Good News!
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: METROWERKS, INC.
TSE;ME SYMBOL: MWK
NASDAQ SYMBOL: MTWKF
DECEMBER 9, 1996
Metrowerks First Quarter Revenues up to Record US$3.8
Million
AUSTIN, TEXAS--Metrowerks Inc., one of the world's leading
providers of software development tools, today announced its
results of operations for the first quarter of fiscal year ending
July 31, 1997 (Q1FYJuly97).
Revenues for Q1FYJuly97 totaled US$3.8 million, an increase of 62
percent over Q1FYJuly96 (US$2.3 million), and an 8 percent
increase over Q4FYJuly96 (US$3.5 million). In Q1FYJuly97,
Metrowerks recorded a smaller net loss of US$135,000 (US$0.01 per
share on a fully diluted basis), compared to a net loss in
Q4FYJuly96 of US$179,000 ($0.02 per share).
"Q1FYJuly97 marked important steps in the development of our
overall software development tools strategy," said Jean Belanger,
Chairman and CEO of Metrowerks. "First, we shipped our first ever
Windows-hosted tools targeting development for the PlayStation
game console; second, we entered into an important agreement with
Microware Corporation to retarget our development tools to support
software development for OS-9 (these two targets have a combined
installed base of over 25,000 software developers, providing large
new markets for our embedded development tools); and third, we
prepared for the launch of a line of Windows-hosted products at
Comdex on November 18, 1996."
In Q1FYJuly97, R and D expenses decreased from $1,314 to $1,217 or
7 percent from Q4FYJuly96. The reduction reflects a drop in
purchased R and D in Q1FYJuly97 versus Q4FYJuly96. In Q4FYJuly96,
Metrowerks had several open contracts with external developers for
Java-related projects. Some of these contracts came to an end in
Q1FYJuly97. The Company is continuing its heavy focus on R and D
and the delivery of several new products in the coming months
including CodeWarrior for Windows 95/NT, launched at Comdex, and
CodeWarrior for OS/9 targeted for a Q3FYJuly97 release.
SG and A expenses increased US$258,000 or 19 percent over
Q4FYJuly96. This increase was due to the Company's focus on
developing the infrastructure necessary to compete in the Windows
and embedded systems markets.
Business Outlook
The following statements are based on current expectations. These
statements are forward looking and actual results may differ
materially.
The Company expects revenue in Q2FYJuly97 to be between US$4.0-4.5
million. Revenues for the next several quarters are expected to
be more volatile and somewhat less predictable than in recent
prior quarters. Among the factors that could contribute to
volatility, revenues for these quarters may be significantly
affected by possible non-recurring engineering contracts and new
product sales which may or may not occur, or, may not occur in the
time frame estimated by management. R and D expenses are expected
to increase in Q2FYJuly97 as the company continues to invest in
expanding its product offerings in the embedded market. SG and A
expenses are expected to increase in Q2FYJuly97 as the company
begins to market its new Windows and embedded products. The
company expects capital spending in Q2FYJuly97 to be approximately
US$500,000, down from $629,000 in Q1FYJuly97.
The above statements contained in this outlook, as well as
statements above concerning estimated product introduction dates,
are forward looking statements that involve a number of risks and
uncertainties. In addition to the factors discussed above, among
the factors that could cause actual results to differ materially
are the following: business conditions in the Macintosh(R)-hosted
software development tools market, market acceptance of the
Windows and PlayStation(TM) game console software development
tools, competitive factors such as rival software development
tools and price pressures, the success of the Company in entering
new development agreements, software defects, product development
and technological change. Additional information on these and
other factors which could affect the Company's financial results
are included in the Company's 1996 annual report to shareholders
and most recent quarterly reports on file with the Securities and
Exchange Commission.
/T/
Earnings Table
All figures are reported in US dollars.
October Jan 31, April July October
31, 1995 1996 30, 1996 31, 1996 31, 1996
Revenue 2,325 2,418 2,372 3,504 3,766
Direct costs 553 460 404 972 968
SG and A and
technical
support 979 1,041 1,227 1,375 1,633
Research and
development 615 693 903 1,314 1,217
Depreciation of
fixed assets 37 53 105 160 209
Total operating
expenses 2,184 2,247 2,639 3,821 4,027
Operating income
(loss) 141 171 (267) (317) (261)
Interest 60 48 117 150 129
Other 8 2 3 (11) (3)
Net earnings
(loss) 209 221 (147) (178) (135)
EPS fully
diluted 0.02 0.02 (0.01) (0.02) (0.01)
/T/
As of October 31, 1996 there were 11,513,163 shares outstanding
and there were 991,350 options outstanding to acquire common
shares.
About Metrowerks
Founded in 1985, Metrowerks develops, markets and supports a
complete line of computer language products for building Mac(TM)
OS, Windows 95, Windows NT(TM), Magic Cap(TM), BeOS(TM), Palm
OS(TM), PlayStation OS and PowerTV(TM) OS applications. Metrowerks
CodeWarrior products have become the industry standard for
professional Mac-hosted software development with more than 50,000
registered users in over 70 countries. Additional information on
Metrowerks and its products can be obtained in the U.S. by sending
Email to info@metrowerks.com, by calling (800) 377-5416, or via
the Internet at metrowerks.com
Metrowerks, the Metrowerks logo and CodeWarrior are registered
trademarks of Metrowerks, Inc. Macintosh is a registered
trademark of Apple Computer, Inc. Mac is a trademark of Apple
Computer, Inc.
Windows, Windows NT and Windows 95 are either registered
trademarks or trademarks of Microsoft Corp. in the United States
and/or other countries. All other companies and products may be
trademarks of their respective holders and are hereby recognized.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Metrowerks, Inc.
Cynthia Fray
Media Relations
(512) 873-4758
INTERNET: metrowerks.com
E-MAIL: cynthia@metrowerks.com
or
Metrowerks, Inc.
Jim Welch
Chief Financial Officer
(512) 873-4777
INTERNET: metrowerks.com
E-MAIL: welch@metrowerks.com
Bill |
