Download pdf - JDA Analyst Guidance

JOA SOFTWARE

ANALYST GUIDANCE PACK - VERSION 8.22

JULY 23, 1997

CONFIDENTIAL AND PROPRIETARY INFORMATION

ANALYST GUIDANCE CHART - VERSION 8.22 23-Jul-97 1 ~- ---~~~-~-__ JoA~i::~1W.:u:~ in~--~--" l--~ii~~ I A~~~~fA-g~~~- r-f:=-3~u:ro=1~+-~~~~~~~~-REVENuE $ i-SOFiWARE'-------~-~ 24.3 7.9 9.6 10.0-10.5 12.0-12.3 I 39.5-40.3 j --5~

! CMO~---------~~ ~~~~-2:3:.5:====::8.:9:====:1:1.:5::1:3:.0:-1:4:.0=::1:4.:~:1:5.:o_-~.~49.4: ~--1~128 !TOTAL _ 47.8 16.8 21.1 23.0-24.0 26.5-27.3 __ 87.4-89.2 [ __

REVENUE GROWTH RA TE 1··s-0FTWARE 59.3 56.9 89.5 63-68 47-52 ~ - 62-66 L i~~ --..1, rcMo 58.7 104.5 113.9 100 100 , 100 I (~7~7'~; !Tor~A---L------------1 c_ __ 5_9_.o~ __ 7_9._1~ __ 1_02_._2..__8_0_-8_8 ___ 1_0-_7_5_ 83-87 1 ____ , __

REVENUE MIX

~,_sc_o_F_TW_A_R_E _______ __,l e----5=0--.8rl-____ 4=6.~7-+--~45~·=3.._--4=3---4=4--~4~4~~6---i1-=45~-=46~-I-~_4=7~~1 1~CMO J 49.2 53.3 54.7 56-57 54-56

1 54-55 l _5_3_c__

GROSS MARGIN PCT OF REV l ~IALITOTALREV .__ __ 6_4_.8c-+-_~5=9.~o-+--_~55_.~8----5-4_-5_5 ___ ~s~4~~s-s_~_-~55~-=56_~i __ ~ 58-59 I c_~_C_M_O_IC_M_O_R_E_V _______ c__ __ 3_0_.3-"--__ 2_5._3~ __ 2_1._2..__2_2_-2_4_.__2_2-_2_4 _____ 2_2_-2_4_~1-___ 24-25

1 PR"OFIT AFTER TAX PCT OF REV

EPS ! L_ E_P_S_G_R_O_WT_H_RA_TE _____ ~ l

SHARES ! ----------~

16.1

0.639 52.3

12,010

13.7

0.176 37.6

13, 168

12.3

0.198 54.7

13,081

13

0.24 42

13,300

14 13-14 i ® I

0,31 &,- 1251 48 45r-~

13,700' 13,300 ;---- 14,soo I

Statement of Operations

REVENUES: Software license Consulting fees Maintenance fees Other Consulting, main!. and other

TOTAL REVENUES

COST OF REVENUES: Software license Consulting fees Maintenance fees Other Consulting, main!. and other

~ ~ : s.oo3 I 6,6021 8,2061 9,273130,0841 I 9,404110,436112,514115,486141,840 i 116,844121,o97j24,653128,6os1 91,1991 1125,ooo 1

TOTALCOSTOFREVENUES ~ ~ I 2,0731 2,4541 2,777j 2,6361 9,94011 2,9831 3,783j 4,6541 5,434l16,854j I 6,904j 9,326j11,042j12,672j 39,94411 50,9201

GROSSPROFIT ~ ~ i 3,930j 4,148j 5,429j 6,637120,144116,421j 6,653j 7,860[10,052j30,986l j 9,940111,771j13,611115,9331 51,2551 I 74,0801 Consulting, Maint & OtherG.M. 0.366 0.408 0.374 0.400 0.330 0.254 0.341 0.326 0.339 0.278 0.283 0.303 0.253 0.212 0.240 0.240 0.236 0.255

OPERATING EXPENSES: Product development Sales and marketing General and administrative Tax rel dist to S Corp stkhldrs

TOT AL OPERA TING EXPENSE ~ i 2.428 j 2,625 I 3,s2s 1 4,061112,640 I I 3,988 j 4,2251 4,549 I 5,941 (18,1091 I 6,441 j 1,8111 8,510 I 9,247 I 32.075 I I 45,200 I

OPERATINGINCOME(LOSS) ~ ~ [ 1,502j 1,523[ 1,90312,576j 7,504112,433j 2.428j 3,311j 4,105l12,2771j3.499[ 3,954j 5,041j 6,686j 19,180j j 28,880/

Interest- net ~ ~ ! 57 j 135 i 119 j 123 [ 434 J I 65 [ (169~ (173~ (242~ (519~ I (356~ (364~ (320~ (320~ (1,360~ I (1,400~ Other

INCOME (LOSS) BEFORE TAX I (573~ I 9,001 f ! 1,445 j 1,388 j 1,784 j 2,453 I 7,070 I I 2,368 [ 2,597 j 3,484 / 4,347 (12,796 I I 3,855 / 4,318) 5,361 I 7,006) 20,540 I I 30,280 I

PROVFORINCOMETAXES ~ ~: 181 351[ 4181 710[ 1,4971 [ 941[ 1,038[ 1,396[ 1,741[ 5,116[ [ 1,542j 1,728j 2,144j 2,802j 8,217[ I 12,112/

NET INCOME (LOSS) NET INCOME PER SHARE

PRO FORMA OPER INCOME PROFORMA PROV FOR TAX PRO FORMA NET INCOME PRO FORMA NET INC I SHAR

COMMON & EQUIV SHARES 23-Jut-97

5, 6' . ' 7, 0 ,__,..,2,..-.1...t--c"""".n--.rn..-t---,...,.-.+-~.....-

f-='-~hz'-==-l-.-'-,==+--,,-:..,.=+~0~.6.,,.,...J37 f-0.,.--.1""7"'8 -,.-,,.,rr--..-,...,.-+-..,.,.,.+-~==4 f--rn.rl c_____J~--!~-'-~-"-~_J

-~~~~~~~~~ ~rn~rn~~C=o~ns~ens~us~-~>~>~ 0.17 0.19 0.24 0.31 ~ !fO;O~ 10,952[10,952/10,952/10,952[10,9521111,182/12,183/12,282/12,600[12,064! [13,007[13,081113,400[13,700[ 13,297[ I 14,500 I

P,per ff6 .ivo .·1116 .'i{&f7 Ht-t1. _,q.~ .zz~ ,'.Z_i)iJ ,tfo3

,A?O'ld. . lt3 .. Z3~. ?l'3 , qf

Lt1t2UJ.. . t'fV :Z~(;, '3r'f 'er l'1

12--i

1-3.S iJq 1\./-.11../. I ilf, v

Percent of Total Revenues 11993 ! ---1 1997 ACTUAUPROJECTION 1998

: iuloboll [~ u

1:~ GCQTR970.WK4 \TI F MMS SN'/ 95. 34

Statement of Operations ISS SN'/ 4.66 ODBMS srw 0.00

REVENUES: Software license 47.34 51.29 45.21 39.81 50.65 62.06 50.70 53.31 48.31 48.73 52.58 50.79 46.70 45.30 43.20 45.32 45.00 47.20 Consulting fees 43.49 39.10 42.95 49.80 40.48 30.39 39.91 37.74 43.60 41.95 40.06 40.87 45.52 47.05 49.37 48.36 47.80 46.40 Maintenance fees 7.51 7.33 9.45 8.63 7.48 6.55 7.84 7.08 6.55 5.96 5.93 6.30 5.92 5.70 4.55 3.98 4.89 4.56 Other 1.66 2.28 2.40 1.76 1.39 1.00 1.55 1.87 1.53 3.36 1.43 2.04 1.86 1.95 2.88 2.35 2.31 1.84 Consulting, main!. and other 52.66 48.71 54.79 60.19 49.35 37.94 49.30 46.69 51.69 51.27 47.42 49.21 53.30 54.70 56.80 54.68 55.00 52.80

TOTAL REVENUES 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

COST OF REVENUES: Software license 1.50 0.24 0.23 1.06 0.77 0.13 0.53 0.27 2.11 0.17 1.11 0.92 1.19 1.10 1.61 2.72 1.76 1.38 Consulting fees 30.31 25.62 31.48 33.31 29.90 27.00 30.07 29.14 31.94 33.30 31.93 31.74 36.81 39.55 38.47 36.82 37.90 36.00 Maintenance fees 2.11 1.59 2.02 1.89 1.34 1.20 1.55 1.02 0.98 1.11 1.07 1.05 1.57 1.86 1.57 1.44 1.60 1.52 Other 0.94 1.62 0.80 0.91 1.83 0.10 0.89 1.30 1.23 2.61 0.99 1.53 1.42 1.69 3.14 3.32 2.54 1.84 Consulting, main!. and other 33.36 28.83 34.30 36.11 33.07 28.30 32.51 31.45 34.14 37.02 33.98 34.31 39.80 43.10 43.18 41.58 42.03 39.36

