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:
January 13, 2000
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 13, 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.
- ----------------------------------------------
Exhibit No. Exhibit
- ----------- -------
99.1 Press release of the Company dated January 13, 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.
January 13, 2000 By: /s/ Robert P. Orlando
---------------------------
Robert P. Orlando
Chief Financial Officer
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT:
BOB ORLANDO, CFO
MATHSOFT, INC.
(617) 577-1017, x742
MATHSOFT REPORTS RECORD RESULTS
CAMBRIDGE, Mass., January 13, 2000- MathSoft, Inc. (Nasdaq: MATH) today reported
net revenues for the fourth quarter ended December 31, 1999 of $8.6 million,
compared to net revenues of $7.3 million in the fourth quarter of 1998, an
increase of over 17%. Pro forma net income for the fourth quarter of 1999 was
$1.4 million or $0.13 per diluted share, excluding the results of the Company's
new subsidiary, FreeScholarships.com, a business to consumer Internet venture
formed in June 1999. This compares with net income of $1.0 million, or $0.10
per diluted share for the fourth quarter of 1998, an increase of over 34%.
Including the results of FreeScholarships.com, net income for the fourth quarter
of 1999 was $.2 million or $.02 per diluted share.
Net revenues for the twelve months ended December 31, 1999 were $28.6 million
compared to $24.4 million for the twelve months ended December 31, 1998, an
increase of 17%. Pro forma net income for fiscal 1999 was $3.2 million or $0.31
per diluted share, compared to net income of $2.2 million or $0.22 per diluted
share in fiscal 1998, an increase of over 48%. Pro forma fiscal 1999 results
exclude the results of FreeScholarships.com. Including these results, fiscal
1999 net income was $1.5 million or $0.14 per diluted share.
"These are the best quarterly and annual results ever reported by MathSoft's
software business," said Charles Digate, president and CEO. "Revenues in our
Data Analysis Products Division surged 38% for the full year 1999 to contribute
43% of the company's total revenue. StudyWorks, our high school math and science
product line, extended its impressive track record as it grew 63% to over $2.6
million in revenue for fiscal 1999. In addition, FreeScholarships.com made
strong progress during the quarter. We are now testing the site in anticipation
of a February launch."
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(R), StudyWorks(R), S-PLUS(R),
StatServer(R) and Axum(R) 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.com and the MathSoft logo are trademarks of MathSoft, Inc.
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<CAPTION>
MATHSOFT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS
DEC 31, DEC 31,
1999 1998
-------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 7,914 $ 5,707
Accounts receivables, net 5,730 4,009
Other receivables 909 1,309
Inventories 287 374
Prepaid expenses 384 343
-------- --------
Total current assets 15,224 11,742
-------- --------
PROPERTY AND EQUIPMENT, NET 1,314 1,262
-------- --------
OTHER ASSETS 427 488
-------- --------
TOTAL ASSETS $ 16,965 $ 13,492
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
DEC 31, DEC 31,
1999 1998
-------- --------
CURRENT LIABILITIES $ 8,186 $ 7,302
OTHER LONG-TERM LIABILITIES 148 139
STOCKHOLDERS' EQUITY 8,631 6,051
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 16,965 $ 13,492
======== ========
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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,
1999 1998 1999 1998
--------- -------- --------- --------
<S> <C> <C> <C> <C>
REVENUES:
Software licenses $ 6,866 $ 6,348 $ 22,707 $ 20,839
Services and other 1,685 945 5,896 3,608
--------- -------- --------- --------
Total Revenues 8,551 7,293 28,603 24,447
--------- -------- --------- --------
COST OF REVENUES:
Software licenses 974 903 3,559 2,964
Services and other 511 333 1,791 1,282
--------- -------- --------- --------
Total cost of revenues 1,485 1,236 5,350 4,246
--------- -------- --------- --------
Gross Profit 7,066 6,057 23,253 20,201
--------- -------- --------- --------
OPERATING EXPENSES:
Sales and marketing 3,838 2,911 12,798 10,364
Research and development 1,634 1,369 5,360 4,964
General and administrative 1,242 776 3,526 2,712
--------- -------- --------- --------
Total operating expenses 6,714 5,056 21,684 18,040
--------- -------- --------- --------
Income from Operations 352 1,001 1,569 2,161
INTEREST INCOME , NET 50 20 161 82
--------- -------- --------- --------
Income Before Provisions for Income Taxes 402 1,021 1,730 2,243
PROVISION FOR INCOME TAXES 216 13 277 23
--------- -------- --------- --------
Net Income $ 186 $ 1,008 $ 1,453 $ 2,220
========= ======== ========= ========
BASIC EARNINGS PER SHARE: $ 0.02 $ 0.11 $ 0.15 $ 0.24
========= ======== ========= ========
DILUTED EARNINGS PER SHARE: $ 0.02 $ 0.10 $ 0.14 $ 0.22
========= ======== ========= ========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 9,850 9,317 9,767 9,244
========= ======== ========= ========
WEIGHTED AVERAGE COMMON SHARES ASSUMING DILUTION 10,467 9,866 10,490 10,127
========= ======== ========= ========
SEGMENT INFORMATION:
Net Revenue:
Engineering and Education Products Division $ 5,242 $ 4,823 $ 16,366 $ 15,605
Data Analysis Products Division 3,309 2,470 12,237 8,842
--------- -------- --------- --------
Sub total 8,551 7,293 28,603 24,447
FreeScholarships.com - - - -
--------- -------- --------- --------
Total 8,551 7,293 28,603 24,447
========= ======== ========= ========
Net Income:
Engineering and Education Products Division 986 996 1,516 1,973
Data Analysis Products Division 369 12 1,779 247
--------- -------- --------- --------
Sub total 1,355 1,008 3,295 2,220
FreeScholarships.com (1,169) - (1,842) -
--------- -------- --------- --------
Total $ 186 $ 1,008 $ 1,453 $ 2,220
========= ======== ========= ========
Diluted Earning Per Share:
Engineering and Education Products Division and
Data Analysis Products Division $ 0.13 $ 0.10 $ 0.31 $ 0.22
========= ======== ========= ========
FreeScholarships.com $ (0.11) $ - $ (0.18) $ -
========= ======== ========= ========
Total $ 0.02 $ 0.10 $ 0.14 $ 0.22
========= ======== ========= ========
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