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 11, 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 January 11, 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 January 11, 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.
January 11, 1999 By: /s/ Robert P. Orlando
---------------------------
Robert P. Orlando
Chief Financial Officer
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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 11, 1999 By:
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 RECORD PROFITS
CAMBRIDGE, Mass., January 11, 1999 - MathSoft, Inc. (Nasdaq: MATH) today
reported net income of approximately $1,008,000, or $0.10 per diluted share, for
its fourth quarter ended December 31, 1998. This compares with net income of
$755,000, or $0.08 per diluted share for the corresponding quarter of 1997.
Revenues for the three months ended December 31, 1998 increased 9% totaling $7.3
million as compared with revenues of $6.7 million for the three months ended
December 31, 1997.
Net income for the twelve months ended December 31, 1998 was approximately
$2,220,000, or $0.22 per diluted share. This compares with a net loss of
$2,128,000, or a loss of $0.24 per diluted share for the corresponding twelve
months ended December 31, 1997. Revenues for the twelve months ended December
31, 1998 grew 15% totaling $24.4 million as compared with revenues of $21.2
million for the twelve months ended December 31, 1997.
"MathSoft has set new earnings records on both a quarterly and annual basis,"
said Charles Digate, president and CEO. "We are beginning to build some real
momentum in electronic commerce and are looking forward to another year of
profitable growth in 1999."
Founded in 1984, MathSoft is the provider of the broadest line of technical
calculation and analytical software for business and academia. With MathSoft's
products, users can deploy technical calculations and exploratory data analyses
across their entire organizations. 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; 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.
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<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
ASSETS
UNAUDITED AUDITED
DEC 31, DEC 31,
1998 1997
---------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 5,707 $ 4,134
Accounts receivables, net . . . . . . . . . . . . 4,009 2,528
Other receivables . . . . . . . . . . . . . . . . 1,309 944
Inventories . . . . . . . . . . . . . . . . . . . 374 255
Prepaid expenses. . . . . . . . . . . . . . . . . 343 234
---------- --------
Total current assets. . . . . . . . . . . . . 11,742 8,095
---------- --------
PROPERTY AND EQUIPMENT, NET . . . . . . . . . . . . . . 1,262 1,549
OTHER ASSETS: . . . . . . . . . . . . . . . . . . . . . 488 168
---------- --------
TOTAL ASSETS . . . . . . . . . . . . . . . . $ 13,492 $ 9,812
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
UNAUDITED AUDITED
DEC 31, DEC 31,
1998 1997
---------- --------
CURRENT LIABILITIES. . . . . . . . . . . . . . . . . $ 7,302 $ 6,225
OTHER LONG-TERM LIABILITIES. . . . . . . . . . . . . 139 92
STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . 6,051 3,495
---------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,492 $ 9,812
========== ========
</TABLE>
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<TABLE>
<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DEC 31, DEC 31, DEC 31, DEC 31,
1998 1997 1998 1997
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses. . . . . . . . . . $ 6,348 $ 5,694 $ 20,839 $ 18,040
Services and other . . . . . . . . . 945 975 3,608 3,184
-------- -------- -------- ---------
Total Revenues . . . . . . . . . 7,293 6,669 24,447 21,224
-------- -------- -------- ---------
COST OF REVENUES:
Software licenses. . . . . . . . . . 903 868 2,964 3,398
Services and other . . . . . . . . . 333 350 1,282 1,084
-------- -------- -------- ---------
Total cost of revenues . . . . . 1,236 1,218 4,246 4,482
-------- -------- -------- ---------
Gross Profit . . . . . . . . . . 6,057 5,451 20,201 16,742
-------- -------- -------- ---------
OPERATING EXPENSES:
Sales and marketing. . . . . . . . . 2,911 2,547 10,364 10,413
Research and development . . . . . . 1,369 1,414 4,964 5,581
General and administrative . . . . . 776 739 2,712 2,909
-------- -------- -------- ---------
Total operating expenses . . . . 5,056 4,700 18,040 18,903
-------- -------- -------- ---------
INCOME (LOSS) FROM OPERATIONS. . 1,001 751 2,161 (2,161)
INTEREST INCOME , NET. . . . . . . . . . . 20 12 82 80
-------- -------- -------- ---------
INCOME (LOSS) BEFORE PROVISIONS
FOR INCOME TAXES. . . . . . 1,021 763 2,243 (2,081)
PROVISION FOR INCOME TAXES . . . . . . . . 13 8 23 47
-------- -------- -------- ---------
NET INCOME (LOSS). . . . . . . . $ 1,008 $ 755 $ 2,220 $ (2,128)
======== ======== ======== =========
BASIC EARNINGS (LOSS) PER SHARE: . . . . . $ 0.11 $ 0.08 $ 0.24 $ (0.24)
======== ======== ======== =========
DILUTED EARNINGS (LOSS) PER SHARE: . . . . $ 0.10 $ 0.08 $ 0.22 $ (0.24)
======== ======== ======== =========
COMMON SHARES OUTSTANDING. . . . . . . . . 9,317 9,099 9,244 9,026
DILUTIVE EFFECT OF STOCK OPTIONS . . . . . 549 868 883 --
COMMON SHARES ASSUMING DILUTION. . . . . . 9,866 9,967 10,127 9,026
======== ======== ======== =========
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