TOTAL COST OF REVENUES 34.87 29.07 34.53 37.17 33.84 28.43 33.04 31.72 36.25 37.19 35.09 35.23 40.99 44.21 44.79 44.30 43.80 40.74

GROSS PROFIT 65.13 70.93 65.47 62.83 66.16 71.57 66.96 68.28 63.75 62.81 64.91 64.77 59.01 55.79 55.21 55.70 56.20 59.26

OPERATING EXPENSES: Product development 6.62 8,07 10.59 11.10 12.37 12.16 11.67 12.97 15.76 13.81 12.17 13.54 13.27 11.14 10.64 9.71 10.95 10.56 Sales and marketing 11.83 13.55 16.86 17.21 17.55 17.37 17.28 17.31 14.61 13.03 15.88 15.14 14.94 14.50 13.91 12.48 13.79 14.40 General and administrative 12.14 10.61 12.99 11.45 13.05 14.26 13.06 12.12 10.11 9.52 10.35 10.43 10.03 11.41 10.21 10.14 10.43 11.20 Tax rel dist to S Corp stkhldrs 36.52

TOTAL OPERATING EXPENSE 67.11 32.23 40.45 39.76 42.97 43.79 42.02 42.41 40.48 36.35 38.40 39.11 38.24 37.05 34.76 32.33 35.17 36.16

OPERATING INCOME (LOSS) (1.97) 38.70 25.02 23.07 23.19 27.78 24.94 25.87 23.27 26.46 26.51 25.66 20.77 18.74 20.45 23.37 21.03 23.10

Interest - net 0.85 0.93 0.95 2.04 1.45 1.33 1.44 0.69 (1.62) (1.38) (1.56) (1.08) (2.11) (1.73) (1.30) (1.12) (1.49) (1.12) Other

INCOME (LOSS) BEFORE TAX (2.82) 37.77 24.07 21.02 21.74 26.45 23.50 25.18 24.89 27.84 28.07 26.75 22.89 20.47 21.75 24.49 22.52 24.22

PROV FOR INCOME TAXES


PRO FORMA OPER INCOME 34.55 38.70 25.02 23.07 23.19 27.78 24.94 25.87 23.27 26.46 26.51 25.66 20.77 18.74 20.45 23.37 21.03 23.10 PRO FORMA PROV FORT AX 12.48 14.42 9.08 7.94 8.21 9.99 8.87 10.01 9.95 11.16 11.24 10.69 9.15 8.19 8.70 9.80 9.01 9.69 PRO FORMA NET INCOME 21.22 23.35 14.99 13.09 13.53 16.47 14.63 15.17 14.94 16.69 16.83 16.05 13.73 12.28 13.05 14.70 13.51 14.53

23-Jul-97

Statement of Operations 1ss stw

REVENUES: Software license Consulting fees Maintenance fees Other Consulting, main!. and other

TOT AL REVENUES


OOBMSS/W

;5: 0. 7 rn..,.--,.,.-1._,...--,,rr.,..-..rn-c,,..,..,.rr-,mCA'1

8.5 f---7_...,.,.-t~.,...+~~'-='...-r....-....-i h...--.-.+-. ...... ..-t--.=--..rl-=...-..,~~ '-----'~----L~__L~---L-~~ ~~~~~~~~~~~ ~~~

~ ~ j 4s.11I17.33[ 26.79[ 22.131 26.25[ j 56.66/ sa.011 52.50[ 67.00159.021119.121102.16\ 97.oo/ 84.121 9o.63/ ~

TOTALCOSTOFREVENUES Q!!j ~ j 28.761 54.34[ 45.47l 44.99l 43.50f I 43.90l 54.16167.59!106.15! 69.561 !131.44!146.52!137.26!133.20/ 137.00I ~

GROSS PROFIT ~ ~ j 55.521 2.75l 18.98114.93119.181I63.38l 60.39l 44.78l 51.4Sl 53.821!54.80l 76.93j 73.17[ 58.511 65.411 ~

OPERATING EXPENSES:

~:~:r:~~:~~~:~~:rative ~-' rn I ~~I f.51~~El'~;I ~:11 ?,~l'~~I N~I r:*I iii I !Sl:~~l:*~I i~I ~*I §i Tax rel dist to S Corp stkhldrs ~

TOTALOPERATINGEXPENSE ~ ~ j 40.84l 50.95l120.51l 55.12l 64.58l I 64.25l 60.95l 29.01l 46.44l 48.01[ j 61.51[ 85.02188.39155.49/ 71.441 ! 40.92!

OPERATING INCOME (LOSS) ~ ~ I 87.05 I (33.72~ (35.80~ (18.40~ (18.63~ I 61.981 59.42 I 73.991 59.36 [ 63.61 I I 43.811 62.85 I 52.25 [ 62.87 I 56.231 ~

Interest-net ~ Q!!J [(43.56~128.811395.831232.43196.381 [ 14.04[(225.2H245.4H296.7~(219.6~ [(647.7~115.38184.97[ 32.231 162.04[ ~ Other

INCOME (LOSS) BEFORE TAX ~ ~ [105.84 / (38.01~ (39.32H21.38~ (21.45~ I 63.88 I 87.10 I 95.29 I 77.21 [ 80.99 I I 62.80 I 66.27 I 53.87 I 61.171 60.52 [ ~



PRO FORMA OPER INCOME PRO FORMA PROV FORT AX PRO FORMA NET INCOME PRO FORMA NET INC I SHAR

COMMON & EQUIV SHARES 23-Ju/-97

~o:~ ~I 9.521 9.521 9.521 9.s21 9.s211 2.10111.24112.141 1s.05110.15111s.32[ 7.371 9.101 8.731 10.22J ~

De-Bl(WJ lhM - Yep 1993 ---=-11 _ u _ 199_5 ACTUAL -1 ~ _ 1996 ACTIJ.AL_ m - _ : , 1997 ACTUALIPROJECTl: · 1 1998 \ ___ o are roup, nc.=:J lobal __ 1 Id GLO_BALCONSOLIDATION ---~~OBAL COlrn>LIDATI()~ ___ : I __ US$ _ 1 Confidential & Proprietary US$ ~ I US$ US$ • lACT I ACT I FCST PR J AJP - -- GCQTR970.WK4 FY ~'!:__1 L1~~5l2<!95jJQ95jlQ95~~ ~Q"~~~Q96TFYJ [!0971 7 97 97 -

MMSS/W 1,560 (121) 293 435 ,'f67 , 5 2,574 9-s(,343) 4,061 53) ( 0 , 1 2 2 Statement of Operations ISSS/W (9) (86) 330 (122) 113 444 89 1,034 1,092 2,659 1,777 2,406 1,977 3,172 9,332

OOBMSS/W 0 328 155 269 752 0 (249) (67) 2,639 2,323 1,229 2,714 1,574 1,447 6,964 REVENUES: Software license 1,501 2,601 1,551 121 778 582 3,032 2,299 2,414 1,942 2,388 9,043 2,853 4,515 4,552 4,821 16,741 17,963 Consulting fees 1,856 481 103 714 827 1,044 2,688 971 1,262 1,927 3,386 7,546 4,119 5,376 6,922 7,628 24,045 14,403 Maintenance fees 835 221 117 86 232 176 611 99 114 132 311 656 331 519 375 220 1,445 1,241 Other 155 205 95 54 (103) (122) (76) 32 44 307 128 511 137 251 290 450 1,128 194 Consulting, main!. and other 2,846 907 315 854 956 1,098 3,223 1,102 1,420 2,366 3,825 8,713 4,587 6,146 7,587 8,298 26,618 15,838

TOTAL REVENUES 4,347 3,508 1,866 975 1,734 1,680 6,255 3,401 3,834 4,308 6,213 17,756 7,440 10,661 12, 139 13, 119 43,359 33,801

COST OF REVENUES: Software license (305) 248 12 (86) (33) 5 (102) (11) (150) 42 (160) (279) (175) (13) (376) (607) (1,171) (111) Consulting fees (933) 54 (444) (734) (729) (1,034) (2,941) (850) (1,134) (1,713) (2,440) (6,137) (3,461) (5,011) (5,317) (5,587) (19,376) (10,440) Maintenance fees (121) 51 (36) (41) (6) (6) (89) 25 23 (29) (54) (35) (168) (290) (249) (246) (953) (445) Other (106) (195) 5 (3) (100) 217 119 (74) (68) (177) (144) (463) (117) (229) (446) (798) (1,590) 20 Consulting, main!. and other (1,160) (90) (475) (778) (835) (823) (2,911) (899) (1,179) (1,919) (2,638) (6,635) (3,746) (5,530) (6,012) (6,631) (21,919) (10,865)

TOTAL COST OF REVENUES (1,465) 158 (463) (864) (868) (818) (3,013) (910) (1,329) (1,877) (2,798) (6,914) (3,921) (5,543) (6,388) (7,238) (23,090) (10,976)

