Walker Interactive Systems Announces First-Quarter 2001 Financial Results

Returns to Profitability With $0.01 Net Income per Share as License Revenues

Increase 277% Over Q4/00



Apr 26, 2001, 01:00 ET from Walker Interactive Systems, Inc.

    SAN FRANCISCO, April 26 /PRNewswire/ -- Walker Interactive Systems, Inc.
 (OTC Bulletin Board:   WALK), a global provider of e-business solutions for the
 enterprise, today announced its financial results for the first quarter ended
 March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000218/WALKLOGO )
     "We are pleased to report a return to profitability, with first-quarter
 net income of $0.01 per fully diluted share," said Frank Richardson, chief
 executive officer of Walker.  "This is the result of actions taken over the
 past year to refocus and restructure our business, and it provides a positive
 start for 2001."
     Total revenues for the first quarter of 2001 were $12.6 million, compared
 with $14.4 million for the first quarter of 2000.  First-quarter net income
 was $135,000, or $0.01 per fully diluted share, compared with a net loss of
 $5.4 million, or a loss of $0.38 per fully diluted share, for the first
 quarter of 2000.
     License revenues for the first quarter of 2001 were $3.8 million, compared
 with $826,000 for the first quarter of 2000.  First-quarter license revenues
 were up 277% sequentially from $1.0 million.  Consulting revenues were
 $3.1 million, compared with $6.0 million for the first quarter of 2000.
 Maintenance revenues were $5.7 million, compared with $7.6 million for the
 year-earlier quarter.
     The cash and investment balances at March 31, 2001 were $8.6 million,
 compared with $9.6 million at December 31, 2000, and the company has no
 outstanding debt.
     "In the first-quarter we signed license agreements with prestigious
 companies around the world, across a balanced portfolio of vertical industry
 markets.  These companies included:  ADT, Bank of Scotland, Cathay Pacific
 Airlines, Toshiba, Whitbread, and Workers Compensation Fund of Utah," said
 Richardson.  "First-quarter license revenues represent 75% of the license
 revenues for the full-year 2000.  These wins came in a very competitive
 environment, giving us increased confidence in the future of our e-business
 and analytical solutions.  With this positive start on license fees in the new
 year, our services backlog has shown positive growth, and will continue to
 drive the recovery of our consulting business to more acceptable and, we
 believe sustainable, levels during 2001.  In addition, first-quarter operating
 expenses were in line with our expectations, and we continue to realize the
 benefits of the actions taken to reduce costs last year."
     Richardson continued.  "The marketplace continues to accept our
 collaborative e-business solutions, as evidenced by the shipment of 38
 e-modules to customers including Sanlam, Tulsa Public Schools, UnumProvident,
 and Western Resources, bringing total shipment to 129 since the product was
 released in June 2000.  The number of customers in production increased to 19,
 and another 42 e-modules are currently planned for live production use in the
 next 120 days.  Cuna Mutual implemented Walker e-business solutions in less
 than 90 days to maintain its competitive edge in the financial services
 marketplace.  This focus on quick ROI has resulted in our customers realizing
 an average implementation time-to-go-live of just five months.  Walker was
 also featured at IBM's WebSphere Conference demonstrating support for
 Enterprise Java Beans on IBM zSeries s/390 e-servers as further evidence of
 our commitment to leading-edge technology and solutions.  We believe that
 these accomplishments constitute a strong beginning for 2001 and will help
 position the company for continued improvement."
 
     About Walker
     Walker Interactive Systems, Inc., headquartered in San Francisco,
 California, is a leading, global provider of e-business solutions for the
 enterprise.  The Walker family of e-business applications and vertical
 industry solutions, combined with integration and consulting services, are
 utilized by Global 2000 organizations in industries including banking and
 financial services, retail, transportation, and utilities. More information
 about Walker is available at http://www.walker.com or 800-PICK WALKER.
     This news release contains forward-looking statements including those
 related to future profitability, quarterly operating costs and revenue growth.
 Actual results may differ materially from any forward-looking statements
 contained in this news release due to a number of factors that could
 materially and adversely affect the Company's business, financial condition,
 operating results and stock price.  These factors are discussed in the
 company's most recent Annual Report to Stockholders, which includes the most
 recent Annual Report on Form 10-K, and in the Company's quarterly 10-Q
 reports.  The information contained in such discussions should be considered
 in evaluating the company's prospects and future financial performance.
 
