Not sure what the expectations were...
Tuesday April 21, 4:08 pm Eastern Time
Company Press Release
MetaCreations Announces First Quarter Results
CARPINTERIA, Calif.--(BUSINESS WIRE)--April 21, 1998--MetaCreations Corp. (Nasdaq: MCRE - news) Tuesday reported that net revenues were $14.4 million for the first quarter ended March 31, 1998, compared to net revenues of $13.3 million for the first quarter ended March 31, 1997.
MetaCreations also reported a net loss of $823,000, or $.03 per share, for the first quarter of 1998, compared to a net loss of $432,000, or $.02 per share, for the first quarter of 1997.
MetaCreations attributed the loss in the first quarter of 1998 to seasonal weakness, as previously experienced by MetaCreations, combined with significant increases in research and development expenditures in the first quarter of 1998.
In addition, international sales were weak due to the low number of localized versions of products scheduled for release in international markets in the first quarter of 1998.
While net revenues in North America were up 41% in the first quarter of 1998 over the first quarter of 1997, international revenues were down 26% in the same period. North American revenues were up in the first quarter of 1998 substantially as a result of the shipment of three new products during the first quarter -- Painter Classic(tm), Kai's Photo SHOW(tm) and Painter 3-D(tm).
Gross profits were 84% of net revenues in the first quarter of 1998, compared to 80% in the first quarter of 1997. The increase in gross margin was achieved from efficiencies achieved following the merger of MetaTools Inc. and Fractal Design Corp. in May 1997.
Research and development expenses increased from $3.1 million, or 23% of net revenues, in the first quarter of 1997, to $4.2 million, or 29% of net revenues, in the first quarter of 1998. The increase in research and development expenses was the result of increased personnel costs, including employees from the acquisition of Specular International in April 1997.
MetaCreations expects to release a significant number of new products and technologies during the remainder of the year as a result of its increased research and development efforts.
In February 1998, MetaCreations appointed a new CEO, Gary Lauer, formerly president of the World Trade Group of Silicon Graphics Inc [NYSE:SGI - news]. Lauer stated, ''After having been with the company only 60 days, I am very impressed and enthusiastic about the technology, technical assets and the people of MetaCreations. As we move forward, we will focus on strategically deploying our resources and technologies toward markets that give us larger growth opportunities.'' |
