SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 14, 1999
MICROGRAFX, INC.
(Exact name of registrant as specified in its charter)
Texas 0-18708 75-1952080
(State of other jurisdiction (Commission File Number) (IRS Employer
incorporation) Identification No.)
1303 E. Arapaho Road, Richardson, Texas 75081
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 234-1769
----------------------------
(Not Applicable)
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
The information set forth in the Registrant's news release dated July 14, 1999
(attached hereto as Exhibit 99) is incorporated herein by reference to such news
release.
Item 7. Exhibits
(c) Exhibits
The following documents are filed as exhibits to this report. The exhibit
numbers in the exhibit list correspond to the numbers assigned to such
exhibits in the Exhibit Table of Item 601 of Regulation S-K.
99 Text of Press Release dated July 14, 1999 issued by Micrografx, Inc.
<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 hereunto duly authorized.
MICROGRAFX, INC.
(Registrant)
Date: July 26, 1999 By: /s/ JOHN M. CARRADINE
----------------------------------
John M. Carradine, Chief Financial Officer
and Treasurer
<PAGE>
EXHIBIT 99
MICROGRAFX, INC., ANNOUNCES PRELIMINARY FOURTH QUARTER RESULTS
Company to release audited financial results on August 5, 1999
Richardson, Texas -- (July 14, 1999) -- Micrografx, Inc., (NASDAQ: MGXI) today
announced that, based on a preliminary analysis of its results for the fourth
quarter ended June 30, 1999, it expects fourth quarter revenues to be in the
range of $10.0 million to $10.5 million.
The company expects a net loss for the fourth quarter in the range of $0.46 to
$0.54 per share, excluding in-process research and development expenses of
approximately $1.9 million, or $0.17 per share, incurred in connection with the
company's acquisition of InterCAP Graphics Systems, Inc., which was announced on
April 19, 1999.
As a result of the anticipated loss, and in accordance with generally accepted
accounting principles, Micrografx has reevaluated its book tax assets and
expects to incur a one-time non cash book tax expense of approximately $0.15 per
share for the quarter, which is included the net loss noted above, rather than a
tax benefit at its historical effective rate of 35 percent.
The company's operating net loss is expected to be in the range of $0.31 to
$0.39 per share, excluding the in process research and development charge and
the one-time non cash book tax expense.
The statements regarding estimated results are preliminary and are based on
partial information and management assumptions. Actual results for the quarter
will be announced on August 5, 1999.
Concerning the results, Micrografx president and CEO Doug Richard said, "Being
unprofitable for the quarter is a disappointment. Nevertheless, it is important
to realize that, beginning more than two years ago, we made the decision to
become the pre-eminent provider of enterprise process management and technical
graphics visualization solutions. Thus, I am pleased that for this quarter we
see tangible business evidence of the acceptance of our new products, which
validates the markets' demand for such solutions."
"As we will announce today," Richard said, "iGrafx(TM) Professional has been
chosen by a leading global provider of computing and imaging solutions and
services as the front-end process definition tool for their process management
solution. We will also announce Micrografx's iGrafx Professional and iGrafx(TM)
Process have been selected by the leading workflow provider to interface with
their workflow solution."
"At the same time," Richard said, "Our results for the quarter are not
acceptable and we
<PAGE>
have already taken steps to reduce our costs to ensure we remain fiscally
healthy. We can see our true operating costs have remained flat, even with the
acquisition of InterCAP Graphics Systems, Inc. Despite a shortfall in revenue,
our productivity and efficiency continue to result in an improved cost structure
for the company. Going forward, we recognize reduced expenses after having
aligned the Micrografx and InterCAP development teams and support services
groups to fit the company's core strategy."
"We are on the right track, delivering products and solutions that will play a
key role in enabling businesses to compete and excel by achieving mastery of
their core business processes," Richard said.
ABOUT MICROGRAFX, INC. (www.micrografx.com)
Micrografx, Inc., (NASDAQ: MGXI) a recognized global software solutions
provider, is a front-runner in the development of enterprise graphics software.
The company provides corporations with intelligent graphic solutions that help
people visually communicate and analyze key corporate information, processes and
ideas to solve real-world business problems. Micrografx is specifically focused
on providing complete solutions that permit companies to manage their businesses
by managing their processes. In 1999, Micrografx delivered the iGrafx System(R),
a one-of-a-kind, easy-to-use, highly scalable enterprise graphics platform to
address the needs of users at every level.
Note to Investors: This release, other than historical information, includes
forward-looking statements with respect to achieving corporate objectives,
strategic direction, advancement of enterprise business, and certain other
matters. These statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and involve risks and
uncertainties which could cause actual results to differ materially from those
in the forward-looking statements, including but not limited to the following:
product development, product introductions, licensing agreements, technological
change, competition, international operations, changes in distribution channels,
seasonality, growth in the enterprise solutions business of the Company, market
demand and acceptance of products, the impact of changing economic conditions,
fluctuation in foreign currency exchange rates, and others detailed in the
Company's Annual Report on Form 10-K, Quarterly Reports on Forms 10-Q and other
Securities and Exchange Commission filings. These filings can be obtained by
contacting Micrografx Investor Relations.
<PAGE>
