Product development 715,019 363,951
Sales and marketing 3,321,596 1,996,244
General and administrative 1,397,256 1,263,371
Total operating expenses 5,885,123 4,011,220
Income from operations 1,145,671 2,661,863
OTHER INCOME, net 105,283 7,105
Income before income taxes 1,250,954 2,668,968
PROVISION FOR INCOME TAXES 449,000 ---
Income before proforma
income taxes 801,954 2,668,968
PROFORMA INCOME TAXES (A) --- 1,054,242
Proforma net income $801,954 $1,614,726
PROFORMA NET EARNINGS
PER SHARE (FULLY DILUTED) $0.04 $0.08
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(FULLY DILUTED) 22,691,660 19,824,676
(A) The Company was treated as an S corporation for federal and state
income tax purposes prior to September 30, 1997. Proforma income taxes have
been provided as if the Company had been a C corporation during the 1997
period presented.
OMEGA RESEARCH, INC.
BALANCE SHEETS
March 31, December 31,
1998 1997
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $13,622,429 $12,323,515
Marketable securities 1,009,270 1,014,590
Accounts receivable, net 9,593,334 9,438,218
Inventories 107,047 146,821
Other current assets 606,582 520,537
Deferred income taxes 3,650,000 2,963,000
Total current assets 28,588,662 26,406,681
PROPERTY AND EQUIPMENT, net 1,090,584 971,511
OTHER ASSETS 91,626 91,626
Total Assets $29,770,872 $27,469,818
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $1,088,665 $1,119,202
Accrued expenses 678,919 561,552
Deferred revenue 282,803 47,395
Income taxes payable 1,645,000 509,000
Total current liabilities 3,695,387 2,237,149
SHAREHOLDERS' EQUITY:
Common stock 222,465 222,461
Additional paid-in capital 23,786,109 23,745,251
Retained earnings 2,066,911 1,264,957
Total shareholders' equity 26,075,485 25,232,669
Total liabilities
and shareholders' equity $29,770,872 $27,469,818
SOURCE Omega Research, Inc.
-0- 04/20/98
/CONTACT: Salomon Sredni, Vice President of Operations and Chief
Financial Officer, Omega Research, 305-551-9991/
/Web site: http://www.omegaresearch.com/
|