FOR IMMEDIATE RELEASE

For Information, Contact:
Susan Salvesen
Chief Financial Officer
Unify Corporation
408-467-4500
http://www.unify.com

UNIFY CORPORATION REPORTS 1997 SECOND QUARTER RESULTS

San Jose, CA, November 18, 1996 - Unify Corporation (NASDAQ: UNFY), a leading provider of client/server software solutions for the development, deployment, and management of high-end, business critical applications for intranets and the Internet, today announced results for the 1997 second quarter ended October 31, 1996.

For the 1997 second quarter, Unify recorded total revenues of $7.3 million, unchanged from the year earlier period. However, revenues attributable to the Company's VISION product line of mission-critical client/server application development tools increased 73% to $1.7 million in the fiscal 1997 second quarter from $1.0 million for the comparable period in fiscal 1996. Total license revenues for the second quarter of fiscal 1997 were $4.8 million, equal to fiscal 1996 second quarter. Unify reported a net loss of $1.6 million or $0.20 per share, compared with a net loss of $362,000 or $0.06 per share for the fiscal 1996 second quarter. Weighted average shares outstanding increased 41% to 7.9 million as a result of the Company's initial public offering in June 1996.

"While the Company is experiencing lengthening sales cycles on its larger VISION transactions, we continue to see enthusiasm among potential customers evaluating our new VISION 3.0 and VISION/Web offerings. We believe these products are creating numerous opportunities for Unify, and we're pleased with the recent increase in customer and industry visibility these products have received," observed Reza Mikailli, Chief Executive Officer. VISION 3.0 and VISION/Web are high-end application development tools that enable programmers to automatically generate Java code while building complex, transactional applications that run on both intranets and Internet clients and servers. In September, VISION 3.0 began shipping to commercial customers. Also during October, VISION/Web entered Beta, and general availability of this software is expected by the end of calendar 1996. Over the past thirty days Unify has participated in two major industry the Netscape Developers' conference and Sun Microsystems' JavaStation launch. As a co-sponsor of the Netscape conference, Unify experienced good interest in its VISION/Web product. Additionally, VISION was the only high-end development tool invited by Sun to be part of their JavaStation launch.

This announcement may contain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results described in such statements. Factors that might cause such a difference include, but are not limited to, those discussed in the "Risk Factors" section of the Company's Final Prospectus dated June 14, 1996 and the Company's reports on Form 10-Q and 8-K filed with the Securities and Exchange Commission, copies of which are available on request from the Company.

Unify VISION and VISION/Web

Unify's flagship product, Unify VISION, is designed to enable organizations to develop, deploy and manage business critical applications with increased return on investment by providing the benefits of low cost of entry, rapid time-to-market and low cost of ownership. VISION and its companion product -VISION/Web- are the first advanced client/server development environments to generate Java code, without the need for Java programming, and to enable developers to build high-end transactional applications that run on both Web and non-Web clients and servers.

About Unify Corporation

Unify Corporation develops, markets and supports advanced application development environments for the development, deployment and management of high-end, business critical client/server applications. The Company's flagship product, Unify VISION, combines a powerful and scalable client/server architecture with a flexible and easy-to-use rapid application development technology. Additional Unify products include VISION AppMan, ACCELL/SQL and the DataServer product family.

Headquartered in San Jose, California, Unify has direct sales offices throughout North America, Europe and Japan, with a network of distributors, VARs, OEMs, and systems integrators worldwide. Unify has over 350,000 users worldwide, including leaders in telecommunications, financial services, commercial industries and government. Unify product and service information is located on the World Wide Web at http://www.unify.com.


UNIFY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31,
April 30,
1996
1996
(unaudited)
Assets
Cash and equivalents and short-term investments $20,824 $3,028
Accounts receivable, net 10,147 5,270
Prepaid expenses and other current assets 695
1,012
Total current assets 31,666 9,310
Property and equipment, net 3,416 3,358
Other assets 250
239
Total assets $35,321
======
$12,997
======
Liabilities and shareholders' equity
Notes Payable $2,217 $0
Current portion of long-term debt 218 255
Accounts payable 1,376 1,865
Amounts due to minority interest stockholders 1,413 1,392
Accrued compensation 2,582 1,655
Other accrued liabilities 3,362 2,675
Deferred revenue 3,785
4,651
Total current liabilities 14,953 12,493
Long-term debt, net of current portion 133 2,456
Minority interest 493 495
Redeemable preferred stock 0 26,726
Stockholders' equity (deficit) 19,742
(29,173)
$35,321
======
$12,997
======
November 19, 1996




UNIFY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31, Six Months Ended October 31,
1996
1995
1996
1995
Revenues:
Software licenses-Graphical $1,749 $1,012 $3,943 $1,552
Software licenses-Character 3,098 3,765 7,433 6,843
Services 2,498
2,484
5,009
4,978
Total revenues 7,345
7,261
16,385
13,373
Cost of revenues:
Software licenses 287 509 643 1,058
Services 1,164
960
2,292
2,029
Total cost of revenues 1,451
1,469
2,935
3,087
Gross Margin 5,894
5,792
13,450
10,286
Operating expenses:
Product development 1,683 1,532 3,374 2,933
Selling, general and administrative 5,800
4,611
11,467
8,822
Total Operating Expenses 7,483
6,143
14,841
11,755
Income (loss) from operations (1,589)
(351)
(1,391)
(1,469)
Other income, net 67
33
114
237
Income (loss) before income taxes (1,522) (318) (1,277) (1,232)
Provision for income, net (54)
(44)
(112)
(109)
Net Income (loss) ($1,576)
======
($362)
======
($1,389)
======
($1,341)
======
Net income (loss) per share ($0.20)
======
($0.06)
======
($0.19)
======
($0.24)
======
Shares used in per share computations 7,917
======
5,627
======
7,292
======
5,690
======
November 19, 1996

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