Segue in the News
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SEGUE SOFTWARE, INC. ANNOUNCES FIRST QUARTER 1996 EARNINGS
Software Quality Vendor Reports Record Revenues and Increased Earnings
NEWTON CENTRE, MASS., April 30, 1996 -- Segue Software, Inc. (NASDAQ:SEGU), a leading provider of automated software testing tools, today reported record revenues for the quarter ended March 31, 1996, of $3,589,000, up 70 % over 1995 first quarter revenues of $2,106,000.
Net income for the period was $2,000, compared with a net loss of $155,000 for the corresponding quarter last year.
Elisabeth Elterman, Segue's President and Chief Executive Officer, said, "The first quarter of 1996 was an important milestone for the Company. For the first time, revenues for the first quarter of the year exceeded revenues from the fourth quarter of the previous year. Segue continues to benefit from the increased ease-of-use added to our robust QualityWorksTM architecture. Reviews this quarter from PC Week, Infoworld, and Software QA further demonstrate the benefits of our GO! product-- automated test scripts which allow users to begin testing six times faster than traditional scripting or record/playback techniques."
During the quarter, Segue also broadened the QualityWorks product line to include QA DBTesterTM and QA Partner®: Distributed. Segue continued to invest in sales and marketing, nearly doubling its number of sales professionals in the United States. The Company also strengthened its management team with the addition of Stephen Adams as Vice President of International Operations. Adams had previously managed international sales for Atria Software, Inc.
The Company generated product revenues through repeat business from its installed base as well as from orders from new customers, including Sears and Roebuck and Co., America Online, Inc., and Thomson Shared Services, Inc.
Segue began trading on NASDAQ on March 28, 1996 and completed its initial public offering on April 2, 1996. The proceeds from the initial offering and from the exercise of the underwriter's option to purchase additional shares (a total of $40,385,250) are therefore not reflected in the balance sheet as of March 31, 1996.
This release contains forward-looking statements that are subject to certain risks and uncertainties. Actual results achieved by Segue could differ materially from the Company's estimates and projections, depending on a number of factors including timely development and market acceptance of new and enhanced products as well as the size and timing of individual orders. Historically, a substantial portion of the Company's revenues are received in the last month of the quarter, making quarterly results difficult to forecast. For more explanation of these and other risk factors, please see the Company's final prospectus dated March 28, 1996.
About Segue Software
Segue Software, Inc. (NASDAQ:SEGU) develops, markets, and supports the QualityWorksÔ family of quality assurance software tools, methodology, and management. QualityWorks enables the rapid development and re-use of automated software tests across more than 20 platforms, and is currently used by more than 8,400 software quality professionals at over 850 companies worldwide. Headquartered in Newton Centre, Massachusetts, Segue also has offices in San Francisco, Atlanta, Chicago, and Dallas, with distribution offices throughout Europe, Canada, and Australia.
Segue's 100+ employees provide automated testing products and consulting services to organizations developing client/server and Internet-based software applications. Segue Software offers corporate and product information through its World Wide Web site, located at http://www.segue.com.
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QA Partner is a registered trademark and QualityWorks and QA DBTester are trademarks
of Segue Software, Inc.
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Segue Software, Inc.
Statements of Operations
(In thousands, except per-share data)
Three Months Ended
March 31,
1996 1995
(Unaudited)
Revenue:
Software $2,598 $ 1,561
Services 991 502
Royalties ---- 43
Total Revenue 3,589 2,106
Cost of revenue:
Cost of software 76 59
Cost of services 336 235
Cost of royalties ---- 10
Total Cost of Revenue 412 304
Gross margin 3,177 1,802
Operating expenses:
Sales and marketing 1,826 1,082
Research and development 824 490
General and administrative 518 380
Total Operating Expenses 3,168 1,952
Income (loss) from operations 9 (150)
Other income (expense), net (7) ( 5)
Net income (loss) $2 $(155)
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Net income (loss) per share $0.00 $(.04)
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Weighted average shares outstanding 5,123 4,063(1)
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(1) Presented on a pro forma basis giving effect to the conversion of all outstanding shares of preferred stock.
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Segue Software, Inc.
Balance Sheet
(In thousands)
March 31, December 31,
1996 1995
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8 $ 442
Accounts receivable (net) 3,159 2,595
Other current assets 275 96
Total Current Assets 3,442 3,133
Property and equipment 1,394 1,154
Intangible assets (net) 43 64
Other assets 428 145
Total Assets $5,307 $4,496
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 577 $ 461
Accrued expenses 934 789
Accrued royalties due 219 219
Deferred revenue 1,330 1.068
Convertible debt to stockholders 623 654
Total Current Liabilities 3,683 3,191
Total stockholders' equity 1,624 1,305
Total Liabilities and Stockholders Equity $5,307 $4,496
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