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Software industry

Phoenix Technologies Ltd. Reports Second Quarter Earnings, Focus on Core PC Software Business

Strategic Insights

— 1 min read

Phoenix Technologies Ltd., a NASDAQ-listed company, reported second quarter earnings of $1,378,000, or $0.10 per share, before considering certain transactions associated with its strategy to focus on its core PC software business. Including a net charge of $2,424,000 from these transactions, the company reported a net loss of $1,046,000, or $0.07 per share, for the quarter. Revenues for the quarter ended March 31, 1994, were $25,262,000, a significant increase from $17,003,000 in the same period of the prior year.

Key Takeaways:

  • Phoenix Technologies Ltd. reported net loss of $1,046,000, or $0.07 per share, for the second quarter of 1994, compared to net income of $1,245,000, or $0.09 per share, in the same period of the prior year.
  • The company achieved record revenues of $25,262,000 for the quarter ended March 31, 1994, reflecting strong performance in the PC Software and Publishing Divisions.
  • Phoenix took major steps in its initiative to focus resources on the core PC system software and application software businesses, including the sale of an option to purchase 80% of its Publishing Division to SOFTBANK Corporation of Japan.
  • The company recorded a gain of $6,671,000 related to the sale of the option and wrote off $6,777,000 of prepaid royalties for the SurePath product line due to its decision to focus on proprietary PhoenixBIOS products.
  • Ronald D. Fisher, president and CEO, emphasized the company's priority to increase revenues and market presence in its core PC system and application software businesses.

Statistics:

  • Revenues for the third quarter of 1993: $17,003,000
  • Revenues for the third quarter of 1994: $25,262,000
  • Net income for the third quarter of 1993: $1,245,000
  • Net loss for the third quarter of 1994: $1,046,000
  • Six-month revenues for 1994: $48,251,000
  • Six-month net income for 1994: $174,000
  • Nine-month revenues for 1993: $35,842,000
  • Nine-month net income for 1993: $2,285,000

Sources:

  • Phoenix Technologies Ltd. (1994)
  • Remarks by Ronald D. Fisher, president and CEO, in the 1994 second quarter earnings release

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