GROSS PROFIT 2,882 3,666 1,403 111 866 862 3,242 2,491 2,505 2,431 3,415 10,842 3,519 5, 118 5,751 5,881 20,269 22,825

OPERATING EXPENSES: Product development (392) (578) (182) (261) (567) (579) (1,589) (584) (912) (713) (757) (2,966) (1,015) (706) (895) (892) (3,508) (3,214) Sales and marketing (984) (824) (336) (457) (889) (289) (1,971) (616) (389) (190) (848) (2,043) (889) (1,534) (1,799) (1,110) (5,332) (5,426) General and administrative (123) (63) (186) (168) (471) (575) (1,400) (360) (299) (120) (281) (1,060) (549) (1,352) (1,327) (1,298) (4,526) (4,485) Tax rel dist to S Corp stkhldrs (522) 7,422

TOTAL OPERATING EXPENSE (2,021) 5,957 (704) (886) (1,927) (1,443) (4,960) (1,560) (1,600) (1,023) (1,886) (6,069) (2,453) (3,592) (4,021) (3,300) (13,366) (13,125)

OPERATING INCOME (LOSS) 861 9,623 699 (775) (1,061) (581) (1,718) 931 905 1,408 1,529 4,773 1,066 1,526 1,730 2,581 6,903 9,700

Interest - net 163 (49) 44 (76) (95) (86) (213) (8) 304 292 365 953 421 195 147 78 841 40 Other 152 0

INCOME (LOSS) BEFORE TAX 546 9,574 743 (851) (1,156) (667) (1,931) 923 1,209 1,700 1,894 5,726 1,487 1,721 1,877 2,659 7,744 9,740



PRO FORMA OPER INCOME 1,383 2,201 699 (775) (1,061) (581) (1,718) 931 905 1,408 1,529 4,773 1,066 1,526 1,730 2,581 6,903 9,700 PRO FORMA PROV FORT AX (179) (901) (277) 331 449 265 768 (396) (514) (722) (815) (2,447) (601) (690) (748) (1,061) (3,101) (3,895) PRO FORMA NET INCOME 889 1,251 466 (520) (707) (402) (1,163) 527 695 978 1,079 3,279 886 1,031 1,129 1,598 4,643 5,845 PRO FORMA NET INC I SHAR 0.090 0.130 0.030 (0.060) (0.070) (0.040) (0.140) 0.048 0.048 0.060 0.057 0.217 0.050 0.070 0.070 0.100 0.290 0.326

COMMON & EQUIV SHARES 0 0 (952) (952) (952) (952) (952) (230) (1,231) (1,330) (1,648) (1,112) (1,825) (898) (1,118) (1,100) (1,233) (1,203) 23-Jul-97

Statement of Operations

REVENUES: Software license Consulting fees Maintenance fees Other Consulting, maint. and other

TOTAL REVENUES


1996 ACTUAL ____ _ GrOBALCOffSOLIDA I N

US$- ---

1997 ACTUAlTPRl'.fJECTION-1

~ ~ 1(2o.94~ 9.98124.3ol13.ool 26.251 I 1.41110.97119.911 23.751 59.0211 8.111 25.25116.86116.031 90.631

TOTALCOSTOFREVENUES ~~I 14.03118.38113.161 (5.08~ 43.501113.161 26.82123.02l16.76169.56! ! 27.05! 35.08l 18.40l 14.76l 137.00I

GROSSPROFIT [27:83/ I 27.70l l(31.95~ 5.55! 30.88122.25119.181 \ (3.25~ 3.61118.14127.89153.821\(1.11~18.42115.63117.061 65.411

OPERATING EXPENSES: Product development Sales and marketing General and administrative Tax rel dist to S Corp stkhldrs

TOTAL OPERATING EXPENSE

~ i ~4::5 1~· ~~:03 l(S*l w:ii J:!I i:iil Fs:il I llil :j:;I ~1:NI S*I ~:~ ~~I (7.26~ a.11134.32115.11164.ssl \ (1.ao~ 5.941 1.61130.73148.0111 8.311 2t36f 9.631 1.901 11.441

OPERATING INCOME (LOSS) ~ ~ I (52.42~ 1.40 I 24.95 I 35.37 I (18.63~ I (5.55~ (0.21~ 36.371 23.981 63.61 I I (14.76~ 13.00 I 27.49 I 32.63 I 56.23 (

Interest- net ~ ~ I 54.05 J136.84 I (11.85~ 3.361 96.38 I I (47.15~ (360~ 2.37 I 39.88 I (220~ \ 47.11 I 2.251 {12.09~ 0.00 I 162.04 I Other

INCOME(LOSS)BEFORETAX ~ ~ \(53.69~ (3.94~ 28.53137.50/(21.45~ I (3.47~ 9.67134.15/ 24.77/ B0.9911(11.32~ 12.01124.15130.681 60.521



PRO FORMA OPER INCOME PROFORMA PROV FOR TAX PRO FORMA NET INCOME PRO FORMA NET INC I SHAR

COMMON&EQUIVSHARES ~I 0.001 l 9.52j 0.001 O.OOL!_QQI~ I 2.101 8.951 0.811 2.59110.151 LE:![ 0.571 2.441 2.241 10.22j 23-Jul-97

Pct. of Full Yr. in Each Qtr. 1997 ACTUAL/PROJECTION-~1 r$-

il'R"OJT~.

~ 0. Statement of Operations ISS S/W 20.4 18.6 20.1 27.3 34.0 100.0

ODBMSS/W 0.0 12.2 27.8 16.6 43.4 100.0 REVENUES: Software license 100.0 17.8 17.2 27.2 37.7 100.0 20.6 20.8 25.1 33.5 100.0 19.2 23.3 26.0 31.6 100.0 Consulting fees 100.0 21.5 27.4 27.7 23.5 100.0 18.2 23.3 26.8 31.7 100.0 17.6 22.8 27.9 31.7 100.0 Maintenance fees 100.0 24.0 24.2 26.0 25.7 100.0 22.1 22.7 24.8 30.5 100.0 22.4 27.0 25.1 25.5 100.0 Other 100.0 30.8 24.8 24.4 19.9 100.0 18.0 16.4 43.0 22.6 100.0 14.9 19.5 33.8 31.9 100.0 Consulting, maint. and other 100.0 22.2 26.8 27.3 23.7 100.0 18.7 22.9 27.3 31.2 100.0 17.9 23.0 27.9 31.2 100.0

TOTAL REVENUES 100.0 20.0 21.9 27.3 30.8 100.0 19.7 21.8 26.2 32.4 100.0 18.5 23.1 27.0 31.4 100.0

COST OF REVENUES: Software license 100.0 8.8 44.0 39.6 7.5 100.0 5.7 50.2 4.8 39.3 100.0 12.4 14.5 24.7 48.4 100.0 Consulting fees 100.0 20.9 24.3 27.1 27.7 100.0 18.0 22.0 27.4 32.6 100.0 17.9 24.1 27.4 30.5 100.0 Maintenance fees 100.0 25.9 26.8 23.6 23.8 100.0 19.1 20.3 27.7 32.9 100.0 18.1 26.9 26.7 28.2 100.0 Other 100.0 18.0 22.5 56.2 3.4 100.0 16.7 17.5 44.8 21.0 100.0 10.3 15.4 33.3 41.0 100.0 Consulting, main!. and other 100.0 21.1 24.4 27.7 26.8 100.0 18.0 21.7 28.2 32.1 100.0 17.5 23.7 27.8 31.0 100.0

TOTAL COST OF REVENUES 100.0 20.9 24.7 27.9 26.5 100.0 17.7 22.4 27.6 32.2 100.0 17.3 23.3 27.6 31.7 100.0

GROSS PROFIT 100.0 19.5 20.6 27.0 32.9 100.0 20.7 21.5 25.4 32.4 100.0 19.4 23.0 26.6 31.1 100.0

OPERATING EXPENSES: Product development 100.0 18.1 20.9 28.9 32.1 100.0 18.8 25.4 26.7 29.1 100.0 22.4 23.5 26.3 27.8 100.0 Sales and marketing 100.0 19.5 21.9 27.7 31.0 100.0 22.5 21.1 22.5 34.0 100.0 20.0 24.3 27.3 28.4 100.0 General and administrative 100.0 19.9 19.2 27.3 33.6 100.0 22.9 21.1 23.9 32.1 100.0 17.8 25.3 26.5 30.5 100.0 Tax rel dist to S Corp stkhldrs

TOTAL OPERATING EXPENSE 100.0 19.2 20.8 27.9 32.1 100.0 21.3 22.6 24.3 31.8 100.0 20.1 24.4 26.7 28.8 100.0

OPERATING INCOME (LOSS) 100.0 20.0 20.3 25.4 34.3 100.0 19.8 19.8 27.0 33.4 100.0 18.2 20.6 26.3 34.9 100.0

Interest - net 100.0 13.1 31.1 27.4 28.3 100.0 -12.5 32.6 33.3 46.6 100.0 26.2 26.8 23.5 23.5 100.0 Other

