TULSA, Okla., Aug. 6 /PRNewswire/ -- Heartsoft, Inc. (OTC Bulletin Board: HTSF), publisher of educational software products, announced today that financial results for the first fiscal quarter which ended on June 30, 1997, showed a return to profitability.
For the first 3 months of fiscal 1997, Heartsoft, Inc. recorded revenues of $257,300 with a net income of $74,300, or 1 cent per share. The company had recently reported that it had lost $270,000 for the year ending March 31, 1997, due to dramatically increased R&D costs associated with the development of its newest educational software product, Thinkology(R), scheduled for release September 1, as well as expenses associated with the discontinuation of the company's Advanced Technologies division.
During the first quarter of fiscal 1997, the company's revenues of $257,300 were generated exclusively by the company's core products division in Tulsa, Oklahoma. Compared to the same quarter one year ago, revenues from the core products division increased 15%, up from $222,000. Net income for the quarter increased 88%, up from $39,500 for the same quarter ending June 30, 1996.
Overall, the company's revenues decreased 56%, down from $459,200 during the same quarter ending June 30, 1996. The decrease in overall revenue was solely the result of the elimination of the company's Advanced Technologies division which had never generated a profit.
"Although Heartsoft saw a decrease in operating revenues during the first quarter of fiscal 1997, the decrease is attributed to the elimination of revenues from the discontinued division in Dallas, Texas. The Advanced Technologies division had been unable to generate a profit during its 18 month existence, and while its discontinuation reduced overall corporate revenues, the net effect on the company was the elimination of the division's net loss," said Benjamin P. Shell, Heartsoft Chairman and CEO.
"It is obvious that the internal restructuring of the company which occurred during the last quarter of fiscal 1996, has had a significant impact on Heartsoft's ability to operate profitably. With the introduction of our first new product in 5 years, Thinkology, we feel that Heartsoft is strategically positioned to capitalize on its ability to produce and sell its proprietary educational software products in a profitable manner. We anticipate that 1997 will be a banner year for the company, both from a net revenue and net income perspective."
Heartsoft, Inc. publishes and distributes curriculum-based educational software products for parents and educators nationally. The company's stock is traded on the OTC bulletin board under the symbol HTSF. The company's website can be accessed at "www.heartsoft.com".
SOURCE Heartsoft, Inc.
CO: Heartsoft, Inc.
ST: Oklahoma
IN: CPR EDU PUB
SU:
08/06/97 08:23 EDT prnewswire.com |
