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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): July 15, 1998
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ROMTECH, INC.
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(Exact name of registrant as specified in its charter)
Pennsylvania 0-27102 23-2694937
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
2000 Cabot Blvd. West, Suite 110, Langhorne, PA 19047-1833
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 750-6606
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On July 15, 1998, RomTech, Inc. (the "Company") issued a press release
announcing the Company's unaudited results for the fourth quarter and year ended
June 30, 1998, as described in the press release attached as Exhibit 99.1 and
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
a. None.
b. None.
c. Exhibits.
99.1 Press Release dated July 15, 1998.
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.
ROMTECH, INC.
By: /s/ GERALD W. KLEIN
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Gerald W. Klein, President,
Chief Executive Officer and
Chief Financial Officer
Dated: July 16, 1998
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EXHIBIT 99.1
ROMTECH ANNOUNCES UNAUDITED FISCAL 1998
FOURTH QUARTER AND YEAR-END RESULTS
- REVENUES INCREASE 112% FOR THE YEAR -
LANGHORNE, Pa., July 15, 1998 /PRNewswire/ -- RomTech, Inc. (Nasdaq:
ROMT) today announced unaudited results for its fourth quarter and year ended
June 30, 1998.
Revenues for the fourth quarter increased 28% to $1,931,000 from
$1,507,000 reported for the 1997 quarter. The net loss for the fourth quarter
was $(134,000), or $(0.01) per share, versus a net loss of $(294,000), or
$(0.05) per share, for the 1997 fourth quarter.
Revenues for fiscal 1998 increased to $9,276,000 from $4,383,000 for
fiscal 1997, a 112% increase. Net income for the most recent year was
$1,135,000, or $0.12 per share, versus a net loss of $(2,210,000), or $(0.35)
per share, for fiscal 1997.
Gerald Klein, President and Chief Executive Officer of RomTech, said,
"We successfully achieved our fiscal 1998 objectives - doubling revenues and
achieving profitability by gaining market share with our Galaxy Series product
line. According to PC Data, our market share in the value line segment of the
consumer software market increased from 1.6% to 3.6% during fiscal 1998, a 125%
increase. Today we are focused on selling our complete line of Galaxy Software
products worldwide and marketing our related Galaxy Series family friendly
product branding strategy. Our focused business strategy is achieving the
financial objectives we established and, as of today, we believe that we can
increase revenues by 50% in fiscal 1999 and double earnings. Additionally, we
believe that our new, proprietary Game Master(TM) products should enable us to
achieve significant gains in volume and market share in the value-priced segment
of the consumer software market in fiscal 1999. In fiscal 1998 we shipped
2,272,000 units of Galaxy Software products generating $8.4 million in revenues
versus 515,000 units shipped in fiscal 1997 totaling $1.8 million in revenues
which represents an increase of 341% in units and 367% in revenues. In fiscal
1999 our projections are to ship over 4,000,000 Galaxy Software units. Mr. Klein
added that, "Every Galaxy Software unit shipped provides customers easy access
to our website, www.romt.com. Our business strategy includes sound tactics for
using the internet to effectively leverage this ability to communicate directly
with our customers."
Mr. Klein, said further, "By all financial measures, fiscal 1998 was a
very successful year but it was not without its difficulties. During the fiscal
fourth quarter, Joseph A. Falsetti, our former Chairman and Chief Executive
Officer, left to pursue other interests and a charge of $225,000 was recognized
during the fourth quarter related to his separation costs. We are grateful to
Joe for his many contributions to RomTech and we wish him well in all his future
endeavors." Mr. Klein added that, "During fiscal 1998 we also recognized charges
of approximately $255,000 related to the settlement of the FileABC matter,
$75,000 related to the termination of prior marketing agreements and $45,000
related to the shutdown of the company's former San Luis Obispo, CA operations.
As we begin fiscal 1999 we currently have over $1 million in cash, $2.6 million
in equity and we are in a much stronger financial position than last year at
this time."
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RomTech, headquartered in Langhorne, PA develops, publishes, markets
and resells a diversified line of personal computer ("PC") software primarily
for consumer entertainment and business applications. The Company promotes the
Galaxy of Games(TM), Galaxy of Home Office Help(TM) and Game Master(TM) brand
names (the "Galaxy Series") in order to generate customer loyalty, encourage
repeat purchases and differentiate the Galaxy Software products to retailers and
consumers. The Company targets the market of home and small business personal
computer users. The Company's sales are primarily made through a large national
distributor that sells to large national retail chain stores and on the
internet.
This press release contains certain forward-looking statements,
including without limitation, statements regarding the success of RomTech's
Galaxy branding strategy, RomTech's expected revenues and earnings for the 1999
fiscal year, and the success of RomTech's Game Master products. The actual
results achieved by RomTech, and the factors that could cause actual results to
differ materially from those indicated by the forward-looking statements, are in
many ways beyond RomTech's control. RomTech cautions readers that the following
important factors, among others, could affect RomTech's actual results and could
cause RomTech's actual results for the 1999 fiscal year, the success of the
Galaxy branding strategy and the success of the Game Master products to differ
materially from those expressed in this press release: the allocation of
adequate shelf space for RomTech's products in major chain retail stores;
successful sell-through results for RomTech's products at retail stores; the
inability to obtain and/or develop content for its products in a cost effective
manner; the continued success of the relationship of RomTech with its main
distributor; the continued expansion of the computer in homes in North America;
the ability to deliver products in response to orders within a commercially
acceptable time frame; downward pricing pressure; the timeliness and success of
developing and selling products; the acceptance by the market of the Game Master
and other Galaxy products; the costs of developing, producing and marketing such
products; access to distribution channels; consumers' continuing demand for
value-priced software; the renewal of licenses for key software products;
competition; and various other factors, many of which are beyond the Company's
control.
Contact: Gerald W. Klein of RomTech, 215-750-6606, ext. 118. RomTech, Inc.'s
press releases are available through CompanyNews On-Call by fax, 800-758-5804,
ext. 127319, or at http://www.prnewswire.com.
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RomTech, Inc. Financial Results Table:
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<TABLE>
<CAPTION>
Quarter ended: June 30,
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Unaudited
1998 1997
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<S> <C> <C>
Sales $ 1,931,162 $ 1,506,975
Net income (loss) $ (134,428) $ 36,705
Accretion of preferred stock dividend -0- (331,147)
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Net loss attributable to common stock $ (134,428) $ (294,442)
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Weighted average shares outstanding:
- basic 9,371,200 6,416,863
- diluted 9,371,200 6,416,863
Net loss per share:
- basic $(0.01) $(0.05)
- diluted $(0.01) $(0.05)
</TABLE>
<TABLE>
<CAPTION>
Year ended: June 30,
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Unaudited
1998 1997
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<S> <C> <C>
Sales $ 9,275,889 $ 4,382,693
Net income (loss) $ 1,252,630 $(1,650,925)
Accretion of preferred stock dividend (117,991) (559,434)
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Net income (loss) attributable
to common stock $ 1,134,639 $(2,210,359)
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Weighted average shares outstanding:
- basic 8,716,756 6,380,517
- diluted 9,654,606 6,380,517
Net income (loss) per share:
- basic $0.13 $(0.35)
- diluted $0.12 $(0.35)
</TABLE>
