FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
(Mark One)
X Quarterly report pursuant to section 13 or 15(d) of the Securities
- ----
Exchange Act of 1934
For the quarterly period ended JUNE 30, 1996.
Transition report pursuant to Section 13 or 15(d) of the Securities
- ----
Exchange Act of 1934
For the transition period from _________ to _________
Commission file number: 0-14025
SOFTWARE PUBLISHING CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 94-2707010
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
111 N. Market
San Jose, California 95113
(Address of principal executive offices, including zip code)
(408) 537-3000
(Registrant's telephone number, including area code)
____________________________________
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days:
Yes X No
--- ---
As of June 30, 1996 there were 12,553,596 shares of the Registrant's
Common Stock outstanding.
<PAGE>
SOFTWARE PUBLISHING CORPORATION
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page No.
-------
Consolidated Balance Sheets -
June 30, 1996 and September 30, 1995 3
Consolidated Statements of Operations -
Three and Nine months ended June 30, 1996 and 1995 4
Consolidated Statements of Cash Flows -
Nine months ended June 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Page No.
-------
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
SOFTWARE PUBLISHING CORPORATION
CONSOLIDATED BALANCE SHEETS
(000's omitted, except share data; unaudited)
<TABLE>
<S> <C> <C>
ASSETS June 30, 1996 Sept. 30, 1995
------------- --------------
Current assets:
Cash & short term investments, including
restricted cash of $2,400 at June 30,
1996 and $4,550 at September 30, 1995 $ 16,447 $ 28,431
Accounts receivable, net of allowance for
doubtful accounts and returns and
exchanges of $4,108 and $3,929, respectively 3,975 5,887
Inventories 1,313 1,174
Prepaid expenses and other current assets 1,057 1,172
--------- -------
Total current assets 22,792 36,664
Property and equipment, net 1,152 1,879
Other assets 947 1,349
--------- --------
Total assets $ 24,891 $ 39,892
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 4,919 $ 6,439
Income taxes payable 3,041 3,074
Other accrued liabilities 8,730 15,227
--------- -------
Total current liabilities 16,690 24,740
Acquisition related liabilities - 1,449
--------- -------
Total liabilities 16,690 26,189
--------- -------
Stockholders' equity:
Common stock
Authorized: 30,000,000 shares, $0.001 par value
Issued and outstanding: 12,553,596 and
12,528,425 shares, respectively 13 13
Capital in excess of par value 20,024 19,954
Accumulated deficit (13,572) (6,029)
Net unrealized loss on securities 1,736 (235)
--------- --------
Total stockholders' equity 8,201 13,703
--------- -------
Total liabilities and stockholders' equity $ 24,891 $ 39,892
========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
SOFTWARE PUBLISHING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted, except per share data; unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Three months ended Nine months ended
June 30, June 30,
1996 1995 1996 1995
------------ ------------ ------------- -------------
Net revenues $ 2,169 $ 4,406 $ 11,892 $ 25,812
Cost of revenues 652 1,213 2,693 5,654
-------- ------- -------- --------
Gross profit 1,517 3,193 9,199 20,158
-------- -------- -------- --------
Operating expenses:
Marketing and sales 2,985 5,385 9,704 16,840
Research and development 1,682 2,808 4,663 8,462
General and administrative 2,042 1,784 4,385 4,423
Restructuring & lease
obligation - (6,000) (650) (6,000)
In-process research &
development - - - 4,756
-------- -------- -------- --------
Total operating expenses 6,709 3,977 18,101 28,481
-------- -------- -------- --------
Loss from operations (5,192) (784) (8,903) (8,323)
Other income and expenses 931 450 1,388 1,659
-------- -------- -------- ---------
Loss before income taxes (4,261) (334) (7,515) (6,664)
Income tax
provision (benefit) - 26 28 (1,729)
-------- -------- -------- --------
Net loss $ (4,261) $ (360) $ (7,543) $ (4,935)
======== ======== ======== ========
Net loss per
common share $ (0.34) $ (0.03) $ (0.60) $ (0.40)
======== ======== ======== ========
Shares used in computing
net loss per share 12,554 12,482 12,545 12,482
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
SOFTWARE PUBLISHING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(000's omitted, unaudited)
<TABLE>
Nine months ended
<S> <C> <C>
June 30, 1996 June 30, 1995
-------------- -------------
Cash flow from operating activities:
Net loss ($ 7,543) ($ 4,935)