                       WALKER  INTERACTIVE  SYSTEMS, INC.
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                    (in thousands, except per share amounts)
 
                                                             (UNAUDITED)
                                                             THREE MONTHS
                                                            ENDED MARCH 31,
 
                                                         2001           2000
 
     REVENUES:
 
       License                                         $3,823           $826
       Maintenance                                      5,754          7,612
       Consulting                                       3,057          6,012
         Total revenues                                12,634         14,450
 
      OPERATING EXPENSES:
 
       Cost of revenues:
         Cost of licenses, maintenance and consulting   4,051          7,858
         Amortization of capitalized software             763          1,327
     Sales and marketing                                3,174          4,573
     Product development                                2,589          3,023
     General and administrative                         2,028          3,325
         Total operating expenses                      12,605         20,106
 
     Operating income (loss)                               29        (5,656)
       Interest income, net                               131            297
     Income (loss) before income taxes                    160        (5,359)
       Provision for income taxes                          25             48
     NET INCOME (LOSS)                                   $135       $(5,407)
 
 
     BASIC NET INCOME (LOSS) PER SHARE                  $0.01        $(0.38)
 
     DILUTED NET INCOME (LOSS) PER SHARE                $0.01        $(0.38)
 
     Shares used in computing:
       Basic net income (loss) per share               14,843         14,360
 
       Diluted net income (loss) per share             14,846         14,360
 
 
                        WALKER INTERACTIVE SYSTEMS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share amounts)
 
 
                                                           (unaudited)
                                                     March 31,    December 31,
                                                        2001          2000
 
          ASSETS
     Cash and investments                              $8,581        $9,619
     Accounts receivable, net                          10,449         8,816
     Capitalized software, net                          4,095         4,541
     Other assets                                       4,699         4,584
       Total assets                                   $27,824       $27,560
 
        LIABILITIES AND STOCKHOLDERS'
         EQUITY (DEFICIT)
     Deferred revenue                                 $15,985       $15,257
     Other liabilities                                 16,595        17,526
     Stockholders' equity (deficit)                   (4,756)       (5,223)
       Total liabilities and stockholders'
        equity (deficit)                              $27,824       $27,560
 
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X06583417
 
 

SOURCE Walker Interactive Systems, Inc.
    SAN FRANCISCO, April 26 /PRNewswire/ -- Walker Interactive Systems, Inc.
 (OTC Bulletin Board:   WALK), a global provider of e-business solutions for the
 enterprise, today announced its financial results for the first quarter ended
 March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000218/WALKLOGO )
     "We are pleased to report a return to profitability, with first-quarter
 net income of $0.01 per fully diluted share," said Frank Richardson, chief
 executive officer of Walker.  "This is the result of actions taken over the
 past year to refocus and restructure our business, and it provides a positive
 start for 2001."
     Total revenues for the first quarter of 2001 were $12.6 million, compared
 with $14.4 million for the first quarter of 2000.  First-quarter net income
 was $135,000, or $0.01 per fully diluted share, compared with a net loss of
 $5.4 million, or a loss of $0.38 per fully diluted share, for the first
 quarter of 2000.
     License revenues for the first quarter of 2001 were $3.8 million, compared
 with $826,000 for the first quarter of 2000.  First-quarter license revenues
 were up 277% sequentially from $1.0 million.  Consulting revenues were
 $3.1 million, compared with $6.0 million for the first quarter of 2000.
 Maintenance revenues were $5.7 million, compared with $7.6 million for the
 year-earlier quarter.
     The cash and investment balances at March 31, 2001 were $8.6 million,
 compared with $9.6 million at December 31, 2000, and the company has no
 outstanding debt.
     "In the first-quarter we signed license agreements with prestigious
 companies around the world, across a balanced portfolio of vertical industry
 markets.  These companies included:  ADT, Bank of Scotland, Cathay Pacific
 Airlines, Toshiba, Whitbread, and Workers Compensation Fund of Utah," said
 Richardson.  "First-quarter license revenues represent 75% of the license
 revenues for the full-year 2000.  These wins came in a very competitive
 environment, giving us increased confidence in the future of our e-business
 and analytical solutions.  With this positive start on license fees in the new
 year, our services backlog has shown positive growth, and will continue to
 drive the recovery of our consulting business to more acceptable and, we
 believe sustainable, levels during 2001.  In addition, first-quarter operating
 expenses were in line with our expectations, and we continue to realize the
 benefits of the actions taken to reduce costs last year."
     Richardson continued.  "The marketplace continues to accept our
 collaborative e-business solutions, as evidenced by the shipment of 38
 e-modules to customers including Sanlam, Tulsa Public Schools, UnumProvident,
 and Western Resources, bringing total shipment to 129 since the product was
 released in June 2000.  The number of customers in production increased to 19,
 and another 42 e-modules are currently planned for live production use in the
 next 120 days.  Cuna Mutual implemented Walker e-business solutions in less
 than 90 days to maintain its competitive edge in the financial services
 marketplace.  This focus on quick ROI has resulted in our customers realizing
 an average implementation time-to-go-live of just five months.  Walker was
 also featured at IBM's WebSphere Conference demonstrating support for
 Enterprise Java Beans on IBM zSeries s/390 e-servers as further evidence of
 our commitment to leading-edge technology and solutions.  We believe that
 these accomplishments constitute a strong beginning for 2001 and will help
 position the company for continued improvement."
 
