MathSoft Puts 4Q Net At Record $1M, Or 10c A Share
CAMBRIDGE, Mass. (Dow Jones)-- MathSoft Corp. (MATH) expects to report, record fourth-quarter net of $1 million or 10 cents a share - up 33% from $755,000 or 8 cents a share, Charles Digate, president and chief executive, said in an interview.
Digate said "we now have a really strong, healthy business. We think a 20% and greater growth rate is achievable over the next year of two."
The maker of software for mathematical calculations and statistical analysis expects to report revenue of $7.3 million, up 9% from $6.7 million for the fourth quarter.
The improved profits reflect both higher sales and reduced research and development spending. Digate said R&D spending will be in the range of 16% to 18% of revenue going forward, compared to 20% in 1998 and 26% in 1997, due to the completion of some statistics software for which MathSoft had hired a number of contract programmers.
For the full year, MathSoft expects to report net income rose to $2.2 million or 22 cents a share compared to a net loss of $2.1 million or 24 cents a share. Revenue rose 15% to $24.4 million from $21.2 million.
Looking ahead, Digate said that Internet sales from its web-site may lead to even faster growth. During the fourth quarter, MathSoft 's sales from its web site doubled to about $100,00 from the year earlier level. Digate said that growth occurred even though the only products MathSoft has been selling are for North America. He said that international sales should boost sales further, based on the fact that half the downloads of free trial packages have been for overseas.
MathSoft 's core product is MathCad, for which it unveiled version eight in the fall. About two-thirds of the company's revenue come from MathCad, 25% from education and mostly from corporate users. Digate said the education products grew 40% last year. led by its StudyWorks for high-school students. The remainder of the company's business is for data analysis software.
Digate said the company's focus in the next year will be boosting revenue over its Website by encouraging MathCad's one-million users to regularly visit the site, and selling more products on it. |
