Metrowerks Announces First Quarter 1998 Revenues of US$ 6.2 Million
AUSTIN, Texas — December 1, 1997 — Metrowerks Inc. (NASDAQ:MTWKF)(TSE/ME:MWK), a provider of software development tools, Monday announced its results of operations for the first quarter of its fiscal year ending July 31, 1998 (Q1FYJuly98). Revenues for Q1FYJuly98 totaled US$ 6.15 million, an increase of 65% over revenues of US$ 3.77 million for the corresponding Q1FYJuly97. Revenues for Q4FYJuly97 totaled US$ 6.23 million. As in previous years, revenues for Q1FYJuly98 were approximately the same as revenues for Q4FYJuly 97.
In Q1 FYJuly98, the company reported a net profit of US$ 237,000 (US$ 0.02 per share on a fully diluted basis), compared to a net loss of US$ 135,000 (US$ 0.01 per share) for the corresponding Q1FYJuly97, and compared to net income of US$ 155,000 for the previous quarter, Q4FYJuly97. The company completed a financing during the quarter, whereby the company will issue 1.25 million shares at $ 10.08 per share. The company had a cash balance of approximately $ 15.5 million on Oct. 31, 1997.
"The first quarter was significant for Metrowerks, as revenues from the embedded and windows markets totaled 75 percent of total revenues for the quarter," said Jean Belanger, Metrowerks chief executive officer and chairman of the board. "Moreover, we maintained strong revenue growth while increasing our profitability." The company has two main revenue streams; the sale of shrink-wrapped software, or product revenues, and product agreement revenues, whereby companies pay Metrowerks to support their platforms.
Product revenues for Q1FYJuly98 comprised 74 percent of total revenues, or $ 4.53 million. Cost of goods sold for Q1FYJuly98 were 18% of net revenues compared to 17% for Q4FYJuly97. In Q1FYJuly98, R&D expenses totaled US$ 2.1 million as compared to US$ 2.3 million in Q4FYJuly97. R&D expenses were down slightly as the company has ramped up headcount to a point where less third party consultants are needed for development projects.
SG&A and technical support expenses totaled US$ 2.37 million in Q1FYJuly98 and US$ 2.44 million in Q4FYJuly97. SG&A expenses were down slightly, as the company increased its focus on operational expenses. This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. For instance, factors which could cause results to differ from future events include the state of the Mac OS tools market, the timing of product deliveries, competitive pricing actions and marketing programs, among others. Additional information on these and other factors which could affect the company's financial results are included in the company's 1996 annual report to shareholders and most recent quarterly reports on file with the Securities and Exchange Commission.
Earnings Table
All figures are reported in '000s US dollars (except per share amount):
Metrowerks Inc. Consolidated Statements of Operations
For the 3 months ended
Oct. 31 July 31 April 30 Jan. 31 Oct. 31
1997 1997 1997 1997 1996
REVENUES, Net 6,153 6,228 3,615 4,684 3,766
DIRECT COSTS AND EXPENSES
Cost of goods sold 1,133 1,062 958 1,449 1,094
Selling, marketing, administrative & tech support 2,376 2,437 2,203 1,813 1,636
Research and development 2,083 2,272 1,828 1,327 1,091
Amortization of capital assets 386 360 324 261 209
Non-recurring charge – – 4,297 – –
Interest income (62) (58) (75) (91) (129)
5,916 6,073 9,535 4,759 3,901
NET EARNINGS/(LOSS) 237 155 (5,920) (75) (135)
EARNINGS (LOSS) PER SHARE $ 0.02 $ 0.01 $ (0.51) $ (0.01) $ (0.01)
Weighted average number of shares outstanding 11,555 11,538 11,529 11,520 11,505
About Metrowerks
Founded in 1985, Metrowerks develops, markets and supports CodeWarrior software development solutions for a number of operating systems targeting the most popular microprocessors. Intended for use for embedded systems or desktop computers, the cross-platform compilers support C, C++, Java, and Object Pascal, and allow programmers to build applications for a number of different target platforms, all from one unique Integrated Development Environment (IDE). Metrowerks' CodeWarrior products are used by more than 100,000 registered users in 75 countries. For more information, please visit the Metrowerks web site at http://www.metrowerks.com . NOTE TO EDITORS: Metrowerks, the Metrowerks logo and CodeWarrior are registered trademarks of Metrowerks Inc. All other company and product names may be registered trademarks or trademarks of their respective companies/holders, and are hereby recognized.
CONTACT:
Metrowerks Inc., Austin
Maria Krinsky, 512/873-4719
[email protected]
Jim Welch, 512/873-4777
[email protected]