FOR IMMEDIATE RELEASE
CONTACT:
DERMOT O'GRADY, CFO
MATHSOFT, INC.
(617) 577-1017, x821
MATHSOFT REPORTS RECORD THIRD QUARTER 2000 REVENUES
CAMBRIDGE, Mass., October 19, 2000- MathSoft, Inc. (NASDAQ: MATH) today reported
net revenues of $7.6 million for its third quarter ending September 30, 2000.
This compares to net revenues of $7.0 million in the third quarter of 1999, an
increase of 9%. The revenue performance set a new third quarter record for the
Company's continuing operations.
THIRD QUARTER RESULTS
-----------------------
* The Data Analysis Products Division posted record quarterly net revenues of
$4.2 million, up 32% from the same period last year.
* The StudyWorks product line grew 71% from 3Q99 assisting the Engineering
and Education Products Division to expand its year-to-date third quarter
net revenues over the same period last year.
* As previously reported, the Company discontinued the operations of
FreeScholarships.com. In connection with this the Company has recorded a
third quarter loss from discontinued operations of $4.1 million. This loss
includes an estimate of $1.9 million to cover the expenses associated with
the closure of the division and its Web site. The Company reported a $3.5
million net loss for the third quarter of 2000, or $.33 loss per share,
compared to net income of $.2 million, or $.02 per share, for the third
quarter of 1999.
ABOUT MATHSOFT
---------------
Founded in 1984, MathSoft is the provider of the broadest line of technical
calculation and analytical software for business and academia. The company has
two million users of its Mathcad, StudyWorks!, S-PLUS, StatServer and Axum
software worldwide. Users include professionals 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.
This release contains information about management's future expectations, plans
and prospects that constitute forward-looking statements for purposes of the
safe harbor provisions under The Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by these
forward-looking statements as a result of various important factors, including,
but 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.
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MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS
SEPT 30, DEC 31,
2000 1999
--------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 3,406 $7,213
Accounts receivables, net 6,032 4,743
Other receivables 1,190 1,420
Inventories 88 263
Prepaid expenses 529 382
--------- --------
Total current assets 11,245 14,021
--------- --------
PROPERTY AND EQUIPMENT, NET 1,548 1,064
--------- --------
NET ASSETS FROM DISCONTINUED OPERATIONS - 1,181
OTHER ASSETS 537 401
--------- --------
TOTAL ASSETS $ 13,330 $ 16,667
========= ========
Liabilities and Stockholders' Equity
Sept 30, Dec 31,
2000 1999
--------- --------
CURRENT LIABILITIES $ 8,697 $ 7,885
NET LIABILITIES FROM DISCONTINUED OPERATIONS 2,228 -
OTHER LONG-TERM LIABILITIES 153 148
STOCKHOLDERS' EQUITY 2,252 8,634
--------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,330 $ 16,667
========= ========
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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,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 4,986 $ 5,455 $ 16,210 $ 15,842
Services and other 2,615 1,530 6,769 4,211
---------- ---------- ---------- ----------
Total Revenues 7,601 6,985 22,979 20,053
---------- ---------- ---------- ----------
COST OF REVENUES:
Software licenses 867 943 2,819 2,587
Services and other 784 460 2,074 1,279
---------- ---------- ---------- ----------
Total cost of revenues 1,651 1,403 4,893 3,866
---------- ---------- ---------- ----------
Gross Profit 5,950 5,582 18,086 16,187
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Sales and marketing 3,171 2,966 9,375 8,576
Research and development 1,470 1,162 4,051 3,527
General and administrative 719 720 2,515 2,166
---------- ---------- ---------- ----------
Total operating expenses 5,360 4,848 15,941 14,269
---------- ---------- ---------- ----------
Income from Continuing Operations 590 734 2,145 1,918
INTEREST INCOME , NET 29 8 126 84
---------- ---------- ---------- ----------
Income Before Provisions for Income Taxes 619 742 2,271 2,002
PROVISION FOR INCOME TAXES 5 28 51 61
---------- ---------- ---------- ----------
Net Income from Continuing Operations 614 714 2,220 1,941
DISCONTINUED OPERATIONS
Loss from Operations of Discontinued Division (4,134) (473) (9,849) (674)
---------- ---------- ---------- ----------
Net (loss) Income $ (3,520) $ 241 $ (7,629) $ 1,267
========== ========== ========== ==========
BASIC (LOSS) EARNINGS PER SHARE - CONTINUING OPERATIONS $ 0.06 $ 0.07 $ 0.21 $ 0.20
========== ========== ========== ==========
DILUTED (LOSS) EARNINGS PER SHARE - CONTINUING OPERATIONS $ 0.06 $ 0.07 $ 0.21 $ 0.18
========== ========== ========== ==========
BASIC (LOSS) EARNINGS PER SHARE $ (0.33) $ 0.02 $ (0.74) $ 0.13
========== ========== ========== ==========
DILUTED (LOSS) EARNINGS PER SHARE $ (0.33) $ 0.02 $ (0.73) $ 0.12
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,673 9,776 10,379 9,743
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES ASSUMING DILUTION 10,760 10,129 10,466 10,498
========== ========== ========== ==========
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MATHSOFT, INC. AND SUBSIDIARIES
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
SEGMENT INFORMATION FOR CONTINUING OPERATIONS:
Net Revenues:
Engineering and Education Products Division $ 3,389 $ 3,783 $ 11,570 $ 11,126
Data Analysis Products Division 4,212 3,202 11,409 8,927
--------- --------- --------- ---------
Total 7,601 6,985 22,979 20,053
========= ========= ========= =========
Cost of Revenues:
Engineering and Education Products Division 420 508 1,637 1,507
Data Analysis Products Division 1,231 895 3,256 2,359
--------- --------- --------- ---------
Total 1,651 1,403 4,893 3,866
========= ========= ========= =========
Total Operating Expenses:
Engineering and Education Products Division 2,981 3,057 9,605 9,059
Data Analysis Products Division 2,379 1,791 6,336 5,210
--------- --------- --------- ---------
Total 5,360 4,848 15,941 14,269
========= ========= ========= =========
Income from Continuing Operations 590 734 2,145 1,918
INTEREST INCOME , NET 29 8 126 84
--------- --------- --------- ---------
Income Before Provisions for Income Taxes 619 742 2,271 2,002
PROVISION FOR INCOME TAXES 5 28 51 61
--------- --------- --------- ---------
Net Income:
Engineering and Education Products Division 9 205 420 603
Data Analysis Products Division 605 509 1,800 1,338
--------- --------- --------- ---------
Total 614 714 2,220 1,941
========= ========= ========= =========
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