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Sterling Commerce Reports 39% 3Q Revenue Growth

Columbus, OH-based e-commerce firm Sterling Commerce Inc. posted third quarter revenue of $122.1 million, up 39% over last year's $87.8 million.

Diluted earnings per share for the period were $.33, an increase of 32% over last year's $.25, excluding one-time charges in 1997. For the first nine months, revenue increased 40% to $339.5 million, and diluted earnings per share increased 26% to $.87, excluding one-time charges in 1997, the company said.

Services revenue, which includes domestic and international transaction processing, catalog and consulting revenues, increased 27% to $49.9 million in the third quarter. Product revenue and product support revenue grew 89% and 42%, respectively, over the same quarter last year with revenue of $47.4 million and $24.8 million, respectively.

International revenue was 20% of total revenue for the third fiscal quarter. This compares to 12% for the third quarter of fiscal 1997. International revenue includes all services, software and software support revenue from customers outside the United States.

"This quarter's great performance is a result of our leadership position in the global electronic commerce software and services market," said Warner Blow, chief executive officer of Sterling Commerce, in a statement. "Software sales, once again, were exceptional, services growth continues to be robust and we are experiencing more and more growth with our Web-based offerings."