FORMF Cancorp description
CANCORP COMPANY NUMBER: 0201535
JETFORM CORPORATION
560 Rochester Street
Ottawa, Ontario K1S 5K2
613-230-3676
Fax Number: 613-594-8886
LATEST UPDATE: October 9, 1998
COMPANY-STATUS: Active, Formerly Indigo Software Ltd.
SOURCE OF REPORT: Consumer & Corporate Affairs Canada filings
TYPE: Full Financial Coverage Co.
LEGAL STATUS: PUBLIC
INCORPORATION: CANADA, 1982
EMPLOYEES: 660
SIC:
7372 Prepackaged Software
DESCRIPTION:
JetForm Corp is engaged in the design, development and production of
prepackaged software.
STOCK INFORMATION:
UNDERLYING TICKER SYMBOL: JFM
FULL TICKER SYMBOL: JFM
EXCHANGE: Toronto
CUSIP NUMBER: 477155
ISSUE TYPE: common
AUDITOR INFORMATION:
AUDITOR: PricewaterhouseCoopers C.A., Ottawa, Ontario
BANK: Royal Bank of Canada
RANKINGS:
Financial Post Sales Rank: 690 SUMMER, 1998
Report on Business 1000: 917 JULY, 1998
Canadian Business Ranking: 1164 JUNE, 1998
RELATED COMPANY:
Jetform Corporation, Wholly Owned Subsidiary, 100.00%, Del.
JetForm Deutschland GmbH, Wholly Owned Subsidiary, 100.00%, Del.
JetForm France S.A., Wholly Owned Subsidiary, 100.00%
JetForm Pacific Pty. Ltd., Wholly Owned Subsidiary, 100.00%
JetForm Scandinavia AB, Wholly Owned Subsidiary, 100.00%
JetForm UK Limited, Wholly Owned Subsidiary, 100.00%
Why Interactive, Inc., Wholly Owned Subsidiary, 100.00%
* * * * * * * * * * * * * * * A S S E T S * * * * * * * * * * * * * * * * * FISCAL YEAR END 04/30/1998 04/30/1997 04/30/1996 04/30/1995
NUMBER OF PERIODS 12M 12M 12M 12M
CURRENCY CDN CDN CDN CDN
CASH/DEP/S.I INVEST 91,604 34,450 20,198 NA
ACCOUNTS RECEIVABLE 31,347 24,276 12,587 7,479
MARKET SECURITIES NA NA NA 5,980
INVENTORY 1,127 1,078 612 298
PREPAID EXPENSES 3,259 3,663 1,953 756
OTH CURRENT ASSETS NA NA NA NA
CURRENT ASSETS 144,027 76,046 45,949 42,790
ACCUM DEPRECIATION 11,324 6,677 NA 1,857
OTH NON-CURR ASSETS 6,716 3,543 1,127 NA
TOTAL ASSETS 216,567 142,988 88,879 51,651
* * * * * * * * * * * * * L I A B I L I T I E S * * * * * * * * * * * * * * FISCAL YEAR END 04/30/1998 04/30/1997 04/30/1996 04/30/1995
ACCOUNTS PAYABLE 4,499 4,753 4,824 1,263
ACCRUED LIABS 12,868 8,827 7,326 2,238
RENT NA NA NA NA
BANK INDEBTEDNESS NA NA NA NA
TAXES NA NA 442 260
CURR PORTION L.T.D. 47,093 25,061 NA NA
NOTES NA NA NA NA
OTHER CURR LIABS 9,197 6,996 3,641 1,050
CURRENT LIABILITIES 73,657 45,637 16,233 4,811
LONG TERM DEBT-NET NA NA NA NA
DEFERRED TAXES 4,450 4,805 5,613 151
OTH NON-CURR LIABS 26,311 76,457 NA NA
TOTAL LIABILITIES 104,418 126,899 21,846 4,962
* * * * * * * * * * * * * * * E Q U I T Y * * * * * * * * * * * * * * * * * FISCAL YEAR END 04/30/1998 04/30/1997 04/30/1996 04/30/1995
COMMON STOCK 175,562 154,016 35,812 44,439
PREFERRED STOCK 4,939 4,939 24,823 NA
OTHER CAPITAL STOCK 63,650 NA NA NA
RETAIN EARNS/DEF -132,002 -142,866 6,398 2,250
