Sterling Software Inc has just reported second quarter results marking its 38th consecutive profitable quarter. The company’s founder and chief executive Sterling Williams said he hopes to increase the company’s international revenues to 50% of overall turnover in the next couple of years. Dallas, Texas based Sterling recently announced profits up 91.2% to $29.3m on revenue up 49.3% at $159.4m for the quarter, while six-month net income rose 63.9% to $46m on revenue up 51.2% at $308.2m (CI No 3,399). The markets reacted well to the news, with shares climbing to around $29 following the announcement. Last year Sterling made the largest of the 27 purchases in its history – the software division of Texas Instruments Inc for $165m (CI No 3,145). According to Williams, the division has now been integrated into Sterling’s Applications Management unit, the largest of Sterling’s three business units which include Systems Management and Federal Services. Overall, Applications Management accounted for 48% of the company’s revenues in the first quarter of 1998, with Systems Management second at 32%, followed by Federal Systems at 20%. Sterling has $600m in the bank and according to chief operating officer Geno Tolari, has its eyes open for further acquisition candidates – perhaps a large systems management operation. Sterling now has 85 offices in 22 countries across the world. Last year international revenues – revenues from interests outside the US – generated $180m, or 37% of the company’s overall turnover.
