<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 22, 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 July 22, 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 July 22, 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.
July 22, 1998 By: /s/ Robert P. Orlando
------------------------
Robert P. Orlando
Chief Financial Officer
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FOR IMMEDIATE RELEASE
CONTACT:
BOB ORLANDO, CFO
MATHSOFT, INC.
(617) 577-1017, x742
MATHSOFT REPORTS FOURTH CONSECUTIVE QUARTER OF PROFITS
CAMBRIDGE, Mass., July 22, 1998 - MathSoft, Inc. (Nasdaq: MATH) today
reported net income of approximately $161,000, or $.02 per diluted share, for
its second quarter ended June 30, 1998. This compares with a net loss of
$1,304,000, or $0.14 per diluted share for the corresponding quarter of 1997.
Revenues for the second quarter of 1998 grew 20%, reaching $5.2 million compared
with $4.4 million achieved in the second quarter of the prior year.
Net income for the six months ended June 30, 1998 was approximately $642,000, or
$0.06 per diluted share. This compares with a net loss of $3,233,000, or $0.36
per diluted share for the corresponding six months ended June 30, 1997.
Revenues for the six months ended June 30, 1998 grew 33% totaling $10.9 million
as compared with revenues of $8.2 million for the six months ended June 30,
1997.
"We are very pleased with our results of this quarter," said Chuck Digate,
Chairman and CEO. "We continue to stay focused on profitability while we
prepare for the upcoming release of Mathcad 8."
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, StudyWorks, S-PLUS, MathSoft
StatServer and Axum software worldwide. Users include professionals worldwide at
more than 90% of 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.
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.
Axum, S-PLUS, Mathcad and StatServer are registered
trademarks and the MathSoft logo and StudyWorks are trademarks of MathSoft, Inc.
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
ASSETS
<TABLE>
<CAPTION>
UNAUDITED AUDITED
JUNE 30, DEC 31,
1998 1997
---------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 3,704 $ 4,134
Accounts receivables, net 2,945 2,528
Other receivables 1,351 944
Inventories 229 255
Prepaid expenses 460 234
---------- --------
Total current assets 8,689 8,095
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PROPERTY AND EQUIPMENT, NET 1,413 1,549
OTHER ASSETS:
Purchased technology, net 70 70
Other assets 554 98
---------- --------
TOTAL ASSETS $ 10,726 $ 9,812
========== ========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
UNAUDITED AUDITED
JUNE 30, DEC 31,
1998 1997
---------- --------
<S> <C> <C>
CURRENT LIABILITIES $ 6,075 $ 6,225
OTHER LONG-TERM LIABILITIES 282 92
STOCKHOLDERS' EQUITY 4,369 3,495
---------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,726 $ 9,812
========== ========
</TABLE>
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
------------------- ------------------ --------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 4,284 $ 3,670 $ 9,203 $ 6,914
Services and other 939 688 1,722 1,286
------------------- ------------------ --------- ----------
Total Revenues 5,223 4,358 10,925 8,200
------------------- ------------------ --------- ----------
COST OF REVENUES:
Software licenses 599 738 1,306 1,545
Services and other 342 226 638 418
------------------- ------------------ --------- ----------
Total cost of revenues 941 964 1,944 1,963
------------------- ------------------ --------- ----------
Gross Profit 4,282 3,394 8,981 6,237
------------------- ------------------ --------- ----------
OPERATING EXPENSES:
Sales and marketing 2,408 2,652 4,830 5,244
Research and development 1,135 1,329 2,354 2,765
General and administrative 601 715 1,202 1,491
------------------- ------------------ --------- ----------
Total operating expenses 4,144 4,696 8,386 9,500
------------------- ------------------ --------- ----------
INCOME (LOSS) FROM OPERATIONS 138 (1,302) 595 (3,263)
INTEREST INCOME , NET 23 14 47 59
------------------- ------------------ --------- ----------
INCOME (LOSS) BEFORE PROVISIONS
FOR INCOME TAXES 161 (1,288) 642 (3,204)
PROVISION FOR INCOME TAXES 0 16 0 29
------------------- ------------------ --------- ----------
NET INCOME (LOSS) $ 161 $ (1,304) $ 642 $ (3,233)
=================== ================== ========= ==========
BASIC EARNINGS (LOSS) PER SHARE: $ 0.02 $ (0.14) $ 0.07 $ (0.36)
=================== ================== ========= ==========
DILUTED EARNINGS (LOSS) PER SHARE: $ 0.02 $ (0.14) $ 0.06 $ (0.36)
=================== ================== ========= ==========
COMMON SHARES OUTSTANDING 9,248 9,006 9,188 8,992
DILUTIVE EFFECT OF STOCK OPTIONS 1,240 -- 1,265 --
COMMON SHARES ASSUMING DILUTION 10,488 9,006 10,453 8,992
=================== ================== ========= ==========
</TABLE>
