<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):
October 13, 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)
<PAGE>
Item 5. Other Events.
- -------------------------
On October 13, 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 October 13, 1998
<PAGE>
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.
October 13, 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 FIFTH CONSECUTIVE QUARTER OF PROFITS
CAMBRIDGE, Mass., October 13, 1998 - MathSoft, Inc. (Nasdaq: MATH) today
reported net income of approximately $570,000, or $0.06 per diluted share, for
its third quarter ended September 30, 1998. This compares with net income of
$350,000, or $0.04 per diluted share for the corresponding quarter of 1997.
Revenues for the three months ended September 30, 1998 remained relatively
consistent at $6,229,000 compared to $6,355,000 for the three months ended
September 30, 1997.
Net income for the nine months ended September 30, 1998 was approximately
$1,212,000, or $0.12 per diluted share. This compares with a net loss of
$2,883,000, or $0.32 per diluted share for the corresponding nine months ended
September 30, 1997. Revenues for the nine months ended September 30, 1998 grew
18% totaling $17.2 million as compared with revenues of $14.6 million for the
nine months ended September 30, 1997.
"We had a strong quarter, with the mid-September release of Mathcad 8 and great
momentum for our StudyWorks! line. We look forward to a successful rollout of
Mathcad 8 overseas in the fourth quarter. Our business has never been
healthier," said Charles Digate, chairman and CEO.
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
SEPT 30, DEC 31,
1998 1997
---------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 4,669 $ 4,134
Accounts receivables, net 3,321 2,528
Other receivables 1,332 944
Inventories 212 255
Prepaid expenses 409 234
---------- --------
Total current assets 9,943 8,095
---------- --------
PROPERTY AND EQUIPMENT, NET 1,385 1,549
OTHER ASSETS:
Purchased technology, net 0 70
Other assets 560 98
---------- --------
TOTAL ASSETS $ 11,888 $ 9,812
========== ========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
UNAUDITED AUDITED
SEPT 30, DEC 31,
1998 1997
---------- --------
<S> <C> <C>
CURRENT LIABILITIES $ 6,639 $ 6,225
OTHER LONG-TERM LIABILITIES 254 92
STOCKHOLDERS' EQUITY 4,995 3,495
---------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,888 $ 9,812
========== ========
</TABLE>
<PAGE>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30, SEPT 30, SEPT 30,
1998 1997 1998 1997
------------------- ------------------ --------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 5,288 $ 5,432 $ 14,491 $ 12,346
Services and other 941 923 2,663 2,209
------------------- ------------------ --------- ----------
Total Revenues 6,229 6,355 17,154 14,555
------------------- ------------------ --------- ----------
COST OF REVENUES:
Software licenses 755 985 2,061 2,530
Services and other 311 316 949 734
------------------- ------------------ --------- ----------
Total cost of revenues 1,066 1,301 3,010 3,264
------------------- ------------------ --------- ----------
Gross Profit 5,163 5,054 14,144 11,291
------------------- ------------------ --------- ----------
OPERATING EXPENSES:
Sales and marketing 2,625 2,622 7,455 7,866
Research and development 1,240 1,402 3,594 4,167
General and administrative 733 679 1,935 2,170
------------------- ------------------ --------- ----------
Total operating expenses 4,598 4,703 12,984 14,203
------------------- ------------------ --------- ----------
INCOME (LOSS) FROM OPERATIONS 565 351 1,160 (2,912)
INTEREST INCOME , NET 15 9 62 68
------------------- ------------------ --------- ----------
INCOME (LOSS) BEFORE PROVISIONS
FOR INCOME TAXES 580 360 1,222 (2,844)
PROVISION FOR INCOME TAXES 10 10 10 39
------------------- ------------------ --------- ----------
NET INCOME (LOSS) $ 570 $ 350 $ 1,212 $ (2,883)
=================== ================== ========= ==========
BASIC EARNINGS (LOSS) PER SHARE: $ 0.06 $ 0.04 $ 0.13 $ (0.32)
=================== ================== ========= ==========
DILUTED EARNINGS (LOSS) PER SHARE: $ 0.06 $ 0.04 $ 0.12 $ (0.32)
=================== ================== ========= ==========
COMMON SHARES OUTSTANDING 9,282 9,024 9,220 9,012
DILUTIVE EFFECT OF STOCK OPTIONS 657 767 674 --
COMMON SHARES ASSUMING DILUTION 9,939 9,791 9,894 9,012
=================== ================== ========= ==========
</TABLE>