     About Walker
     Walker Interactive Systems, Inc., headquartered in San Francisco,
 California, is a leading, global provider of e-business solutions for the
 enterprise.  The Walker family of e-business applications and vertical
 industry solutions, combined with integration and consulting services, are
 utilized by Global 2000 organizations in industries including banking and
 financial services, retail, transportation, and utilities. More information
 about Walker is available at http://www.walker.com or 800-PICK WALKER.
     This news release contains forward-looking statements including those
 related to future profitability, quarterly operating costs and revenue growth.
 Actual results may differ materially from any forward-looking statements
 contained in this news release due to a number of factors that could
 materially and adversely affect the Company's business, financial condition,
 operating results and stock price.  These factors are discussed in the
 company's most recent Annual Report to Stockholders, which includes the most
 recent Annual Report on Form 10-K, and in the Company's quarterly 10-Q
 reports.  The information contained in such discussions should be considered
 in evaluating the company's prospects and future financial performance.
 
                       WALKER  INTERACTIVE  SYSTEMS, INC.
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                    (in thousands, except per share amounts)
 
                                                             (UNAUDITED)
                                                             THREE MONTHS
                                                            ENDED MARCH 31,
 
                                                         2001           2000
 
     REVENUES:
 
       License                                         $3,823           $826
       Maintenance                                      5,754          7,612
       Consulting                                       3,057          6,012
         Total revenues                                12,634         14,450
 
      OPERATING EXPENSES:
 
       Cost of revenues:
         Cost of licenses, maintenance and consulting   4,051          7,858
         Amortization of capitalized software             763          1,327
     Sales and marketing                                3,174          4,573
     Product development                                2,589          3,023
     General and administrative                         2,028          3,325
         Total operating expenses                      12,605         20,106
 
     Operating income (loss)                               29        (5,656)
       Interest income, net                               131            297
     Income (loss) before income taxes                    160        (5,359)
       Provision for income taxes                          25             48
     NET INCOME (LOSS)                                   $135       $(5,407)
 
 
     BASIC NET INCOME (LOSS) PER SHARE                  $0.01        $(0.38)
 
     DILUTED NET INCOME (LOSS) PER SHARE                $0.01        $(0.38)
 
     Shares used in computing:
       Basic net income (loss) per share               14,843         14,360
 
       Diluted net income (loss) per share             14,846         14,360
 
 
                        WALKER INTERACTIVE SYSTEMS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share amounts)
 
 
                                                           (unaudited)
                                                     March 31,    December 31,
                                                        2001          2000
 
          ASSETS
     Cash and investments                              $8,581        $9,619
     Accounts receivable, net                          10,449         8,816
     Capitalized software, net                          4,095         4,541
     Other assets                                       4,699         4,584
       Total assets                                   $27,824       $27,560
 
        LIABILITIES AND STOCKHOLDERS'
         EQUITY (DEFICIT)
     Deferred revenue                                 $15,985       $15,257
     Other liabilities                                 16,595        17,526
     Stockholders' equity (deficit)                   (4,756)       (5,223)
       Total liabilities and stockholders'
        equity (deficit)                              $27,824       $27,560
 
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X06583417
 
 SOURCE  Walker Interactive Systems, Inc.