(PR NEWSWIRE) DJ: Heartsoft, Inc. Announces 55% Increase in Net Sales for
DJ: Heartsoft, Inc. Announces 55% Increase in Net Sales for Fiscal 1997
TULSA, Okla., July 13 /PRNewswire/ -- Heartsoft, Inc. (OTC Bulletin Board:
HTSF) reported today that its core products division, based in Tulsa,
Oklahoma, achieved net sales of $1,130,000 for the fiscal year ending March
31, 1998, an increase of 55% over net sales of $729,000 for the previous
year. Likewise, the company showed favorable improvements in its net
income, recording profits of $83,000, or 1.4 cents per share for the year,
up from a loss ($270,000), or (5.0) cents per share for the same period
ending March 1, 1997.
"We are elated to report that the re-focusing of Heartsoft's resources and
mission statement which was mandated by the Board of Directors occurred
during 1997, have resulted in these tremendous financial gains. By
reassigning budgets which had previously been allotted to fund the company's
discontinued Advanced Technology Group, Dallas, Texas, which was closed in
early 1997, we have been able to significantly impact revenues in the
re-focused core products division in Tulsa. The company's core products
division, based in Tulsa, Okla., focuses exclusively on publishing and
distributing proprietary educational software products for niche markets in
the elementary education technology market," said Benjamin Shell, Heartsoft
Chairman & CEO.
"The financial results achieved during fiscal 1997, represent a significant
improvement in the company's operating margins. During this period,
improved revenues were the result of increased sales of the company's
pre-existing product line known as the Heartsoft K-8 Library. Further,
expenses reflected in Heartsoft's 3/31/98 Income Statement reflect the costs
of maintaining the company's software R&D team which was responsible for the
development of Heartsoft's newly released critical thinking skills product
line, Thinkology. The costs associated with the completion of Thinkology
during fiscal 1997, exceeded $300,000. If these costs where to be excluded
from year ending expenses, the company would have seen a Net Income of
nearly $400,000, or 6.3 cents instead of current earnings of 1.3 cents per
share as reported. This gross margin is an impressive ratio, in fact
Heartsoft's R&D costs of approximately 3% as a percentage of revenues fall
massively below industry norms of 12% to 18%, yet we with our proprietary
authoring system, we can develop software products 3 times faster than our
competitors. We will most definitely use these guidelines as an internal
comparative standard for future financial statements."
While revenues generated during fiscal 1997, were up 55% for the year, it is
important to note that these figures are based upon continuing increases in
sales of the company's top selling pre-existing product line, the K-8
Library, and do not reflect a significant portion of sales of Thinkology.
With the release of Thinkology during the first fiscal quarter, ending April
30, 1998, management anticipates a sizable increase in gross revenues
throughout the remainder of fiscal 1998 and beyond.
Although the release of Heartsoft's new flagship product, Thinkology, was
released much too late in the school year to generate significant revenues
(most schools were dismissed within 6 weeks of the product's release), sales
of the new product accelerated to a position where they account for
approximately 30% of gross revenues during the first fiscal quarter of 1998,
all within the first 90 days of its release. "These financial results
continue to reaffirm that our creative,educational products are favorites
with teachers As the Price vs. Performance leader of our industry, we are
looking forward to significant revenue increases as Thinkology is fully
embraced by educators in September."
"In preparing for the full Thinkology roll-out scheduled for Fall, 1998, we
are implementing an array of time-proven marketing campaigns, including
imprinting the Thinkology name brand upon the minds of nearly 3 million
educators and district personnel through an aggressive advertising campaign;
distribution of 10,000+ copies of the Thinkology Guided Tour to every
district buying agent in the nation (a one-of-a-kind CD-ROM based
demonstration disk which walks educators through fully functional portions
of the Thinkology series); and continued expansion of Thinkology pilot
school program in key school districts in all 50 states; just to mention the
highlights."
"Although the education technology market is considered by some to by a
highly competitive environment, Heartsoft is confident that by focusing on
niche markets and products such as critical thinking skills, the company can
capture and dominate specific areas relative to the use of technology in
education. Our development team is already laying plans for the next
product scheduled to be released after Thinkology which, again, will further
distinguish Heartsoft from its competitors."
The company has experienced, and reasonably expects to continue to
experience significant issues which may impact the company's ability to
achieve the goals mentioned in this news release. Except for historical
information contained herein, the matters discussed in this release are
forward looking statements that involve possible risks further detailed in
the company's Securities and Exchange Commission filings.
Heartsoft, Inc. publishes, and distributes a diverse line of multi-media
curriculum-based product for schools and parents nationwide. Headquarters
in Tulsa, Oklahoma, Heartsoft is acknowledged among educators as the
price-vs.- performance leader -- delivering such products classics as the
Heartsoft Bestseller and its new release Thinkology with unsurpassed
customer service and customer loyalty. The company's stock is traded on the
OTC Bulletin Board under the symbol HTSF. Heartsoft's web sites are located
at heartsoft.com and thinkology.com.
/CONTACT: Jay Shrewder or Benjamin Shell of Heartsoft, Inc., 918-251-1066/
12:05 EDT
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