Sterling Commerce Reports 40% Revenue Growth

Electronic commerce company Sterling Commerce Inc. said revenue for its second fiscal quarter ended March 31 was $111.1 million, up 40% over last year’s $79.5 million.

Second quarter diluted earnings per share were $.29, an increase of 26% over
last year’s $.23. For the first six months, revenue increased 41% to $217.4
million, and diluted earnings per share increased 25% to $.55.

Services revenue, which includes domestic and international transaction
processing, and catalog and consulting revenues, increased 35% to $47.9 million in the second quarter. Services revenue grew 35% for the first six months to $94.7 million.

Product revenue and product support revenue grew 85% and 42%, respectively,
over the same quarter last year with revenue of $39.4 million and $23.8
million, respectively. For the first six months of fiscal 1998, product
revenue and product support revenue increased 86% and 42%, respectively.
Product revenue and product support revenue include licensing and maintenance
of software products in the domestic and international markets.

“Once again, the outstanding results of the second quarter can be attributed
to the continued growth and acceptance of all four of the Sterling Commerce
product families–CONNECT, GENTRAN, COMMERCE and VECTOR–on a worldwide
basis,” said Warner Blow, president and chief executive officer, in a
statement. “We have seen the fastest growth in our software products that run
on the Windows NT platform, our Web-based solutions and electronic commerce
consulting and implementation services.”

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