INCOME (LOSS) BEFORE TAX 100.0 20.4 19.6 25.2 34.7 100.0 18.5 20.3 27.2 34.0 100.0 18.8 21.0 26.1 34.1 100.0



PRO FORMA OPER INCOME 100.0 20.0 20.3 25.4 34.3 100.0 19.8 19.8 27.0 33.4 100.0 18.2 20.6 26.3 34.9 100.0 PRO FORMA PROV FORT AX 100.0 20.4 19.6 25.3 34.7 100.0 18.4 20.3 27.3 34.0 100.0 18.8 21.0 26.1 34.1 100.0 PRO FORMA NET INCOME 100.0 20.4 19.6 25.2 34.7 100.0 18.6 20.3 27.2 33.9 100.0 18.8 21.0 26.1 34.1 100.0 PRO FORMA NET INC I SHARE 100.0 19.0 19.0 26.2 35.7 100.0 20.0 20.1 26.7 32.5 100.0 19.2 21.4 25.9 33.1 100.0

23-Jul-97

Gross Margin by Segment I o are roup, nc. 1----Confidential &Proprietary - ---- GCOTR970.Wi<4

I ~ullbollar sof!Ware license Consulting fees Maintenance fees Other Consulting, main!. and other

TOTAL GROSS MARGINS

Consulting, main!. and other

TOTAL GROSS MARGINS

I PM Change vs. Pnor Year So are license Consulting fees Maintenance fees Other Consulting, main!. and other

TOTAL GROSS MARGINS

I €orz.-s T lhan Pnor Year I o are 1cense

Consulting fees Maintenance fees Other Consulting, main!. and other

TOTAL GROSS MARGINS

I fuc£Chg. vs. Precedmg <Jb: I o are license

Consulting fees Maintenance fees Other Consulting, main!. and other

TOTAL GROSS MARGINS

23-Jul-97

113,2361116,902113.930[ 4,14815.429! 6.631120,144116.42116,653[ 1,860110.052130,9861I9.940[11.m/13.611/15,933/ s1,2ss11 14,080/

[:!!!] ~ I 65.5 I 62.81 66.21 71.6 I 67.o I I 68.3 / 63.8 I 62.81 64.9 / 64.8 I I 59.o I 55.81 55.21 55.7 / 56.2 I I 59.3 /

~ ~ 1 55.5[ 2.11 19.01 14.9[ 1s.21 1 63.4[ 6o.4/ 44.8[ 51.5[ 53.8[ I 54.8[ 76.91 73.2[ 58.5[ 65.4[ 1 44.5[

~ 13,508/ J 1,4o3/ 1111 866J ss213,2421I2,491[ 2,so5[ 2,431[ 3.415[10,842[ I 3,519[ s.118[ 5,151[ 5,881[ 20,269[ I 22,825[

I -3t9 / 5.5 / 3o.9 / 22.31 19.2 / I -3.3 / 3.6 / 18.1 / 27.9 / 53.8 / 1 -u I 18.4 I 1s.6 I 11.1 I 65.4 I 1 44.5 I

[TOTA[R-E_VE_N_U_ES ___ ~i \47,840143,320l46,854l45,822!46,912\30,084123,829l I 4,520I 9861 2,0181 928117,7561 I 110.41102.1I104.41102.0l 159.0f \ 1.000l 1.000\ 1.000f 1.000j 1.000j 1.000j

COST OF REVENUES:

~~-::lmMO~other ~96

--+--+-' ~ ~~ ~~,: 11§11~1 II I I 1:§1 rTOTAL_COST OF REVENUE~ [16,854113,519116,770116,220 ,16,6321 9,940 I 6,927 I I (3,335~ (84~ (634~ (222~ (6,914~ I 124.7 \ 100.5 i 103.9 I 101.3 I 169.61 I 0.3521 0.3121 0.3581 0.354 I 0.3551 0.330 I

[Tl:ITA[_E~-RATING EXPENSES I \18,709 [16,461 [18,032 \17,612 [18,100 /12,640 I 7,680 I I (2,2~ (677H1.097~ (609~ (6,06~ I 113.7 I 103.8 I 106.2 I 103.4 J 148.0 I I 0.391 J 0.380 I 0.385 J 0.384 [ 0.3861 0.420 I

~ING INCOME (LOSS) I 112,277 \13,340[12,052f11,990/12,180 I 7,504 / 9,222 / I (1,063~ 225 / 287 [ 97 [ 4,773 \ I 92.0 I 101.9 J 102.4 J 100.8 J 163.6 I I 0.257 J 0.308 J 0.257 f 00262 i 0.260 I 0.249 I

~t-net 11 (51~ (620~ (567~ (52~ (502~ 434[ 221[ / (101~ (48~ (~ 111 9531 f 83.7[ 91.51 98.51103.41 - ) \(0.011~(0.014~(0.012~(0.012~(0.011~ o.o14f

iiNCOM~-l~OSS) BEFORE TAXES I \12,796[13,960f12,619 \12,517 )12,682 [ 7,070 I 9,001 f I (1,164~ 177 f 279 f 114 [ 5,726 f I 91.7 J 101.4 f 102.2 f 100.9 f 181.0 I I 0.267 \ 0.322 [ 0.269 f 0.273 f 0.270 I 0.235 f

l'ROVfSIONFOR INCOMETAXES [ j 5,116[ 5,3031 5,045[ 4,982/ 5,072/ 1,4971 5001 i 1871 (71~ (134~ (44F3,619~ I 96.5[ 101.4f 102.7[ 100.9f 341.81 I 0.1071 0.1221 0.1081 0.1091 0.1081 0.0501

'NETIN-COME(LO,SS~)~-117,68018,6571?,574i7,5351 7,~015,57318,50111 (977! 1061 145[ 7012,107\ I 88.71101.41101.9l 100.91137.81J0.161j 0.20010.16210.16410.162\0.1851 INETINC~R~HARE .. o.639 0.124 o.s2s 0.6291 o.s2s o.5o9 o.sso (o.o85! o.orr o.on10.013 0.1311. sa.3 101.a 1ou1102.11 m.1

_CQ~MON &-EQ_~IV ~~RES rn _ l ~2,010111,953 1 12,060!11,987112,154 [10,95~ G9J_(l0~ : (57j 50 I (23~ 144~ i 100.5 [ 99.61_100.2 / 98.8; 109.7 ~ r CONFIDENTIAL & PROPRIETARY [

23-Jul-97 [ · ·10A sof!Ware Grau~nc. ---- - GCMCOM6.WK4 __ _

STATEMENT OF OPERATIONS REVENUES: ·scif!ware License - MMS

~onsultmg fees Maintenance Tees Other Consulting, maint and other 7,281 8,800 7,400

1~ro_T_A_L R_E_v_EN_u_es ___ ~I 11s,844 !15,196 !16,761 !14,soo !15,o81 !15,215 !15,6oo I 9,404115,486 I ~~-~-~-.....J...-__._ _ _c_____, 11.000 I 1.000 I 1.ooo I tooo I 1.000 I 1.000 I 1.ooo I 1.ooo I COST OF REVENUES:

r SoftWare license ---~ onsulting ees r-,.,.,..+...,.,.,.,.+,...,.,.,..r---+----+--r---r-.;,..,..,,.rt-,-nn

Maintenance ees er onsulting, maint and other .

I GROSS PROFIT I I 154.8 I 144.2 I 154.1 I 136.0 I 141.0 I 142.2 I 152.6 I I 0.590 I 0.609 I 0.590 I 0.602 I o.600 I 0.600 I 0.628 I 0.683 I Consulting, Maint & Other GM Pct. t...,.:,...,....-Jc...,n,,...,.i-.r.,,,...i-.,,c..,.,.,..i-""",,.-L~~"""'r-,"""....,.~ 77. 6 62. 5 33. 9 67.2 65. 9 103. 4 78. 7

OPERATING EXPENSES:

[!OTALOPERATINGEXPENSEs I f!441! 5,850! 6,467! 5,500j 5,sso1 s.1311s,30o13,988/ 5,9£1j161.5! 14s.111n21131.9! 141.7j 143.9! 158.011 o.3821 o.385! o.3861 o.3791 o.3751 o.m1 o.4041 o.4241

!OPERATING INCOME (LOSS) I I 3,499 I 3,411 I 3,4271 3,230 I 3,403 I 3,392 I 3,500 I 2,4331 4,105 I I 143.8 j 140.21140.91132.8 ! 139.9 ! 139.4 ! 143.91 I 0.208 I 0.2241 0.2041 0.223 I 0.2261 0'223 I 0.2241 0.259 /

1 Interest. net I I (356~ (311~ (360~ (420~ (310~ (275~ (300~ 65 I (242~ I - I - I - I - I - I - I - I I co.021~ (0.024~ (0.021~ (0.029~ (0.021) (0.018~ (0.019~ 0.0011

\INCOME (LOSS) BEFORE TAXES I I 3,855 I 3,782 ( 3,787 I 3,650 I 3,713 I 3,667 / 3,800 I 2,368 I 4,34!] I 162.8 J 159.7 I 159.9 I 154.1 J 156.8 J 154.9 I 160.5 I I 0.229 I 0.249 I 0.226 I 0.252 I 0.246 I 0.241 I 0.244 I 0.252 I

