-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A7lyYrmD25sN9WYvfp3jYziclOjd7d01ap6z6A4i5rpYmgPTSsZ55vfK3dfDrD4I dif6qRqrYuhRHs2CHyXq7w== 0000936392-97-001363.txt : 19971027 0000936392-97-001363.hdr.sgml : 19971027 ACCESSION NUMBER: 0000936392-97-001363 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971016 ITEM INFORMATION: FILED AS OF DATE: 19971024 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HNC SOFTWARE INC/DE CENTRAL INDEX KEY: 0000945093 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 330248788 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-26146 FILM NUMBER: 97700222 BUSINESS ADDRESS: STREET 1: 5930 CORNERSTONE CT WEST CITY: SAN DIEGO STATE: CA ZIP: 92121-3728 BUSINESS PHONE: 6195468877 MAIL ADDRESS: STREET 1: 5930 CORNERSTONE CT WEST CITY: SAN DIEGO STATE: CA ZIP: 92121-3728 8-K 1 FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): October 16, 1997 HNC SOFTWARE INC. (Exact name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of Incorporation) 0-26146 33-0248788 (Commission File Number) (I.R.S. Employer Identification Number) 5930 Cornerstone Court West, San Diego, CA 92121 (Address of Principal Executive Offices, Including Zip Code) (619) 546-8877 (Registrant's Telephone Number, Including Area Code) 2 ITEM 5: OTHER EVENTS. The following information is being filed in order that it may be incorporated by reference in the Registrant's definitive proxy statement for its Special Meeting of Stockholders now scheduled to be held on November 25, 1997. The fact that the Registrant is filing this quarterly financial information does not indicate that future quarterly information will be filed in advance of filing a Report on Form 10-Q for any subsequent quarter. NEWS RELEASE HNC REPORTS RESULTS FOR THE THIRD QUARTER OF FISCAL YEAR 1997 SAN DIEGO, CA -- OCTOBER 16, 1997 -- HNC Software Inc. (NASDAQ: HNCS) today reported financial results for its third fiscal quarter of 1997, which ended September 30, 1997. Revenues in the third quarter of 1997 were $23.2 million, a 59% increase over revenues of $14.6 million in the third quarter of 1996. Income before taxes was $4.7 million in the third quarter of 1997, an increase of 141% compared to $1.9 million in the third quarter of 1996 (after acquisition expenses of $544,000). Net income in the third quarter of 1997 was $3.0 million compared to $1.4 million in the third quarter of 1996. Earnings per share in the third quarter of 1997 were $0.14 compared to $0.07 per share in the third quarter of 1996 (after acquisition expenses of $544,000) or $0.08 per share (excluding acquisition expenses of $544,000 and fully taxed). 2 3 THREE MONTHS ENDING SEPTEMBER 30, %INCR./ 1997 1996 (DECR.) ------- ------- ------- Revenue $23,213 $14,603 59% Operating income 4,169 1,574 165% Operating income excluding acquisition expenses 4,169 2,118 97% EPS excluding acquisition expenses and fully taxed (1) $ 0.14 $ 0.08 75% As reported $ 0.14 $ 0.07 100%
- ---------- (1) Excluded acquisition expenses of $544,000 incurred in connection with the acquisition of Risk Data Corporation and fully taxed. Revenues for the nine months of 1997 were $62.7 million, an increase of 69% over revenues of $37.1 million for the nine months of 1996. Income before taxes was $12.1 million for the nine months of 1997 compared to $2.8 million for the nine months of 1996 (after acquisition expenses of $643,000). Net income was $7.6 million for the nine months of 1997 compared to $1.1 million for the nine months of 1996. Earnings per share were $0.37 for the nine months of 1997 compared to $0.05 per share for the nine months of 1996 (after acquisition expenses of $643,000) or $0.11 (excluding acquisition costs of $643,000 and fully taxed). NINE MONTHS ENDING SEPTEMBER 30, %INCR./ 1997 1996 (DECR.) ------- ------- ------ Revenue $62,683 $37,058 69% Operating income 10,694 1,556 587% Operating income excluding acquisition expenses 10,694 2,199 386% EPS excluding acquisition expenses and fully taxed (1) $ 0.37 $ 0.11 236% As reported $ 0.37 $ 0.05 640%
