EXHIBIT 99.2
SOFTWARE ASSOCIATES, INC.
FINANCIAL STATEMENTS
(Unaudited)
SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995
SOFTWARE ASSOCIATES, INC.
UNAUDITED CONDENSED BALANCE SHEET
AS AT SEPTEMBER 30, 1996
A S S E T S
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,376
Accounts receivable, net of allowance for doubtful accounts . . 67,769
Total current assets. . . . . . . . . . . . . . . . . 79,145
Property and equipment, net of depreciation and amortization. . 5,500
T O T A L . . . . . . . . . . . . . . . . . . . . . . $ 84,645
L I A B I L I T I E S
Accounts payable and accrued expenses . . . . . . . . . . . . . $ 20,628
Lease obligation. . . . . . . . . . . . . . . . . . . . . . . . 2,797
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 7,000
Total current liabilities. . . . . . . . . . . . . . 30,425
STOCKHOLDER'S EQUITY
Common stock - no par value; 2,500 shares authorized,
issued and outstanding . . . . . . . . . . . . . . . . . . . 16,000
Additional paid-in capital. . . . . . . . . . . . . . . . . . . 23,641
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . 14,579
Total stockholder's equity . . . . . . . . . . . . . 54,220
T O T A L. . . . . . . . . . . . . . . . . . . . . . $ 84,645
The accompanying notes are an integral part of
these condensed statements.
SOFTWARE ASSOCIATES, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATION AND RETAINED EARNINGS
Three Months Ended
September 30,
1996 1995
Net sales:
System sales . . . . . . . . . . . . . . . . . . $ 55,517 $ 44,766
Services . . . . . . . . . . . . . . . . . . . . 78,174 91,681
T o t a l . . . . . . . . . . . . . . . . 133,691 136,447
Cost of sales:
System sales . . . . . . . . . . . . . . . . . . 16,645 5,763
Services . . . . . . . . . . . . . . . . . . . . 23,845 29,889
T o t a l . . . . . . . . . . . . . . . . 40,490 35,652
Gross profit. . . . . . . . . . . . . . . . . . . . 93,201 100,795
Selling, general and administrative expenses. . . . 80,513 179,707
Operating income (loss) . . . . . . . . . . . . . . 12,688 (78,912)
(Provision) benefit for income taxes. . . . . . . . (6,000) 29,000
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . 6,688 (49,912)
Retained earnings, beginning of period. . . . . . . 7,891 55,601
RETAINED EARNINGS, END OF PERIOD. . . . . . . . . . $ 14,579 $ 5,689
The accompanying notes are an integral part of
these condensed statements.
SOFTWARE ASSOCIATES, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
September 30,
1996 1995
Cash flows from operating activities:
Net income (loss) . . . . . . . . . . . . . . . . $ 6,688 $(49,912)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating
activities:
Depreciation. . . . . . . . . . . . . . . . . 500
Deferred income taxes . . . . . . . . . . . . 6,000 (29,000)
Changes in operating assets and liabilities:
Accounts receivable . . . . . . . . . . . . (6,560) 101,688
Accounts payable and accrued expenses . . . (6,875) (20,224)
Net cash provided by (used in) operating
activities. . . . . . . . . . . . . . . (247) 2,552
Cash flows (used in) financing activities:
Payments of capital lease obligation . . . . . . (832)
NET (DECREASE) INCREASE IN CASH. . . . . . . . . . . (1,079) 2,552
Cash - beginning of period . . . . . . . . . . . . . 12,455 15,413
CASH - END OF PERIOD . . . . . . . . . . . . . . . . $11,376 $ 17,965
The accompanying notes are an integral part of
these condensed statements.
(NOTE A) - The Company:
Software Associates, Inc. (the "Company") is a New Jersey
corporation incorporated in March 1985. The Company is an
Electronic Data Interchange ("EDI") service bureau engaged in the
business of helping companies realize the benefits of expanding
their data processing and electronic communications
infrastructures through the use of EDI. The Company also resells
hardware and licensed software which is generally customized for
its customers.
(NOTE B) - Basis of Presentation:
The unaudited condensed consolidated balance sheet and
statement of operations should be read in conjunction with the
audited financial statements of Software Associates, Inc. and
notes thereto contained elsewhere herein. The information does
not purport to represent the future financial position or results
of operations of Software Associates, Inc. The interim financial
statements include all necessary adjustments, consisting of
normal recurring items, which in the opinion of management are
necessary for a fair presentation of such financial information.