Sterling Software Inc posted first-quarter results that were burdened with one-time charges stemming from its acquisition of Cayenne Software Inc in October but managed to beat expectations. The Dallas-based application development and systems management company posted net income of just $4.2m, or $0.04 per share, down from $17.3m, or $0.21, in the year-ago quarter. Revenue for the period rose 3.3% to $174.5m. Net of restructuring and acquisition-related charges totaling $29.3m ($23m after tax), earnings for the quarter were up 48% at $0.31 per share, a penny better than analysts surveyed by First Call were looking for. Sterling boasts that the results marked its 41st consecutive quarter of revenue and EPS growth and says that all of its business segments meet or exceeded Wall Street expectations. The application management business, which accounted for 50% of total first quarter revenue, saw sales up 21% at $87.6m. Systems Management posted revenue of $48.2m, up 15% from the first quarter of 1998. Operating profit margins for the two units were 25% and 32%, respectively. Federal Systems, meanwhile, saw revenue up 15% in the quarter at $38.6m and generated a 7% operating profit margin.
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