Bitstream Inc. Reports Fourth Quarter Results
BusinessWire, Tuesday, March 03, 1998 at 14:52
CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 3, 1998--Bitstream Inc.
(NASDAQ:BITS) today reported revenues of $3,757,000 for the three
months ended December 31, 1997, an increase of 50% over revenues of
$2,502,000 for the three months ended December 31, 1996. Net income
for the quarter ended December 31, 1997 was $118,000, as compared to
net income of $157,000 for the three months ended December 31, 1996.
Net income per share was $0.02 for the three months ended December 31,
1997, and for the three months ended December 31, 1996.
Revenues for the fiscal year ended December 31, 1997 increased
24% to $13,102,000 compared to $10,551,000 for the fiscal year ended
December 31, 1996. Net loss for the fiscal year ended December 31,
1997 was ($5,990,000), as compared to net income of 1,337,000, for the
fiscal year ended December 31, 1996. Net loss per share was ($0.95)
for the fiscal year ended December 31, 1997, versus net income per
share of $0.25 for the fiscal year ended December 31, 1996. Operating
expenses for the fiscal year ended December 31, 1997 reflect
non-recurring expenses of $6,301,000, including $4,930,000 for
in-process research and development expenses incurred in conjunction
with the merger with Archetype, Inc. on April 28, 1997 and $1,371,000
for severance and other non-recurring expenses. The Archetype merger
was accounted for as a purchase and Archetype's operating results were
consolidated with Bitstream's since the merger date.
In the fourth quarter of 1997, the Company adopted SFAS No. 128
relating to the calculation and presentation of Earnings per Share.
This standard requires presentation of both basic and fully diluted
earnings per share on the face of the income statement. Basic EPS is
calculated using the weighted average common shares outstanding and
diluted EPS is calculated using the weighted average common and common
equivalent shares outstanding. Diluted EPS during periods of net loss
is calculated using only weighted average common shares outstanding.
The discussion of EPS in this release focuses on diluted EPS. All
previously disclosed quarterly and annual earnings per share,
including those for 1996 included in this press release, that were
reported in prior periods as "net income per common and common
equivalent shares outstanding" are now reported as "diluted income per
common share."
"1997 was a historical year for Bitstream. Through acquisitions,
new product launches, licensing agreements, and organizational
changes, we began the Company's evolution from a font-centric company
into a diversified software company offering a wide range of key
components to the publishing industry," said Charles Ying, CEO and
Chairman of Bitstream Inc. "Our fourth quarter and year-end results
support the direction that we are taking, as we posted quarterly and
annual revenue increases of 50% and 24% respectively."
Fourth quarter highlights include the licensing of the
award-winning Bitstream(R) TrueDoc(tm) technology to Samsung
Corporation for incorporation into its SmartStudio(tm) video authoring
tool; Sun Microsystems' adoption of TrueDoc as the font subsystem for
its JavaOS(tm); and many editor and industry awards for Bitstream(R)
Font Navigator(tm) and Bitstream(R) MediaBank.(tm)
Bitstream, headquartered in Cambridge Massachusetts, develops,
markets, and supports software technologies and applications for the
graphics communications industry. Through the Type and Technology
Division, Bitstream licenses leading text imaging and page layout
technologies, such as Bitstream TrueDoc, Bitstream JET and Bitstream
NuDoc, to hundreds of independent developers. Building on these
technologies, Bitstream's Archetype Applications Division develops
publishing applications, such as its MediaBank digital asset manager
and the InterSep OPI server. Thousands of corporations, publishers, ad
agencies, and prepress houses use Archetype applications.
Complementing these products, Bitstream markets and supports an
extensive multilingual library of over 1,400 typefaces. For more
information on Bitstream and its products, please visit the company on
the World Wide Web at bitstream.com.
All trademarks are the property of their respective holders and are
mentioned for identification purposes only.
*T
BITSTREAM INC.
Consolidated Statement of Operations Data
(Dollars in Thousands Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenues: $ 3,757 $ 2,502 $13,102 $10,551
Cost of Revenues: 468 405 1,518 1,858
Gross profit: 3,289 2,097 11,584 8,693
Operating expenses:
Marketing and selling 1,740 1,124 6,621 4,386
Research and development 827 498 2,826 1,512
General and administrative
In-process research and 621 359 2,104 1,533
development
Severance & other non- -- -- 4,930 --
recurring compensation
-- -- 1,371 --
Total operating expenses: 3,188 1,981 17,852 7,431
Operating income: 101 116 (6,268) 1,262
Other income (expense), net: 51 43 510 (19)
Provision for (benefit from)
income taxes: 34 2 232 (94)
Net income: $ 118 $ 157 $ (5,990) $ 1,337
Basic net income per share: .02 .03 (.95) .34
Basic weighted average
shares outstanding: 6,512,951 5,050,747 6,303,216 3,879,490
Diluted net income per share: .02 .02 N/A .25
Weighted average common shares
outstanding and dilutive
potential common shares: 7,775,160 6,575,608 N/A 5,404,351
BITSTREAM INC.
Consolidated Balance Sheet Data
(Dollars in Thousands)
December 31, 1997 December 31, 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 6,364 $11,718
Trade receivables, net 3,694 1,552
Current portion of long-
term account and
extended plan accounts
receivable, net 1,855 1,667
Deferred income taxes 868 868
Other current assets 684 434
Total current assets: 13,465 16,239
Property and equipment, net:
1,399 924
Other assets: 2,145 314
Total Assets: $17,009 $17,477
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Short term debt $ 28 $ 36
Accounts payable 752 513
Accrued expenses 3,472 1,470
Total current liabilities: 4,252 2,019
Leases & LTD: 73 99
Total Shareholders' Equity: 12,684 15,359
Total Liabilities & Shareholders'
Equity: $17,009 $17,477
*T
CONTACT: Bitstream Inc.
Colleen Cronin, 617/520-8329
ccronin@bitstream.com
or
Bitstream Inc.
Wendy Darland, 617) 520-8378
wdarland@bitstream.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS
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