EXHIBIT 99
Company Press Release
Micrografx Reports Preliminary Fiscal 2000 Fourth Quarter & Year-End Results
Details Management Changes and Investment from Current Institutional
Shareholders
DALLAS--(BUSINESS WIRE)--Sept. 28, 2000--Micrografx, Inc. (Nasdaq:MGXI - news)
today announced preliminary results for its fiscal fourth quarter and year ended
June 30, 2000.
The Company said that for the fiscal fourth quarter ended June 30, 2000, it
expects to report net revenues of approximately $8.0 million, and a net loss of
approximately $13.0 million including charges totaling approximately $10.0
million related to its corporate restructuring and other matters. The Company
indicated however, that its reported cash usage from operations for the quarter
will be under $500,000. These results compare to revenues of $9.7 million and a
net loss of $7.9 million in the fourth quarter of fiscal 1999. For the full
fiscal year ended June 30, 2000, the Company said that revenues will be
approximately $36.0 million and the net loss will be approximately $22.0
million. In fiscal 1999, the Company reported a loss of $5.9 million on revenues
of $57.0 million. The Company said that it expects to make its full report on
operations and to file its Annual Report on Form 10-K within the next 15 days.
Micrografx also announced today that after a focused search, James L. Hopkins,
currently Managing Director of the Austin, Texas office of the technology
investment banking firm of Hoak, Breedlove, Wesneski LLC, will become the new
Micrografx Chief Executive Officer. He will begin transitioning to his new
responsibilities in October, 2000. Mr. Hopkins, who was recently appointed to
the Company's Board of Directors, will also become Chairman of the Board,
effective immediately. Douglas M. Richard, formerly CEO and President of
Micrografx, will assume full-time responsibility as Chief Executive Officer and
President of Image2Web, Inc. a wholly owned subsidiary of the Company.
Mr. Richard said, "Jim Hopkins brings a wealth of operational, executive and
financial experience to Micrografx. I am delighted at the opportunity to work
with him and believe the company will be in great hands. Our subsidiary,
Image2Web, continues gaining momentum and the Board and management of Micrografx
feel that additional resources will help to maximize that opportunity. To
support that effort, I have assumed the task of managing that business
full-time."
"In addition to Image2Web, the Company's Enterprise Process Management and
Technical Graphics business units show promise," remarked Hopkins. "However,
each unit faces unique challenges before they will be operating at the level of
efficiency that they should. I look forward to working with the Micrografx
management team to help translate the technological value I believe is inherent
in all three business units into shareholder value."
The Company also announced that it had received a $1.7 million direct private
equity investment from several current institutional shareholders and other
unaffiliated parties. The Company said that it placed its Series A Preferred
Stock earlier this month with investors at a price that is equal to the average
closing stock price for the Company's stock on the NASDAQ stock exchange for the
30 trading days prior to the closing. The Preferred stock is convertible into
Micrografx Common Stock at a price that is initially equal to the purchase
price. Up to one-half of the Series A Preferred Stock may be converted into
Image2Web common stock at the investor's option. The Company said that the funds
will be used for working capital and other operational needs. The Company also
indicated that in line with prior disclosures, it is continuing to seek
additional investment for its Image2Web subsidiary and the parent organization.
Micrografx also announced that in addition to Doug Richard, three other members
of Micrografx' Board of Directors had recently stepped down. The Company said
that the Board will appoint their replacements in the near future to stand for
election at the Company's annual meeting to be held in November 2000.
About Micrografx Inc.
Micrografx is a recognized global leader in providing software, solutions and
services enabling customers to improve productivity by graphically visualizing,
improving and implementing key business processes. By visualizing and
interacting with the data and information associated with these business
processes, our customers improve time-to-market, customer satisfaction, and
profitability. Key customer initiatives include improving and implementing
processes that drive e-business, quality initiatives like Six Sigma(R)/a, and
key line-of-business applications including supply chain management, interactive
parts catalogs and interactive electronic technical manuals. Visit
www.micrografx.com for more information or contact 888/744-1210.
/a Six Sigma is licensed to Motorola.
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.
Contact:
Micrografx Inc.
John Carradine, 469/232-1000
Email: [email protected]
