Did anyone read the press release below.... Read it.
1 MILLION UNITS sold in ONE MONTH (October 31- November 31st) Albeit, to distributors and retailer, but still it is amazing.. Riven IS going to challenge Myst as the best selling game of all time.
Tae Kim
TJK Market Letter
Wednesday, December 17, 1997 05:34 PM
> NOVATO, Calif.--Broderbund Software, Inc. (NASDAQ:BROD) announced today its
operating results for the first quarter of fiscal year 1998.
First Quarter Financial Review
Revenues in the quarter ended November 30, 1997, were $99.2 million, an increase of 61% from
the $61.5 million reported during the same quarter last year. Net income for the quarter totaled
$10.6 million or $.49 per share, up 19% from the $8.9 million or $0.42 per share earned in the first
quarter of fiscal 1997.
During the first quarter of fiscal 1998, Broderbund experienced the largest product release in its
history. Riven(tm): The Sequel to Myst(R) was launched on October 31, 1997. In the Company's
first fiscal quarter, more than a million units have been sold to retailers, distributors and directly to
consumers. During the month after its launch, Riven was ranked as the best-selling entertainment title
by a two-to-one margin.(a) In addition, Myst(R) remains in the top five best-selling titles based on
the number of units sold.(a)
During the first quarter of fiscal 1998, Broderbund released 19 new titles (14 published products
and 5 affiliated label products), up from 10 new titles (3 published products and 7 affiliated label
products) released in the first quarter of the prior fiscal year. In addition, Broderbund products have
just been nominated for nine Software Publishers Association (SPA) Excellence in Software
Awards (Codies). Broderbund has won more SPA Awards for outstanding products than any other
software publisher.
"We are delighted with the initial success that Riven has achieved. We believe our strategy to
support Riven throughout its lifecycle is on track and we are beginning to see results with our
productivity and educational products from the aggressive development schedule and new
marketing efforts that we have been investing in over the past year," said Joe Durrett, chief executive
officer. "The consumer software industry continues to be intensely competitive as the industry
consolidates. We continue to see pricing pressure in important segments of our business. While we
will be responsive to industry changes, we are committed to developing programs and brands that
can justify the premium positioning that our products deserve."
Factors That May Affect Future Results
This press release contains forward-looking statements. There are certain important factors that
could cause results to differ materially from those anticipated by the statements made above.
Among, but not limited to these, are the competitive environment in the consumer software industry,
the competition and continuing uncertainties in the consumer software distribution channels, the
anticipation of growth of certain market segments, the positioning of Broderbund's products in those
segments, the importance of successful and timely new Broderbund product releases and the
successful integration of new products and businesses, including without limitation, Parsons
Technology, Inc. Additional information on these and other factors which could affect the
Company's financial results are included in the Company's 1997 Annual Report to Stockholders
and Form 10-K on file with the Securities and Exchange Commission.
Company Information
Broderbund Software, Inc. develops, publishes and markets a broad line of interactive software for
use in homes, schools and small businesses. Since its founding in 1980, Broderbund has repeatedly
broken new ground, conceiving and developing families of software products with enduring
customer appeal based on creativity, innovation and ease-of-use. The Company, headquartered in
Novato, California, is committed to providing its customers with engaging products that set quality
standards and take advantage of the latest technologies. Broderbund's internet web site is located at
broderbund.com .
(a) Per PC Data reports.
Note to Editors: Broderbund, Riven: The Sequel to Myst and Myst are trademarks or registered
trademarks of Broderbund Software, Inc. All rights reserved. All other marks are trademarks or
registered trademarks of their respective holders.
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended
------------------
November 30,
-----------
1997 1996
---- ----
Net revenues $ 99,197 $ 61,491
Cost of revenues 34,637 22,177
Amortization of purchased technology 2,222 1,022
---------- ----------
Gross margin 62,338 38,292
---------- ----------
Operating expenses:
Sales and marketing 27,019 14,154
Research and development 13,012 7,713
General and administrative 6,885 2,907
---------- ----------
Total operating expenses 46,916 24,774
---------- ----------
Income from operations 15,422 13,518
Interest and dividend income, net 1,219 1,549
Equity in (loss) of joint venture - (603)
---------- ----------
Income before income taxes 16,641 14,464
Provision for income taxes 6,064 5,569
---------- ----------
Net income $ 10,577 $ 8,895
====== ======
Net income per share $ 0.49 $ 0.42
====== ======
Shares used in computing
per share data 21,497 21,109
====== ======
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Nov. 30, Aug. 31,
1997 1997
------- -------
(Unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 93,819 $ 94,078
Accounts receivable, net 62,250 18,047
Inventories 9,782 4,527
Deferred income taxes 26,131 14,975
Other current assets 3,273 3,799
-------- --------
Total current assets 195,255 135,426
Property and equipment, net 18,443 18,664
Purchased technology and other intangibles 18,367 20,308
Deferred income taxes 11,649 11,002
Other assets 1,049 1,203
-------- --------
$244,763 $186,603
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,147 $ 8,928
Accrued compensation 8,898 8,545
Accrued income taxes 23,164 4,621
Other accrued expenses 33,791 14,397
-------- --------
Total current liabilities 83,000 36,491
Other liabilities 1,950 2,030
-------- --------
Total liabilities 84,950 38,521
-------- --------
Stockholders' equity
Common stock 28,357 27,422
Retained earnings 131,456 120,660
-------- --------
Total stockholders' equity 159,813 148,082
-------- --------
$244,763 $186,603
======== ========
CONTACT: Broderbund Software, Inc., Novato
Robin Linstrom, 415/382-4449 Investor Relations
robin_linstrom@broder.com
Eric Winkler, 415/382-4568 Marketing/Communications
eric_winkler@broder.com
Quote for referenced ticker symbols: BROD
c 1997, Business Wire
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