TOTAL SHRHLD EQUITY 112,149 16,089 67,033 46,689
* * * * * * * * * * * * * * * R E V E N U E S * * * * * * * * * * * * * * FISCAL YEAR END 04/30/1998 04/30/1997 04/30/1996 04/30/1995
SALES/REVENUE 111,227 76,614 43,455 26,009
TOTAL OPERATION EXP 83,478 214,708 38,855 22,933
INTEREST INCOME NA NA 1,401 1,573
DEP & AMORT 13,629 32,374 3,824 1,196
OTHER INCOME NA 1,659 65 NA
NET INCOME BEF TAX 12,554 -148,287 6,597 3,453
NET INCOME AFT TAX 10,864 -148,480 4,148 2,755
NET INCOME 10,864 -148,480 4,148 2,755
* * * * * * * * * * * * * * * * R A T I O S * * * * * * * * * * * * * * * * * FISCAL YEAR END 04/30/1998 04/30/1997 04/30/1996 04/30/1995
RETURN ON ASSETS(%) 5.79 -103.70 7.42 6.68
RETURN ON EQUITY(%) 11.19 -921.66 9.84 7.39
PRE-TAX PRFT MGN(%) 11.28 -193.55 15.18 13.27
SALES/TOTAL ASSETS .51 .54 .49 .50
SALES/FIXED ASSETS 6.35 5.46 4.60 7.52
INVENTORY TURNOVER 15.07 22.34 24.32 25.03
RECEIVABLES (DAYS) 103 116 106 105
PAYABLES (DAYS) 57 65 102 49
WKNG CAP/SALES(%) 63.26 39.69 68.38 146.02
AC REC/TOT ASTS(%) .14 .16 .14 .14
CURRENT RATIO 1.96 1.67 2.83 8.89
QUICK RATIO 1.86 1.59 2.72 8.68
ACTS PAY/ACTS REC .55 .56 .97 .47
CUR LIABS/INVENTRY 9.98 13.31 9.08 4.63
TIMES INTEREST EARN 4.52 -39.49 NA NA
OFFICERS:
Ostrovsky, Abraham E., Director, chairman, Ottawa, Ontario
Kelly, John B., Director, president & chief executive officer, Ottawa, Ontario
Gleed, John, Director, executive vice-president & chief technology officer, Ottawa, Ont ario
Hicks, Thomas E., Director, vice-president & chief information officer, Ottawa, Ontario
Allum, Robert F., Director, Ottawa, Ontario
Buck, Siegfried E., Director,
Goodwin, Eric R., Director, Lombardy, Ontario
Holinski, Stephen A., Director, Ottawa, Ontario
Macmillan, Graham C., Director, Ottawa, Ontario
Maloney, Dennis B., Director, Irving, Texas
Millard, Dr. John B., Director, Kanata, Ontario
Payne, Donald J., Director, Columbia, Maryland
Young, Stanley A., Director, North Andover, Massachusetts
Weaver, Philip W., Chief operating officer & executive vice-president,
Boyd, Lynne, Senior vice-president government sales,
Bursey, Jim, Senior vice-president services,
Fox, Carlos, Senior vice-president marketing,
Fraser, Ian, Senior vice-president sales,
Millikin, Hugh R. A., Senior vice-president, Asia Pacific
Hall, Wayne E., Vice-president advanced products,
Weinstein, Deborah L., Secretary
TRANSFER AGENT: CIBC Mellon Trust Company, Toronto.
STATEMENT OF OWNERSHIP:
DATE OF STATEMENT: July 13, 1998
Moore Corporation Limited held 13.13% interest and TAL Investment Counsel
held 11.95% interest
PRESIDENTS LETTER:
DATE: April 30, 1998
(from ANNUAL REPORT TO SHAREHOLDERS: 04/30/98)
LETTER TO SHAREHOLDERS
We are very pleased to review with our fellow shareholders, JetForm's
achievements in 1998 - our most successful year ever.
