STOCKREPORTS		 TCSI Corporation NASDAQ Symbol TCSI
In S&P SmallCap 600
19-JUL-97 Industry:
Computer (Software & Services)		 Summary: This company provides integrated software products and services for the global teclecommunications industry.

Recent Price 4.69
52 Wk Range 26.50 - 4.63		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
NR
Technical Evaluation:
BEARISH since 10/96
Rel. Strength Rank (1 Lowest - 99 Highest)
6
Insider Activity
NA

Business Profile 15-MAY-97

This company provides integrated software products and services for the global telecom industry. As demand for telecom products and services accelerates with deregulation, competition, and new technology, customers are turning to TCSI for help in speeding product development, lowering costs and improving customer service. Prior to January 1, 1996, the company's product development was primarily supported through customer funded software application development. Since then, TCSI began to incur development costs that penalized margins. However, the company believes that the recent discontinuance of non-telecom businesses and an improving cost structure will aid future results.

Operation Review 15-MAY-97

Total revenues in the first quarter of 1997 fell 47%, year to year, reflecting the absence of about $7 million of revenues generated by non-telecom business units that were discontinued in late 1996. Telecom revenues were down 19%, on lower software licensing fees. Gross margins narrowed, as the company continued to provide services at discounts in a number of ongoing strategically important relationships. SG&A expense fell 8.4%, on discontinuance of non-telecom business and cost reduction efforts, but a net loss of $561,000 ($0.03 a share) contrasted with net income of $2,551,000 ($0.13, as adjusted).

Stock Performance 18-JUL-97n

In the past 30 trading days, TCSI's shares have declined 25%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 107,700 shares, compared with the 40-day moving average of 132,600 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 21.4
Avg. daily vol. (M) 0.113
Tang. Bk. Value/Share 3.44
Beta 1.26
Shareholders 100
Market cap. (B) $0.100
Inst. holdings 50%
Value of $10,000 invested 5 years ago:$ 9,374

Fiscal Year Ending Dec. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 9.83 18.54 12.71 8.99 7.16 10.40
Q2 9.50 21.83 13.37 9.47 7.89 8.20
Q3 NA 9.79 14.08 10.49 8.07 7.70
Q4 NA 10.08 15.20 11.35 8.93 7.10
Year NA 60.23 55.36 40.31 32.05 31.10

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 -0.03 0.13 0.09 0.06 0.01 0.09
Q2 -0.04 0.13 0.10 0.07 0.03 0.01
Q3 NA -0.31 0.11 0.08 0.05 0.01
Q4 NA 0.07 0.12 0.09 0.05 0.01
Year NA 0.01 0.42 0.30 0.15 0.13

Dividend Data: No cash dividends have been paid to public shareholders, and the company does not expect to pay any in the foreseeable future.

Business Summary 15-MAY-97

Competition among telecommunications service providers, the proliferation of new communications services, and the pressure to provision them quickly and cost-effectively have increased the need for scalable and flexible software solutions that improve and automate the management of communications networks. In response to this increased competition, many network operators are implementing integrated service management (ISM) solutions to more tightly integrate the management of network components.

TCSI Corp. (TCSI) provides integrated products and services for the global telecom industry. The company's products and services enable telecom service providers and equipment manufacturers to meet the growing demand for integrated and automated management of a wide range of networks and services. TCSI serves its customers in offices throughout North America, Europe, and the Pacific Rim. Revenue contributions in recent years were:

1996 1995 1994
Services 71% 79% 87%
Software licensing fees 17% 21% 13%
Equipment 12% Nil Nil

In January 1997, the company announced its SolutionCore product family, a suite of software products for building and deploying advanced telecom network management applications. SolutionCore leverages capabilities provided by TCSI's development product, Object Services Package (OSP), and is the first large-scale application development environment to offer both Telecommunications Management Network (TMN) and CORBA interoperability. The company expected SolutionCore to be available in April 1997.

In Febuary 1997, TCSI announced its SolutionSuites product family, a suite of software products and services that combine the company's application software, tools and expertise to integrate and automate a range of telecom industry processes. SolutionSuites are designed to enable customers to more effectively manage and more rapidly deploy new service offerings in the Broadband, Intelligent Network, and Digital Cellular areas. The first SolutionSuite product, the Broadband SolutionSuite was expected to be generally available in 1997.

