<PAGE> 1
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):
April 24, 1997
MathSoft, Inc.
(Exact name of Registrant as specified in its charter)
Massachusetts 0-020992 04-2842217
(State or jurisdiction (Commission (IRS Employer
of Incorporation) File number) Identification No.)
101 Main Street 02142
Cambridge, Massachusetts (Zip Code)
(Address of principal
executive offices)
Registrant's telephone number, including area code: (617)577-1017
No change since last report
(Former name or former address, if changed
since last report)
<PAGE> 2
Item 5. Other Events.
- --------------------
On April 24, 1997 the Company issued a press release, a copy of which
is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits.
- -----------------------------------------
Exhibit No. Exhibit
- ----------- -------
99.1 Press release of the Company dated April 24, 1997
<PAGE> 3
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.
MATHSOFT, INC.
April 24, 1997 By: /s/Robert P. Orlando
--------------------
Robert P. Orlando
Chief Financial Officer
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Press release of the Company dated April 24, 1997
<PAGE> 1
EXHIBIT 99.1
------------
<PAGE> 2
Contact: Bob Orlando, R. Pierce Reid
MathSoft Inc. Schwartz Communications
617-577-1017 x 742 617-431-0770
MATHSOFT RELEASES FISCAL 1997 THIRD QUARTER RESULTS
CAMBRIDGE, MA--April 24, 1997--MathSoft, Inc. (Nasdaq: MATH) today reported
financial results for its third quarter ended March 31, 1997. Net revenues for
the quarter were $3.8 million compared to revenues reported for the same quarter
of the prior year of $5.1 million and $5.0 million for the preceding quarter
ended December 31, 1996. The net loss for the quarter was $1.9 million or $0.21
per share, compared to net income of $49,000 or $0.01 per share in the same
quarter of the prior year, and a net loss of $0.6 million or $0.07 per share for
the preceding quarter ended December 31, 1996.
MathSoft also reported that the next major release of the Company's flagship
product, Mathcad, is currently in the final customer testing phase of
development. Due to delays in getting to this phase, the Company continues to
expect to incur a substantial loss in the fiscal 1997 fourth quarter.
Founded in 1984, MathSoft is the leading provider of knowledge discovery
software for students and technical professionals. It has more than one million
users of its Mathcad, StudyWorks, S-PLUS and Axum software worldwide. Users
include technical professionals worldwide at more than half the Fortune 1,000
companies and over 500 government installations, and students and faculty at
over 2,000 colleges and universities. MathSoft product information can be
obtained via the MathSoft Store located at http://www.mathsoft.com, by phone at
1-800-628-4223, by fax at 617-577-8829 or by mail at 101 Main Street, Cambridge,
MA 02142.
The MathSoft logo, StudyWorks, Collaboratory, Mathcad, S-PLUS and Axum are
trademarks of MathSoft, Inc.
Information contained in this document which refers to MathSoft's future
financial performance represents management's best estimate at the present time
and actual results could differ materially from present estimates. Factors that
might cause such a difference include, but are not limited to: the risks
associated with distribution channels; the risks associated with international
operations; the risks associated with acquisitions; and the ability to enhance
current products and to introduce new products. Please refer to the cautionary
statements appearing in MathSoft's Annual and Quarterly Reports and prospectus
filed with the Securities and Exchange Commission for a discussion of these and
other various factors that could cause MathSoft's actual results to differ
materially from those discussed in the forward-looking statements.
<PAGE> 3
<TABLE>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
ASSETS
MARCH 31, DECEMBER 31, JUNE 30,
1997 1996 1996
--------- ------------ --------
<S> <C> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $3,253 $ 3,916 $ 4,954
Accounts receivables, net 2,331 2,824 3,119
Other receivables 1,057 806 762
Inventories 434 537 548
Prepaid expenses 434 446 382
------ ------- -------
Total current assets 7,509 8,529 9,765
------ ------- -------
PROPERTY AND EQUIPMENT, NET 1,624 1,629 1,599
OTHER ASSETS:
Purchased technology, net 341 396 504
Other assets 74 74 31
------ ------- -------
TOTAL ASSETS $9,548 $10,628 $11,899
====== ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
MARCH 31, DECEMBER 31, JUNE 30,
1997 1996 1996
--------- ------------ --------
CURRENT LIABILITIES $5,836 $ 5,343 $ 5,077
OTHER LONG-TERM LIABILITIES 230 47 63
STOCKHOLDERS' EQUITY 3,482 5,238 6,759
------ ------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,548 $10,628 $11,899
====== ======= =======
</TABLE>
<PAGE> 4
<TABLE>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, DEC. 31, MARCH 31, MARCH 31,
1997 1996 1996 1997 1996
--------- -------- --------- ---- ----
<S> <C> <C> <C> <C> <C>
REVENUES:
Software licenses $ 3,244 $4,341 $4,466 $11,509 $13,736
Services and other 598 611 683 1,810 1,989
------- ------ ------ ------- -------
Total revenues 3,842 4,952 5,149 13,319 15,725
------- ------ ------ ------- -------
COST OF REVENUES:
Software licenses 808 796 793 2,387 2,239
Services and other 192 213 243 595 707
------- ------ ------ ------- -------
Total cost of revenues 1,000 1,009 1,036 2,982 2,946
------- ------ ------ ------- -------
Gross profit 2,842 3,943 4,113 10,337 12,779
------- ------ ------ ------- -------
OPERATING EXPENSES:
Sales and marketing 2,592 2,582 2,388 7,600 7,258
Research and development 1,435 1,287 1,029 3,813 2,733
General and administrative 776 715 693 2,016 1,867
------- ------ ------ ------- -------
Total operating expenses 4,803 4,584 4,110 13,429 11,858
------- ------ ------ ------- -------
INCOME (LOSS) FROM OPERATIONS (1,961) (641) 3 (3,092) 921
INTEREST INCOME, NET 45 40 57 124 137
------- ------ ------ ------- -------
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES (1,916) (601) 60 (2,968) 1,058
PROVISION FOR INCOME TAXES 13 0 11 28 32
------- ------ ------ ------- -------
NET INCOME (LOSS) $(1,929) $ (601) $ 49 $(2,996) $ 1,026
======= ====== ====== ======= =======
NET INCOME (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE $ (0.21) $(0.07) $ 0.01 $ (0.34) $ 0.11
======= ====== ====== ======= =======
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES
OUTSTANDING 8,977 8,769 9,639 8,786 9,432
======= ====== ====== ======= =======
</TABLE>
