Metrowerks Fourth Quarter Revenues up to Record US$ 6.2 Million
AUSTIN, Texas — August 28, 1997 — Metrowerks Inc. (NASDAQ:MTWKF)(TSE/ME:MWK), one of the world's leading providers of software development tools, Thursday announced its results of operations for the fourth quarter of fiscal year ending July 31, 1997 (Q4FYJuly97).
Revenues for Q4FYJuly97 totaled US$ 6.2 million, an increase of 78 percent over revenues of US$ 3.5 million for the corresponding Q4FYJuly96, and an increase of 72 percent over revenues of US$ 3.6 million for the previous quarter, Q3FYJuly97.
The company reported a net profit of US$ 155,000 (US$ 0.01 per share on a fully diluted basis), compared to a net loss of US$ 178,000 (US$ 0.02 per share) for the corresponding Q4FYJuly96, and compared to a net loss of US$ 5.9 million for the previous quarter, Q3FYJuly97.
"We are very happy with the results for the fourth quarter," said Jean Belanger, Metrowerks chief executive officer and chairman of the board. "We have made significant investments in new products and infrastructure throughout Fiscal 1997, and we are starting to realize the benefits of these investments both in revenue growth and in profitability."
Revenues for Q4FYJuly97 break down as follows: 35 percent were related to embedded market revenues and 65 percent were related to desktop market revenues, which includes all Mac OS- and Windows-related sales. Revenues for Q4FYJuly97 can also be broken down as to 80 percent for embedded and desktop market product sales, and 20 percent product agreement revenues for both embedded and desktop markets.
Cost of goods sold for Q4FYJuly97 were 17 percent of net revenues compared to an average cost of goods sold of 29 percent for the first three quarters of Fiscal 1997. The reduction in cost of goods sold is the result of increased efficiencies in fulfillment and production operations.
In Q4FYJuly97, R&D expenses totaled US$ 2.3 million as compared to US$ 1.8 million in Q3FYJuly97. This represents an increase of 24 percent as compared to the increase in R&D expenses from Q2FYJuly97 to Q3FYJuly97 of 38 percent.
SG&A and technical support expenses totaled US$ 2.4 million in Q4FYJuly97 as compared to US$ 2.2 million for Q3FYJuly97, an increase of 11 percent. Comparatively, the increase in SG&A and technical support expenses from Q2FYJuly97 to Q3FYJuly97 was 22 percent.
The company had approximately US$ 5.0 million of cash and cash equivalents on hand at July 31, 1997.
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
Yr End Yr End Qtr End Qtr End Qtr End Qtr End Qtr End
7/31/97 7/31/96 7/31/97 4/30/97 1/31/97 10/31/96 7/31/96
Revenues, net $ 18,293 $ 10,619 $ 6,228 $ 3,615 $ 4,684 $ 3,766 $ 3,504
Cost of goods sold 4,563 2,663 1,062 958 1,449 1,094 1,069
SG&A and technical support 8,121 4,620 2,437 2,203 1,813 1,636 1,386
R & D 6,486 3,251 2,272 1,828 1,327 1,091 1,217
Depreciation 1,154 355 360 324 261 209 160
Non-recurring charge 4,297 – – 4,297 – – –
Interest income (353) (375) (58) (75) (91) (129) (150)
______ ______ _____ _____ _____ _____ _____
24,268 10,514 6,073 9,535 4,759 3,901 3,682
Net earnings/(loss) (5,975) 105 155 (5,920) (75) (135) (178)
Earnings (loss) per share (0.52) 0.01 0.01 (0.51) (0.01) (0.01) (0.02)
Weighted average number of shares outstanding 11,523 10,620 11,646 11,529 11,520 11,505 11,282
About CodeWarrior CodeWarrior is an intuitive suite of software development tools that includes an award-winning Integrated Development Environment (IDE) complete with project manager, resource and text editors, debugger, class browser, online documentation and tutorials. CodeWarrior's cross-platform compilers support C, C++, Java and Pascal, and allow programmers to build applications for a number of different target platforms, all from one development environment.
About Metrowerks Founded in 1985, Metrowerks develops, markets and supports a complete line of programming tools used for software development for a number of operating systems and microprocessors. Intended for use on desktop computers or embedded systems, these operating systems include Mac(R) OS, Windows(R) 95, Windows NT(TM), PlayStation(TM) OS, BeOS(TM) and Palm OS(TM), running on 68K, PowerPC, MIPS and x86 microprocessors. Metrowerks' CodeWarrior products are used by over 90,000 registered users in 70 countries.
NOTE TO EDITORS: Metrowerks, the Metrowerks logo and CodeWarrior are registered trademarks of Metrowerks Inc. Mac is a registered trademark of Apple Computer Inc. Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. 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
Gordy Davies, 512/873-4797 (Media)
[email protected]
Jim Welch, 512/873-4777
[email protected]