!PROVISION FOR INCOMETAXES I ! 1,542! 1,513! 1,515! 1,460! 1,485! 1.46711,500! 94111,741 I ! 163.9! 160.81161.0l 155.2( 157.8( 155.9/ 159.4/ / 0.0921 0.1001 0.0901 0.101 I 0.098! 0.0961 0.0961 0.100/

rc:·oM~oN:!_ ECON SHARES ___ ] [!3,168 l13,378 l13,378[13,150113,300j13,2oo113,050111,182 l1~~~~J ! 111.8 [ 119.6 I 119.6 I 117.6 f 118.9 f 118.o 1116.1 i l __ CONFIDENTIAL & PROPRIETARY :=J

l~~~~~·E~~~~~l b1~~~;.1~:£~:i~~;~~~;;:.~;Ns;D~~;rAf ;~~TE;;;;~;s;~ ;£~~: 1:i:~ ~;, p~~· REVENUES: 7116 4122 314 F 616 4125 5122 4125

rsOftWa.re ucen5e-=-MMS--- 4,218 4,453 3,874 4,511 4,823 4,277 87.5 92.3 80.3 93.5 0.200 0.260 0.198 0.252 0.4621 sottware License - ISS- 2,546 1,900 1,824 900 140 2,360 1,819 1,357 1,303 642.9 0.121 0.111 0.093 0.050 0.013 Software License - ODBMS -~--·-----! Software license

2,793 1,950 4,039 2,700 79 1,229 9,557 8,303 9,737 8,500 8,200 8, 111 8,900J 5,042 7,866

0.132 0.114 0.207 0.151 0.008 0.453 0.485 0.498 0.500 0.473 0.453 0.500 0.483

3,535 2,468 5,113 3,418 189.5 164.7 193.1 168.6 162.6 160.9 176.5

Consulting Tees .436 Maintenance fees . 66 Other 0.015 Consulting, maint and other 8,500 9,154 9,800 8,900 I 5,394 157.6 169.7 181.7 165.0 0.500 0.527 0.547 0.500 0.517

'--ITO_T_A_L _RE_V_EN_U_ES ___ ~I l21,097 j17,128 l19,554 l17,000 j17,354 l17,911 l17,800 j10,436 l16,844 I I 202.2 j 164.1 I 187.4 I 162.9 i 166.3 I 171.6 I 170.6 ! I 1.000 I 1.000 I 1.000 I 1.000 I 1.000 I 1.000 [ 1.000 I 1.000 I COST OF REVENUES: iSoftWare license

Consulting fees Maintenance fees Other Consulting, maint and other

[TOTALCOSTOFREVENUES [I 9,326[ 6,831[ 8,448[ 6,545[ 6,840[ 7,361[ 6,720[ 3,783l 6,904[ I 246.5l 180.6/ 223.3[ 173.0[ 180.8[ 194.6I 177.6/ / 0.442/ 0.39910.43210.385[ 0.39410.41110.37810.362[

I GROSS PROFIT j j11,111j10,297[11,106l10,455[10,514[10,550l11,081j 6,653j 9,940[ [ 176.9[ 154.8[ 166.9[ 157.1j 158.0j 158.6j 166.5j J 0.558[ 0.601j 0.568j 0.615j 0.606j 0.58910.623[ 0.638[ Consulting,Maint&OlherGMPct. 0.212 0.241 0.177 0.250 0.289 0.282 0.285 0.339 0.253 62.5 71.0 52.1 73.6 85.0 83.1 84.0

OPERATING EXPENSES: l Product development l Sales and marketing t General and administrative

2,351 2,485 1,967 2,500 2,300 2,400 3,062 1,645 2,235 3,059 2,445 3,123 2,540 2,600 2,740 2,492 1,525 2,517 2,407 1,738 1,804 1,683 1,700 1,750 1,869 1,055 1,689

0.111 0.145 0.101 0.147 0.133 0.134 0.172 0.1581 0.145 0.143 0.160 0.149 0.150 0.153 0.140 0.146 i 0.114 0.101 0.092 0.099 0.098 0.098 0.105 o.101j

142.9 151.1 119.6 152.0 139.8 145.9 186.1 200.6 160.3 204.8 166.6 170.5 179.7 163.4 228.2 164.7 171.0 159.5 161.1 165.9 177.2

[TOTALOPERATINGEXPENSES j j 7,817/ 6,668j 6,894[ 6,723j 6,600j 6,890/ 7,423j 4,225[ 6,441j j 185.0l 157.8l 163.2l 159.1l 156.2\ 163.1j 175.7l J 0.371[ 0.389j 0.35310.39510.38010.385[ 0.4171 D.405J

I OPERATING INCOME (LOSS) I I 3,954 j 3,629: 4,212 I 3,732 I 3,914 j 3,660 I 3,658 I 2,428 I 3,499 [ I 162.9 [ 149.5 j 173.5 [ 153.7 [ 161.2 [ 150.7 / 150.7 I i 0.187 I 0.212 / 0.215 I 0.220 I 0.226 I 0.204 [ 0.206 I 0.233 i

I Interest- net I I (364X (378~ (359) (400X (378X (375~ (SOOj (169~ (356X I 215.4 [ 223.7 j 212.4 [ 236.7 [ 223.7 I 221.9 j 295.9 I [ (0.017j(0.022! (0.018~ (0.024~ (0.022j(0.021X (0.028X (0.016X

ilNCOME(LOSS)BEFORETAXES I J 4,318l 4,007[ 4,571/ 4,132[ 4,292l 4,035l 4,158[ 2,597j 3,855[ j 166.3j 154.3l 176.0[ 159.1[ 165.3[ 155.4j 160.1I [ 0.205[ 0.234[ 0.234j 0.243[ 0.247[ 0.225[ 0.234[ 0.2491

IPROVISIONFORINCOMETAXES I\ 1,728[ 1,60311.828[ 1,653[ 1,717[ 1,61411,667[ 1,038[ 1,5421 [ 166.5[ 154.4/ 176.1/ 159.2/ 165.4[ 155.5/ 160.6[ / 0.082[ 0.094j 0.09410.09710.099j 0.090j 0.094[ 0.099)

I NET INCOME (LOSS) NET INCOME PER SHARE

3,954 3,629 4,212} 3,732 3,914 3,660 3,658 2,428 3,499 162.9 [ 0.187 0.212 0.215 0.220 0.226 0.204 0.206 0.233] 1,728 1,603 1,828 ! 1,653 1,717 1,614 1,667 1,038 1,542 2,590 2,404 2,743J 2,479 2,575 2,421 2,491 1,559 2,313 0.191! 0.184 0.204 ! 0.190 0.195 0.183, . 0.190 0.128 0.176

l 0.082 0.094 0.094 0.097 0.099 0.090 0.094 0.099J I 0.123 0.140 0.140 0.146 0.148 0.135 0.140 0.149]

166.5

154.

LcoMMO_t!B. E§DTv ~~RE!_:J 113,081!13,100 1 13,425 1 13,050 1 1~13,200113,100 [12,183113,168 J [ 101.4 ! 101.5 I 110.2 I 101.1_~ 108.3 ! 108.3 / 101.5; CONFIDENTIAL & PROPRIETARY

