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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): July 16, 1998
METATEC CORPORATION
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(Exact name of registrant as specified in its charter)
Florida 0-9220 59-1698890
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
7000 Metatec Boulevard, Dublin, Ohio 43017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (614) 761-2000
No Change
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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The information contained in the press release filed as Exhibit 99 is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
Exhibit
No. Description of Exhibit
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99 Press release issued July 16, 1998.
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.
METATEC CORPORATION
Date: July 16, 1998 By /s/ JEFFREY M. WILKINS
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Jeffrey M. Wilkins
Chief Executive Officer
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EXHIBIT INDEX
Exhibit
No. Description of Exhibit
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99 Press release issued July 16, 1998.
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EXHIBIT 99
METATEC ANNOUNCES SECOND QUARTER RESULTS
Revenue Increases 17 Percent Over Last Year
Contact: Julia A. Pollner
Vice President, Finance, Secretary, Treasurer
or Richard A. Baker
Director of Corporate Communications
Metatec Corporation
(614) 761-2000
DUBLIN, OHIO--July 16, 1998 - Metatec Corporation (NASDAQ:META) today announced
revenue and earnings for its second quarter ended June 30, 1998. Metatec also
announced reaching an agreement providing for the recovery of a portion of the
royalty payments previously made to a licensor of disc technology.
Revenue for the second quarter increased 17 percent to $14,085,060 compared to
$12,007,932 for the second quarter ended June 30, 1997. Revenue for the six
months ended June 30, 1998, was $28,802,117 compared to $23,686,507 for the same
period a year earlier, a 22 percent increase.
Earnings before income taxes were $533,230 for the quarter ended June 30, 1998,
compared to $624,028 for the same quarter of the prior year. Earnings before
income taxes for the six months ended June 30, 1998, were $1,592,140 compared to
$300,017 for the same year earlier period.
Net earnings were $304,071 for the quarter ended June 30, 1998, compared to
$367,528 for the same quarter of the prior year. Net earnings for the six months
ended June 30, 1998, were $882,140 versus $163,517 for the six months ended
June 30, 1997.
Basic and diluted earnings per share for the second quarter of 1998 were $0.05,
the same as the second quarter of 1997. Basic earnings per share for the first
six months of 1998 were $0.15 compared to $0.02 for the first six months in
1997. Diluted earnings per share for the first six months of 1998 were $0.14
compared to $0.02 for the first six months in 1997.
Basic weighted average number of shares outstanding was 6,040,037 for the second
quarter ended June 30, 1998, compared to 6,935,727 for the quarter ended June
30, 1997. Diluted weighted average number of shares outstanding was 6,106,865
for the quarter ended June 30, 1998, compared to 7,033,018 for the quarter a
year earlier. The second quarter 1998 results reflect an effective tax rate of
43%, while the results for the second quarter of the prior year had an effective
tax rate of 41%.
"Strong sales and improved capacity utilization resulted in good revenue results
and improved gross profit when compared to second quarter last year," said
Jeffrey M. Wilkins, chairman, chief executive officer and president of Metatec.
Wilkins reaffirmed that second and third quarters are typically affected by the
cyclical nature of the company's CD-ROM customers when
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compared to the strength shown in the first and fourth quarters. Wilkins said
that 27 new accounts were signed during the quarter.
During the second quarter, Metatec signed an agreement with one of the largest
developers and publishers of business software to become the company's primary
supplier of CD-ROM manufacturing services and exclusive provider of package
assembly and fulfillment services. The two-year agreement represents estimated
sales revenue in excess of $7 million.
Also during second quarter, Metatec announced it signed a letter of intent to
purchase the CD-ROM assets of Imation Corporation. The purchase will give
Metatec expanded capacity in the U.S. and new capabilities in Europe. The
purchase is expected to be completed in third quarter 1998 pending final
negotiations, customary approvals and other conditions.
Metatec reached an agreement with one of its disc technology licensors that will
allow Metatec to recover $400,000 in royalty payments previously made to this
licensor. Metatec is reviewing this settlement with its independent accountants
to determine the appropriate accounting treatment which may result in the
restatement of one or more prior periods. The financial statements for the six
months ended June 30, 1998 have been adjusted to reflect the overaccrual of the
royalty liability in the quarter ended March 31, 1998.
Metatec, an information technology company, helps customers utilize CD-ROM and
DVD-ROM technologies to publish and distribute information and software. From
its ISO 9002-certified manufacturing and distribution headquarters in the
Columbus, Ohio metropolitan area, Metatec offers its customers a variety of
services including data preparation and mastering, disc replication and
printing, packaging, bulk distribution and individual fulfillment, inventory
management, project management and a variety of electronic monitoring and
tracking services. Metatec maintains sales and support offices throughout the
United States and is traded over NASDAQ under the symbol "META." The company's
web site is www.metatec.com.
With the exception of historical information, the matters discussed in this news
release are forward-looking statements that involve risks and uncertainties
including, but not limited to, economic conditions, product demand and industry
capacity, competitive products and pricing, manufacturing efficiencies,
technological changes, and other risks indicated in the company's filings with
the Securities and Exchange Commission, including Form 10-K for Metatec's year
ended Dec. 31, 1997.
