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Filed pursuant to Rule 424(b)(3)
Registration No. 333-47117
MOBIUS MANAGEMENT SYSTEMS, INC. Supplement No. 1 to Prospectus Dated April 27,
1998 The date of this Supplement No. 1 is May 12, 1998
On May 12, 1998, Mobius Management Systems, Inc. issued the attached press
release relating to its results of operations for the fiscal quarter and
nine-months ended March 31, 1998.
FOR: Mobius Management Systems, Inc.
120 Old Post Road
Rye, NY 10580
FOR IMMEDIATE RELEASE
CONTACT: Kevin Dahill
Chief Financial Officer
914-921-7200
Michele Katz/Connie Bienfait/
Jonathan Rebell
Morgen-Walke Associates
(212) 850 5600
MOBIUS MANAGEMENT SYSTEMS, INC. REPORTS
THIRD QUARTER FISCAL 1998 RESULTS
PROFITS IMPROVE 234% ON 38% INCREASE IN REVENUE
RYE, NY, MAY 12, 1998 - - Mobius Management Systems, Inc., (NASDAQ:MOBI) today
reported results for its fiscal third quarter ended March 31, 1998.
Total revenue increased 38%, to $12.9 million in the quarter, from $9.3
million for the quarter ended March 31, 1997. Software license revenues were
$8.1 million for the three months ended March 31, 1998 and represented 63% of
total revenue for the quarter as compared to $5.2 million in the comparable
period in 1997. For the nine months ended March 31, 1998, total revenue
increased 35% to $36.0 million, compared to $26.7 million for the 1997 period.
Software license revenues totaled $22.4 million, or 62% of total revenue for the
1998 nine-month period, compared to $15.5 million in the same period in 1997.
For the three months ended March 31, 1998, net income increased 234% to
$768,000, or $0.05 per diluted share, compared to net income of $230,000, or
$0.01 per diluted share, in the year-ago period. Included in net income for the
1998 period was a non-cash charge to compensation expense of $313,000,
associated with the compensation effect of options granted prior to the pricing
of the Company's initial public offering. Weighted average diluted shares
outstanding were 16,435,000 in the current quarter, compared to 15,853,000 in
the year-ago quarter.
For the nine-month period ended March 31, 1998, the Company reported net
income of $2.6 million, or $0.16 per diluted share, compared to $1.0 million, or
$0.07 per diluted share, for the nine-month period ended March 31, 1997. Net
income and diluted earnings per share for the nine months ended March 31, 1998
included the $313,000 compensation expense described above.
-more-
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On April 27, 1998, Mobius completed its initial public offering of 3.3
million common shares, which included 2.5 million primary shares and 800,000
shares from selling shareholders (excluding the underwriters' over-allotment
option) at an offering price of $14.50 per share. The net proceeds to the
Company were $32.8 million, and the total number of shares outstanding as of
April 28, 1998 was 17,670,000. Subsequently, an additional 452,000 shares from
the selling shareholders were sold as the underwriters' over-allotment. None of
the proceeds from the sales by selling shareholders were realized by the
Company.
Mobius Management Systems, Inc. is a leading provider of enterprise-wide
Electronic Document Warehouse software solutions. Founded in 1981, the Company
develops and markets a complete family of software products to index, archive,
retrieve, and present large volumes of mission-critical corporate information.
The Company is headquartered in Rye, New York, with eleven domestic offices and
foreign subsidiaries located in England, France, Germany, Italy, and Sweden.
Mobius Management Systems, Inc. can be found on the World Wide Web at
www.mobius-inc.com
Statements contained in this release, other than historical financial
results, may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve risks and uncertainties. In particular, any statements contained herein
regarding expectations with respect to future sales and profitability, as well
as product development and/or introductions, are subject to known and unknown
risks, uncertainties and contingencies, many of which are beyond the Company's
control, which may cause actual results, performance or achievements to differ
materially from those projected or implied in such forward-looking statements.
Factors that might affect actual results, performance or achievements include,
among other things, overall economic and business conditions, the demand for the
Company's goods and services, and technological advances and competitive factors
in the markets in which the Company competes. These risks and uncertainties are
described in detail from time to time in Mobius' filings with the Securities and
Exchange Commission, including its registration statement on Form S-1 dated
April 27, 1998. Mobius accepts no obligation to update these forward-looking
statements and does not intend to do so.
(TABLES TO FOLLOW)
Mobius Management Systems, Inc. Page 2
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MOBIUS MANAGEMENT SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
3/31/98 3/31/97 3/31/98 3/31/97
------- ------- ------- -------
<S> <C> <C> <C> <C>
REVENUES:
Software license revenues $ 8,075 $ 5,237 $22,368 $15,476
Maintenance and other revenues 4,816 4,087 13,594 11,246
------- ------- ------- -------
TOTAL REVENUE 12,891 9,324 35,962 26,722
COST OF REVENUES:
Software license revenues 217 276 895 804
Maintenance and other revenues 866 751 2,420 2,192
------- ------- ------- -------
TOTAL COST OF REVENUE 1,083 1,027 3,315 2,996
GROSS PROFIT 11,808 8,297 32,647 23,726
OPERATING EXPENSES:
Sales and marketing 6,566 5,255 17,363 14,435
Research and development 1,975 1,533 5,525 4,343
General and administrative 1,740 1,136 4,744 3,047
Stock compensation expense 313 -- 313 --
------- ------- ------- -------
TOTAL OPERATING EXPENSES 10,594 7,924 27,945 21,825
Income from operations 1,214 373 4,702 1,901
Miscellaneous income, net 533 211 1,353 529
------- ------- ------- -------
Income before income taxes 1,747 584 6,055 2,430
Provision for income taxes 979 354 3,334 1,397
Accretion on preferred stock -- -- 102 --
------- ------- ------- -------
NET INCOME $ 768 $ 230 $ 2,619 $ 1,033
======= ======= ======= =======
Basic weighted average shares 10,909 15,000 10,909 15,000
Basic earnings per share $ 0.07 $ 0.02 $ 0.24 $ 0.07
Diluted weighted average shares 16,435 15,853 16,277 15,350
Diluted earnings per share $ 0.05 $ 0.01 $ 0.16 $ 0.07
</TABLE>
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MOBIUS MANAGEMENT SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
<TABLE>
<CAPTION>
3/31/98 12/31/97
-------- --------
(Unaudited)
<S> <C> <C>
ASSETS:
Cash & cash equivalents $ 9,669 $ 7,182
Accounts receivable, net 3,142 6,238
Software license installments 18,165 16,767
Other assets 4,625 4,160
-------- --------
TOTAL ASSETS $ 35,601 $ 34,347
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable, accrued expenses and
other current liabilities $ 6,261 $ 6,341
Deferred maintenance revenue 16,035 16,116
Other liabilities 2,703 2,453
Convertible preferred stock 12,000 12,000
STOCKHOLDERS' EQUITY:
Common equity 10,602
Treasury stock, at cost (12,000) (12,000)
-------- --------
TOTAL LIABILITY & STOCKHOLDERS' EQUITY $ 35,601 $ 34,347
======== ========
</TABLE>
