FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 28, 1998
Expert Software, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
33-89758 65-0359860
(Commission File Number) (I.R.S. Employer Identification No.)
800 Douglas Road, North Tower, 6th Floor, Coral Gables, Florida 33134
(Address of principal executive offices)
Registrant telephone number, including area code: (305) 567-9990
800 Douglas Road, Suite 750, Coral Gables, Florida 33134
(Former name or former address if changed since last report.)
Page 1 of 4 Pages
Exhibit Index is on page 2
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ITEM 5. OTHER EVENT
Expert Software, Inc. reported Preliminary Fourth-Quarter results on January
28, 1998.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed herewith:
10.15 Announcement of Preliminary Fourth-Quarter results dated January 28,
1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: February 2, 1998
Expert Software, Inc.
By: /s/ Charles H. Murphy
Charles H. Murphy
Chief Financial Officer
Expert Software, Inc. Announces
Preliminary Fourth-Quarter Results
CORAL GABLES, Fla. -- January 28, 1998 -- Expert Software, Inc. (Nasdaq:
XPRT) today announced it expects to report net sales of approximately $9.1
million for the fourth quarter, compared to $8.2 million for the fourth
quarter of 1996. The company also expects to report a profit for the fourth
quarter of $.04 per share, compared to $.04 per share for the fourth
quarter of 1996.
The Company's balance sheet continued to improve. An increase in working
capital is anticipated and there is no outstanding debt. Cash balances
increased during the quarter to $5.7 million.
Expert noted that net sales and profits for the fourth quarter, which were
lower than expected by industry analysts, were adversely affected by
significantly lower McDonaldland software net sales than anticipated.
Expert CEO Ken Currier said the performance of the McDonaldland series of
software products introduced in the third quarter did not meet sales
expectations and the Company has increased its reserves in anticipation of
higher product returns than usually experienced by the Company's other
brands. Higher marketing costs were also incurred as the products were
supported during the quarter with sales promotions and media advertising.
The Company will continue to work with McDonald's in testing marketing plans
for the brand. This includes a test market of product sales in McDonald's
restaurants and other direct-to- consumer marketing.
These statements regarding estimated results are preliminary. The Company
expects to announce its actual results for the year and fourth quarter of
1997 on February 11, 1998.
The Company has engaged Piper Jaffray Inc., to serve as the Company's
financial advisor and assist the Company in assessing its strategic
alternatives to enhance shareholder value.
Expert Software Inc. is a leading developer and publisher of over 120
high-quality, value-priced software titles. The Company specializes in
sophisticated yet easy-to-use programs addressing a broad array of everyday
consumer interests, including entertainment, education, lifestyle,
productivity and small office/home office. Over 25 million units of Expert
products have been sold, including Home Design 3D(r), Landscape Design 3D(r)
and Astronomer(tm). Recently, the Expert Software family of brands has
expanded to include McDonaldland(r) Software for Kids, titles from the
popular Sega PC Collection(tm), Bicycle(r) Card Games and the Gamers
Choice(tm) Line of classic games. Expert Software can be found on the World
Wide Web at http://www.expertsoftware.com.
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Expert Software, Inc. Announces Preliminary Fourth-Quarter Results
January 28, 1998
Page 2
Marks mentioned above are trademarks or tradenames of Expert Software, Inc.,
except Bicycle(r), which is a trademark of The United States Playing Card
Company, McDonaldland(r) which is a trademark of McDonald's Corporation, and
Sega(r), Sega PC Collection(tm), Sonic's CD, Sonic Schoolhouse, Daytona USA and
Virtua Fighter are trademarks of Sega. Sega Entertainment, Inc. was formed
through a joint venture between Sega of America and SOFTBANK Holdings, Inc.
# # # #
This press release contains forward looking statements. Certain factors
could cause actual results to differ materially from those implied or
anticipated by the statements made above. These include, but are not
limited to, results of the company's annual audit, consolidation of the
market, anticipated growth in the consumer software and personal computer
market, new product releases and upgrades by the Company and its competitors,
evolving distribution channels, competition for retail space, consumer
confidence levels and other factors. Additional information on these and
other factors that could affect the Company's financial results are included
in the Company's Annual Report on Form 10-K, 1996 Annual Report and in other
documents on file with the Securities and Exchange Commission.
For more information contact::
Charles H. Murphy, 305-569-1205
Chief Financial Officer
[email protected]