23-Jul-97 JDA SoftWare Group,lnc. -

- - ---- ----- ·--

!Consulting ees rMaintenance fees ~-other .!-CO-ns-u~lti-ng-, m-a~in~t-an~d-oth~e-r-~ 0.540 0.516

~~~~~~~~~~~~~~~~~

ilOTAL REVENUES I /37,941 /33,972 /36,315 /33,844!34,198 /34,755 /34,644 /19,840 /28,000 I I 191.2 / 171.2 / 183.0 I 170.6 I 172.41 175.2 I 174.61 I 1.000 I 1.000 I 1.000 I 1.000 I 1.000 / 1.000 I 1.000 I 1.000 I

COST OF REVENUES:

~~:m~·- . I !~I !~I !§I :JI ::1 ::I :]I !~I . GROSS PROFIT ~ I 166.1 / 154.8 / 160.6 / 156.0 I 156.4 / 156.7 / 160.8 / I 0.572 I 0.596 / 0.578 I 0.603 / 0.598 / 0.590 I 0.607 / 0.659 I --Consulting, Maint & other GM Pct. '°"'.,,.,.r--,,--,,,..--L---,.-,--,-,,-L""',.,.--'--""",r---"""'.,,-"---"""",r-,~r-r,~ 69.0 74.1 44.5 75.5 81.3 80.4 80.7 OPERATING EXPENSES:

=-p~~~~Ir:}:~:~;~~~~~~tive------< ~~~~~I ~E:il m:~I ~E:il ~!:!I m:!I iE:;I ~E:~l I ~:ml ~:ml ~:iEI ~jSI ~:i:I ~:il!I ~:~:1 ~j*I ,-TOIACOPE"RATINGEXPENSES~ j14,258 /13,109 /13,361 l13,164 /13,041 /13,331 l13,864/ 8,213 /10,496 / I 173.6 I 159.6 I 162.7 / 160.31 158.8/ 162.3 j 168.8 / I 0.376 / 0.386 / 0.368 / 0.3891 0.381 I 0.3841 0.400 I 0.414 /

:OPERATINGINCOME(LOSS) I/ 7,45317,12817,639/ 7,231/ 7,413/ 7,159/ 7,157/ 4,861/ 7,416/ / 153.3/ 146.61157.1/ 148.8/ 152.5/ 147.3/ 147.2/ / 0.196/ 00210/ 0.210/ 0.214/ 0.217/ 0.206J 0.207j 0.245/

I Interest - net I / (720~ (734~ (719~ (756~ (734~ (731~ (856~ (104X (415~ I 692.3 / 705.8 / 691.3 [ 726.9 [ 705.8 j 702.9 / 823.1 / I {0.01~ (0.022F0.02~ (0.022~ (0.021F0.021F0.02~ (0.005~

~OME (LOSS) BEFORE TAXES I I 8,173 [ 7,862 [ 8,358 I 7,987 I 8,147 I 7,890 I 8,013 I 4,965 I 7,831 / I 164.6 I 158.3 i 168.3 I 160.9 I 164.1 / 158.9 I 161.4 I I 0.215 j _0.231 / 0.230 I 0.236 j 0.238 j 0.227 j 0.231 j 0.250 I

;PROVISIONFORINCOMETAXES I I 3,270l 3,145l 3,343l 3,195/ 3,259l 3.156j 3,209/ 1,97913,137/ / 165.21158.9l 168.9j 161.4/ 164.7/ 159.51162.21\0.086/ 0.0931 0.092/ 0.094/ 0.095/ 0.091/ 0.09310.100/

N"EllNCOMEl[OS~) -NEITNCOMEPERHARE

COMMON & EQUIV SHARES --1 J13,070113,100113,4001_1~00 113,100 113,100 '13,050_~~ I 111.9 ! 112.1 . 114.7 ! 112.1 I 112.1 j 112.11 111.7 f L CONFIDENTIAL & PROPRIETARY

m' c,_f) [---- ------------23-Jul-97 ~ ' JOA ~_oftwa~e Group~ 1~_ ---J '----------

GcMcoMs.wK4 STATEMENT OF OPERATIONS

REVENUES:

8, 00 1,318

9,818 11,000 9,000

lTOTALREVENUES I /24,~53125,953121,255[19,SOOl18,918l20,096119,500l12,514121,097l I 197.0l 207.4J 169.8J 155.8J 151.2J 160.6J 155.8J J 1.000l 1.000l 1.000l 1.000J 1.000J 1.000l 1.000l 1.000I CSG COGS Savings to SIW 1, 00

COST OF REVENUES:

: GROSS PROFIT - onsultmg, Maint & her OPERATING EXPENSES: j Product development ["-Sales an ma eting " eneral and administrative

ITOTAUWERATING EXPENSES I I 8,570 I 8,570fUl3fl,325 I 7,000 I 7,3441 7,605 i 4,549 I 7,817 I I 188.41 188.41 151.1 / 161.0 I 153.9 J 161.4 J 167.2 I I 0.348 / 0.330 I 0.323 J 0.376 J 0.370 I 0.365 / 0.390 I 0.364 I

'0PERATINGINCOME(LOSS) I/ 5,041/ 5,041/ 5,767, 4;850i 4,66314,81414,710/ 3,311[ 3,954/ / 152.3/ 152.31174.2/ 146.5/ 140.8/ 145.4/ 142.3/ ! 0.204/ 0.194/ 0.271/ 0.24910.246/ 0.24010.242J 0.265)

I Interest- net I I (320~ (320~ (359~ (400~ (394~ (400~ (500~ (173~ (364~ I 185.0 I 185.0 I 207.51 231.2 [ 227.7 f 231.2 [ 289.0 J I (0.013~ (0.012~ (0.017~ (0.021~ (0.021~ (0.020~ (0.026~ (0.014~

ITNCOME (LOSS) BEFORE TAXES I I 5,361 / 5,361 I 6,126T5,250 i 5,057 j 5,214 I 5,210 I 3,484 / 4,318 / / 153.9 I 153.9 I 175.8 / 150.7 I 145.1 I 149.7 / 149.5 I I 0.217 I 0.207 I 0.288 f 0.269 / 0.267 / 0.259 / 0.267 I 0.278 I

f!!OVISIONFORINCOMETAXES / 12,144/ 2,144/ 2,45012,100! 2,023J 2,08612,08911,39611,728\ / 153.61153.61175.5/ 150.4l 144.9l 149.4l 149.71/0.08710.08310.115/ 0.108/ 0.107/ 0.104/ 0.107/ 0.1121

~~---i h~~=+-,.-==+~~~~.+-..-,.-=rt-~+.,.-,....-J I ;~:;1 ;~:!I ~~:~/ ;~::I ~~:;I ~::~I ~;~:~I '0.1301 0.1241 0.1131 0.1621 0.1601 0.156 1 o.1so 1 0.167 1

CONFIDENTIAL & PROPRIETARY

23-Jul-97 LD w [_ -J~~ s~ftWare-Group:-rnc::-·___J - -

GCMCOM6.WK4

STATEMENT OF OPERATIONS REVENUES: -SOffWare License--MMS---Sof!Ware L!Cense - IS

-c-onsulting Tees Maintenance fees

-other Consulting, maint and other

i GROSS PROFIT I 13,611 13,611 12, I 173.2 J 173.2 I 160.8 I 154.9 I 148.4 I 154.7 I 156.7 I I 0.5451 0.524 I 0.595 I 0.624 I 0.617 I 0.605 I 0.632 ( 0.628 I Consulting, Maint & other GM Pct. ~...,-i--,,-,...r,.:.,.,,.,.-L-,n.,,.,.-"---,r,..,...r--.,.r-,.,T'..,.,.,r---,.,,...,r-,,~ 78.6 52.9 93.1 90.0 107.3 112.1 93.6

OPERATING EXPENSES: /PrOduct development r-sales and marketing

[Generaland~a-~dm~in~is-tra~tiv-e---< ~---'------'-------'--~-~-~-~-~~ ~~----'-~-~------'-------'----' ~----'----'---'-----'-----"-----'---'---__J

[lOTACC>Pe-AATINGEXPENSES=1 I 8,570 I 8,570 I 6,873 ( 7,325 J 7,000 I 7,344 / 7,605 / 4,549 J 7,8171 I 188.41 188.4 / 151.1 / 161.0 I 153.9 I 161.4 / 167.2 f I 0.3431 0.330 I 0.323 I 0.376 I 0.370 I 0.365 / 0.390 I 0.364 I

[OPERATING INCOME (LOSS) I I 5,0411 5,0411 5,767 I 4,850 I 4,6631 4,8141 4,710 i 3,311 / 3,9541 j 152.3 I 152.3 I 174.2 I 146.51 140.81 145.4 [ 142.3 i i 0.2021 0.194 I 0.271 ( 0.249 ( 0.246( 0.240 I 0.242 / 0.265 /

I Interest- net I I (320~ (320~ (359~ (400~ (394~ (400~ (500~ (173~ (364~ I 185.0 I 185.0 I 207.5 / 231.2 I 227.71 231.21 289.0 I I (0.013~ (0.012~ (O.OHF0.021~ (0.021H0.020~ (0.026~ (0.014~ ~~~~S)BEFORETAXES / ( 5,361l 5,361/ 6,126/ 5,250l 5,057l 5,214/ 5,210J 3,484l 4,318J I 153.9J 153.9l 175.8i 150.7/ 145.1/ 149.7/ 149.5I ! 0.2151 0.2011 0.288[ 0.2691 0.26710.25910.2671 0.2781

IPROVISIONFORINCOMETAXES 11 2,14412,1441 2,45012.10012.0231 2,086J 2,08911.39611.728/ I 153.61153.6117S.5/ 150.4/ 144.9/ 149.4/ 149.7/ I 0.0861 0.0831 0.115/ 0.1081 0.107/ 0.1041 0.1011 0.1121

1 154.11154.11~7s.11150.9,145.3, 149.8, 149.511 1o.129/0.124/ o.1731o.162[0.1601o.15610.160( o.167! r-.,....,-,ri-,.......+..,.--,.~-....--n<+,....,.,.+-,.-,.,...-t--;.-.....~~ct--;,--,-,,,,-i . 142.3 142.3. 160.5 141.4 134.2 138.3 139.1

~~~------ ~----'---'------"-----'----'------'------'-------'----'

!C-OM~oN & eau1v sHARES==1 ~oo 113,300113,475 :13,100 13,300113,300 :13,200 '12,282 '13,081 I I 108.3 [ 1o8.3 I 109.7: 106.1 ! 108.31108.31

101.s r

-- ---- - .. ------GLOBAL-CONSOLIDATED- . 3R1raUARfER1997-ANAL YSfS -, -·----·--·-~~x -- ---

=~~= PROJ rest vPY

Consulting fees Maintenance lees Other Consulting, maint and other

fTOTAL REVENOEs ;a, 124,: 12jj5312;;55l19,soo118,91a 120,096119,soo 112,514121,0911 1 194.61 201.41 169.81 15s.81 15t21 160.6 1 1s5.8 1 1 tooo 1 toooJ!Ooo 1.000

