Q2 1999 Financial Results
Revenues Increase 51 Percent Over Preceding Year
VANCOUVER, British Columbia, July 13 /CNW/ -- Multiactive Software
Inc. (CDN: MSWI) released its financial results for the second quarter of
fiscal year 1999 (Q2: FY99) which ended May 31, 1999. Multiactive Software
reported gross revenues of $6.34 million for the quarter, which represents a
51 percent increase over the corresponding period of 1998 and a 16 percent
increase over the first quarter of 1999. Year-to-date revenues amounted to
$11.74 million, which represents an increase of 55.7 percent over the
$7.54 million recorded for the six months ended May 31, 1998.
Net income for the quarter ended May 31, 1999 amounted to $191,000 (or
$0.00 per share) as compared to a loss of $1.6 million (or $0.11 per share)
for the preceding year (Q2: FY98). The year-to-date net income for the current
year amounts to a loss of $42,000 (or $0.00 per share) as compared to a loss
of $2.88 million (or $0.21 per share) for the six months ended May 31, 1998.
The results for the prior periods have been adjusted to reflect the
acquisition of the rights to the ecBuilder product line from a related party
on March 1, 1999. The acquisition is being accounted for on a basis similar to
the pooling of interest method.
Terry Hui, Chairman, Multiactive Software, said: "Multiactive has had
another strong quarter with a lot of activity. The quarter not only saw us
land several key accounts, but it also saw us win an award for having the Best
Internet Commerce Software; it saw us raise $13 million and become a public
company. Following the end of the quarter, we announced the launch of Entice!
-- the only comprehensive e-business solution for mid-sized enterprises.
Multiactive's performance in the second quarter and the launch of this
breakthrough product affirms that we are well positioned to accelerate our
growth."
Brent Halverson, President, Multiactive Software concurs: "Our decision
to invest in the burgeoning e-business sector is paying off. Not only are we
receiving positive feedback from industry groups, but our revenues are rising
to meet this trend. And with reports such as Computer Economics' 1999
Information Systems and E-business Spending study showing that within the next
six months e-commerce software will be purchased by nearly half, or
46.7 percent, of U.S. organizations, we are expecting this trend to continue."
Quarterly Highlights
The following highlights were announced or occurred since Multiactive
Software's last earnings statement:
Award Winning Software
In March, ecBuilder Pro(R), Multiactive Software's e-commerce solution for
small and home-based businesses, was awarded the prestigious Codie award for
having the year's "Best Internet Commerce Software". In winning the peer
recognition award, Multiactive beat out several major industry leaders.
Key Appointments
The quarter also saw several key appointments. These included appointing
Brent Halverson to the role of President, and Brenda Christensen to the role
of Vice President, Corporate Communications. Halverson, in his role, will be
responsible for worldwide operations, strategic planning, direction, and
development. He transitioned into this role after spending 12 successful years
at Multiactive and its predecessors.
Christensen brings 14 years of corporate communications experience,
including nearly 7 years with California-based GoldMine Software. In her role
at Multiactive, she is responsible for ensuring the company is projecting a
unified message to the public and investors. Christensen oversees all investor
relations, public relations, and external communications.
Successful Public Offering
In early May, the Canadian Dealing Network approved quotation of
Multiactive common shares to be traded under the symbol MSWI. This followed a
private issue of 13 million common at $1.00 per share. Multiactive currently
has approximately 58.3 million common shares outstanding.
About Multiactive Software:
Multiactive Software Inc. is a leading developer of innovative e-business,
sales, marketing and customer management software, including Entice!(TM),
ecBuilder(R), ecBuilder Pro, Maximizer(TM) and Maximizer Enterprise(TM)
Designed to facilitate, track, analyze and automate the sales, marketing and
customer service processes, these award-winning applications are used by more
than a million people worldwide. ecBuilder recently received the prestigious
"Best Internet Commerce Software" Codie Award for 1999 from the Software and
Information Industry Association (SIIA).
The company has offices located throughout North America, Latin America,
Europe and Asia Pacific and a customer base that includes such leading
companies and institutions as Siemens, BankBoston, Travelers Insurance, Virgin
Records and Pennzoil. To find out more about Multiactive Software and its
products, call 800-804-6299 or visit multiactive.com.
Multiactive Software Inc.
