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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 15, 1998
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 January 15, 1998, 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 January 15, 1998
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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, 1998 By: /s/ Robert P. Orlando
--------------------------------
Robert P. Orlando
Chief Financial Officer
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EXHIBIT 99.1
MATHSOFT RELEASES RESULTS FOR DECEMBER QUARTER, REPORTS RECORD
QUARTER NET INCOME
CAMBRIDGE, Mass., January 15, 1998 - MathSoft, Inc. (Nasdaq: MATH) today
reported record quarterly net income of approximately $755,000, or $0.08 per
share, for its fiscal second quarter ended December 31, 1997. These earnings
compare to a net loss of $600,000, or $0.07 per share, for the corresponding
quarter of its last fiscal year and a net income of approximately $350,000, or
$0.04 per share, for the preceding quarter ended September 30, 1997.
MathSoft reported net revenues for the quarter ended December 31, 1997 of
approximately $6.7 million compared to net revenues for the same quarter of the
prior year of approximately $5.0 million and $6.4 million for the preceding
quarter ended September 30, 1997. Today President and CEO Charles Digate
commented, "We are quite pleased with our financial results this quarter.
Continued strong performance from Mathcad and improved performance from the
recently refreshed S-PLUS product line coupled with margin improvements all
contributed to the best quarter of profits the Company has ever experienced. Our
cash position at $4.1M is back to a healthy level and we believe our prospects
are bright. We presently expect to continue to maintain profitability in the
next couple of quarters as the current Mathcad product cycle comes to an end
prior to the next major release of Mathcad currently scheduled for this coming
summer."
Founded in 1984, MathSoft is a leading provider of design and analysis
software for technical professionals, business analysts and students. The
Company has more than one million users of its Mathcad(R), StudyWorks(TM),
S-PLUS(R), MathSoft StatServer(R) and Axum(R) software worldwide. Users include
professionals worldwide at more than 90% of the Fortune 1,000 companies and over
500
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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.
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 differences 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 in a timely fashion. 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.
The MathSoft logo, Axum, S-PLUS, Mathcad and StatServer are registered
trademarks and MathConnex and StudyWorks! are trademarks of MathSoft, Inc.
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<TABLE>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
ASSETS
DEC. 31 SEPT. 30 DEC. 31
1997 1997 1996
------- -------- -------
<S> <C> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $4,134 $2,708 $ 3,916
Accounts receivables, net 2,528 3,132 2,824
Other receivables 944 1,061 806
Inventories 255 271 537
Prepaid expenses 234 369 446
------ ------ -------
Total current assets 8,095 7,541 8,529
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PROPERTY AND EQUIPMENT, NET 1,549 1,537 1,629
OTHER ASSETS:
Purchased technology, net 70 108 396
Other assets 98 69 74
------ ------ -------
TOTAL ASSETS $9,812 $9,255 $10,628
====== ====== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
DEC. 31 SEPT. 30 DEC. 31
1997 1997 1996
------- -------- -------
CURRENT LIABILITIES $6,225 $6,451 $ 5,343
OTHER LONG-TERM LIABILITIES 92 182 47
STOCKHOLDERS' EQUITY 3,495 2,622 5,238
------ ------ -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,812 $9,255 $10,628
====== ====== =======
</TABLE>
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<TABLE>
MATHSOFT, INC. AND SUBSIDIARIES
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,
1997 1997 1996 1997 1996
-------- --------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Revenues:
Software licenses $5,694 $5,432 $ 4,341 $11,126 $ 8,265
Services and other 975 923 611 1,898 1,213
------ ------ ------- ------- -------
Total revenues 6,669 6,355 4,952 13,024 9,478
------ ------ ------- ------- -------
Cost of Revenues:
Software licenses 868 949 796 1,817 1,579
Services and other 350 352 213 702 404
------ ------ ------- ------- -------
Total cost of revenues 1,218 1,301 1,009 2,519 1,983
------ ------ ------- ------- -------
Gross profit 5,451 5,054 3,943 10,505 7,495
------ ------ ------- ------- -------
Operating Expenses:
Sales and marketing 2,547 2,622 2,582 5,169 5,007
Research and development 1,414 1,402 1,287 2,816 2,378
General and administrative 739 679 715 1,418 1,241
------ ------ ------- ------- -------
Total operating expenses 4,700 4,703 4,584 9,403 8,626
------ ------ ------- ------- -------
Income (Loss) from Operations 751 351 (641) 1,102 (1,131)
Interest Income, net 12 9 40 21 80
------ ------ ------- ------- -------
Income (Loss) Before Provision
for Income Taxes 763 360 (601) 1,123 (1,051)
Provision for Income Taxes 8 10 0 18 15
------ ------ ------- ------- -------
Net Income (Loss) $ 755 $ 350 $ (601) $ 1,105 $(1,066)
====== ====== ======= ======= =======
Basic earnings (loss) per share: $ 0.08 $ 0.04 $ (0.07) $ 0.12 $ (0.12)
====== ====== ======= ======= =======
Diluted earnings (loss) per share: $ 0.08 $ 0.04 $ (0.07) $ 0.11 $ (0.12)
====== ====== ======= ======= =======
Common Shares Outstanding 9,098 9,024 8,769 9,069 8,693
Dilutive Effect of Stock Options 869 767 -- 875 --
------ ------ ------- ------- -------
Common Shares Assuming Dilution 9,967 9,791 8,769 9,944 8,693
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</TABLE>
