SpatialNews Press Release
Intergraph Operating Results for Third
Quarter 2000
HUNTSVILLE, Ala.-Oct. 31, 2000--Intergraph Corporation
(Nasdaq:INGR) today reported operating results for its third quarter ended September 30, 2000.
For the quarter, the Company incurred a net loss of $5.3 million, or $.11 per share, on revenues of
$159 million. The 15% decline in revenue from the second quarter level and the net loss were largely
attributable to the Company's exit from hardware, which was completed this quarter with the sale of
the Intense3D graphics card business to 3Dlabs Inc., and the sale of the high-end workstation
business to Silicon Graphics Inc. The Company took a nonrecurring charge to earnings of
approximately $8 million for the cost of closing the remaining hardware business. The Company's six
continuing vertical business units were profitable from operations for third quarter and year-to-date.
These business units provide software and services to governments and to global industries, including
plant design, utilities, communications, mapping/GIS, photogrammetry and public safety.
Intergraph CEO Jim Taylor said, "Our objectives for 2000 have been to stabilize and strengthen
our financial position and to redefine and focus the company around our remaining software and
services businesses. We have made considerable headway by exiting our hardware businesses, selling
non-core assets, decreasing debt and other liabilities, and aggressively cutting costs. We have
empowered our vertical businesses to operate independently and will begin reporting operational
results of each vertical business separately with the 10Q. These vertical units represent Intergraph's
future direction, and as a reflection of our confidence in the future of the Company, we are announcing
today that the Board of Directors has approved a two-year stock repurchase plan."
On October 31 at 2:00 p.m. Eastern time, a live broadcast of Intergraph's third quarter conference
call will be hosted by Global Crossing Conferencing. The public may access the webcast at
http://webcast.themeetingson.com/webcast.jsp?reservation=16538349 or at www.intergraph.com. A
replay of the webcast will also be available at the two sites for on-demand access until November 30,
2000.
Intergraph Corporation
Summary Financial Information
Quarter Ended September 30 2000 1999
(Unaudited)
Revenue $158,937,000 $228,459,000
Loss from operations before
nonrecurring charges (4,774,000) (22,143,000)
Nonrecurring charges to
operations (8,113,000)(a) (20,995,000)(b)
Loss from operations (12,887,000) (43,138,000)
Gains on sales of assets 12,018,000 --
Other nonoperating expense,
net (3,410,000) (863,000)
Income tax expense (1,000,000) (1,500,000)
Net loss $(5,279,000) $(45,501,000)
Net loss per share - basic
and diluted $(.11) $(.93)
Weighted average shares
outstanding - basic and
diluted 49,435,000 48,971,000
Nine Months Ended September 30 2000 1999
(Unaudited)
Revenue $546,323,000 $714,180,000
Loss from operations before
nonrecurring charges (7,144,000) (47,047,000)
Nonrecurring charges to
operations (8,113,000)(a) (23,467,000)(b)
Loss from operations (15,257,000) (70,514,000)
Gains on sales of assets 19,111,000 12,471,000
Arbitration settlement -- (8,562,000)
Other nonoperating expense,
net (6,870,000) (7,046,000)
Income tax expense (4,900,000) (1,500,000)
Net loss $(7,916,000) $(75,151,000)
Net loss per share -
basic and diluted $(.16) $(1.54)
Weighted average shares
outstanding - basic and
diluted 49,331,000 48,834,000
(a) Includes charges related to exit of the hardware business of $4.8
million classified as cost of revenues in the consolidated
statement of operations.
(b) Includes an inventory write-down of $7 million classified as cost
of revenues in the consolidated statement of operations.
