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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):
January 14, 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.
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On January 14, 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
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99.1 Press release of the Company dated January 14, 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.
January 15, 1997 By: /s/ Robert P. Orlando
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Robert P. Orlando
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
- ---------- -----------
99.1 Press release of the Company dated January 14, 1997
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EXHIBIT 99.1
Contact: Bob Orlando, R. Pierce Reid
MathSoft Inc. Schwartz Communications
617-577-1017 x 742 617-431-0770
MATHSOFT RELEASES FISCAL 1997 SECOND QUARTER RESULTS
CAMBRIDGE, MA--January 14, 1997--MathSoft, Inc. (NASDAQ: MATH) today reported
financial results for its second quarter ended December 31, 1996. Revenues for
the quarter were $5.0 million, 10% less than revenues of $5.5 million in the
same quarter of the prior year, and 10% greater than revenues of $4.5 million in
the prior quarter. The net loss for the quarter was $0.6 million or $0.07 per
share, compared to net income of $0.6 million or $0.06 per share in the same
quarter of the prior year and a net loss of $0.5 million or $0.05 a share, in
the prior quarter.
Commenting on the quarterly results, Bob Orlando, MathSoft's vice president of
finance and administration and chief financial officer said, "Revenues grew
sequentially from the prior quarter, fueled by the release of Mathcad 6.0 for
Macintosh and strong international performance. However, we increased our
development spending during the quarter as we prepare for the next releases of
our core products as well as the launch of our new distributed statistics
products during the fiscal year. As a result, our loss for the quarter was
slightly higher than that of the prior quarter."
Mr. Orlando went on to say "We expect to ship the next major releases of our
core products during the fourth quarter of this fiscal year. Accordingly, we
currently expect a loss of $0.13-$0.15 per share in the quarter ending March 31,
1997, resulting from lower revenues as the older versions of our core products
near the end of their life cycle, as well as additional spending necessary to
complete development and effectively introduce the new releases to the
marketplace. In the quarter ending June 30, 1997, however, the Company currently
expects to return to profitability."
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 student and faculty at over
2,000 colleges and universities. MathSoft product information can be obtained
via
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the MathSoft Store located at http://www.mathsoft.com, by phone at
1-800-628-4223, by fax at 617-577-8829 or via 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. Please refer
to the cautionary statements appearing in MathSoft's Annual and Quarterly
Reports filed with the Securities and Exchange Commission for a discussion of
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
DEC. 31, SEPT. 30, JUNE 30,
1996 1996 1996
------- -------- -------
<S> <C> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 3,916 $ 4,562 $ 4,954
Accounts receivables, net 2,824 2,728 3,119
Other receivables 806 851 762
Inventories 537 552 548
Prepaid expenses 446 462 382
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Total current assets 8,529 9,155 9,765
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PROPERTY AND EQUIPMENT, NET 1,629 1,582 1,599
OTHER ASSETS:
Purchased technology, net 396 450 504
Other assets 74 52 31
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TOTAL ASSETS $10,628 $11,239 $11,899
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
DEC. 31, SEPT. 30, JUNE 30,
1996 1996 1996
------- -------- -------
CURRENT LIABILITIES $ 5,343 $ 4,680 $ 5,077
OTHER LONG-TERM LIABILITIES 47 54 63
STOCKHOLDERS' EQUITY 5,238 6,505 6,759
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $10,628 $11,239 $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 SIX MONTHS ENDED
DEC. 31, SEPT. 30, DEC. 31, DECEMBER 31,
1996 1996 1995 1996 1995
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<S> <C> <C> <C> <C> <C>
REVENUES:
Software licenses $4,341 $3,924 $4,854 $ 8,265 $ 9,269
Services and other 611 602 634 1,213 1,307
------ ------ ------ ------- -------
Total revenues 4,952 4,526 5,488 9,478 10,576
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COST OF REVENUES:
Software licenses 796 783 740 1,579 1,446
Services and other 213 191 223 404 464
------ ------ ------ ------- -------
Total cost of revenues 1,009 974 963 1,983 1,910
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Gross profit 3,943 3,552 4,525 7,495 8,666
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OPERATING EXPENSES:
Sales and marketing 2,582 2,425 2,455 5,007 4,870
Research and development 1,287 1,091 952 2,378 1,703
General and administrative 715 526 589 1,241 1,175
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Total operating expenses 4,584 4,042 3,996 8,626 7,748
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INCOME (LOSS) FROM OPERATIONS (641) (490) 529 (1,131) 918
INTEREST INCOME , NET 40 40 41 80 80
------ ------ ------ ------- -------
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES (601) (450) 570 (1,051) 998
PROVISION FOR INCOME TAXES 0 15 10 15 22
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NET INCOME (LOSS) $ (601) $ (465) $ 560 $(1,066) $ 976
====== ====== ====== ======= =======
NET INCOME (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE $(0.07) $(0.05) $ 0.06 $ (0.12) $ 0.10
====== ====== ====== ======= =======
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES
OUTSTANDING 8,769 8,617 9,498 8,693 9,308
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</TABLE>
