Metrowerks Q3 Revenues up 82 Percent to US$ 2.4 Million, Loss for Q3 US$ 147,000
AUSTIN, Texas — June 3, 1996 — Metrowerks the world's leading vendor of Power Macintosh-hosted programming tools, today announced its results of operations for its third quarter of fiscal 1996, ended April 30, 1996.
Revenues for the third quarter were US$ 2.4 million, an 84 percent increase over third quarter of 1995 revenues, which were US$ 1.3 million. The net loss for the third quarter was US$ 147,000 (US$ 0.013 per share on a fully diluted basis), compared to earnings of US$ 113,000 (US$ 0.014 per share on a fully diluted basis) for the three months ended April 30, 1996.
"The third quarter is the only fiscal quarter that does not benefit from a major product release of the Company's flagship product, CodeWarrior Gold. As a result, we were extremely pleased with our overall revenues in the quarter, said Jean Belanger, Chairman of the Board. "We were not happy with our first quarterly loss since becoming a public company, but we felt this was the best to accelerate our investments in new product development as we see tremendous market opportunities opening up for our programming tools, especially in the embedded market.
"While we continue to expand our product line, we have also signed important partnership agreements in the past few months with Microsoft, US Robotics, Intercon, and Sun Microsystems."
Research and development expenses increased US$ 210,000 or 30 percent over the second quarter of fiscal 1996. This increase was due to investments required for:
1. The introduction of new products:
(i) Discover Program. With Java introduced: Q3/FY96
(ii) CodeWarrior for BeBox introduced: Q3/FY96
2. The continuing work to complete:
(I) CodeWarrior Gold 9 (including Java) shipped Q4/FY96
(II) CodeWarrior for Pilot due in: Q4/FY96
(III) CodeWarrior for PowerTV due in: Q1/FY97
(IV) Code Warrior on Windows95/NT due in: Q2/FY97;
(V) CodeWarrior for Embedded due in: Q"/FY96
Selling, general and administrative expenses increased US$ 186,000 or 18 percent over the second quarter of fiscal 1996. This increase was due primarily to the costs of the Company's relocation to a new 10,000 square foot facility in Austin. This facility is expected to be expanded to 20,000 feet in the first quarter of fiscal 1997.
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 for the fourth quarter of fiscal 1996 to be between US$ 3.1-3.3 million.
– Research and development expenses are expected to increase in the fourth quarter, but at a lower rate than in the third quarter.
– Selling, general and administrative expenses are expected to increase in the fourth quarter primarily in connection with two large trade shows that take place in May. There were no major trade shows in the company's third fiscal quarter.
– The company expects capital spending in the fourth quarter to be about $ 350,000, down from $ 926,000 in the third quarter of fiscal 1996.
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; software defects; and 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.
april 30 July 31 October 31
1995 1995 1995
(In thousands of US dollars, except per share amounts)
Revenue 1,304 1,808 2,325
Direct costs 98 476 553
SG and A and technical support 579 806 979
Research and development 484 459 615
Depreciation of fixed assets 42 69 37
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Total operating expenses 1,203 1,810 2,184
Operating income 101 (2) 141
Other income (expense)
Interest 62 60
Foreign exchange 12 31 8
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Net earnings 113 91 209
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EPS fully diluted 0.014 0.010 0.022
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Jan 31 April 31
1996 1996
(In thousands of US dollars, except per share amounts)
Revenue 2,418 2,372
Direct costs 460 404
SG and A and technical support 1,041 1,227
Research and development 693 903
Depreciation of fixed assets 53 105
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Total operating expenses 2,247 2,639
Operating income 171 (267)
Other income (expense)
Interest 48 117
Foreign exchange 2 3
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Net earnings 221 (147)
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EPS fully diluted 0.021 0.013
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As of April 30, 1996 there were 11,456,983 shares outstanding and there were 676,450 options outstanding to acquire common shares.
Founded in 1985, Metrowerks develops, markets and supports a complete line of Macintosh-hosted computer language products for building Mas OS, Win95, WinNT, Magic Cap, Bebox and Pilot applications. Metrowerks CodeWarrior software products have quickly become the industry standard for professional Mac-hosted development tools with over 45,000 registered users in 70 countries. Additional information on Metrowerks is available on the Internet at http://www.metrowerks.com, by sending email to [email protected], or by calling (512) 873-4700.
Metrowerks, the Metrowerks logo and CodeWArrior are registered trademarks of Metrowerks Inc. All other product or service names mentioned herein are trademarks of their respective owners.
CONTACT:
Metrowerks Inc.
David Perkins, 512/873-4774
[email protected]