Multiactive Software Reports 1999 Year-End and
Fourth Quarter Results
Annual Revenues Increase 40 Percent Over the Previous Year
VANCOUVER, British Columbia, Feb. 21 /PRNewswire/ -- Multiactive Software Inc. (Toronto Stock Exchange: E -
news), a leading provider of e-business front office solutions, reported gross revenues for the 12 months ended
November 30, 1999 of $23.2 million, which represents a 40 percent increase over the $16.6 million in gross revenues
reported for the 12 month period ending November 30, 1998. Net loss for fiscal year 1999 was $3.6 million (or a loss of
$0.09 per share) compared to a net loss of $6.5 million (or a loss of $0.51 per share) for fiscal year 1998.
For the fourth quarter of fiscal 1999, Multiactive reported gross revenues of $4.5 million, which represents a decline of
8 percent over the corresponding quarter of 1998. Net loss for the three month period ended November 30, 1999 was
$3.5 million (or a loss of $0.09 per share) compared to a loss of $1.2 million (or a loss of $0.08 per share) for the
corresponding quarter of 1998. In the fourth quarter, the company focused on marketing Entice!, which contributed to
marketing expenditures, as reflected in the financial statements, increasing by approximately $3.4 million over the 12
month period ending November 30, 1999.
``In 1999, we established the company's position as a global e-business provider by expanding our international
presence and establishing offices in France, Singapore, and Hong Kong to complement our existing offices in
Australia, the United Kingdom, and across North America,' said Terence Hui, Chairman, Multiactive Software. ``In the
coming year, in addition to growth through our existing operations, we will increase our focus on leveraging the
dynamic capital market condition.'
``The fourth quarter was a transition quarter for Multiactive Software,' says Brent Halverson, President, Multiactive
Software. ``Given the market conditions and the anticipated demand for e-business enabling software, we made a
strategic decision to concentrate our time and energy in launching our e-business software. In fact, in 1999 we
invested over $5.7 million in marketing and development costs for our new Entice! and ecBuilder product lines. We
believe that these investments have Multiactive well positioned for success and should lead to significant revenue for
the company in the future.'
Fiscal Year 1999 Highlights
Award-Winning Software
Multiactive's commitment to excellence in product development was rewarded in 1999 as both Entice! and ecBuilder
were honored by industry experts. Entice!, which allows traditional mid-size corporations to do more with their Web
site, took the industry by storm at COMDEX/Fall 1999 when it walked away with PC WEEK's ``Best of COMDEX'
award and a top three finish for ``Best Overall'. The award, which is presented as part of the technology industry's
most celebrated new product competition, recognizes the best and most innovative products from over 2100 of the
world's leading companies. In 1999, there were only nine awards presented. Entice! has also been honored with a
distinguished ``Recommended' Award from Computer Reseller News, and as a finalist for the Software & Information
Industry Association's 2000 Codie Awards in the category of ``E-commerce Software - Best Product'.
In March 1999, ecBuilder received a prestigious Codie Award as the ``Best Internet Commerce Software' of 1999 by
the Software and Information Industry Association. Multiactive beat out several major industry players to receive this
award, including Microsoft, Adobe Systems, and Net Perceptions.
Global Growth
The year also saw the company strengthen its international presence through expansion and strategic acquisition. In
December, in response to growing market demand for its e-business and customer management software,
Multiactive opened new offices in Paris and in Singapore. This, when combined with the recently announced
acquisition by its subsidiary Multiactive Pacific of 70 percent of Hong Kong-based ABC Data & Telecom Ltd., places
Multiactive in a strategic position to capitalize on new market opportunities that were previously inaccessible.
Increased Capital and Public Listing
Perhaps the biggest milestone for Multiactive in 1999 was transitioning from private to public entity. In May, Multiactive
completed an issuance of 13 million common shares at $1 per share.
On February 11, 2000, the company entered into a letter of intent with underwriter Taurus Capital Markets Inc. to raise,
on a best efforts basis, $10 million by way of private placement of common shares (by issuing special warrants).
A consolidated summary of financial statements is attached.
About Multiactive Software
Multiactive Software Inc. is a leading developer of innovative e-business, sales, marketing, and customer management
software, including the Entice!(TM), ecBuilder©, and Maximizer(TM) product lines. Designed to attract and retain
customers, these award-winning applications are used by more than a million people worldwide.
Multiactive Software has won numerous awards over its 13-year history. This includes the recent distinctions of the
``Best of COMDEX/Fall 1999' award from PC WEEK, the Computer Reseller News ``Recommended' award, and
finalist for the Software & Information Industry Association's 2000 Codie Awards in the category of ``E-commerce
Software -- Best Product'. Multiactive also won a Codie award for developing the ``Best Internet Commerce Software'
of 1999.
