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:
July 19, 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)
<PAGE>
Item 5. Other Events.
- -----------------------
On July 19, 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 July 19, 1999
<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.
July 19, 1999 By: /s/ Robert P. Orlando
------------------------
Robert P. Orlando
Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE
CONTACT:
BOB ORLANDO, CFO
MATHSOFT, INC.
(617) 577-1017, x742
MATHSOFT REPORTS 25% REVENUE GROWTH IN 2Q99
CAMBRIDGE, Mass., July 19, 1999 - MathSoft, Inc. (Nasdaq: MATH) today reported
that revenues for the second quarter of 1999 grew 25% to $6.5 million, up from
$5.2 million in the second quarter of 1998. During the second quarter, MathSoft
announced the formation of a new subsidiary, FreeScholarships.com, an Internet
venture. Consolidated net income, including the operating losses of
FreeScholarships.com, was $389,000, or $0.04 per diluted share, up 142% from the
second quarter of 1998. Net income for the quarter from MathSoft's core
Mathcad and S-PLUS businesses (excluding the results of FreeScholarships.com)
was $589,000, or $0.06 per diluted share. This compares with net income of
$161,000, or $0.02 per diluted share for the second quarter of 1998, an increase
of 266%
Including FreeScholarships.com results, consolidated net income for the six
months ended June 30, 1999 was $1,026,000 or $0.10 per diluted share. Net
income from the core businesses for the six months ended June 30, 1999 was
approximately $1,226,000, or $0.11 per diluted share. This compares with net
income of $642,000, or $0.06 per diluted share for the corresponding six months
ended June 30, 1998. Revenues for the six months ended June 30, 1999 grew 20%
totaling $13.1 million as compared to revenues of $10.9 million for the six
months ended June 30, 1998.
"We are very pleased with our results this quarter," said Charles Digate,
president and CEO. "We achieved new quarterly revenue records for our StudyWorks
and S-PLUS product lines, and we made a strategic investment in an exciting new
Internet venture focused on helping families meet the increasing costs of
education."
Founded in 1984, MathSoft is a leading provider of technical calculation and
analytical software for business and academia. The company has more than one
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
the MathSoft logo is a trademark of MathSoft, Inc.
<PAGE>
<TABLE>
<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS
JUNE 30, DEC 31,
1999 1998
--------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 6,446 $ 5,707
Accounts receivables, net 4,446 4,009
Other receivables 1,244 1,309
Inventories 255 374
Prepaid expenses 693 343
--------- --------
Total current assets 13,084 11,742
--------- --------
PROPERTY AND EQUIPMENT, NET 1,145 1,262
--------- --------
OTHER ASSETS 431 488
--------- --------
TOTAL ASSETS $ 14,660 $ 13,492
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
JUNE 30, DEC 31,
1999 1998
--------- --------
CURRENT LIABILITIES $ 6,725 $ 7,302
OTHER LONG-TERM LIABILITIES 140 139
STOCKHOLDERS' EQUITY 7,795 6,051
--------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,660 $ 13,492
========= ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ----------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1999 1998 1999 1998
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 5,111 $ 4,284 $ 10,388 $ 9,203
Services and other 1,418 939 2,680 1,722
---------- --------- ---------- ----------
Total Revenues 6,529 5,223 13,068 10,925
---------- --------- ---------- ----------
COST OF REVENUES:
Software licenses 839 599 1,644 1,306
Services and other 430 342 820 638
---------- --------- ---------- ----------
Total cost of revenues 1,269 941 2,464 1,944
---------- --------- ---------- ----------
Gross Profit 5,260 4,282 10,604 8,981
---------- --------- ---------- ----------
OPERATING EXPENSES:
Sales and marketing 2,938 2,408 5,753 4,830
Research and development 1,177 1,135 2,365 2,354
General and administrative 768 601 1,504 1,202
---------- --------- ---------- ----------
Total operating expenses 4,883 4,144 9,622 8,386
---------- --------- ---------- ----------
Income from Operations 377 138 981 595
INTEREST INCOME , NET 34 23 76 47
---------- --------- ---------- ----------
Income Before Provisions for Income Taxes 411 161 1,058 642
PROVISION FOR INCOME TAXES 22 - 32 -
---------- --------- ---------- ----------
Net Income $ 389 $ 161 $ 1,026 $ 642
========== ========= ========== ==========
BASIC EARNINGS PER SHARE: $ 0.04 $ 0.02 $ 0.11 $ 0.07
========== ========= ========== ==========
DILUTED EARNINGS PER SHARE: $ 0.04 $ 0.02 $ 0.10 $ 0.06
========== ========= ========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 9,766 9,248 9,727 9,188
========== ========= ========== ==========
WEIGHTED AVERAGE COMMON SHARES ASSUMING DILUTION 10,495 10,488 10,682 10,453
========== ========= ========== ==========
SEGMENT INFORMATION:
Net Revenue:
Engineering and Education Software Products Division $ 3,639 $ 3,076 $ 7,343 $ 6,730
Data Analysis Products Division 2,890 2,147 5,725 4,196
---------- --------- ---------- ----------
Sub total 6,529 5,223 13,068 10,926
FreeScholarships.com - - - -
---------- --------- ---------- ----------
Total 6,529 5,223 13,068 10,926
========== ========= ========== ==========
Net Income:
Engineering and Education Software Products Division 230 98 399 659
Data Analysis Products Division 359 63 828 (17)
---------- --------- ---------- ----------
Sub total 589 161 1,226 642
FreeScholarships.com (200) - (200) -
---------- --------- ---------- ----------
Total $ 389 $ 161 $ 1,026 $ 642
========== ========= ========== ==========
Diluted Earning Per Share:
Engineering and Education Software Products Division and
Data Analysis Products Division $ 0.06 $ 0.02 $ 0.11 $ 0.06
========== ========= ========== ==========
FreeScholarships.com $ (0.02) $ - $ (0.02) $ -
========== ========= ========== ==========
Total $ 0.04 $ 0.02 $ 0.10 $ 0.06
========== ========= ========== ==========
</TABLE>
<PAGE>
