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Topic: (NASDAQ:OMGA) ,
Headline: Omega Research Announces Revenues And Earnings For
The Second Quarter Of 1998
======================================================================
MIAMI, July 20 /PRNewswire/ -- Omega Research, Inc. (NASDAQ:OMGA) today
reported net revenues and earnings for the second quarter ended June 30, 1998.
Net revenues for the second quarter of 1998 were $7.7 million as compared
to $7.0 million in the first quarter of 1998 and $7.9 million in the second
quarter of 1997.
Net income was $817,000 in the second quarter of 1998 as compared to
$802,000 in the first quarter of 1998 and pro forma net income of $1,650,000
in the second quarter of 1997. Net earnings per share (on a fully diluted
basis) were $0.04 in the 1998 second quarter compared to $0.04 in the 1998
first quarter and pro forma net earnings per share (on a fully diluted basis)
of $0.08 in the 1997 second quarter.
Net revenues for the first six months of 1998 were $14.7 million compared
to net revenues of $14.6 million for the same period in the prior year. Net
income was $1.6 million for the first six months of 1998 compared to pro forma
net income of $3.3 million for the same period in 1997. Net earnings per share
(on a fully diluted basis) were $0.07 per share in the first six months of
1998 compared to pro forma net earnings per share of $0.15 for the same period
in the prior year.
Net income and earnings per share for 1997 have been adjusted on a pro
forma basis to reflect income taxes as if the Company had been a C corporation
subject to federal and state corporate income taxes during 1997.
"As planned, our investment in product development has increased by 84%
over the first six months of 1997," said Salomon Sredni, Vice President of
Operations and Chief Financial Officer of Omega Research. "We expect that
this investment will continue to expand our leadership in our market and
anticipate receiving a return on this investment following the expected
release later this year of the next generation of our premium products."
Ralph Cruz, Omega Research's Co-Chairman and Co-CEO, said "We expect the
release of our next generation of products to strengthen our brands and our
market leadership, and to broaden our market. Substantial progress has been
made during the second quarter towards completion of the development of the
new products. In accordance with our previously-announced roll-out schedule,
we shipped a beta release for Version 5 of TradeStation(R) and
OptionStation(R) near the end of June. We continue to receive extremely
positive feedback from our beta testers and solution providers concerning the
new products. We anticipate that both the enhanced functionality of the new
products, and the attraction of additional solution providers and compatible
data services that should result, will expand our customer base. We have
recently entered into arrangements to develop compatibility between our new
products and several new broadcast and Internet data services, including DTN,
DBC's Signal Online and PC Quote, and we intend to make arrangements in the
near future to add other data services."
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 future Company financial
performance and results, and the Company's upcoming new products, particularly
those made in Mr. Sredni and 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, the Company meeting its timetable for the anticipated
upgrade releases of its premium products later this year, customer acceptance
of such upgraded products, unfavorable critical reviews of such upgraded
products, the Company's ability to market effectively such upgraded products,
the ability of such upgraded products to support effectively a network
computer environment and to support Internet-delivered real-time financial
market data, the introduction of competitive products in the market or
increased customer acceptance of recently-introduced competitive products, the
ability of the Company and the data vendors mentioned to develop in a timely
fashion, if at all, technical compatibility between the Company's next
generation of products and the respective data services, the quality of such
technical compatibility, customer acceptance of the Company's next generation
of products as used with such data services, changes in conditions in the
financial markets, increases in the number of potential customers who delay
purchases until the Company's product upgrades are released, changes in
operating expenses as a result of decisions by the Company to enter into new
markets or expand into related businesses, or other reasons, 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.
Visit the Omega Research web site at www.omegaresearch.com
OMEGA RESEARCH, INC.
STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
NET REVENUES:
Licensing fees $ 5,715,496 $ 6,542,799 $11,361,399 $12,092,426
Other revenues 1,936,101 1,403,104 3,320,992 2,526,560
Total net revenues 7,651,597 7,945,903 14,682,391 14,618,986
OPERATING EXPENSES:
Cost of licensing
fees 518,833 467,929 970,085 855,583
Product development 835,868 478,966 1,550,887 842,917
Sales and marketing 3,837,243 2,949,724 7,158,839 4,945,968
General and
administrative 1,276,184 1,332,134 2,673,440 2,595,505
Total operating
expenses 6,468,128 5,228,753 12,353,251 9,239,973
Income from
operations 1,183,469 2,717,150 2,329,140 5,379,013
OTHER INCOME, net 115,549 10,560 220,832 17,664
Income before
income taxes 1,299,018 2,727,710 2,549,972 5,396,677
PROVISION FOR
INCOME TAXES 482,000 --- 931,000 ---
Income before pro
forma income taxes 817,018 2,727,710 1,618,972 5,396,677
PRO FORMA INCOME
TAXES (A) --- 1,077,445 --- 2,131,687
Pro forma net income $817,018 $ 1,650,265 $ 1,618,972 $ 3,264,990
PRO FORMA NET EARNINGS
PER SHARE
(FULLY DILUTED) $0.04 $0.08 $0.07 $0.15
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(FULLY DILUTED) 23,019,042 21,186,000 22,898,946 21,186,000
(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 1997.
OMEGA RESEARCH, INC.
BALANCE SHEETS
June 30, December 31,
1998 1997
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $10,201,476 $12,323,515
Marketable securities 3,336,562 1,014,590
Accounts receivable, net 9,574,720 9,438,218
Inventories 144,423 146,821
Other current assets 676,101 520,537
Deferred income taxes 3,837,000 2,963,000
Total current assets 27,770,282 26,406,681
PROPERTY AND EQUIPMENT, net 1,304,550 971,511
OTHER ASSETS 114,526 91,626
Total assets $29,189,358 $27,469,818
LIABILITIES AND SHAREHOLDERS'
EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 1,300,789 $ 1,119,202
Accrued expenses 873,060 561,552
Deferred revenue --- 47,395
Income taxes payable 89,500 509,000
Total current liabilities 2,263,349 2,237,149
SHAREHOLDERS' EQUITY:
Common stock 222,557 222,461
Additional paid-in capital 23,819,523 23,745,251
Retained earnings 2,883,929 1,264,957
Total shareholders' equity 26,926,009 25,232,669
Total liabilities and
shareholders' equity $29,189,358 $27,469,818
SOURCE Omega Research, Inc.
-0- 7/20/98
/CONTACT: Salomon Sredni, Vice President of Operations and Chief
Financial Officer, Omega Research, 305-551-9991/
/Web site: http://www.omegaresearch.com/
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