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation and amortization 804 1,946
Provision for bad debts and returns and exchanges 325 (2,940)
Provision for restructuring reserve (650) (6,000)
In-process research and development - 4,756
Net change in operating assets and liabilities:
Accounts receivable 1,588 7,281
Other current assets (25) (63)
Trade accounts payable and other accrued liabilities (2,574) (6,167)
Income taxes receivable and payable (33) 1,005
Accrued restructuring and lease obligations (4,118) (1,798)
-------- --------
Net cash used by operating activities (12,226) (6,915)
-------- --------
Cash provided by investing activities:
Acquisition of property and equipment (422) (1,241)
Decrease (increase) in other non-current assets 273 (471)
Acquisition of Digital Paper, Inc. (1,650) (2,000)
Decrease in short term investments 5,374 9,144
-------- --------
Net cash provided by investing activities 3,575 5,432
-------- --------
Cash provided by financing activities:
Issuance of capital stock 70 271
-------- --------
Net cash provided by financing activities 70 271
-------- --------
Net decrease in cash and cash equivalents (8,581) (1,212)
--------- --------
Cash and cash equivalents:
Beginning balance 15,496 18,320
-------- --------
Ending balance $ 6,915 $ 17,108
======== ========
Supplemental disclosure:
Income tax paid during the period, net of refunds $ 0 $ (2,799)
======== ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
5
<PAGE>
SOFTWARE PUBLISHING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. The unaudited financial information furnished herein reflects all
adjustments, consisting only of normal recurring adjustments, which in the
opinion of management are necessary to fairly state the Company's and its
subsidiaries' consolidated financial position, the results of their operations,
and their cash flows for the periods presented. This Quarterly Report on Form
10-Q should be read in conjunction with the Company's audited financial
statements for the year ended September 30, 1995 included in the 1995 Annual
Report to Stockholders. The consolidated results of operations for the nine
month period ended June 30, 1996 are not necessarily indicative of results to
be expected for the entire fiscal year ending September 30, 1996.
2. Investment Securities
In accordance with the provisions of FAS 115, the Company has classified
its investments in debt and equity securities as "available-for-sale."
Such investments are now recorded at fair value, with unrealized gains and
losses reported as a separate component of shareholders' equity. Interest
income is still recorded using an effective interest rate, with the
associated discount or premium amortized to interest income. The cost of
securities sold is based on the specific identification method.
Cash and short term investments comprised (in thousands):
<TABLE>
<S> <C> <C>
June 30, 1996 Sept. 30, 1995
------------- --------------
Cash and cash equivalents $ 6,915 $ 15,496
Short term investments 9,532 12,935
-------- --------
Total cash and short term investments $ 16,447 $ 28,431
======== ========
</TABLE>
Short term investments above include $1.7 million FAS 115 valuation adjustment
for Computer Concept Corporation stock which first became available for sale
this quarter.
As part of the terms of the purchase agreement for Digital Paper, Inc., the
Company has $2.4 million remaining in escrow as security for future payments to
the former shareholders. Of the total amount, $1.65 million will be paid
out in cash and/or stock in April 1997 and payment of the remaining $0.75
million is conditional upon the achievement of certain unit and revenue goals
and technical milestones.
3. Inventories are primarily finished goods and are stated at the lower
of first-in, first-out cost or market.
6
<PAGE>
<TABLE>
4. Other accrued liabilities consisted of (in thousands):
<S> <C> <C>
June 30, 1996 Sept. 30, 1995
----------- -------------
Current portion of lease obligations $ 967 $ 2,831
Rebates and channel marketing programs 907 1,907
Accrued compensation and benefits 1,567 1,379
Restructuring accruals 1,834 5,405
Acquisition related payable 1,574 1,579
Other accrued liabilities 1,881 2,126
-------- --------
$ 8,730 $ 15,227
======== ========
</TABLE>
5. During the third fiscal quarter of 1996, the Company sold at market
500,000 shares of Computer Concept Corporation's common stock and realized a
gain of approximately $587,000. The remaining number of shares, approximately,
1.5 million, are anticipated to be sold over the next three fiscal quarters.