1 1.ooo

1 tooo

1 tooo

1 1.000

1 CSG COGS Savings to 1, I q

COST OF REVENUES: I SoftWare hcense ! Consulting fees ~Maintenance fees

[TOTAL OPERATING EXPENSES I I 8,570 I 8,570 I 6,873 [ 7,325 j 7,000 I 7,344 j 7,605 j 4,549 j 7,817 j I 188.4 j 188.4 [ 151.1 j 161.0 I 153.9 I 161.4 I 167.2) I 0.352 j 0.330 I 0.3~3 0.376 [ 0.370 I 0.365 I 0.390 I 0.364 j

)OPERATING INCOME (LOSS) I I 5,041 I 5,041 [ 5,767 I 4,850 I 4,6631 4,814 I 4,710 I 3,311 I 3,954 [ I 152.31 152.3 [ 174.2 [ 146.5 [ 140.8 [ 145.4 [ 142.3 [ I 0.207 ! 0.194 [ 0.271 0.249 i 0.246 j 0.240 I 0.242 [ 0.265 [

i Interest- net [ I (32~ (320~ (359~ (400~ (394~ {400~ (500~ (173~ (364~ I 185.0 I 185.0 I 207.5 [ 231.2 [ 227.7 [ 231.2 [ 289.0 [ [ (0.013F0.012~ (0.017) (0:-021~ (0.021F0.020~ (0.026~ (0.014~

[INCOME (LOSS) BEFORE TAXES I I 5,361 j 5,361 I 6,126 [ 5,250 I 5,057 [ 5,214 I 5,210 I 3,484 [ 4,318 [ I 153.9 j 153.9 [ 175.8 [ 150.7 I 145.1 j 149.71 149.5 i I 0.220 I 0.2011 0.288 0.269 I 0.267 I 0.259 [ 0.267 [ 0.278 [

[PROVISIONFORINCOMETAXES I I 2,144[ 2,144[ 2,450[ 2,100l 2,02312,08612,089[ 1,396j 1,728[ [ 153.6[ 153.6[ 175.51150.4[ 144.9[ 149.4[ 149.7/ I 0.088[ 0.083[ 0.115· 0.108/ 0.107/ 0.104/ 0.107/ 0.1121

0.249 o.1 "'08.-tn...-n-;ot-n-77at-n""'"+-nnn-J 0:1531 -~-~--~-~

I COMMON & EQUIV SHARES I ~,300 !13,300 113,475 !13,100j13,300113,300113,200 [12,282 !13,081 f I 108.3 I 108.3 I 109.7 [ 106.7: 108.3 [ 108.3: 107.5 L __ CONFIDENTIAL & PROPRIETARY

Consulting Tees Maintenance fees

-of her

\TOTAL REVENUES I 162,594163,894\57,570153,344153,116 [54,851154,144132,354 \38,436 [ \ 193.5 j 197.5 I 177.9 \ 164.91 164.2 I 169.5 I 167.3 I I 1.000 [ 1.000 ! 1.000 [ 1.000 I 1.000 I 1.00011.000 I 1.000 I

COST OF REVENUES:

[TOTAL COST OF REVENUES

QROSS PROFIT I 1168.7 \ 168.7 \ 160.7 \ 155.6 I 15J.4 I 156.0 I 159.2 j I 0.5641 0.553 I 0.584 I 0.611 I 0.6051 0.595 I 0.616 \ 0.647 I Consulting, Maint & other GM Pct. '---..n,,...,-'---,,,.,..,.-'---,r;r><n'-""""'..r-""'<:T"--"""cr--."""'r-,f"'S7'~"511'J-' 75.1 63.0 61.5 80.6 00.1 91.2 85.4

OPERATING EXPENSES:

[TOTAL OPERATING EXPEmJ \22,828 j22,828 j20,234 j20,489 j20,041 /20,675 /21,469 /12,762 /14,721 I I 178.9 / 178.9 / 158.5 / 160.5 [ 157.0 I 162.0 I 168.2 j I 0.365 j 0.357 I 0.351 I 0.384 j 0.3" I 0.377 j 0.3971 0.394 [

[OPERATINGINCOME(LOSS) j j12,494j12,494j13,406[12,081j12,076j11,973[11,867/ 8,172/ 9,844j / 1519j 152.9j 164.0[ 147.8/ 147.81146.5l 145.2) / 0.200) 0.196) 0.233) 0.22610.227[ 0.21810.21910.2531

[ Interest - net I I (1,040~ (1,040X(1,078F1, 1~ (1, 12~ (1, 131H1,356~ (27~ (~ I 375.5 / 375.51 389.2 [ 417.31 407.21 408.3 I 489.51 I (0.017)(0.016~ (0.019~ (0.022~ (0.021)(0.021H0.025~ (0.009~

llNCOME(LOSS)BEFORETAXES / /13,534l13,534l14,484j13,237j13,204j13,104j13,223l 8,449110,428l I 160.2l 160.2j 171.4j 156.7j 156.3l 155.1j 156.5\ f 0.21610:21210.25210.24810.249\0.23910.244[ 0.261\

(PROVISIONFORINCOMETAXES [ ( 5.414/ 5,414/ 5,793/ 5,295/ 5,282/ 5,24215,299) 3,37514,175j J 160.4l 160.41171.71156.91156.51155.3j 157.0l J 0.08710.08510.101j 0.09910.099j 0.096j 0.09810.104j

r~()~!Ao_~ & Eau1v s~~-E~ __ _J l13,100113,100113,400113,100113,100113,100113,100 111,884112,3551 I 110.21 110.21 112.81 110.21 110.21110.21 110.21 CONFIDENTIAL & PROPRIETARY

,-Consulting fees Maintenance Tees

lJfher Consulting, maint and other 147.1 1 3.4 133.5'

[TOiAr"REVENUES I 128,;05l30,905123,112122,000l22,000l23,606122,130l15,486124,653l I 184.71199.6l 149.21142.1 I 142.11152.4j 142.9! ! 1.000! 1.000l 1.000l 1.000l 1.000J 1.000l 1.000l 1.000I CSG COGS Savings=cut in SJW 2, 00 1,300

COST OF REVENUES:

JTOTAL COST OF REVENUES I j12,672 l14,972 I 8,3691 7,9231 7,919 I 8,734 ! 8,0411 5,434111,042 I I 233.2 I 275.5 I 154.0 I 145.8 I 145.7 I 160.71 148.0 I I 0.4431 0.4841 0.3621 0.360 I 0.360 I 0.370 I 0.3631 0.3511

I GROSS PROFIT I I 158.5 I 158.5 I m·7 I 1:.0 I i:·1 I 1g.o I 1:.21 I 0.557 I 0.516 I 0.638 I 0.640 I 0.640 I 0.630 I 0.637 I 0.649 I Consulting,Maint&otherGMPct. 84.6 69.0 .2 .2 .8 1 .7 .0

OPERATING EXPENSES:

1·ToTACoPE"RATIN~XPENS!SJ I 9,247 I 9,447 J 1,1so 1 8,055 J 1,800 I 8,241 J 1,635 / 5,947 / 8,570 / / 155.5 / 158.9 / 120.21 135.4 I 131.2 J 138.6 J 128.4 I I o.3231 o.306 J o.3o9 j o.366 J o.3551 o.349 J o.3451 o.3841

!OPERATINGINCOME(LOSS) / / 6,686/ 6,486l 7,593/ 6,02216,281/ 6,63116,454/ 4,105/ 5,041/ / 162.9/ 158.0J 185.0l 146.7j 153.0l 161.51157021j0.23410021010.329j 0.27410.28610.28110.29210.2651

i Interest- net I I (320~ (320~ (3~ (450~ (41~ (4~ (500~ (242~ (32~ I 132.2 J 132.21 148.3 I 186.0 I 170.7 I 196.31 206.61 I (0.011~ (0.010~ (0.016~ (0.020~ (0.019H0.020H0.023~ (0.016~

[INCOME (LOSS) BEFORE TAXES I I 7,006 / 6,806 I 7,952 / 6,472 / 6,694 / 7,106 / 6,954/ 4,347 J 5,361 / I 161.2J 156.6 J 182.9 J 148.9 J 154.0 I 163.5 J 160.0 l I 0.245J 0.220 I 0.344 j 0.294 I 0.304 J 0.301 J 0.314 I 0.281 I

fPROVISIONFORINCOMETAXES J J 2,80212.72213.181l 2.589/ 2,678/ 2,842/ 2,789/ 1,741/ 2,144j J 161.0J 156.4l 182.71148.71153.8j 163.21160.2110.09810.08810.13810.118j 0.12210.12010.12610.1121

l CONFIDENTIAL & PROPRIETARY

---------------~

23-Jul-97 C_ JD~~?ffWareGroup, Inc.

Consulting, maint and other

'-ITO_T_A_LR_EV_EN_U_ES ___ ~l l91,199171,175180,682175,344/75,116J78,457J76,274J47,8401 ~~-~-~-~-~~-~ 11.000l 1.000l 1.000! 1.000l 1.000! 1.000l 1.000l 1.000I

COST OF REVENUES:

!TOTAL COST OF REVENUES I 139,944 /26,988 /32,299128,697 !28,918130,937128,849 /16,854 J I 237.0 I 160.11 191.61 170.3 I 171.61 183.6 J 171.2 J I 0.438 J 0.3791 0.400 I 0.381 I 0.3851 0.394 \ 0.3781 0.3521

I GROSS PROFIT I 51,255 44,187 11;5.41142.61156.111:.511:.11153.41153.~l 1 o.ss21 0.6211 0.6001 o.6191 0.615J o.606J 0.622J o.648/ Consulting, Maint & Other GM Pct. 0. 7.9 79. 2 75. 8 .8 .2 96.4 86.