It has been an exciting year and one full of accomplishment. We
developed new technologies and established new relationships. We
expanded the reach of our solutions - throughout the enterprise and
throughout the world. And thanks to a combination of exceptional
customers, employees, products and partners, JetForm's global
leadership in the highly competitive enterprise workflow and electronic
forms market remains unchallenged.
JetForm's dominant market position is reflected in the record growth
that we experienced last year. Revenues for the fiscal year ending
April 30, 1998 were $ 111.2 million, compared with $ 76.6 million for the
previous year, an increase of 45%. The Company had four profitable
quarters with net income for the year of $ 10.9 million and earnings per
share of $ 0.62 fully diluted representing a 95% increase over 1997 net
income of $ 5.6 million (before non-recurring charges) or $ 0.38 per
share fully diluted.
The defining accomplishment of the year was, of course, passing the
$ 100 million revenue mark - a fitting cap to our 15th anniversary year
and a testament to the market's need for and confidence in our
technology. The market for our products continues to grow. With over
five million users worldwide, JetForm is firmly established as the
electronic forms market leader. Based on IDC research, JetForm is the
number one workflow vendor in the combined ad hoc and administrative
workflow segments defined by JetForm as enterprise workflow. The
market for these combined segments, based on IDC's* market data is
expected to reach $ 1.5 billion in 2000. According to Dataquest
research, JetForm ranks second in the workflow market overall - with a
15.4% market share and with the second largest growth in market share
of any workflow vendor.
There were a number of other significant financial milestones in 1998.
On April 15, JetForm shares began trading on The Toronto Stock
Exchange, under the symbol 'JFM'. Being listed on The TSE - one of
North America's premier exchanges - is a reflection of the broadening
interest in JetForm on the part of institutional and retail investors
alike, and will result in increased exposure and liquidity for the
Company and its shareholders.
We strengthened our balance sheet by restructuring the Delrina asset
purchase agreement. By accelerating certain quarterly payments, we
reduced the total amount remaining payable to Symantec as at February
12, 1998, from US$ 64.3 million to US$ 57.9 million. This is a
beneficial deal for JetForm, resulting in a US$ 6.4 million gain and an
elimination of future imputed interest charges.
We also raised $ 67.3 million through an offering of 2.2 million Special
Warrants. This increased our cash balance to $ 91.6 million as at April
30, 1998.
JetForm's market leadership and strong balance sheet underscore the
success of our highly focused long-term strategy. We are leveraging
our technology through strategic third-party alliances and partnerships
with providers of complementary technology, and we are working with
third-party resellers who have access to particular industries, local
markets and customers. In addition, we are expanding our own worldwide
sales infrastructure, and providing both complete solutions and the
technical expertise to help deploy them. We now have a sturdy and
balanced product development, marketing and distribution platform on
which to expand JetForm as a global corporation.
Our singular concentration on the customer ties the various strands of
JetForm's business strategy together. To paraphrase Peter Drucker,
there is only one valid definition of business purpose: to create a
customer. Last year, we institutionalized this belief by appointing
Gary Hannah to the newly created position of Vice President of Customer
Relations. His role will extend beyond customer support to all parts
of the organization. We want every JetForm employee to be informed
by - and be driven by - the needs of our customers.
Our philosophy is simple. Throughout JetForm's 15 year history, we
have always believed that our value proposition to our customers is
providing tools to automate business processes which in turn help
increase their revenue, market share and competitiveness. One emerging
market where the needs of our customers are ideally suited to the
strengths of our technology is workflow. With the explosive growth of
the Internet facilitating the deployment of tools based on messaging
and routing capabilities, workflow technology has moved into the
mainstream, becoming a standard component of most enterprise IT
solutions.
Last year, JetForm introduced InTempoTM, the industry's first solution
for enterprise workflow that supports virtually any client platform.
By being flexible enough to support the different structured,
unstructured and ad hoc processes typically found in most mission
critical business environments - from HTML and JavaTM-based thin
clients, such as Web browsers and network computers, to traditional
thick client applications from JetForm or other software
vendors - InTempo allows JetForm to automate processes that are not
strictly forms-based, positioning us to move decisively into the
rapidly expanding workflow software market.
