TSSW reported a profit of .02 in the company's first quarter before the effect of amortization of goodwill and other intangibles:
From 11 May release: " The company reported a loss for the quarter ended March 31, 2000 of $334,432 or $0.03 per share compare with a loss of $1,504,733 or $0.19 per share for the same quarter ended March 31, 1999. The Company's first-quarter net income before the effect of amortization of goodwill and other intangibles was $236,629 or $0.02 per share. " ( Amortization of goodwill and other intangibles is a noncash adjustment to earnings )
The first opportunity or liquidation event will be with PRTS when the company opts to take profits. TSSW has 260,000 shares of PRTS at $2.50 per share. TSSW's current profit is ($5.875 - $2.50 ) * 260,000 = $877,500, Next Major IPO will be Supplyaccess.com. ( See ENPT news for info on Supplyaccess.com )
TSSW has over $3 Million invested in preIPO companies and has received warrants to purchase shares in two other companies in addition to favorable 90 day bridge financing agreements.
DC
Item 1. Financial Statements
TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2000
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 535,261
Restricted cash 720,000
Accounts receivable, net 871,143
Inventories, net 199,722
Note receivable 925,000
Deferred tax asset 412,000
Prepaid expenses and other current assets 208,294
Total current assets 3,871,420
Investments, marketable securities 69,213
Investments, other 3,112,198
Note receivable, shareholders 700,500
Property, plant and equipment, net 143,143
Goodwill and other intangibles, net 2,500,280
Other assets 30,053
$ 10,426,807
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $66,964
Accounts payable 445,823
Accrued payroll and related expenses 411,545
Deferred revenue 560,740
Other accrued expenses 599,716
Total current liabilities 2,084,788
Long-term debt 438,379
Deferred tax liability 695,000
Minority interest 36,800
Total liabilities 3,254,967
Shareholders' equity:
Preferred stock, $.001 par value, 3,000,000 shares
authorized, none issued or outstanding
Common stock, $.001 par value, 20,000,000 shares
authorized, issued and outstanding,
11,440,060 (2000) 11,440
Other comprehensive income, net of taxes 584,898
Additional paid-in capital 21,026,934
Deferred compensation (40,633)
Accumulated deficit (14,410,799)
Total shareholders' equity 7,171,840
$10,426,807
TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
Three Months Ended
March 31, March 31,
2000 1999
(unaudited)
Revenues:
Product sales $1,739,909 $ 1,295,598
Royalty income 47,022 -
Net revenues 1,786,931 1,295,598
Cost of revenues 177,140 254,109
Gross profit 1,609,791 1,041,489
Operating expenses:
Sales and marketing 539,960 508,506
General and administrative 612,071 488,123
Research and development 461,152 277,806
Amortization of goodwill and acquired
intangible assets 567,061 211,234
Merger, acquisition and restructuring
charges - 1,174,730
Total operating expenses 2,180,244 2,660,399
Loss from operations (570,453) (1,618,910)
Other income, net 146,890 63,944
Loss before benefit from income taxes (423,563) (1,554,966)
Benefit from income taxes (125,931) (50,233)
Net loss before minority interest (297,632) (1,504,733)
Minority interest (36,800) -
Net loss $ (334,432) $ (1,504,733)
Basic and diluted loss per share $ (0.03) $ (0.19)
Basic weighted average shares
outstanding 11,417,060 7,963,060 |