6. Net income per common share has been computed using the weighted
average number of common and common equivalent shares (when dilutive)
outstanding during each period. The difference between primary and fully
diluted net income per common share is not significant.
7
<PAGE>
SOFTWARE PUBLISHING CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
In addition to historical information contained herein, this Management's
Discussion and Analysis of Financial Condition and Results of Operations
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
The forward-looking statements contained herein are subject to certain factors
that could cause actual results to differ materially from those reflected in
the forward-looking statements. Such factors include, but are not limited to,
those discussed below and elsewhere in this Report on Form 10-Q, including
faster than anticipated declines in revenue and increases in competition.
Results of Operations
North America and international net revenues for the three months and nine
months ended June 30, 1996 and 1995 and the related changes in percentages of
net revenues were as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
(dollars in millions)
Three months Percent Nine months Percent
ended June 30, Change ended June 30, Change
------------- ------- ------------- -------
1996 1995 1996 1995
---- ---- ---- ----
North America $ 1.4 $ 3.2 (57)% $ 8.0 $ 16.8 (52)%
International 0.8 1.2 (35)% 3.9 9.0 (57)%
----- ----- ---- --- ----- ---
Total net revenues $ 2.2 $ 4.4 (51)% $11.9 $ 25.8 (54)%
===== ====== ==== ===== ====== ====
</TABLE>
Net revenues in the third quarter of fiscal 1996 decreased an aggregate of
51% compared to the third quarter of fiscal 1995 and net revenues for the nine
months ended June 30, 1996 declined an aggregate of 54% compared to the same
period of fiscal 1995. The 51% decline in net revenues in the third quarter of
fiscal 1996 as compared to the same quarter of fiscal 1995 was due to
significantly decreased sales of Harvard Graphics, version 3.0 and a slight
decrease in sales of Harvard Graphics DOS, partially offset by sales of ASAP,
which was first released in the fourth quarter of fiscal 1995. The decrease of
54% in net revenues for the first nine months of fiscal 1996 as compared to the
same period of fiscal 1995 resulted primarily from steep reductions in revenues
for Harvard Graphics, version 3.0, and DOS products, partially offset by sales
of ASAP and Harvard Graphics, version 4.0, which products were first released
in the fourth quarter of fiscal 1995.
Also contributing to these declines were the continuing effects of intense
competition worldwide, particularly in the Windows market, and a soft economy
in Europe, partially offset by a large sales transaction in Australia.
International net revenues declined 35% in the third quarter of fiscal 1996 as
compared to the third quarter of fiscal 1995.
Net revenues in the three and nine month periods ended June 30, 1996 included
revenues from three stand alone products (ASAP, OnFile, and Harvard Montage)
and three upgraded products (Harvard Graphics version 4.0, Harvard ChartXL
version 2.0, and Harvard Spotlight version 2.0), all of which were released in
fiscal 1995. Net revenues from these products accounted for an aggregate of
approximately 42% of the net revenues in the third fiscal quarter of 1996,
compared to 39% of net revenues in the second quarter of fiscal 1996. This
percentage increase was due primarily to increased sales of ASAP.
8
<PAGE>
The Harvard series of presentation graphics products represented 47% and 69% of
total net revenues in the three and nine month periods ended June 30, 1996,
respectively, compared with 83% and 82% in the same three and nine month
periods of fiscal 1995. Net revenues from sales of all products on the Windows
platform accounted for 86% of total net revenues in both the three and nine
months ended June 30, 1996, compared to 80% and 82% in the same periods of
fiscal 1995. Net revenues from the ASAP product line represented 32% and 11%
of total net revenues in the three and nine month periods ended June 30, 1996,
respectively.
Cost of revenues was 30% and 23% of net revenues in the three and nine month
periods ended June 30, 1996 compared to 28% and 22% of net revenues in the same
periods of fiscal 1995. Cost of revenues in the three month period ended June
30, 1996 increased as a percentage of revenues compared to the same period of
fiscal 1995, primarily because, in absolute dollars, fixed overhead costs
decreased at a lower rate (33%) than the rate of decrease for revenues (51%).