At the same time, we continued to strengthen our core electronic forms
technology. Last year, we completed work on FormFlow(Registered) 98,
the first phase of our comprehensive architecture for a new generation
of intelligent, form-centric, zero administration enterprise software
solutions.
A key element of our strategy is to forge alliances with leading
software vendors whose complementary products allow us to extend the
reach of JetForm technology within the enterprise. By leveraging the
market share of our alliance partners, we can penetrate further and
faster into both mature and emerging markets.
A dramatic example of the success of this strategy is our alliance with
SAP. Last year, we began shipping JetForm Output Pak for SAPTM
R/3TM, offering users of this important platform an e-forms-based
solution that provides an easy and inexpensive way to design and print
high-quality forms. SAP's global installed base of 13,000 sites
represents a significant opportunity for JetForm.
We continue to strengthen our relationship with Microsoft(Registered),
particularly with respect to marketing and marketing strategy. Our
latest products are designed to complement the Microsoft
BackOffice(Registered) suite of products and add significant value to
the infrastructure Microsoft customers have invested in. Microsoft has
also become our flagship SAP Output Pak user, deploying JetForm
technology to deliver flexible output to the largest R/3 implementation
driven by Microsoft NT(Registered) and SQL Server - 1,800 worldwide
users, with up to 400 concurrently.
Last year, we announced support of the Microsoft Windows CE platform,
delivering JetForm software to support the explosive market for
handheld personal computers. We also announced alliances with Zebra
Technologies, the worldwide leader in industrial bar-code label
printers, and with Cardiff Software, a leading supplier of automated
data capture solutions.
To provide our customers with the very best Internet and Intranet
solutions, JetForm is collaborating with Sun(Registered)
Microsystems - the the inventor of Java technology - to create an
advanced suite of Java-based workflow solutions for the enterprise. We
have also joined the SunTM Developer Connection Program, enabling us
to participate in cooperative marketing opportunities with Sun and its
channels on a worldwide basis.
These many new alliances underscore our ongoing commitment to
developing multi-platform, standards-based solutions that reach every
corner of the enterprise, from input through workflow processing to
output.
As today's typical enterprise computing environment becomes more
complex, the role of our consulting services organization in promoting
the benefits of JetForm solutions has become even more vital. Last
year, we took a number of steps to strengthen the breadth and depth of
our services business.
We strengthened our services capability by aquiring the expertise of
Silicon Valley-based WorkFlow Partners and Technology Services, Inc., a
select group of senior consultants who specialize in helping large
enterprises deploy workflow solutions. Their in-depth business and
technology knowledge will be invaluable in helping us bring leading
edge workflow solutions to our customers and to our own R&D efforts.
We welcome them to JetForm.
To support our growing European customer base, we opened a center for
professional and technical support in Dublin, Ireland. This center,
which will be staffed by technical professionals, will allow us to
replicate for our European customers the business model that has been
very successful for us in North America, and is a critical next step as
we expand our operations worldwide.
We also opened offices in Chicago and New York, and our Beijing office,
now a year old, continues to thrive. And for multinational enterprises
with operations in the Pacific Rim, we released a new version of
JetForm CentralTM that supports Japanese, Korean and Chinese
characters, providing 100% of the core print agent functionality
necessary to implement comprehensive output management in those
languages.
Revenue growth by geographic region continues to be strong. Our North
American revenues for the year were $ 81.6 million, a 51% increase from
the previous year. European revenues were $ 24.3 million, a 27%
increase from the previous year. Because our penetration of the Asian
market is still in its infancy, and accounts for only 4.8% of our
overall revenues, we seem largely unaffected by the Asian financial
crisis. We remain committed to our ultimate goal of deriving one third
of our revenues from North American sales, one third from Europe and
one third from the rest of the world, primarily Latin America and the
Pacific Rim. Our target to expand into the Japanese market in
September 1998 further enhances this plan.