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
www.multiactive.com.
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 provincial securities commissions in Canada.
NOTE: All trademarks or registered trademarks stated herein are properties of their respective owners.
Multiactive Software Inc.
Consolidated Balance Sheets
As of November 30, 1999 and 1998
(audited)
(in thousands of Canadian dollars)
Years Ended
November 30,
1999 1998
Assets
Current assets
Cash $3,118 $280
Accounts receivable 5,066 2,419
Inventory 661 674
Prepaid expenses and deposits 471 235
9,316 3,608
Capital assets 1,593 1,315
$10,909 $4,923
Liabilities
Current liabilities
Bank indebtedness $177 $2,104
Accounts payable and accrued liabilities 3,729 5,216
Due to related parties 682 6,719
Deferred revenue 142 177
4,730 14,216
Minority interest 66 64
4,796 14,280
Shareholders' deficiency
Share capital 29,748 10,674
Deficit (23,635) (20,031)
6,113 (9,357)
$10,909 $4,923
Multiactive Software Inc.
Consolidated Statements of Operations and Deficit
For the three and twelve months ended November 30, 1999 and 1998
(in thousands of Canadian dollars)
Three months ended Years ended
November 30, November 30,
(unaudited) (audited)
1999 1998 1999 1998
Revenue $4,495 $4,873 $23,206 $16,599
Cost of sales 770 982 3,817 2,926
Gross profit 3,725 3,891 19,389 13,673
Expenses
Selling and marketing 3,973 2,888 12,920 9,550
Customer support 296 159 1,115 1,202
Research and development 1,327 1,342 4,531 4,472
Finance, administrative and
other 1,711 780 4,402 4,633
Interest on debt 12 40 113 153
Minority interest (56) 11 2 36
7,263 5,220 23,083 20,046
Loss before taxes (3,538) (1,329) (3,694) (6,373)
Income tax recovery (expense) 24 112 90 (100)
Loss for the period (3,514) (1,217) (3,604) (6,473)
Deficit -- Beginning of year (20,121) (18,814) (20,031) (13,558)
Deficit -- End of year (23,635) (20,031) (23,635) (20,031)
Basic loss per share $(0.06) $(0.05) $(0.09) $(0.51)
Multiactive Software Inc.
Consolidated Statements of Cash Flows
For the three and twelve months ended November 30, 1999 and 1998
(in thousands of Canadian dollars)
Three months endedYears ended
November 30, November 30,
(unaudited)
(audited)
1999 1998 1999 1998
Cash flows from operating
activities
Net loss for the period $(3,514) $(1,217) $(3,604) $(6,473)
Items not affecting cash:
Depreciation 142 98 467 413
Amortization and write-off
of acquired software -- -- -- 574
Minority interest (56) 11 2 36
(3,428) (1,108) (3,135) (5,450)
Net change in non-cash
working capital items
Accounts receivable 2,131 (78) (2,647) (744)
Inventory (128) (56) 13 (154)
Prepaid expenses and
deposits 259 176 (236) (35)
Accounts payable and
accrued liabilities (1,829) 401 (1,487) 2,766
Due to related parties 426 115 383 (729)
Deferred revenue (123) 70 (35) 177
736 628 (4,009) 1,281
(2,692) (480) (7,144) (4,169)
Cash flows from financing
activities
Capital funding of ecBuilder
division -- 448 674 1,635
Issue of common shares 25 -- 18,400 8,000
Due to related parties -- 338 (6,420) (4,162)
25 786 12,654 5,473
Cash flows from investing
activities
Additions to capital assets (281) (48) (745) (560)
Additions to acquired software -- -- -- (574)
(281) (48) (745) (1,134)
Increase in cash (2,948) 258 4,765 170
Cash (bank indebtedness) -
beginning of period 5,889 (2,082) (1,824) (1,994)
Cash (bank indebtedness) -
end of period $2,941 $(1,824) $2,941 $(1,824)
Cash (bank indebtedness)
represented by:
Cash 3,118 280 3,118 280
Bank indebtedness (177) (2,104) (177) (2,104)
2,941 (1,824) 2,941 (1,824)
Interest received in period 42 -- 149 --
Interest paid in period (4) (41) (113) (153)
Taxes (paid) recovered in period 24 112 90 (100)
Approved by the Board of Directors
Signed "Brent Halverson", Director
Signed "Keith Peck", Director
SOURCE: Multiactive Software Inc. |
