Ashton-Tate Net Up Sharply; Stock Offering Set
TORRANCE, Calif. (AP) _ Computer software maker Ashton-Tate Corp. said Tuesday its earnings were up by 77 percent for the fourth quarter and 81 percent for the year as sales rose sharply.
Separately, the company said it intends to offer 2 million new shares of common stock, an increase of 8.3 percent over its current 24 million shares.
Proceeds from the stock sale will be used for working capital and possible acquisitions of other companies or technology, the company said.
Spokeswoman Gail Pomerantz declined to give details on possible acquisition targets.
Ashton-Tate’s stock closed Tuesday at $26.50, down 25 cents. Based on that price, the additional 2 million shares would raise $53 million.
For its fourth quarter ended Jan. 31, the company earned $10.6 million, or 43 cents per share, on revenue of $62.9 million, compared to a year earlier when it earned $6 million, or 30 cents per share, on sales of $41.5 million.
For the full year, the company had income of $30.1 million, or $1.26 per share, on sales of $210.8 million, compared to fiscal 1986 when it earned $16.6 million, or 85 cents per share, on revenue of $121.6 million.