Nice earnings report; also, a good-looking balance sheet: $10MM in cash with a market cap of $19MM. good prospects for growth in a market that should expand 10-fold in next couple of years.
Wednesday April 25, 5:08 pm Eastern Time
Press Release
Insightful Announces Record First Quarter Revenues
and New Expansion Strategy
Growth, profitability and positive cash flow from continuing operations
SEATTLE--(BUSINESS WIRE)--April 25, 2001-- MathSoft, Inc. d.b.a. Insightful Corporation (Nasdaq:IFUL - news), a
leading provider of enterprise software solutions for data analysis, announced today continuing growth and profitability in its
financial results for the first quarter ended March 31, 2001.
Revenues from Insightful's continuing operations (software and services for statistics, data mining and predictive analysis)
reached $4.1 million, representing 16 percent growth over the same quarter the prior year. Revenues from the sale of software
licenses and subscriptions grew 7 percent over the same quarter in 2000, reaching $3.1 million. Revenues from consulting
services reached $1.0 million or 58 percent growth over the first quarter 2000.
First quarter earnings after tax from continuing operations amounted to $176,000 or $0.02 per share. First quarter overall
earnings after tax were $2.9 million, or $0.27 per share on a fully diluted basis, including a gain of $3.5 million from sale of
MathSoft Engineering and Education Products Division, partially offset by a $737,000 net operating loss from discontinued
operations.
``We are proud that our results exceeded the upper limit of our revised estimates for this quarter, given the current economic
climate,'' said Shawn Javid, president and CEO, Insightful Corporation. ``The company is focused on its successful and
growing business in statistics, data mining and predictive analysis, which are the key analytic applications for business
intelligence.''
``We are pleased to report positive earnings, profitability and $194,000 positive cash flow from continuing operations this
quarter, consistent with the trend we have been establishing over the last two years,'' said Sar Ramadan, chief financial officer,
Insightful Corporation. ``The company's financial position is strong, with $10 million in cash and no significant debt.''
``Our long-term strategic plan is to enhance shareholder value by leveraging our best-of-breed technology and services in the
data analysis market while maintaining a strong balance sheet,'' said Javid. ``We plan to grow faster than our competition by
expanding our domestic field sales and consulting team, expanding our presence in Europe, expanding our alliances and
partnerships, enhancing the capabilities of our analytic technology in several key ways, and acquiring synergistic technology and
services companies.''
Insightful's growth has been fueled by demand from data-intensive industries including financial services, biotechnology,
pharmaceuticals and telecommunications. According to International Data Corporation (IDC), the statistics and technical data
analysis market in which Insightful competes was $388 million in 2000.
``Through a series of technical and business initiatives, we are currently expanding into data mining and analytic CRM, which
comprise a much larger market,'' stated Javid. ``IDC estimates the combined market we serve will exceed $3 billion in 2003.
Our core competencies are well suited to these markets because statistical analysis, predictive modeling, and data visualization
are essential technologies required to derive intelligence from data. Given the trend of information overload, we expect that our
solutions for data analysis and information delivery will continue to support strong growth,'' said Javid.
``A key driver of Insightful's market expansion is our professional services organization, which delivers customer-centric
solutions involving analytic development, systems integration, applications development, technology training and contract
research,'' Javid continued. ``This group of highly talented and experienced professionals, including more than 40 Ph.D.s,
provides businesses with solutions to a wide variety of information access and analysis problems. Consulting ultimately sparks
the growth of software licenses as analytical solutions become accessible enterprise-wide.''
Significant milestones for Insightful in first quarter 2001
included:
o Migrating corporate headquarters to Seattle, including
appointment of new CEO, CFO, and Board of Directors.
o Launching S-PLUS Analytic Server(TM) for enterprise and Web
deployment of analytic applications.
o Generating more revenue from Server-based products in Q1/01
than in all of year 2000.
o Adding over 40 new clients including: Philips Semiconductors
(NYSE:PHG - news), Tycom Fiber Optic, (NYSE: TCM - news), Chronos Asset Management and Syrrx.
``Our clients rely on our software for internal development of decision-support tools and, increasingly, use our experts to
deliver outsourced analytical solutions,'' Javid continued. ``In each case we help decision-makers understand what is relevant
now, see patterns and trends, graphically drill-down into the details and predict what will happen next. This helps individuals
make smarter decisions, more quickly up, down and across the enterprise. This translates into cost savings, increased revenues
and competitive advantage.''
ABOUT INSIGHTFUL CORPORATION (FORMERLY KNOWN AS MATHSOFT, INC.)
Following the January 2001 sale of its Engineering and Educational Products Division, MathSoft Inc, now does business as
Insightful Corporation (Nasdaq:IFUL - news). Insightful Corporation is a leading supplier of enterprise software solutions for
data analysis. Statistics, data mining and predictive analysis software from Insightful help people see and understand trends,
patterns and relationships in data to make better decisions, more quickly. Insightful products including S-PLUS®, StatServer®,
and S-PLUS Analytic Server(TM) play a key role in data warehousing and business intelligence initiatives, because they supply
analytics that effectively convert raw data into insight. Insightful provides consulting services for development of analytical
applications, data integration and Web-based business intelligence.