With the transition of electronic forms and workflow from the early
adoption stage to mainstream acceptance, potential customers are
increasingly making purchase decisions based on hard nosed
return-on-investment analyses. One striking JetForm success story is
the Australian Department of Defense, which last year reported saving
(AU)$ 48 million as a result of implementing a JetForm solution.
Such success stories underscore the importance of our direct selling
efforts, where we continue to focus on Global 2000 corporations. These
showcases of our technology are both large enough to justify a direct
expenditure of sales resources and have enough visibility to become a
rich source of leads for new customers.
Our biggest sale of the year was a US$ 5.0 million contract with the
United States Air Force to deploy JetForm software, including FormFlow,
on 232,000 computers. It is the largest contract in JetForm history.
It is also a direct result of the Delrina acquisition and offers
dramatic proof that we're succeeding in integrating the two companies
and that the merger is paying off.
We secured a number of contracts for InTempo. The largest InTempo
contract to date was the State of Wisconsin, valued at US$ 2.1 million.
The State standardized on InTempo for use by 25,000 government
employees across all state agencies. Together with the many other new
InTempo users, this is a strong indicator of the market's acceptance of
this new technology.
It is very clear that we could not have arrived at this point without
the effort of every JetForm employee. In the last year, our staff has
grown to 605 employees. We want to thank them all for their passion,
dedication and attitude. We particularly want to acknowledge Phil
Weaver, who last year was appointed Chief Operating Officer. We also
want to welcome newly appointed board member John Millard, CEO of Mitel
Corporation, as well as thank departing board member George Gilmore for
his wise counsel.
Looking back on our 15 year history, we can see how JetForm transformed
electronic forms from an esoteric technique to an established,
ubiquitous technology. Looking forward, we can see the opportunities
that abound to develop new solutions, define new markets and drive
JetForm to new levels of success as the global leader in using
electronic forms and workflow technology to automate and improve
mission critical business processes.
John B. Kelly Abe Ostrovsky
President and Chief Executive Officer Chairman
OPERATIONS:
Provides client/server and web based electronic forms software and
enterprise workflow solutions which automate the production and processing
of forms across an organization.
On July 15, 1998, announced a five-year extension of a strategic alliance
with Moore Corp. and the addition of workflow solutions to the agreement.
In September 1998, announced it will port its new InTempo 3.01 enterprise
workflow solution to the Sun SPARC(R)-based Solaris operating environment;
the product is to begin shipping in October.
NEWS/FINANCIAL POSITION:
For the six months ended Oct. 31, 1997, net income was $ 2,817,000 or 17c
per share compare with a net loss of $ 148,950 or $ 10.48 per share for the
corresponding year-earlier period. Revenues increased to $ 50,123,000 from
$ 33,449,000.
For the nine months ended Jan. 31, 1998, net income was $ 5,673,000 or 35c
per share compared with a net loss of $ 147,323,000 or $ 10.19 per share for
the corresponding year-earlier period. Included in the 1997 results was a
loss on the repurchase of options of $ 47,084,000 and a loss of
$ 106,962,000 in process research and development; there were no such items
in 1998. Total revenue rose to $ 78,702,000 from $ 55,786,000.
CAPITAL STOCK:
Authorized Outstanding(1)
Preference 2,263,782 shs. 450,448 shs.
Common unlimited 19,377,912 shs.
(1)At July 13, 1998.
CAPITAL STOCK CHANGES:
During fiscal 1998, issued 2,200,000 special warrants at US$ 21.25 per
warrant for net proceeds of Cdn$ 63,700,000. Each warrant converts to one
common share without additional payment. The special warrants were deemed
to have been exercised by holders on June 26, 1998.
LONG TERM DEBT:
At Apr. 30, 1998, long-term debt amounted to $ 73,404,000, including
$ 47,093,000 due within one year, and consisted entirely of an obligation
to Delrina Corporation arising from a purchase of assets in 1996; the debt
is non-interest-bearing and is payable in quarterly payments to June 2000.
MARKETING DATA:
Number of Branches: 1
Unionized: NO
% White Collar: 100
Group Insurance: YES
Life/Health Insurance: YES
Dental: YES
Pension Fund: NO
Export: YES
Revenue From Exports: 80
Revenue From US Exports: 60
Imports: YES
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