Cost of revenues in the nine month period ended June 30, 1996 increased as a
percentage of revenues compared to the same period of fiscal 1995 primarily
because of increases in other costs of revenues which were partially offset by
decreases in direct material costs due to lower direct material costs and the
benefit of the mix of products sold which yielded slightly higher margins.
Overhead costs have remained relatively constant as a percentage of revenues
over these same periods but have decreased in absolute dollars due to reduced
compensation costs from prior restructuring activities. The Company continues
to experience a positive impact of lower overhead and employee-related costs
resulting from reorganizations and reductions in work force, but these savings
have been more than offset by the unfavorable impact of reduced revenues.
The Company's gross margins and operating income may be affected in particular
periods by the timing of product introductions and other promotional pricing
and rebate offers, as well as return privileges and marketing promotions in
connection with new product introductions and upgrades. These promotions may
reduce average selling prices and gross margins. Gross margins have been, and
will continue to be, adversely affected by competitive pricing pressure
throughout the industry as a whole, including OEM pricing, competitive upgrade
pricing and alternative licensing arrangements. The Company has experienced
this competitive pricing pressure in respect to all of its current product
offerings.
The Company believes that its net revenues and results of operations have been
and will continue to be adversely affected by increased price competition,
offerings of product suites by competitors, and slower than expected market
acceptance of Windows 95-related products. A substantial portion of the
Company's net revenues in each quarter results from shipments during the last
month of that quarter, and for that reason among others, the Company's revenues
are subject to significant quarterly fluctuations. In addition, the Company
establishes its targeted expenditure levels based on expected revenues. If
anticipated orders and shipments in any quarter do not occur when expected,
expenditure levels could be disproportionately high and the Company's operating
results for that quarter could be adversely affected. In addition, the
Company's operating results could be materially and adversely affected by other
factors such as delays in new product introductions, the mix of product sales
or distribution channel sales, and customer choices regarding operating
systems.
The Company expects increased competition, including price competition, in
the future. Some of the Company's competitors have introduced suites of
products which include products that directly compete with the Company's
products and are sold at all-inclusive prices. The Company believes these
offerings of product suites have adversely affected the Company's net revenues,
and will continue to adversely affect the sales of the Company's products in
9
<PAGE>
the future. The Company offers products that complement competitive suite
products. In order for the Company to increase its net revenues, it must
introduce new marketing strategies and continue to develop and introduce new
technologies and products through strategic alliances, acquisitions or internal
development. Any delay in these planned strategies, difficulties encountered
in introducing new products or marketing programs, or failure of the Company's
products to compete successfully with products offered by other vendors could
materially and adversely affect net revenues and profitability.
The Company believes that the development and introduction of its Intelligent
Formatting product portfolio, which technology was acquired as a result of the
acquisition of Digital Paper, Inc., is a key component of the Company's
repositioning strategy. In June 1996, the Company introduced ASAP WebShow
Presentation Kit which enables users not only to create and view, but also
hear, audio and video enriched presentations on the World Wide Web. In
February 1996, the Company introduced ASAP WordPowerTM, version 1.95, which
enables users to create traditional presentations and reports as well as
complex slides at the click of the mouse. ASAP WordPower is a 32-bit
application that utilizes the power of and performance of Windows 95 and
Windows NT platforms. In January 1996, the Company introduced ASAP WebShow,
which enables Netscape Navigator 2.0 users to view, download and print
graphically rich reports and presentations from the World Wide Web. The
introduction of ASAP WebShow was a first step for the Company in moving beyond
its traditional presentation graphics products by offering a line of products
that enable a user to communicate graphically on the Internet. The Company
expects to introduce other new products based on the Intelligent Formatting
technology during calendar 1996. There can be no assurance that the Company
will succeed in its efforts to introduce these new products in a timely manner,
or once introduced, that they will be accepted in the market place.
During the third quarter of fiscal 1996, the Company announced agreements with
Oracle Corporation to license and jointly develop Intelligent Formatting
technology. Additionally, the Company announced OEM software bundling
agreements with SalesMedia, Inc., UMAX Technologies, and a large retail chain
located outside the United States.
