Metrowerks First Quarter Revenues up to Record US$ 3.8 Million
AUSTIN, Texas — December 9, 1996 — Metrowerks Inc. (NASDAQ:MTWKF)(TSE/ME:MWK), one of the world's leading providers of software development tools, Monday announced its results of operations for the first quarter of fiscal year ending July 31, 1997 (Q1FYJuly97).
Revenues for Q1FYJuly97 totaled US$ 3.8 million, an increase of 62 percent over Q1FYJuly96 (US$ 2.3 million), and an 8 percent increase over Q4FYJuly96 (US$ 3.5 million). In Q1FYJuly97, Metrowerks recorded a smaller net loss of US$ 135,000 (US$ 0.01 per share on a fully diluted basis), compared to a net loss in Q4FYJuly96 of US$ 179,000 ($ 0.02 per share).
"Q1FYJuly97 marked important steps in the development of our overall software development tools strategy," said Jean Bilanger, chairman and CEO of Metrowerks. "First, we shipped our first ever Windows-hosted tools targeting development for the PlayStation game console; second, we entered into an important agreement with Microware Corporation to retarget our development tools to support software development for OS-9 (these two targets have a combined installed base of over 25,000 software developers, providing large new markets for our embedded development tools); and third, we prepared for the launch of a line of Windows-hosted products at Comdex on November 18, 1996."
In Q1FYJuly97, R&D expenses decreased from $ 1,314 to $ 1,217 or 7 percent from Q4FYJuly96. The reduction reflects a drop in purchased R&D in Q1FYJuly97 versus Q4FYJuly96. In Q4FYJuly96, Metrowerks had several open contracts with external developers for Java-related projects. Some of these contracts came to an end in Q1FYJuly97.
The Company is continuing its heavy focus on R&D and the delivery of several new products in the coming months including CodeWarrior for Windows 95/NT, launched at Comdex, and CodeWarrior for OS/9 targeted for a Q3FYJuly97 release.
SG&A expenses increased US$ 258,000 or 19 percent over Q4FYJuly96. This increase was due to the Company's focus on developing the infrastructure necessary to compete in the Windows and embedded systems markets.
Business Outlook The following statements are based on current expectations. These statements are forward looking and actual results may differ materially.
The Company expects revenue in Q2FYJuly97 to be between US$ 4.0 million-4.5 million. Revenues for the next several quarters are expected to be more volatile and somewhat less predictable than in recent prior quarters.
Among the factors that could contribute to volatility, revenues for these quarters may be significantly affected by possible non-recurring engineering contracts and new product sales which may or may not occur, or, may not occur in the time frame estimated by management.
R&D expenses are expected to increase in Q2FYJuly97 as the company continues to invest in expanding its product offerings in the embedded market. SG&A expenses are expected to increase in Q2FYJuly97 as the company begins to market its new Windows and embedded products. The company expects capital spending in Q2FYJuly97 to be approximately US$ 500,000, down from $ 629,000 in Q1FYJuly97.
The above statements contained in this outlook, as well as statements above concerning estimated product introduction dates, are forward looking statements that involve a number of risks and uncertainties.
In addition to the factors discussed above, among the factors that could cause actual results to differ materially are the following: business conditions in the Macintosh(R)-hosted software development tools market, market acceptance of the Windows and PlayStation(TM) game console software development tools, competitive factors such as rival software development tools and price pressures, the success of the Company in entering new development agreements, software defects, product development and technological change.
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.
metrowerks Inc.
Earnings Table
All figures are reported in US dollars.
Oct. 31 Jan 31 April 30 July 31 Oct.31
1995 1996 1996 1996 1996
Revenue $ 2,325 $ 2,418 $ 2,372 $ 3,504 $ 3,766
Direct costs 553 460 404 972 968
SG&A and technical support 979 1,041 1,227 1,375 1,633
Research & development 615 693 903 1,314 1,217
Depreciation of fixed assets 37 53 105 160 209
Total operating expenses 2,184 2,247 2,639 3,821 4,027
Operating income (loss) 141 171 (267) (317) (261)
Interest 60 48 117 150 129
Other 8 2 3 (11) (3)
Net earnings (loss) 209 221 (147) (178) (135)
EPS fully diluted 0.02 0.02 (0.01) (0.02) (0.01)
As of Oct. 31, 1996 there were 11,513,163 shares outstanding and there were 991,350 options outstanding to acquire common shares.
About Metrowerks
Founded in 1985, Metrowerks develops, markets and supports a complete line of computer language products for building Mac(TM) OS, Windows 95, Windows NT(TM), Magic Cap(TM), BeOS(TM), Palm OS(TM), PlayStation OS and PowerTV(TM) OS applications. Metrowerks CodeWarrior products have become the industry standard for professional Mac-hosted software development with more than 50,000 registered users in over 70 countries.
Additional [email protected], by calling 800/377-5416, or via the Internet at http://www.metrowerks.com .
NOTE TO EDITORS: Metrowerks, the Metrowerks logo and CodeWarrior are registered trademarks of Metrowerks Inc. Macintosh is a registered trademark of Apple Computer Inc. Mac is a trademark of Apple Computer Inc. Windows, Windows NT and Windows 95 are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. All other companies and products may be trademarks of their respective holders and are hereby recognized.
CONTACT:
Metrowerks Inc., Austin
Cynthia Fray, 512/873-4758 (Media)
[email protected]
Jim Welch, 512/873-4777
[email protected]