Insightful customers include most of the major financial services, biotechnology, pharmaceutical, high tech manufacturing and
telecommunications firms throughout the world, in addition to a large number of research institutions in government and
academia. The company has more than 150 employees, with corporate offices in Seattle, Washington and Bagshot, England,
plus international distributors.
More information about Insightful Corporation is available at www.insightful.com, at 206/283-8802, by fax at 206/283-8691
or via mail at 1700 Westlake Ave North, Suite 500, Seattle, WA 98109.
Note to Investors - Forward Looking Statements
This release contains information about management's future expectations, plans and prospects that constitute forward-looking
statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those indicated by these forward-looking statements as a result of various important factors,
including, but not limited to, the risks associated with distribution channels; the risks associated with international operations; the
risks associated with acquisitions; the risks associated with investments in new products and services; and the ability to enhance
current products and to introduce new products in a timely fashion. Please refer to the cautionary statements appearing in
Insightful's Annual and Quarterly Reports and prospectus filed with the Securities and Exchange Commission for a discussion of
these and other various factors that could cause Insightful's actual results to differ materially from those discussed in
forward-looking statements.
Insightful, the Insightful logo and S-PLUS Analytic Server are trademarks of Insightful Corporation. S-PLUS and StatServer
are registered trademarks of Insightful Corporation. Other trademarks mentioned are the property of their respective owners.
INSIGHTFUL CORPORATION AND SUBSIDIARIES
BALANCE SHEET
$(000)
Assets March 31, December 31,
2001 2000
($ 000) ($ 000)
Current Assets:
Cash and cash equivalents $9,896 $3,745
Trade Receivables 2,971 3,400
Allowance for Returns & Bad Debt (472) (381)
Other Receivables 978 960
Inventories 24 70
Prepaid expenses 668 127
---- ---
Total current assets 14,065 7,921
------- -----
Property and Equipment, at cost:
Computer equipment and software 2,835 2,640
Furniture and fixtures 386 392
Property and equipment under
capital lease 478 478
Leasehold improvements 90 90
--- --
3,789 3,600
Less--Accumulated depreciation
and amortization 2,652 2,507
------ -----
1,137 1,093
Net Assets of Discontinued
Operations 0 1,291
Other Assets 267 201
---- ---
$15,469 $10,506
Liabilities and Stockholders'
Equity
Current Liabilities:
Current portion of capital lease
obligations and equipment
financings $154 $150
Accounts payable 1,583 1,180
Accrued expenses and other
current liabilities 4,026 2,220
Deferred revenue 2,756 3,042
------ -----
Total current liabilities 8,519 6,592
------ -----
Capital Lease Obligations
and Equipment Financings,
less current portion 28 39
-- --
Commitments
Stockholders' Equity:
Preferred stock, $0.01 par value-
Authorized--1,000,000 shares
Issued and outstanding--none -- --
Common stock, $0.01 par value- 107 107
Additional paid-in capital 32,574 32,525
Accumulated deficit (25,283) (28,214)
Subscription receivable (550) (550)
Cumulative translation adjustment 74 7
--- -
Total stockholders' equity 6,922 3,875
------ -----
$15,469 $10,506
INSIGHTFUL CORPORATION AND SUBSIDIARIES
INCOME STATEMENT
$(000)
Three Months Ended March 31,
2001 2000
($ 000) ($ 000)
Revenues:
Software licenses & Subscriptions $3,099 $2,902
Professional Services 1,006 635
------ ---
Total revenues 4,105 3,537
------ -----
Cost of Revenues:
Software licenses & Subscriptions 483 568
Professional Services 845 385
---- ---
Total cost of revenues 1,328 953
------ ---
Gross profit 2,777 2,584
------ -----
Operating Expenses:
Sales and marketing 1,342 1,147
Research and development - Gross 1,895 1,744
Less - Funded research (1,356) (1,305)
------- -------
Research and development - Net 539 439
General and administrative 811 628
---- ---
Total operating expenses 2,692 2,214
------ -----
Income (loss) from continuing
operations 85 370
Interest and Other Income 107 66
Interest Expense 6 11
-- --
Income (loss) before provision
for income taxes 186 425
Provision for Income Taxes 10 0
--- -
Net income (loss) from
continuing operations 176 425
Discontinued Operations:
Income (loss) from discontinued
operations, net of applicable
income taxes (737) 0
Gain on disposal of discontinued
operations, net of applicable
income taxes 3,492 0
----- -
Net income (loss) $2,931 $425
======= ====
Basic Net Income (Loss) per
Share--Continuing operations $0.02 $0.04
====== =====
Diluted Net Income (Loss) per Share
--Continuing operations $0.02 $0.04
====== =====
Basic Net Income (Loss) per Share
--Discontinued operations $0.26 $0.00
====== =====
Diluted Net Income (Loss) per Share
--Discontinued operations $0.25 $0.00
====== =====
Basic Net Income (Loss) per Share $0.28 $0.04
====== =====
Diluted Net Income (Loss) per Share $0.27 $0.04
====== =====
Weighted Average Number of
Common Shares Outstanding 10,707 10,066
====== ======
Weighted Average Common Shares
Outstanding Assuming Dilution 10,819 11,713
====== ======
Contact:
Insightful Corporation
Sar Ramadan, CFO, 206/283-8802
sramadan@insightful.com
or
Toni Marie Hart, IR, 206/283-8802, ext. 378
toni@insightful.com |
