Precise Software reports record revenues for 16th quarter running

Company beat forecasts with first shift to operating profit
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With Reuters Securities

Westwood, Massachusetts-based Israeli company Precise Software Solutions (Nasdaq:PRSE) reported record revenues for the 16th time and a shift to profit in the third quarter.

The company said revenues for the quarter grew 88% to $14.3 million, compared with $7.6 million for the third quarter of 2000.

Merrill Lynch and CIBC Oppenheimer had expected revenues of $13.7 million and a loss of 1 cent per share.

For the first time in its history as a publicly traded company, Precise reported a positive pro forma operating result, of $68,000, or zero per share. For the corresponding quarter of 2000 it posted a pro-forma operating loss of $1.1 million, or 5 cents per share.

Including all noncash items and interest income, Precise netted $452,000, or 2 cents per share.

For the fourth quarter, Precise says it expects $16.2 million to $16.7 million in revenue, with pro forma operating income ranging from $200,000 to $300,000, or about 1 cent per diluted share.

For the full year 2001, the company said it anticipates a pro forma operating loss in the range of $800,000 to $900,000 or about 3 cents per basic share.

The current First Call estimates for the company's fourth quarter and full-year 2002 are a profit of 1 cent per share and a loss of 4 cents per share, respectively.

Precise develops software to help enterprises improve the performance of their applications. It recently acquired W. Quinn Associates, a storage resource and performance management solutions maker.