Metrowerks Second Quarter Revenues up to Record US$ 4.7 Million
AUSTIN, Texas — March 6, 1997 — METROWERKS (TSE; ME: MWK; NASDAQ: MTWKF) — Metrowerks Inc., one of the world's leading providers of software development tools, today announced its results of operations for the second quarter of fiscal year ending July 31, 1997 (Q2FYJuly97).
Revenues for Q2FYJuly97 totaled US$ 4.7 million compared to US$ 2.4 million for Q2FYJuly96, an increase of 94 percent and a 24 percent increase over revenues for Q1FYJuly97 of US$ 3.8 million. In Q2FYJuly97, Metrowerks recorded a net loss of US$ 75,000 (US$ 0.01 per share on a fully diluted basis), compared to a net loss in Q1FYJuly97 of US$ 135,000 ($ 0.01 per share).
"Macintosh-related revenues accounted for 53 percent total of sales for Q2FYJuly97, while embedded and other revenues accounted for 47 percent total of sales for Q2FYJuly97," said Jean Belanger, chairman and chief executive officer of Metrowerks. "We have made significant progress in diversifying our revenue base in Q2FYJuly97 and building the infra-structure needed to continue the company's penetration into the embedded market."
In Q2FYJuly97, R and D expenses increased from $ 1,217,000 to $ 1,459,000 or 20 percent from Q1FYJuly97. The increase in R and D costs relates to the development of new products, of which, the following will ship in the current fiscal year:
CodeWarrior(R) for OS-9(R) Q3FYJuly97
CodeWarrior for PalmPilot(TM) Q3FYJuly97
CodeWarrior for PowerPC(TM) Embedded Q3FYJuly97
CodeWarrior for MIPS(R) Embedded Q4FYJuly97
CodeWarrior Latitude Q4FYJuly97
There are currently 73 employees in R and D compared to 65 on July 31, 1996.
SG and A expenses increased 11 percent or $ 180,000 to $ 1,813,000 in Q2FYJuly97.
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 Q3FYJuly97 to be between US$ 4.8 and 5.2 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. The Company expects that R and D and SG and A expenses will increase in Q3FY1997 as the Company continues its investment in new products and the infrastructure to support them.
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(R) 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.
Earnings Table
All figures are reported in thousands of US dollars.
Metrowerks Inc.
Consolidated Statements of Operations
Jan 31 Oct 31 July 31 April 30 Jan 31
1997 1996 1996 1996 1996
______ ______ _______ ________ ______
Revenue 4,684 3,766 3,504 2,372 2,418
Cost of goods sold 1,317 968 972 404 460
SG and A and technical support 1,813 1,636 1,386 1,224 1,039
Research and development 1,459 1,217 1,314 903 693
Depreciation of fixed assets 261 209 160 105 53
_____ _____ _____ _____ _____
Total operating expenses 4,850 4,030 3,832 2,636 2,245
_____ _____ _____ _____ _____
Operating income (loss) (166) (264) (328) (264) 173
Interest 91 129 150 117 48
_____ _____ _____ _____ _____
Net earnings (loss) (75) (135) (178) (147) 221
EPS fully diluted (0.01) (0.01) (0.02) (0.01) 0.02
As of January 31, 1997 there were 11,526,199 shares outstanding and there were 971,400 options outstanding to acquire common shares. About Metrowerks
Founded in 1985, Metrowerks develops, markets and supports a complete line of programming tools for building applications for a number of operating systems intended for use on desktop computers or embedded systems, including Mac(R) OS, Windows 95, Windows NT(TM), PlayStation OS, BeOS(TM) and Palm(TM) OS, running on a number of microprocessors including 68K, PowerPC, MIPS and x86 microprocessors. Metrowerks' CodeWarrior products are used by over 65,000 registered users in 70 countries. Additional information on Metrowerks and its products is available via e-mail at "[email protected]," from our web site at " http://www.metrowerks.com," or by calling 800/377-5416 or 512/873-4700.
Metrowerks, the Metrowerks logo and CodeWarrior are registered trademarks of Metrowerks Inc. Apple, Mac and Macintosh are registered trademarks of Apple Computer, Inc. Windows and WindowsNT are registered trademarks or trademarks of Microsoft Corp. in the United States and other countries. All other company and product names may be registered trademarks or trademarks of their respective companies/holders, and are hereby recognized. Statements in this press release regarding future releases of CodeWarrior are forward looking statements that involve risks and uncertainties, including successful and timely development of future releases of CodeWarrior and customer acceptance of the products.
CONTACT:
Metrowerks Inc.
Cynthia Fray, 512/873-4758
[email protected]
or
Metrowerks Inc.
Jim Welch, 512/873-4777
[email protected]