Great Plains surpasses estimates
Great Plains Software announces a 52 percent increase over last year's revenue.
For the fiscal quarter ending August 31, the provider of Microsoft Windows NT client/server financial management software announced a net income of $1.5 million, or 11 cents a share, compared with an income of $ 551,000, or 6 cents a share, last year.
Analysts were expecting profits of 9 cents a share, according to First Call.
Revenue grew to $16.8 million, a 52 percent increase over last year's revenue of $11.1 million for the same quarter.
License revenues for the first quarter of fiscal 1998 were $10.4 million, up 55 percent from the same period last fiscal year. Service revenues increased to $6.4 million, up 46 percent from the same period last fiscal year. Revenues from Windows NT client/server financial management solutions accounted for $14.1 million during the quarter, up 64 percent.
Great Plains said the number of client/server customers grew to more than 10,000 during the first quarter of fiscal 1998.
In June, Great Plains launched an IPO that bolted out of the starting gate. The company, which settled on a target price of $16 a share, jumped to $30 on the first trade of the day and closed at 32-3/8.
The company floated out 3 million shares, raising $48 million in capital and giving Great Plains a market valuation of $206.8 million.
The company, which announced its results after the market's close, finished the day up 1/8 in trading to close at 27-1/8 over yesterday.