Intergraph Corporation and Subsidiaries
Third Quarter 2000
Consolidated Balance Sheets (Unaudited)
----------------------------------------------------------------------
Sept. 30, Dec. 31,
(In thousands) 2000 1999
----------------------------------------------------------------------
Assets
Cash and cash equivalents $ 106,421 $88,513
Accounts receivable, net 195,444 258,768
Inventories 22,911 35,918
Other current assets 30,986 28,744
----------------------------------------------------------------------
Total current assets 355,762 411,943
Investments in affiliates 17,381 9,940
Other assets 63,213 68,154
Property, plant, and equipment, net 59,010 94,907
----------------------------------------------------------------------
Total Assets $495,366 $584,944
======================================================================
Liabilities and Shareholders' Equity
Trade accounts payable $ 31,872 $50,963
Accrued compensation 35,087 35,848
Other accrued expenses 60,923 71,052
Billings in excess of sales 50,176 66,051
Income taxes payable 9,628 8,175
Short-term debt and current
maturities of long-term debt 7,898 11,547
----------------------------------------------------------------------
Total current liabilities 195,584 243,636
Deferred income taxes 2,360 2,620
Long-term debt 25,437 51,379
Other noncurrent liabilities 10,971 10,609
----------------------------------------------------------------------
Total liabilities 234,352 308,244
Total shareholders' equity 261,014 276,700
----------------------------------------------------------------------
Total Liabilities and Shareholders'
Equity $495,366 $584,944
======================================================================
Consolidated Statements of Operations (Unaudited)
----------------------------------------------------------------------
Quarter ended Nine months ended
September 30, September 30,
(In thousands except 2000 1999 2000 1999
per share amounts)
----------------------------------------------------------------------
Revenues
Systems $91,988 $154,748 $349,568 $483,319
Maintenance 39,650 48,599 123,463 148,780
Services 27,299 25,112 73,292 82,081
----------------------------------------------- ----------------------
Total revenues 158,937 228,459 546,323 714,180
----------------------------------------------- ----------------------
Cost of revenues
Systems 61,417 116,592 223,964 344,875
Maintenance 20,623 28,097 65,713 78,190
Services 22,448 21,476 60,962 66,138
----------------------------------------------- ----------------------
Total cost of revenues 104,488 166,165 350,639 489,203
----------------------------------------------- ----------------------
Gross profit 54,449 62,294 195,684 224,977
Product development 12,887 17,612 42,850 52,401
Sales and marketing 28,767 44,161 93,570 140,946
General and administrative 22,320 29,664 71,159 85,677
Nonrecurring charges 3,362 13,995 3,362 16,467
----------------------------------------------- ----------------------
Loss from operations (12,887) (43,138) (15,257) (70,514)
Gains on sales of assets 12,018 --- 19,111 12,471
Arbitration settlement --- --- --- (8,562)
Interest expense (953) (1,501) (3,241) (4,329)
Other income (expense)-
net (2,457) 638 (3,629) (2,717)
----------------------------------------------- ----------------------
Loss before income
taxes (4,279) (44,001) (3,016) (73,651)
Income tax expense 1,000 1,500 4,900 1,500
----------------------------------------------- ----------------------
Net loss $(5,279) $( 45,501) $(7,916) $( 75,151)
=============================================== ======================
Net Loss per share -
Basic and diluted $(0.11) $(0.93) $(0.16) $(1.54)
==================== ======================
Weighted average shares
outstanding -
Basic and diluted 49,435 48,971 49,331 48,834
==================== ======================
Systems orders $111,900 $154,900 $385,600 $462,600
=============================================== ======================
Services orders $40,000 $24,500 $82,300 $82,600
=============================================== ======================
This unaudited information is provided for analysis purposes only.
Some account headings have been abbreviated. In the event of
discrepancies with published financial reports, the published reports
will be conclusive.
Intergraph Background Information
Intergraph Corporation is a worldwide provider of end-to-end technical solutions and systems
integration. Intergraph's vertically focused business units develop, market and support software and
services for local and national governments and for global industries, including process plant design,
utilities, communications, mapping/GIS, photogrammetry and public safety. Headquartered in
Huntsville, Ala., with offices worldwide, Intergraph is located on the Internet at www.intergraph.com.
Information contained in this press release includes statements that are forward-looking as defined
in Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from
those projected in the forward-looking statements. Information concerning factors that could cause
actual results to differ materially from those in the forward-looking statements is described in the
Company's filings with the Securities and Exchange Commission, including its most recent Annual
Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31,
2000, and June 30, 2000.
Intergraph and the Intergraph logo are registered trademarks of Intergraph Corporation. Other
brands and product names are trademarks of their respective owners.
CONTACT:
Intergraph Corporation
Eugene H. Wrobel, 256/730-2118
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