Here is some of it.
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Aug. 13, 1998-- TouchStone Software Corp. (Nasdaq:TSSW - news) Thursday reported a loss of $1,960,000, or $0.25 per share, for the second quarter ended June 30, 1998.
This loss includes $778,000 of restructuring charges. This compares with a loss of $1,150,000, or $0.15 per share, in the same period last year. The company also reported total revenues of $656,000, compared with total revenues of $1,862,000 for the same period a year ago.
For the six months ended June 30, 1998, the company reported a loss of $1,901,000, or $0.24 per share. This compares with a loss of $1,366,000, or $0.18 per share, for the same period last year. The company also reported total revenues of $2,642,000 for the six months, compared with total revenues of $4,801,000 for the same period a year ago.
''During the second quarter, we experienced an overall decline in the retail sector for our utility products caused, in large part, by the introduction of Windows 98. In addition, aggressive pricing by various anti-virus companies in order to gain market share had a detrimental impact on our sales volumes,'' said Larry Jordan, chairman, TouchStone. ''The sales of the company's new CheckIt NetOptimizer, which reached retail stores in early June, did not attain a volume during the quarter sufficient to offset the reduced sales of other products.'' Jordan added, ''The balance sheet continues to be strong with $10,870,000 in cash and investments.''
Recognizing the difficulty of competing solely in the retail market, the company has embarked on a more balanced strategy that emphasizes the development of additional diagnostic tools for professional PC technicians, VARs and system builders. As a part of executing on that strategy, the company has restructured its current operations and incurred a charge of $778,000 during the quarter ended June 30, 1998. ''TouchStone's strength has always been its ability to develop and market technology that assists advanced PC users and professionals in the setup, installation and maintenance of their own and their customers' computers. Our strategy is to return to our roots of providing such solutions, beginning with our core CheckIt products,'' said Jordan.
As part of TouchStone's plan to increase focus on the development of CheckIt products, Trend Micro Inc. will assume responsibility for the PC-cillin anti-virus product. Trend Micro will provide service and support for current and future PC-cillin customers. Additionally, TouchStone will transfer all PC-cillin inventory in the sales channel and in TouchStone's warehouse locations to Trend Micro who will become solely responsible for the stock. The transfer will take effect on Sept. 30, 1998. TouchStone and Trend Micro have co-developed the successful PC-cillin line of products since 1995.
''Our exit from the anti-virus market is another step in our efforts to focus on our core CheckIt brand of products,'' said Jordan. ''As a leading expert in anti-virus technology, Trend will be easily able to continue providing the high level of virus protection PC-cillin customers expect.''
''We will offer a special upgrade program to all currently registered customers as soon as the new technology is commercially available,'' said Eva Chiang, chief technology officer, Trend Micro.
A fundamental part of the restructuring effort will be to improve the company's operations in all areas. While expenses will be reduced in some areas and overall expenses will be reduced, the company will concentrate on setting up its organization to support the development and sale of its diagnostic products into the retail channel as well as directly to businesses. In line with the decreased sales to consumers through the retail channel, the company has reduced its staff by decreased sales to consumers through the retail channel; the company has reduced its staff by over 30 percent, primarily in sales, administrative, and support areas. Additional actions to achieve further reductions in related overhead expenses have also been taken. Research and Development expense will continue at current levels, consistent with the company's planned investment in new diagnostic technologies for professional technicians.
In addition, TouchStone is planning to capitalize on the positive press received by its most recent product release -- CheckIt NetOptimizer. To date, several favorable articles about the product have appeared in influential publications including PC Week, PC Magazine online and C/NET. Favorable reviews have also appeared in local newspapers in Orange County, Philadelphia and Seattle. More reviews are scheduled in major computer trade magazines during the third and fourth quarters. TouchStone's sales efforts for CheckIt NetOptimizer include emphasis on Internet-based distribution, as well as retail and direct sales channels.
The company plans to release new CheckIt products in the third quarter. Designed for computer technicians and advanced computer enthusiasts, the next CheckIt products will build upon TouchStone's current hardware diagnostics and trouble shooting and will take advantage of new tools in Windows 98. Additionally, these CheckIt products will address the Year 2000 PC hardware compatibility problems and will provide a ''patch'' to correct this problem.
The company plans to continue developing products that address the advanced needs of professional computer technicians. Because many commercial markets require tools to test, debug and verify computer components, TouchStone will create products to address these needs as well. TouchStone's goal over the next three years is to become the leading supplier of Windows-based system testing and certification tools used by technicians at VARs, system builders, third-party maintenance providers, medium and large corporations, and OEMs. The company's retail products will continue to be enhanced with new technology derived from experience gained in these markets. To that end, TouchStone's development will focus on producing technologies that can be applied to both commercial and retail products.
The company's search for a permanent CEO is nearly complete and the board of directors plans to announce a decision shortly.
TouchStone Software Corp. is a leading developer of innovative software designed to help people use complex technologies. The company's products, which include CheckIt, CheckIt Professional Edition, CheckIt NetOptimizer, PC-cillin Anti-Virus, FastMove! and e.Support, are distributed worldwide through the retail, VAR, distributor, direct and OEM sales channels.
|
