Metrowerks Fourth Quarter Revenues Up 94 Percent to Record US$ 3.5 Million
AUSTIN, Texas — September 17, 1996 — METROWERKS, INC. (ME, TSE:MWK)(NASDAQ:MTWKF) Metrowerks(R) Inc., the leading provider of software development tools for Macintosh(R), today announced its results of operations for the fourth quarter of the fiscal year ended July 31, 1996 (Q4/FY96).
Revenues for Q4/FY96 totaled US$ 3.5 million, an increase of 94 percent over Q4/FY95 (US$ 1.8 million). In Q4/FY96, Metrowerks recorded a net loss of US$ 178,000 (US$ 0.015 per share on a full diluted basis), compared to net earnings in Q4/FY95 of US$ 91,000.
"We are pleased that our quarter over quarter revenue growth has resumed," said Jean Belanger, Chairman and CEO of Metrowerks. "We continue to invest heavily in R and D which will lead to a number of new products in the coming months. Our Windows port is proceeding on schedule and we are extending our embedded system product offerings to target multi-purpose real time operating systems."
In Q4/FY96, R and D expenses increased US$ 411,000 or 46 percent over Q3/FY96. New products to be introduced in the next few months include:
(i) CodeWarrior for PlayStation(TM) due in: Q1/FY97
(ii) CodeWarrior for PowerTV(TM) due in: Q1/FY97
(iii) CodeWarrior for Windows(R) 95/NT due in: Q2/FY97
(iv) CodeWarrior for Embedded PowerPC(TM) due in: Q2/FY97
(v) CodeWarrior for Embedded 68K due in: Q3/FY97
(vi) CodeWarrior for Embedded MIPS(R) due in: Q3/FY97
SG and A expenses increased US$ 148,000 or 12 percent over the third quarter of fiscal 1996. This increase was due primarily to the costs of two major trade shows, the Apple World Wide Developer Conference in San Jose and JavaOne(TM) in San Francisco, during the quarter, and an increase in SG and A personnel from 47 employees to 59 employees. 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 Q1/FY97 to be between US$ 3.7-4.0 million.
— R and D expenses are expected to increase in Q1/FY97, but at a lower rate than in Q4/FY96.
— SG and A expenses are expected to increase in Q1/FY97 as the Company continues to put in place the infrastructure required for the Company's expansion into the Windows and embedded markets. The increase in Q1/FY97 is expected to be at a lower rate than the fourth quarter of fiscal 1996.
— The company expects capital spending in Q1/FY97 to be approx. US$ 800,000, up from $ 479,000 in Q4/FY96. The increase is due primarily to the expansion of our Austin facility from 10,000 to 20,000 sq. ft., and the opening of our offices in California and Tokyo. The above statements contained in this outlook 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-hosted software development tools market, 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.
Earnings Table The Company has reported its financial results in US dollars since the beginning of fiscal 1996, and accordingly the results of prior periods have been translated into US dollars for comparative purposes.
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July 31 October 31 Jan 31 April 30 July 31
1995 1995 1996 1996 1996
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Revenue 1,808 2,325 2,418 2,372 3,504
Direct costs 476 553 460 404 972
SG and A and technical support 806 979 1,041 1,227 1,375
Research and development 459 615 693 903 1,314
Depreciation of fixed assets 69 37 53 105 160
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Total operating expenses 1,810 2,184 2,247 2,639 3,821
Operating income (2) 141 171 (267) (317)
Other income
(expense)
Interest 62 60 48 117 150
Other 31 8 2 3 (11)
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Net earnings 91 209 221 (147) (178)
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EPS fully diluted 0.010 0.022 0.021 (0.013) (0.015)
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As of July 31, 1996 there were 11,496,983 shares outstanding and there were 614,150 options outstanding to acquire common shares. Today, the Company awarded 393,500 stock options to employees as part of the annual employee review process.
About Metrowerks Founded in 1985, Metrowerks develops, markets and supports a complete line of Macintosh-hosted 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 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.
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
INTERNET: http://www.metrowerks.com
E-Mail: [email protected]
Jim Welch, 512/873-4777
INTERNET: http://www.metrowerks.com
E-Mail: [email protected]