OPERATING EXPENSES:

/TOTAL OPERATING EXPENSES I 132,075126,050 \27,384128,544 /27,841 /28,916/29,103118,709 I I 171.4 / 139.2 I 146.4 i 152.6 J 148.8 I 154.6 J 155.6 J I 0.352 I 0.366 I 0.339 / 0.379 J 0.371 j 0.3691 0.382 J 0.3911

!OPERATING INCOME (LOSS) I /19,180118,137120,999 !18,103 [18,357 \18,604 !18,321 )12,2771 I 156.2 I 147.71 171.0 I 147.5 I 149.51 151.5 / 149.21 I 0.210 I 0.2551 0.260 I 0.240 I 0.2441 0.2371 0.240 I 0.257 /

Qnterest ·net I \ (1,360~ (1,520~ (1,437H1,606~ (1,541~ (1,606~ (1,856~ (519~ I 262.0 I 292.9 I 276.9 \ 309.4 J 296.91 309.4 / 357.61 I (0.015~ (0.021~ (0.018~ (0.021~ (0.021~ (0.02~ (0.024~ (0.011~

[lffCOME (LOSS) BEFORE TAXES I /20,540 J19,657 l22,436 l19,709 \19,898\20,210120.111112,796 \ I 160.5 \ 153.6 I 175.3 I 154.0 I 155.5 \ 157.9 \ 157.7 \ I 0.225 \ 0.276 I 0.278 / 0.262 I 0.265 I 0.258 / 0.265 / 0.267 I

IPROVISIONFORINCOMETAXES I/ 8,216/ 7,863! 8,97417,884! 7,960\ 8,0B418,087/ 5,1161/160.6\ 153.71175.4l 154.1\ 155.6i 158.0l 158.11/0.090\ 0.110/ 0.111\ 0.105\ 0.106\ 0.10310.106\ 0.1071

~-~M!1~~-~ Eau1v SHARES I !13,300 :13,151/13,445113,190113,225113,225!13,150112,010 I I 110.11109.5 I 111.9 I 109.s 1110.11 110.1 ! 109.5 I L CONFIDENTIAL & PROPRIETARY

23-Jul-97 ----------- ----------- ----- -(fLOBAL CONSOLIDATED • FULL YEAR 1·9-9~-8~-A-~N~A~L-~vs=1s~ -- ---------------------,

[_=JOA so~~~Qr!J~}nC.- J 1-------~--~--=--=-~-~-=---_-_-_-_u:s:s=:=:=------c==~===----1 GCMCOM6WK4 1998 ESTIMATE 1997 ESTIMATE

STATEMENT OF OPERATIONS JOA PIPER H&Q MONT Lazard JOA PIPER H&Q MONT Lazard REVENUES: 6"6 4125 5122 4125 7123 6"6 4125 5122 4125 --Software License · MMS 'SoftwareDcense=~______,

Software License -OOBMS Software license

Consulting fees Maintenance fees Other Consulting, maint and other

18,000 21,000 20,000 59,000 51,500 51,000

58,000 42,000 5,700 8,271 2,300

66,000 46,000 50,271

23,389 17,025 21,140 6,600 13,973 5,410

20,000 10,039 10,129 49,989 52,300 41,037 38,116 36,366 36,679 39,596

43,597 33,468 4,459 5,282 2,106

56,000 47,900 50,162 37,228 38,750 41,n8 36,678

INDEX --r,1----------.p=c=T--.oO=F-=R=EVE~N=uE~-----------<

1998 EST. VS. 1997 EST. l 1998 ESTIMATE J1 1997 ESTIMATE JOA PIPER H&Q MONT Lazard L JOA jPIPERJ H&QIMON1Ilazar~ [JOA lPIPERl H&QlMONTjLazard

105.7 110.6 0.144 0.221 0.187 0.269 150.3 122.0 0.168 0.062 0.153 0.069 199.2 197.5 0.160 0.189 0.110 0.129 143.8 135.1 140.2 136.3 132.1 0.472 0.528 0.504 0.472 0.522 0.450 0.506 0.484 0.468 0.519

133.0 125.5 0.464 0.415 0.478 0.446 127.8 156.6 0.046 0.082 0.049 0.070 109.2 O.Q18 0.023 131.6 123.6 129.7 134.0 130.6 0.528 0.472 0.496 0.528 0.478 0.550 0.494 0.516 0.532 0.481

'-)TO_T_A_LR_EV_EN_U_ES ___ ~l I 12s,oool 91,sool 101.ml 1os,9a9l 100,2001 )91,199l75,344l75,116l7B,457)7&;2741 I 137.1l 129.41134.81135.11131.41 ) 1.000I 1.000l 1.000l 1.000l 1.000l 11.000I 1.000l 1.000I 1.000I 1.000I

COST OF REVENUES: o are 1cense

Consulting fees Maintenance fees Other Consulting, mamt an

[fDTALCOSTOFREVENUES I l50,920l35,247l36,500l41,548l39,818l )39,944l28,697l28,918l30,937l28,849l) 127.5l 122.8) 126.2l 134.3l 138.0I ) 0.4071 0.3621 0.3601 0.3921 0.3971 I 0.4381 0.3811 0.3851 0.394) 0.378)

I GROSSPROFIT ~ )74,080)62.253l64,ml64,441l60,382l l51,2ss!46,647l46,198j47,520!47,425I I 144.5l 133.5l 140.2) 135.6l 127.3l I o.5931 o.6381 o.64ol 0.6081 o.6031 I o.5621 o.6191 o.6151 o.&061 0.6221 Consulting, Maint & Other GM Pct. 0.255 0.254 0.315 0.294 0.248 0.236 0.251 0.288 0.292 0.263

OPERATING EXPENSES: Product development Sales and marketing Generafand-a-dm-i-enis~tra-ti-ve _ ___,

13,200 11,87112,500 12,600 12,926 9,986 9,935 9,435 10,065 11,515 18,000 14,13815,500 16,42811,122 12,574 11,25811,017 11,71210,089 14,000 10,09110,200 9,800 8,617 9,515 7,351 7,389 7,139 7,500

132.2 119.5 132.5 125.2 112.3 143.2 125.6 140.7 140.3 110.2 147.1 137.3 138.0 137.3 114.9

0.106 0.122 0.123 0.119 0.129 0.144 0.145 0.153 0.155 0.111 0.112 0.103 0.101 0.092 0.086

0.109 0.132 0.126 0.128 0.151 0.138 0.149 0.147 0.149 0.132 0.104 0.098 0.098 0.091 0.098

)TOTAL OPERATING EXPENSES I l45,200l36,1ool38.200l38,828l32,665I )32,015128,544121,841128,916)29,1031 140.91 126.51 137.21 134.31 112.21 I o.362! o.3101 o.3nl o.3661 o.3261 I o.352j o.379j o.m I o.3691 o.3821

)OPERATING INCOME (LOSS) I l28,880l26,153l26,571125,613)21,1111 )19,180l18,103118,357l18,604l18,321 I 150.61144.51144.71137.71 151.31 I 0.231 I 0.2681 0.2621 0.2421 02n1 I 02101 o.2401 0.2441 0.2371 0.2401

I Interest- net I I (1,400j(2,040j(1,861j(2,500j(2,sooj I (1,360j(1,606j(1,541j(1,606j(1,856l 102.91 121.01 120.81 155.71 134.7! I (0.011](0.021)(0.018j(0.024j(0.025l I (O.D1sj{o.021J(o.021j(o.020](0.024j

~OME(LOSS)BEFORETAXES ! l30.280l28,193j28,432l28,113j30,217l )20,540l19,709j19,898j20,210l20,1nj 147.4j 143.0j 142.9j 139.1I 149.81 I 0.2421 0.2891 0.2811 0.265! 0.3021 ) 0.2251 0.2621 0.2651 0.2581 0.2651

/PROVISION FOR INCOME TAXES I /12,112111.211111,373l11,245)12,117j I 8,2161 7,8841 7,9601 8,0841 8,0871 I 147.41 143.0I 142.91 139.1 I 149.8 I I 0.0971 0.116! 0.1121 0.1061 0.1211 I 0.0901 0.105! 0.1061 0.1031 0.1061

;±INCOME (LOSS) INCOME PER SHARE

PROFORMA OPERATING INCOM PROFORMA PROV FOR INC TAX PROFORMA NET INCOME

)COMMON & EQUIV SHARES

0.231 0.268 0.262 0.242 0.277 0.097 0.116 0.112 0.106 0.121 0.145 0.173 0.168 0.159 0.181

0.210 0.240 0.244 0.237 0.240 0.090 0.105 0.106 0.103 0.106 0.135 0.157 0.159 0.155 0.159

CONFIDENTIAL & PROPRIETARY