Friday September 3, 7:56 am Eastern Time
Company Press Release
Metrowerks Inc.: Announcement
AUSTIN, TEXAS--Metrowerks Inc. (NASDAQ: MTWK - news) announced today that, in conjunction with the mailing by Motorola Canada Acquisition Corp., a wholly-owned subsidiary of Motorola, Inc., of the previously announced offer to acquire all of the outstanding common shares of Metrowerks Inc. (``Metrowerks' or the ``Company') for U.S.$6.25 cash per share, it mailed on September 2,1999 its directors' circular which contains a unanimous recommendation that shareholders accept the offer. The offer will expire at 11:59 p.m. (Eastern Standard Time) on Friday, September 24, 1999 unless extended or withdrawn. The offer is being made in accordance with the previously announced agreement dated August 19, 1999.
Further to its previous announcement of August 19, 1999, the Company also announced that it anticipates having to restate its 1998 and 1999 financial statements primarily due to a misinterpretation of accounting policies concerning software revenue recognition, including AICPA Statement of Position 97-2 (``SOP 97-2'). Based on the status of current discussions with its auditors, the Company estimates that the total restatement could result in up to US$3.0 million of revenue in fiscal 1998 and US$7.5 million of revenue in fiscal 1999 being deferred to future periods. The Company is continuing to work with its auditors to finalize the accounting treatment for the licensing transactions in question and expects that this review will be completed in the course of the audit of the Company's 1999 financial results.
Statements in this press release about the anticipated restatement of earnings are forward-looking and involve risks and uncertainties. The Company's actual results could differ materially from those stated in the forward-looking statements. The forward-looking statements in this section are intended to be subject to the safe harbor protection provided under United States securities laws.
About Metrowerks
Founded in 1985 and headquartered in Austin, Texas, Metrowerks designs, develops, markets and supports professional software development tools used by programmers to create software applications. Metrowerks' flagship product line, CodeWarrior©, consists of a suite of programming tools used by developers worldwide to create software in the C, C++, Java(TM) and assembly programming languages. CodeWarrior has more than 200,000 registered users in 80 countries.
Metrowerks, the Metrowerks logo and Code Warrior are registered trademarks of Metrowerks Inc. All other company and product names may be registered trademarks or trademarks of their respective companies/holders, and are hereby recognized.
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