In conjunction with the release of its financial statements in August 1996, the
Company announced that as a result of the continuing shift in business to
products based on its new patent-pending Intelligent FormattingTM technology
and away from the Harvard Graphics line of products, it plans to reposition
its business operations. As a result, the Company will reduce its world-wide
headcount by approximately 45 people or 42% over the next two months to
approximately 60 by September 30, 1996 and take a charge to fourth quarter
results of between $2.0 and $3.0 million for facilities, severance, and write-
off of excess assets. The charge will have a cash impact in the fourth quarter
of between $2.0 and $2.5 million.
Total operating expenses, excluding non-recurring and other charges, were lower
in absolute dollars in the third quarter and first nine months of fiscal 1996
compared to the same periods of fiscal 1995. Operating expenses in the third
quarter of fiscal 1996 included a charge of $1.2 million for increased bad debt
provision, and for the third quarter of fiscal 1995, operating expenses
included a reversal of a $6.0 million restructuring charge related to lease
obligations. Operating expenses in the nine month period ended June 30, 1996
included the reversal of a $0.65 million restructuring charge related to
certain United Kingdom lease obligations, and a charge of $1.6 million for
increased bad debt provision. Operating expenses in the nine month period
ended June 30, 1995 included a $4.8 million charge for in-process research and
development related to the purchase of Digital Paper, Inc., and also included
10
<PAGE>
the reversal of a prior period charge of $0.9 million related to the reversal
of certain legal accruals in fiscal 1995. Excluding the above mentioned non-
recurring charges, operating expenses decreased in the third quarter of fiscal
1996 by approximately $4.5 million, or 45%, as compared to the third quarter of
fiscal 1995, and decreased by $13.4 million, or 44%, in the nine month period
ended June 30, 1996 as compared to the corresponding period in 1995. These
decreases are principally attributable to reductions in facilities and employee
related expenses, as well as overall improved operating expense management
after the restructuring which began in fiscal 1995.
Marketing and sales expenses were $3.0 million, or 138%, of net revenues in the
third quarter of fiscal 1996, as compared to $5.4 million, or 122%, of net
revenues in the third quarter of fiscal 1995, and $9.7 million, or 81%, of net
revenues in the first nine months of fiscal 1996, as compared to $16.8 million,
or 65% of net revenues, for the first nine months of fiscal 1995. The decrease
in absolute dollars in the three and nine month periods ended June 30, 1996
compared to the same periods of fiscal 1995, was primarily the result of
reduced advertising and promotion expenses, and reduced employee-related
expenses because of the restructuring and related reduction in work force,
which included the closure of several sales offices.
Research and development expenses were $1.7 million, or 77% of net revenues, in
the third quarter of fiscal 1996 as compared to $2.8 million, or 64% of net
revenues, in the third quarter of fiscal 1995, and $4.7 million, or 39% of net
revenues, in the first nine months of fiscal 1996 as compared to $8.5 million,
or 33% of net revenues, in the corresponding period of fiscal 1995. The
decreases in absolute dollars in the third quarter as well as the first nine
months of fiscal 1996, compared to the corresponding periods of fiscal 1995,
were principally the result of reduced employee and facilities related expenses
resulting from the restructuring and reduction in work force. The Company
believes that it is necessary to continue to invest in research and development
to remain competitive. However, as a result of the restructuring actions taken
by the Company in the fourth quarter of fiscal 1995, research and development
expenses are expected to be lower in absolute dollars in fiscal 1996 than in
fiscal 1995. In future periods, the Company intends to evaluate externally
developed technology for possible acquisition, explore strategic alliances and
other methods of licensing or acquiring technology, and continue to invest in
internal development projects. Because of the inherent uncertainties
associated with software development projects, there can be no assurance that
the Company's research and development efforts will result in successful
product introductions or increased revenues.
General and administrative expenses were $0.8 million, or 39% of net revenues,
in the third quarter of fiscal 1996 as compared to $1.8 million, or 41% of net
revenues, in the third quarter of fiscal 1995, with the exclusion of a charge
for an increase in bad debt provision of $1.2 million. With the exclusion of
the benefit from a non-recurring reversal of $0.9 million for certain legal
accruals in fiscal 1995, and the exclusion of an increase in bad debt provision
of $1.6 million in fiscal 1996, general and administrative expenses were $2.8
million, or 24% of net revenues, in the first nine months of fiscal 1996 as
compared to $5.3 million, or 21% of net revenues, for the same period in fiscal
1995. The decrease in absolute dollars in the third quarter as well as the
first nine months of fiscal 1996, compared to the same periods of fiscal 1995,
was principally the result of reduced employee and facilities related expenses
resulting from restructuring and reduction in work force and the Company's move
to new facilities in San Jose, California.
