Metrowerks Announces Second Quarter 1998 Revenues of US$ 5.0 Million
AUSTIN, Texas — February 20, 1998 — Metrowerks Inc., a provider of software development tools, today announced its results of operations for the second quarter of its fiscal year ending July 31, 1998 (Q2FYJuly98).
Revenues for Q2FYJuly98 totaled US$ 5.01 million, an increase of 7 percent over revenues of US$ 4.68 million for the corresponding Q2FYJuly97. Revenues for Q1FYJuly98 totaled US$ 6.15 million.
In Q2 FYJuly98, the Company reported a net loss of US$ 763,000 (US$ 0.06 per share on a diluted basis), compared to net loss of US$ 75,000 (US$ 0.01 per share) for the corresponding Q2FYJuly97, and compared to net income of US$ 237,000 (US$ 0.02 per share) for the previous quarter, Q1FYJuly98.
Product sales for the quarter were $ 3.7 compared to product sales in Q1FYJuly98 of $ 4.5 million. The decrease in product sales in Q2FYJuly98 from Q1 FYJuly98 was due primarily to slower than expected desktop and embedded sales in our important Japanese market. Product agreement and other revenues were $ 1.3 million in Q2FYJuly98 compared to $ 1.7 million in Q1FYJuly98. In Q2FYJuly98 Metrowerks made a major strategic shift to emphasize R&D for customer-specific products, and as such, saw a decrease in these revenues.
"In Q2FYJuly98 we made incredible progress in our transition into the embedded programming tools business in spite of our disappointing financial results for the quarter," said Jean Belanger, Metrowerks CEO and Chairman. "As witnessed by our new strategic alliance with Applied Microsystems, which we have outlined in a separate press release today, our embedded product strategy is being viewed in an increasingly positive light by the major players in the business."
The Company had a cash balance of approximately $ 12.9 million at January 31, 1998.
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 1997 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
(in thousands of US dollars)
(unaudited)
For the 3 months ended
January 31 October 31 July 31 April 30 January 31
1998 1997 1997 1997 1997
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REVENUES 5,010 6,153 6,228 3,615 4,684
DIRECT COSTS AND EXPENSES
Cost of goods sold 685 1,133 1,062 958 1,449
Research and development 2,382 2,083 2,272 1,828 1,245
Selling, marketing, administrative and technical support 2,473 2,374 2,436 2,198 1,891
Amortization of capital assets 408 386 360 324 261
Non-recurring charge – – – 4,297 –
Interest income (175) (60) (57) (70) (87)
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5,773 5,916 6,073 9,535 4,759
NET EARNINGS/(LOSS) (763) 237 155 (5,920) (75)
_____________________________________________________
_____________________________________________________
EARNINGS (LOSS) PER SHARE $ (0.06) $ 0.02 $ 0.01 $ (0.51) $ (0.01)
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Weighted average number of shares
outstanding 11,932 11,555 11,538 11,529 11,520
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.
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.
Gordy Davies, 512/873-4797
[email protected]
or
Metrowerks Inc.
Jim Welch, 512/873-4777
[email protected]