Consolidated Statement of Operations
For the three months ended May 31, 1999
(unaudited)
(in thousands of Canadian dollars)
1999 1998
Revenue 6,339 4,175
Cost of Sales 580 440
Gross Profit 5,759 3,735
Expenses
Selling and marketing 3,327 2,324
Customer support 259 324
Research and development 1,083 1070
Finance, administrative, and other 907 1451
Interest on debt 46 39
Minority interest 38 50
5,660 5,258
Income (loss) before taxes 99 (1,523)
Income tax recovery/expense (92) 67
Net income (loss) for the period 191 (1,590)
Multiactive Software Inc.
Consolidated Statement of Operations
For the six months ended May 31, 1999
(unaudited)
(in thousands of Canadian dollars)
1999 1998
Revenue 11,791 7,535
Cost of Sales 1,487 1,071
Gross Profit 10,304 6,464
Expenses
Selling and marketing 6,051 4,025
Customer support 530 646
Research and development 2,129 1,988
Finance, administrative, and other 1,550 2,451
Interest on debt 87 77
Minority interest 61 60
10,408 9,247
Loss before taxes (104) (2,783)
Income tax recovery/expense (62) 91
Loss for the period (42) (2,874)
Multiactive Software Inc.
Consolidated Statement of Changes in Financial Position
For the three months ended May 31, 1999
(unaudited)
(in thousands of Canadian dollars)
1999 1998
Cash flows from operating activities
Net income (loss) for the period 191 (1,590)
Items not affecting cash
Depreciation 105 389
Minority interest 38 50
334 (1,151)
Net Change in non-cash working capital items
Accounts receivable (1,431) (172)
Share subscription receivable 2,000 0
Inventory (207) 34
Prepaid expenses and deposits (245) 14
Accounts payable and accrued liabilities 986 252
Due to related parties 621 2,116
Deferred revenue (179) 171
1,545 2,415
1,879 1,264
Cash flows from financing activities
Partners capital/contribution 0 370
Issue of common shares (net) 16,457 8,000
Due to related parties (7,580) (8,900)
8,877 (530)
Cash flows from investing activities
Additions to capital assets (80) (651)
(80) (651)
Increase in cash resources 10,676 83
Bank indebtedness - beginning of period (2,379) (1,732)
Cash resources - end of period 8,297 (1,649)
Multiactive Software Inc.
Consolidated Statement of Changes in Financial Position
For the six months ended May 31, 1999
(unaudited)
(in thousands of Canadian dollars)
1999 1998
Cash flows from operating activities
Net income (loss) for the period (42) (2,874)
Items not affecting cash
Depreciation 207 483
Minority interest 61 60
226 (2,331)
Net Change in non-cash working capital items
Accounts receivable (2,365) (573)
Share subscription receivable 0 0
Inventory 157 (226)
Prepaid expenses and deposits (257) (89)
Accounts payable and accrued liabilities (95) 1,232
Due to related parties 459 2,385
Deferred revenue 18 171
(2,083) 2,900
(1,857) 569
Cash flows from financing activities
Partners capital/contribution 671 692
Issue of common shares (net) 18,459 8,000
Due to related parties (7,000) (8,000)
12,130 692
Cash flows from investing activities
Additions to capital assets (152) (916)
(152) (916)
Increase in cash resources 10,121 345
Bank indebtedness - beginning of period (1,824) (1,994)
Cash resources - end of period 8,297 (1,649)
This release may contain certain forward-looking statements reflecting
Multiactive Software Inc.'s current expectations in the electronic business
and sales and customer management software markets. Investors are cautioned
that all forward-looking statements involve risks and uncertainties,
including, without limitation, changes in market and competition,
technological and competitive developments, and potential downturns in
economic conditions generally. Additional information on these and other
potential factors that could affect the Company's financial results are
detailed in documents filed from time to time with the Ontario Securities
Commission.
NOTE: All trademarks or registered trademarks stated herein are
properties of their respective owners.
CONTACT: Brenda Christensen, VP, Corporate Communications, 818-884-5391,
or blcmultiactive.com, or Brent Halverson, President, 604-601-8168, or
brenthmultiactive.com, both of Multiactive Software Inc.
For further information: Brenda Christensen, VP, Corporate
Communications, 818-884-5391, or blc@multiactive.com, or Brent Halverson,
President, 604-601-8168, or brenth@multiactive.com, both of Multiactive
Software Inc.
/Web site: multiactive.com |