Other income and expense in the third quarter of fiscal 1996 was $0.9 million
as compared to $0.5 million in the third quarter of fiscal 1995 and $1.4
million in the first nine months of fiscal 1996 as compared to $1.7 million in
11
the first nine months of fiscal 1995. Other income for the three and nine
month periods ended June 30, 1996 included a $0.6 million gain from the sale of
Computer Concept Corporation's common stock as well as a $0.2 million gain on a
foreign currency hedging transaction.
Liquidity and Capital Resources
During the third quarter of fiscal 1996, cash and short term investments
decreased $2.7 million to $16.4 million. This decrease resulted primarily from
cash used by operating activities of $2.7 million and $1.7 million for payments
related to the purchase of Digital Paper, Inc., offset by $1.7 million increase
in short term investments related to the availability for sale of Computer
Concept Corporation's stock. For the three month period ended June 30, 1996,
working capital decreased $3.8 million from $9.9 million to $6.1 million. This
decrease in working capital resulted primarily from a decrease in cash and
short term investments of $2.7 million, and a decrease in accounts receivable
of $2.4, offset by a decrease in other accrued liabilities of $1.3 million.
Management believes that its existing cash and short term investments, cash
generated from operations and the Company's potential borrowing ability will be
sufficient to meet its currently anticipated liquidity and capital expenditure
requirements, providing that the Company can attain its revenue and cash
collection goals. If the Company does not attain is revenue and cash
collection goals, it may be necessary to obtain alternative sources of
financing which, if available, may or may not be at favorable rates.
During the third fiscal quarter of 1996, the Company sold at market 500,000
shares of Computer Concept Corporation's common stock and realized a gain of
approximately $587,000. The remaining number of shares, approximately, 1.5
million, are anticipated to be sold over the next three fiscal quarters. The
Company's principal future capital commitments consist primarily of payment
obligations related to the purchase of Digital Paper, Inc. and real estate
lease commitments. (See Note 2 of Notes to Consolidated Financial Statements)
In fiscal 1995, the Company invoiced approximately 27% of its total sales in
foreign currencies, and expects this practice to continue at approximately the
same rate in fiscal 1996. The Company's exposure for foreign currency exchange
gains and losses is partially mitigated as the Company incurs operating
expenses in most of the currencies in which it invoices customers. The
Company's foreign exchange gains and losses will fluctuate from period to
period depending on the movement in exchange rates.
12
<PAGE>
SOFTWARE PUBLISHING CORPORATION
PART II. OTHER INFORMATION
Item 6. Exhibits & Reports on Form 8-K
(a) Exhibits.
27 Financial Data Schedule
(b) No reports on Form 8-K were filed during the fiscal quarter
ended June 30, 1996.
13
<PAGE>
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 thereunto duly authorized.
Date: August 14, 1996 SOFTWARE PUBLISHING CORPORATION
(Registrant)
/S/ Miriam K. Frazer
----------------------
Miriam K. Frazer,
Vice President Finance,
Chief Financial Officer
(Principal Financial and
Accounting Officer)
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
IN THOUSANDS (EXCEPT EPS)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 6915
<SECURITIES> 9532
<RECEIVABLES> 8083
<ALLOWANCES> 4108
<INVENTORY> 1313
<CURRENT-ASSETS> 22792
<PP&E> 1152
<DEPRECIATION> 0
<TOTAL-ASSETS> 24891
<CURRENT-LIABILITIES> 16690
<BONDS> 0
<COMMON> 13
0
0
<OTHER-SE> 8188
<TOTAL-LIABILITY-AND-EQUITY> 24891
<SALES> 2169
<TOTAL-REVENUES> 2169
<CGS> 652
<TOTAL-COSTS> 652
<OTHER-EXPENSES> 1682
<LOSS-PROVISION> 1200
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4261)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4261)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4261)
<EPS-PRIMARY> (.34)
<EPS-DILUTED> (.34)
</TABLE>
