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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JUNE 29, 1998
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CYBERCASH, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-27470 54-725021
(State or other (Commission File (I.R.S. Employer)
jurisdiction of Number) Identification
incorporation or No.)
organization)
2100 RESTON PARKWAY
RESTON, VIRGINIA 20191
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (703) 620-4200
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ITEM 5. OTHER EVENTS
On June 29, 1998, CyberCash, Inc. issued a press release announcing its
preliminary estimate of revenues for the quarter ending June 30, 1998. That
press release is attached hereto as Exhibit 99 and is incorporated herein by
this reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CyberCash, Inc.
June 28, 1998 By: /s/ James J. Condon
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James J. Condon
Chief Operating Officer and
Chief Financial Officer
1
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description
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<S> <C>
99 Press Release
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CYBERCASH, INC. THE FINANCIAL RELATIONS BOARD
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James J. Condon Marianne Stewart -General Info (212) 661-8030
Chief Operating Officer and Joel Herskovits - Analyst (212) 661-8030
Chief Financial Officer Martin Gitlin-Media (212) 661-8030
(703) 716-5208
Investor Relations
(703) 453-1119
CYBERCASH ANNOUNCES EXPECTED REVENUES
FOR THE SECOND QUARTER 1998
RESTON, VA, June 29, 1998 -- CyberCash, Inc. (Nasdaq: CYCH), the world leader in
secure payment technologies and services, announced today that revenues for the
second quarter ending June 30, 1998, are expected to range between $2.2 million
and $2.5 million. Revenues for the first quarter 1998 totaled $1.1 million.
Revenues for the second quarter 1997 were approximately $812,000. CyberCash will
report actual second quarter results on July 27, 1998.
During the second quarter, CyberCash completed its acquisition of ICVerify, Inc.
and began integrating the businesses of the two companies. It also introduced
its new CashRegister 3 service, which greatly simplifies the use of the
Company's three payment services, and ICVerify for Windows, Version 2.2. Each
new product offering also makes the process of becoming a CyberCash merchant
almost instantaneous, through Integrated Merchant Registration (for the
CashRegister 3 service) and AutoValidation (for ICVerify for Windows, Version
2.2).
In the bill payment marketplace, CyberCash formed an alliance with the Edison
Electric Institute in a program that gives EEI members - who comprise more than
120 of the country's largest electric utility companies -- the availability of
secure Internet payment services at a significant discount. The Company also
teamed with AOL's Digital City Network to establish a pilot program to help
consumers in the Washington D.C. metropolitan area access and pay their monthly
bills on the Internet. This pilot program could eventually expand to other
cities supported by the Digital City Network.
Revenues for the second quarter were affected by some uncertainty in the market
caused by the announcement of the ICVerify acquisition. Some customers of both
companies delayed making purchase decisions while they assessed the impact of
the acquisition. The Company's introduction of a new pricing model for its
Internet payment services also caused a temporary slowing in the increase of its
merchant base. The Company believes that the impact of both of these factors is
temporary, and has already begun to see resumption in growth of revenues both
from software sales and from merchant payment services. The new prices have
generally been
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CyberCash, Inc.
Announces Expected Revenues For Q2 1998
Page 2
favorably received in the market, and the growth in signups of new merchants has
begun to accelerate.
"CyberCash continues to make progress in consolidating its position as a leading
provider of e-commerce payment technologies and services. We have taken steps to
streamline our operations and tighten our focus on revenue-generating
activities," said Bill Melton, President and Chief Executive Officer of
CyberCash, Inc. "After examining the opportunities for cost-reduction relating
to the acquisition of ICVerify, we have reduced our combined head count in the
U.S. by nearly 20 percent to just under 200 employees. We will go into the
second half of the year leaner and better organized to capitalize on our strong
strategic position."
For the remainder of 1998, the Company will focus on a limited set of efforts.
It will continue to grow its core merchant business, which includes payment
services and software products for Internet and conventional merchants. The
Company anticipates entering into new alliances with financial institutions and
technology companies, which it believes will help it improve and expand its
payment services while generating revenue from consulting and development. The
Company also plans to build on the preliminary success it has had with its
PayNow bill payment service. Finally, it will continue to work with its two
joint ventures and overseas financial institutions to generate revenues from its
international operations.
"CyberCash is in a stronger position in the electronic payments market than it
has ever been," said Mr. Melton. "Every indication is that electronic commerce
is poised to begin a period of rapid expansion. Internet players, especially
those that act as portals, are playing an increasingly active role. The more
progressive financial institutions have come to realize that they must become
actively involved in electronic commerce or risk falling behind their
competitors. They are joining technology companies such as Internet service
providers and software vendors in offering services to Internet merchants.
CyberCash looks forward to working with technology partners and leading
financial institutions around the world in helping to build this market. The
opportunities for the Company in the next twelve months are tremendous."
ABOUT CYBERCASH, INC.
CyberCash is the world leader in secure, convenient payment technologies and
services, enabling e-commerce across the entire market spectrum from electronic
retailing environments to the Internet.
CyberCash provides a complete line of software products and services allowing
merchants, billers, financial institutions and consumers to conduct secure
transactions using the broadest array of popular payment forms. Credit, debit,
purchase cards, cash, checks, smart cards and alternative payment types (e.g.,
"frequent buyer" or loyalty programs) are all supported by CyberCash payment
solutions. Leading brands of CyberCash include ICVERIFY, PCVERIFY, CashRegister,
NetVERIFY, CyberCoin and PayNow.
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CyberCash, Inc.
Announces Expected Revenues For Q2 1998
Page 3
For financial institutions, software developers and integrators, commerce and
Internet service providers, and technology partners, CyberCash solutions are the
preferred choice, offering unmatched ease and flexibility in integrating payment
capabilities into value-added offerings to customers.
CyberCash, Inc., headquartered in Reston, Virginia, USA, maintains a global
presence with offices and joint ventures operating throughout North America,
Europe and Asia.
This press release contains statements that are forward looking. They are based
on the Company's current expectations, and are subject to a number of
uncertainties and risks. The Company's actual results may differ materially. The
uncertainties and risks include the pace of growth of Internet commerce, the
development by the Company and its competitors of new products and services,
strategic decisions by major participants in the industry, competitive pricing
pressures, legal and regulatory developments and general economic conditions.
Further information about these and other relevant risks and uncertainties may
be found in the Company's report on Form 10-K and its other filings with the
Securities and Exchange Commission, all of which are available from the
Commission and from the Company's worldwide web site http://www.cybercash.com,
as well as other sources.
To receive CyberCash's latest news and corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code CYCH. Visit the Company's web
site at http://www.cybercash.com.
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