<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):
July 17, 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)
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Item 5. Other Events.
- ----------------------
On July 17, 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.
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Exhibit No. Exhibit
- ----------- -------
99.1 Press release of the Company dated July 17, 1997
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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.
July 17, 1997 By: /s/ Robert. P. Orlando
-----------------------------
Robert P. Orlando
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Press release of the Company dated July 17, 1997
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EXHIBIT 99.1
------------
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FOR IMMEDIATE RELEASE
CONTACT:
BOB ORLANDO
MATHSOFT, INC.
(617) 577-1017, x742
MATHSOFT RELEASES FISCAL 1997 FOURTH QUARTER AND YEAR-END RESULTS
CAMBRIDGE, Mass., July 17, 1997 - MathSoft, Inc. (Nasdaq: MATH) today
reported a net loss of approximately $1.3 million, or $0.14 per share, for its
fiscal fourth quarter ended June 30, 1997. These earnings compare to a net loss
of $1.9 million, or $0.21 per share, for the quarter ended March 31, 1997 and
net income of approximately $50,000, or $0.01 per share, in the same quarter of
the prior fiscal year.
MathSoft reported net revenues for the quarter ended June 30, 1997 of
approximately $4.4 million compared to net revenues of approximately $3.8
million for the quarter ended March 31, 1997 and $5.0 million in the same
quarter of the prior fiscal year.
For the fiscal year ended June 30, 1997, MathSoft reported a net loss of
approximately $4.3 million, or $0.49 per share, compared to net income of
approximately $1.1 million, or $0.11 per share, for fiscal 1996. MathSoft
reported net revenues for fiscal 1997 of approximately $17.7 million compared to
$20.8 million for fiscal 1996.
President and CEO Charles Digate commented, "We made tremendous strides
in both product delivery and revenue growth during the June quarter. MathSoft
StatServer was announced in April and we are starting to realize revenue from
commercial shipments of this product. We began shipping Mathcad 7 in June and it
appears to be a solid, major new release. In addition, we introduced S-PLUS 4
for Windows in June and are now shipping the final `pre-release' version to
customers. We are very excited about the future prospects of these and other key
initiatives."
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 90% of the Fortune 1,000
companies and over 500 government installations, and students and faculty at
over
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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, Axum, S-PLUS, and Mathcad are registered trademarks and
StatServer, MathConnex and StudyWorks! 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.
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MATHSOFT, INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
ASSETS
JUNE 30, MARCH 31, JUNE 30,
1997 1997 1996
-------- --------- --------
<S> <C> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $2,802 $3,253 $ 4,954
Accounts receivables, net 2,353 2,331 3,119
Other receivables 885 1,057 762
Inventories 344 434 548
Prepaid expenses 476 434 382
------ ------ -------
Total current assets 6,860 7,509 9,765
------ ------ -------
PROPERTY AND EQUIPMENT, NET 1,553 1,624 1,599
OTHER ASSETS:
Purchased technology, net 287 341 504
Other assets 86 74 31
------ ------ -------
TOTAL ASSETS $8,786 $9,548 $11,899
====== ====== =======
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
JUNE 30, MARCH 31, JUNE 30,
1997 1997 1996
-------- --------- --------
<S> <C> <C> <C>
CURRENT LIABILITIES $6,403 $5,836 $ 5,077
OTHER LONG-TERM LIABILITIES 215 230 63
STOCKHOLDERS' EQUITY 2,168 3,482 6,759
------ ------ -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,786 $9,548 $11,899
====== ====== =======
</TABLE>
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MATHSOFT, INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, MARCH 31, JUNE 30, JUNE 30,
1997 1997 1996 1997 1996
-------- --------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
REVENUES:
Software licenses $ 3,670 $ 3,244 $4,420 $15,179 $18,156
Services and other 688 598 621 2,499 2,610
------- ------- ------ ------- -------
Total revenues 4,358 3,842 5,041 17,678 20,766
------- ------- ------ ------- -------
COST OF REVENUES:
Software licenses 738 808 823 3,124 3,062
Services and other 226 192 231 822 938
------- ------- ------ ------- -------
Total cost of revenues 964 1,000 1,054 3,946 4,000
------- ------- ------ ------- -------
Gross profit 3,394 2,842 3,987 13,732 16,766
------- ------- ------ ------- -------
OPERATING EXPENSES:
Sales and marketing 2,652 2,592 2,461 10,251 9,719
Research and development 1,329 1,435 926 5,143 3,659
General and administrative 715 776 588 2,732 2,455
------- ------- ------ ------- -------
Total operating expenses 4,696 4,803 3,975 18,126 15,833
------- ------- ------ ------- -------
INCOME (LOSS) FROM OPERATIONS (1,302) (1,961) 12 (4,394) 933
INTEREST INCOME , NET 14 45 54 139 192
------- ------- ------ ------- -------
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES (1,288) (1,916) 66 (4,255) 1,125
PROVISION FOR INCOME TAXES 16 13 16 45 49
------- ------- ------ ------- -------
NET INCOME (LOSS) $(1,304) $(1,929) $ 50 $(4,300) $ 1,076
======= ======= ====== ======= =======
NET INCOME (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE $ (0.14) $ (0.21) $ 0.01 $ (0.49) $ 0.11
======= ======= ====== ======= =======
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES
OUTSTANDING 9,006 8,977 9,745 8,841 9,542
======= ======= ====== ======= =======
</TABLE>
