Here's the full release....|
EMERYVILLE, Calif., Oct. 23 /PRNewswire/ -- Scopus Technology, Inc. (Nasdaq: SCOP) announced today its operating results for the second quarter of fiscal 1998, ended September 30, 1997.
Total revenues for the second quarter of fiscal 1998 were $20.0 million, up 48 percent from the $13.5 million reported for the comparable quarter last year. Software license revenues increased 30 percent to $13.0 million, up from $10.0 million reported for the same period in fiscal 1997. Services and maintenance revenues increased 103 percent to $7.0 million, up from $3.5 million for the second quarter of fiscal 1997. Net income for the quarter was $1.0 million, compared with $1.5 million last year, and earnings per share for the current quarter were 5 cents, compared with 8 cents for the second quarter of fiscal 1997.
Total revenues for the six months ended September 30, 1997 increased 75 percent to $41.6 million, compared with $23.8 million for the comparable period of fiscal 1997. For the same period in fiscal 1998, license revenues increased 61 percent to $28.0 million, from $17.4 million for fiscal 1997. Services and maintenance revenues increased 113 percent to $13.6 million for the six months ended September 30, 1997, compared with $6.4 million for the comparable period of fiscal 1997. Net income for the six months ended September 30, 1997 was $3.6 million, or 17 cents per share, compared with $2.3 million, or 12 cents per share, a year ago.
Scopus also announced today that it has entered into a definitive agreement to acquire Clear With Computers, Inc. of Mankato, MN ("CWC"), a leading provider of interactive selling systems. In connection with the transaction, Scopus will issue approximately 5,666,667 shares of Scopus Common Stock in exchange for the outstanding stock and options of CWC. Based upon the closing price of Scopus Common Stock on October 22, 1997, the total value of the transaction is approximately $90 million.
"We are very excited about the unique opportunities that this transaction will create," stated Ori Sasson, Chairman and CEO of Scopus. "This transaction enables us to combine the strengths of the leading provider of enterprise customer care software and a market leader in the rapidly emerging interactive selling system market. The two companies bring to each other complementary applications, architectures and target markets. Together we will pursue our goal to deliver the most comprehensive customer care suite in the industry." Mr. Sasson indicated that the products of the two companies are expected to be integrated in several steps over the next year. Mr. Sasson will remain Chairman and CEO of the combined company.
Klaus Besier, President and CEO of CWC, will upon the acquisition assume the role of President and Chief Operating Officer of Scopus. Mr. Besier stated, "The combination of CWC and Scopus provides us the opportunity to dramatically shift the paradigm for how companies manage their sales, marketing and service operations. Companies all over the world have been asking for an integrated approach to this challenge, and Scopus and CWC will have the opportunity to provide the most complete and compelling solution." Mr. Besier is best known for this role as president and CEO of SAP America, where he led the company to become the market leader in client/server business applications. During his tenure at SAP America, revenues grew from $16 million to over $700 million.
The transaction is subject to approval by the shareholders of each company, regulatory approvals and other customary closing conditions. The transaction is expected to be accounted for as a purchase, and is expected to result in a substantial one-time write off of in-process research and upon consummation of the transaction.
Scopus is the worldwide leader in enterprise customer care solutions, with over 425 customers and 70,000 end users in a wide variety of industries. The high scalable and fully integrated Scopus application suite drives mission-critical front office customer support, service, sales and marketing activities -- focusing the entire enterprise on winning and keeping customers. Founded in 1991, Scopus is headquartered in Emeryville, California and is publicly traded on the Nasdaq National Market. For more information, visit the Scopus Website at www.scopus.com or call 888-200-2971.
CWC's software products help sales representatives sell more effectively while they're with their customers. More than 150,000 sales representatives from over 40 global, blue chip companies say it's the most important software on their mobile computers. Founded in 1983, CWC is headquartered in Mankato, MN. Its customers include General Motors, Renault, Freightliner, Volvo, DAF, Ingersoll-Rand and Carrier. The principal shareholders of CWC include General Atlantic Partners, which invested in CWC in May 1997 and is also a shareholder in Scopus. J. Michael Cline is on the Board of Directors of each of Scopus and CWC.
Forward Looking Statements
This press release contains forward looking statements within the meaning of federal securities laws. Such forward looking statements are based on current expectations and beliefs and are subject to risks and uncertainties that could cause the Company's actual results to differ materially in the future. Factors that could cause actual results to differ materially include the following: the timely development and market acceptance of new products and upgrades to existing products, the impact of competitive products and pricing, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC). The transaction is subject to approval by the shareholders of each company, and regulatory approval and other customer closing conditions, and accordingly may not be consummated. In addition, acquisitions involve significant inherent risks and uncertainties, including the difficulties associated with integrating the management, products and technologies, sales force and other operations of the two companies. The business of Scopus is subject to additional risks and uncertainties, including without limitation those discussed in the "Qualitative and Quantitative Disclosure About Market Risk" sections of Scopus Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other public filings.
Scopus Technology, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
1997 1996 1997 1996
Licenses $13,027 $10,043 $28,033 $17,424
maintenance 7,008 3,458 13,609 6,380
Total revenues 20,035 13,501 41,642 23,804
Cost of revenues:
Licenses 639 244 1,054 839
maintenance 4,457 2,217 8,617 4,178
Total cost of revenues 5,096 2,461 9,671 5,017
Gross margin 14,939 11,040 31,971 18,787
Sales and marketing 9,607 5,642 19,178 9,703
development 2,730 2,080 5,244 3,860
administrative 1,708 1,200 3,366 2,050
expenses 14,045 8,922 27,788 15,613
Income from operations 894 2,118 4,183 3,174
Other income, net 740 265 1,505 576
income taxes 1,634 2,383 5,688 3,750
income taxes 605 882 2,105 1,401
Net income $1,029 $1,501 $3,583 $2,349
Net income per share $ 0.05 $ 0.08 $ 0.17 $ 0.12
Shares used in per share
computations 21,635 19,160 21,699 19,136
Scopus Technology, Inc.
Condensed Consolidated Balance Sheets
September 30, March 31,
Assets Current assets:
Cash and cash equivalents $ 47,379 $ 54,824
Investments 28,384 24,417
Accounts receivable, net 20,982 17,712
Prepaid expenses and other 3,804 2,686
Total current assets 100,549 99,639
Property and equipment, net 9,782 7,038
Other assets 3,237 1,852
Total assets $ 113,568 $ 108,529
Liabilities and Shareholders' Equity Current liabilities:
Accounts payable $ 2,195 $ 2,234
Accrued liabilities 6,430 7,177
Income taxes payable 1,582 1,938
Deferred revenue 4,509 4,856
Total current liabilities 14,716 16,205
Common stock and paid-in capital 83,079 80,134
Retained earnings 15,773 12,190
Total shareholders' equity 98,852 92,324
Total liabilities and
shareholders' equity $ 113,568 $ 108,529
Copyright 1997, PR Newswire
CONTACT: Michele Axelson, Chief Financial Officer of Scopus Technology, Inc.,