TCSI also offers SolutionServices, a full range of services, including consulting, customized development, maintenance, and training to complement all of its products.

In addition to its telecom business, the company has earned revenue from licensing embedded software contained in wireless products and the development of system solutions for customers in the transportation industry. During the second half of 1996, TCSI divested its non-telecom product lines, in order to focus on offering software solutions to the telecom industry.

Capitalization

Long Term Debt: None (3/97).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 3.47 2.01 1.35 1.01 0.97 0.85 0.50 NA NA NA
Cash Flow 0.21 0.51 0.33 0.27 0.25 0.66 0.41 NA NA NA
Earnings 0.01 0.42 0.30 0.15 0.13 0.45 0.34 NA NA NA
Dividends Nil Nil Nil Nil Nil Nil NM NA NA NA
Payout Ratio Nil Nil Nil Nil Nil Nil NM NA NA NA
Prices - High 29 3/4 13 7/8 7 7/8 4 7/8 6 6 7/8 NA NA NA NA
- Low 5 3/4 6 5/8 3 1 15/16 1 5/16 4 1/8 NA NA NA NA
P/E Ratio - High NM 33 26 34 47 12 NA NA NA NA
- Low NM 16 10 13 11 7 NA NA NA NA

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 60.2 55.3 40.3 32.1 34.1 44.8 33.8 18.1 10.6 6.2
Oper. Inc. -2.8 12.6 8.5 6.1 5.8 15.1 10.0 5.4 3.2 NA
Depr. 4.2 1.7 0.7 2.1 2.4 1.9 1.3 0.3 0.1 NA
Int. Exp. Nil Nil Nil Nil Nil Nil Nil Nil Nil NA
Pretax Inc. 0.4 11.9 8.4 4.5 3.9 13.7 10.2 5.4 3.2 1.9
Eff. Tax Rate 34% 32% 35% 40% 40% 26% 40% 2.50% 2.40% 2.50%
Net Inc. 0.3 8.0 5.4 2.7 2.4 10.2 6.1 5.3 3.1 1.9

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 45.2 22.0 19.9 14.9 15.3 13.3 7.7 2.6 NA NA
Curr. Assets 64.2 43.5 28.9 21.9 20.1 19.4 14.9 10.3 NA NA
Total Assets 87.1 43.5 34.1 27.6 24.8 23.3 18.3 11.5 5.1 NA
Curr. Liab. 13.5 12.1 10.3 9.7 6.5 7.3 10.6 3.7 NA NA
LT Debt Nil Nil Nil Nil Nil Nil Nil Nil NA NA
Common Eqty. 73.6 37.3 23.8 17.9 18.3 15.9 7.7 7.8 3.2 NA
Total Cap. 73.6 37.3 23.8 17.9 18.3 16.0 7.7 7.8 NA NA
Cap. Exp. 7.5 5.4 1.1 0.4 1.6 2.1 3.3 1.2 0.4 NA
Cash Flow 4.5 9.8 6.1 4.8 4.8 12.1 7.4 5.6 3.2 NA

Curr. Ratio 4.8 3.6 2.8 2.3 3.1 2.7 1.4 2.8 NA NA
% LT Debt of Cap. Nil Nil Nil Nil Nil Nil Nil Nil NA NA
% Net Inc.of Revs. 0.5 14.4 13.5 8.4 7.0 22.9 18.1 29.1 29.8 30.6
% Ret. on Assets 0.4 19.3 17.6 10.6 9.9 44.9 41.0 63.7 NA NA
% Ret. on Equity 0.4 26.4 26.0 15.4 13.9 81.0 78.9 95.8 NA NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--1080 Marina Village Parway, Alameda, CA 94501. Tel--(510)749-8500 Fax--(510)749-8700 Website--http://www.tcsi.com Chrmn & CEO--R. A. Strauch. Pres & COO--R. Banin. CFO, Secy & Treas--P. A. Farmer. Investor Contact--Leigh Salvo. Dirs--J. C. Bolger, W. A. Hasler, D. G. Messerschmitt, D. H. Miller, R. A. Strauch, H. E. Wagner. Transfer Agent--Boston EquiServe. Incorporated--in Nevada in 1987. Empl-- 295. S&P Analyst: Adam Penn


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