UNITED STATES
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:
October 18, 1999
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 October 18, 1999, 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 18, 1999
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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.
October 18, 1999 By: /s/ Robert P. Orlando
-------------------------
Robert P. Orlando
Chief Financial Officer
FOR IMMEDIATE RELEASE
CONTACT:
BOB ORLANDO, CFO
MATHSOFT, INC.
(617) 577-1017, x742
MATHSOFT REPORTS 12% REVENUE GROWTH IN THE THIRD QUARTER
CAMBRIDGE, Mass., October 18, 1999 - MathSoft, Inc. (Nasdaq: MATH) today
reported that revenues for the third quarter of 1999 grew 12% to $7.0 million,
up from $6.2 million in the third quarter of 1998. During the second quarter,
MathSoft announced the formation of a new subsidiary, FreeScholarships.com, a
business to consumer Internet venture. Net income, including the operating
losses of FreeScholarships.com, was $241,000, or $0.02 per diluted share for the
quarter. Net income for the quarter from MathSoft's core software and service
businesses (excluding the results of FreeScholarships.com) was $714,000, or
$0.07 per diluted share. This compares with net income of $570,000, or $0.06 per
diluted share for the third quarter of 1998, a net income increase of 25%.
Including FreeScholarships.com results, net income for the nine months ended
September 30, 1999 was $1,267,000 or $0.12 per diluted share. Net income from
the core businesses for the nine months ended September 30, 1999 was
approximately $1,940,000, or $0.18 per diluted share. This compares with net
income of $1,212,000, or $0.12 per diluted share for the corresponding nine
months in 1998, an increase of 60%. Revenues for the nine months ended
September 30, 1999 grew 17% to $20 million as compared to revenues of $17.1
million for the nine months ended September 30, 1998.
"We are quite pleased with the operating results from our core businesses," said
Charles Digate, president and CEO. "The Data Analysis Products Division had
record revenues for the quarter, resulting in 47% growth over the third quarter
in 1998. The Engineering and Education Products Division also performed better
than we had expected. In addition, our new educational Internet initiative,
FreeScholarships.com, made tremendous progress towards its public launch
targeted for the first quarter of 2000."
Founded in 1984, MathSoft is a leading provider of technical calculation and
analytical software for business and academia. The company has more than one
and a half million users of its Mathcad, StudyWorks, S-PLUS, 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.
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; the risks associated with
investments in new products and services 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, StatServer, StudyWorks and Mathcad are registered trademarks, and
FreeScholarships and the MathSoft logo are trademarks of MathSoft, Inc.
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS
SEPT 30, DEC 31,
1999 1998
------- -------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 6,489 $ 5,707
Accounts receivables, net 4,938 4,009
Other receivables 1,397 1,309
Inventories 171 374
Prepaid expenses 731 343
------- -------
Total current assets 13,726 11,742
------- -------
PROPERTY AND EQUIPMENT, NET 1,110 1,262
------- -------
OTHER ASSETS 441 488
------- -------
TOTAL ASSETS $15,277 $13,492
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
SEPT 30, DEC 31,
1999 1998
------- -------
CURRENT LIABILITIES $ 7,071 $ 7,302
OTHER LONG-TERM LIABILITIES 78 139
STOCKHOLDERS' EQUITY 8,128 6,051
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,277 $13,492
======= =======
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<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30, SEPT 30, SEPT 30,
1999 1998 1999 1998
-------- ------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 5,455 $5,288 $15,842 14,491
Services and other 1,530 941 4,211 2,663
-------- ------- -------- --------
Total Revenues 6,985 6,229 20,053 17,154
-------- ------- -------- --------
COST OF REVENUES:
Software licenses 943 755 2,587 2,060
Services and other 460 311 1,279 950
-------- ------- -------- --------
Total cost of revenues 1,403 1,066 3,866 3,010
-------- ------- -------- --------
Gross Profit 5,582 5,163 16,187 14,144
-------- ------- -------- --------
OPERATING EXPENSES:
Sales and marketing 3,206 2,625 8,960 7,454
Research and development 1,361 1,240 3,726 3,594
General and administrative 781 733 2,284 1,936
-------- ------- -------- --------
Total operating expenses 5,348 4,598 14,970 12,984
-------- ------- -------- --------
Income from Operations 234 565 1,217 1,160
INTEREST INCOME , NET 35 15 111 62
-------- ------- -------- --------
Income Before Provisions for Income Taxes 269 580 1,328 1,222
PROVISION FOR INCOME TAXES 28 10 61 10
-------- ------- -------- --------
Net Income $ 241 $ 570 $ 1,267 $ 1,212
======== ======= ======== ========
BASIC EARNINGS PER SHARE: $ 0.02 $ 0.06 $ 0.13 $ 0.13
======== ======= ======== ========
DILUTED EARNINGS PER SHARE: $ 0.02 $ 0.06 $ 0.12 $ 0.12
======== ======= ======== ========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 9,776 9,282 9,743 9,220
======== ======= ======== ========
WEIGHTED AVERAGE COMMON SHARES ASSUMING DILUTION 10,129 9,939 10,498 9,894
======== ======= ======== ========
SEGMENT INFORMATION:
Net Revenue:
Engineering and Education Products Division $ 3,783 $4,052 $11,126 $10,781
Data Analysis Products Division 3,202 2,177 8,927 6,373
-------- ------- -------- --------
Sub total 6,985 6,229 20,053 17,154
FreeScholarships.com - - - -
-------- ------- -------- --------
Total 6,985 6,229 20,053 17,154
======== ======= ======== ========
Net Income:
Engineering and Education Products Division 205 712 602 1,372
Data Analysis Products Division 509 (142) 1,338 (160)
-------- ------- -------- --------
Sub total 714 570 1,940 1,212
FreeScholarships.com (473) - (673) -
-------- ------- -------- --------
Total $ 241 $ 570 $ 1,267 $ 1,212
======== ======= ======== ========
Diluted Earning Per Share:
Engineering and Education Products Division and
Data Analysis Products Division $ 0.07 $ 0.06 $ 0.18 $ 0.12
======== ======= ======== ========
FreeScholarships.com $ (0.05) $ - $ (0.06) $ -
======== ======= ======== ========
Total $ 0.02 $ 0.06 $ 0.12 $ 0.12
======== ======= ======== ========
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