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:
April 12, 2000
MathSoft, Inc.
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(Exact name of Registrant as specified in its charter)
Massachusetts 0-020992 04-2842217
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(State or jurisdiction (Commission File number) (IRS Employer
of Incorporation) Identification No.)
101 Main Street Cambridge, Massachusetts 02142
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(Address of principal executive offices) (Zip Code)
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.
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On April 12, 2000, 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.
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Exhibit No. Exhibit
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99.1 Press release of the Company dated April 12, 2000
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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.
April 12, 2000 By: /s/ Robert P. Orlando
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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 FIRST QUARTER 2000 RESULTS
CAMBRIDGE, Mass., April 12, 2000- MathSoft, Inc. (Nasdaq: MATH) today reported
net revenues of $7.8 million for its first quarter ending March 31, 2000. This
compares to net revenues of $6.5 million in the first quarter of 1999, an
increase of 20%. Pro forma net income for the first quarter of 2000 was $.9
million, excluding the results of the Company's new Internet subsidiary,
FreeScholarships.com. This compares with net income of $.6 million for the first
quarter of 1999, an increase of 47%. Including the results of
FreeScholarships.com, the Company reported a $1.6 million net loss for the first
quarter of 2000, or $.16 loss per diluted share, compared to net income of $.6
million, or $.06 per diluted share, for the first quarter of 1999.
FIRST QUARTER HIGHLIGHTS
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- - The Data Analysis Products Division posted record quarterly net revenues of
$3.5 million up 25% from the same period last year.
- - The Engineering and Education Products Division expanded its net revenues
over last year's first quarter. Most notably, the StudyWorks product line
grew 94% from 1Q99.
- - FreeScholarships.com launched its innovative web site in February 2000 and
generated its first revenues. Registered members now exceed 275,000 with
the site averaging in excess of 1 million page views per day.
ABOUT MATHSOFT
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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. MathSoft is also the
parent company of FreeScholarships.com, an internet company providing
information and assistance to a broad market of parents and students concerned
about funding the costs of education. FreeScholarships.com awards money to pay
for tuition costs through online daily sweepstakes that United States residents
aged 13 and older can win.
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, including FreeScholarships.com, 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. FreeScholarships.com is a
trademark of FreeScholarships.com, Inc.
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS
MAR 31, DEC 31,
2000 1999
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<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $6,368 $8,444
Accounts receivables, net 6,034 4,744
Other receivables 1,790 1,420
Inventories 168 263
Prepaid expenses 793 382
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Total current assets 15,153 15,253
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PROPERTY AND EQUIPMENT, NET 1,773 1,314
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OTHER ASSETS 399 426
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TOTAL ASSETS $17,325 $16,993
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LIABILITIES AND STOCKHOLDERS' EQUITY
MAR 31, DEC 31,
2000 1999
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<S> <C> <C>
CURRENT LIABILITIES $9,487 $8,211
OTHER LONG-TERM LIABILITIES 140 148
STOCKHOLDERS' EQUITY 7,698 8,634
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $17,325 $16,993
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
MAR 31, MAR 31,
2000 1999
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<S> <C> <C>
REVENUES:
Software licenses $5,957 $5,277
Services and other 1,864 1,262
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Total Revenues 7,821 6,539
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COST OF REVENUES:
Software licenses 1,036 805
Services and other 1,327 390
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Total cost of revenues 2,363 1,195
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Gross Profit 5,458 5,344
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OPERATING EXPENSES:
Sales and marketing 4,453 2,816
Research and development 1,631 1,188
General and administrative 1,033 735
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Total operating expenses 7,117 4,739
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Income from Operations (1,659) 605
INTEREST INCOME , NET 58 42
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Income Before Provisions for Income Taxes (1,601) 647
PROVISION FOR INCOME TAXES 16 10
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Net Income $(1,617) $637
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BASIC EARNINGS PER SHARE: $(0.16) $0.07
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DILUTED EARNINGS PER SHARE: $(0.16) $0.06
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,066 9,687
========= ========
WEIGHTED AVERAGE COMMON SHARES ASSUMING DILUTION 10,066 10,869
========= ========
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SUPPLEMENTAL INFORMATION: (UNAUDITED)
THREE MONTHS ENDED MAR 31, 2000
SOFTWARE MAR 31,
BUSINESS FREESCHOLARSHIPS.COM TOTAL 1999
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<S> <C> <C> <C> <C>
REVENUES:
Total Revenues $7,786 $ 35 $7,821 $6,539
COST OF REVENUES:
Total cost of revenues 1,596 767 2,363 1,195
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Gross Profit 6,190 (732) 5,458 5,344
OPERATING EXPENSES:
Total operating expenses 5,286 1,831 7,117 4,739
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Income from Operations 904 (2,563) (1,659) 605
INTEREST INCOME , NET 51 7 58 42
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Income Before Provisions for Income Taxes 955 (2,556) (1,601) 647
PROVISION FOR INCOME TAXES 16 0 16 10
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Net Income $939 $(2,556) $(1,617) $637
========= ====================== ======== ========
BASIC EARNINGS PER SHARE: $(0.16) $0.07
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DILUTED EARNINGS PER SHARE: $(0.16) $0.06
======== ========
WEIGHTED AVG. COMMON SHARES OUTSTANDING 10,066 9,687
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WEIGHTED AVG. COMMON SHARES ASSUMING DILUTION 10,066 10,869
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SEGMENT INFORMATION:
Net Revenue:
Engineering and Education Products Division $4,249 $3,704
Data Analysis Products Division 3,537 2,835
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Sub total 7,786 6,539
FreeScholarships.com 35 -
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Total $7,821 $6,539
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Net Income:
Engineering and Education Products Division $305 $170
Data Analysis Products Division 634 467
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Sub total 939 637
FreeScholarships.com (2,556) -
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Total $(1,617) $637
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