- ---------- (1) Excluded acquisition expenses of $544,000 incurred in connection with the acquisition of Risk Data Corporation and $99,000 for the terminated CRMA acquisition and fully taxed. 3 4 Cash and investments increased $6.3 million to $40.6 million at September 30, 1997 from $34.2 million at December 31, 1996. HNC Software Inc., with headquarters in San Diego, California, is a leader in the application of neural network technology in client/server environments. The company develops, markets, integrates, and supports advanced decision software based on computational intelligence. HNC provides practical solutions in the areas of payment systems, financial services, retail, insurance information, data mining and internet commerce. The latest news and information about the Company can be found on the HNC Software World Wide Web site: http//www.hncs.com or can be accessed by calling our Stockholder Information line at 1-800-396-8052. 4 5 HNC SOFTWARE INC. CONSOLIDATED BALANCE SHEET (in thousands, except per share data) ASSETS
September 30, December 31, 1997 1996 ------------- ------------ (unaudited) Current Assets: Cash, cash equivalents and short-term investments $ 22,404 $ 14,870 Trade accounts receivable, net 25,989 18,832 Current portion of deferred income taxes 6,668 6,400 Other current assets 3,302 2,505 ------------- ------------ Total current assets 58,363 42,607 Property and equipment, net 9,664 5,966 Intangible assets, net 1,543 2,264 Deferred income taxes, less current portion 19,754 22,966 Other assets 1,081 1,041 Long-term investments, available for sale 18,157 19,375 ------------- ------------ 108,562 94,219 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,543 $ 3,270 Accrued liabilities 6,101 4,058 Deferred revenue 2,611 3,377 Other current liabilities 226 418 ------------- ------------ Total current liabilities 13,481 11,123 ------------- ------------ Deferred revenue, less current portion 114 196 ------------- ------------ Other long-term liabilities 246 487 ------------- ------------ Stockholders' equity: Common stock, $0.001 par value - 50,000 shares authorized: 19,540 and 19,126 shares issued and outstanding, respectively 20 19 Paid in capital 88,218 83,554 Foreign currency translation adjustment 40 54 Unrealized gain (loss) on investments 1 (59) Retained earnings (accumulated deficit) 6,442 (1,155) ------------- ------------ Total stockholders' equity 94,721 82,413 ------------- ------------ $ 108,562 $ 94,219 ============= ============
5 6 HNC SOFTWARE INC. CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share data) (unaudited)
Three Months Ended Nine Months Ended ---------------------------------- ------------------------------------ Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1997 Sept. 30, 1996 --------------- -------------- ---------------- --------------- Revenues: Software license and installation $ 21,542 $ 11,819 $ 56,481 $ 28,244 Contracts and other 1,671 2,784 6,202 8,814 --------------- ------------- Total revenues 23,213 14,603 62,683 37,058 --------------- ------------- --------------- -------------- Operating expenses: Software license and installation 4,494 2,909 11,939 8,155 Contracts and other 1,111 1,860 4,415 5,869 Research and development 5,834 3,614 14,882 9,173 Sales and marketing 5,365 2,774 14,482 7,595 General and administrative 2,240 1,328 6,271 4,067 Acquisition expenses -- 544 - 643 --------------- ------------- --------------- -------------- Total operating expenses 19,044 13,029 51,989 35,502 --------------- ------------- --------------- -------------- Operating income 4,169 1,574 10,694 1,556 Other income, net 523 371 1,365 1,203 -------------- ------------- --------------- -------------- Income before income tax provision 4,692 1,945 12,059 2,759 Income tax provision 1,736 516 4,462 1,691 -------------- ------------- -------------- -------------- Net income $ 2,956 $ 1,429 $ 7,597 $ 1,068 =============== ============= =============== ============== Net income per share $ 0.14 $ 0.07 $ 0.37 $ 0.05 =============== ============= =============== ============== Shares used in computing net income per share 20,889 20,356 20,572 20,331 =============== ============= =============== ==============
6 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 24, 1997 HNC SOFTWARE INC. By:/s/ RAYMOND V. THOMAS ------------------------ Raymond V. Thomas Vice President, Finance & Administration and Chief Financial Officer 7 -----END PRIVACY-ENHANCED MESSAGE-----