Not bags Gentlemen.
MapInfo Corporation Announces First
Quarter 1999 Results
Operating Performance Continues to Improve as EPS Doubles to $0.10
TROY, N.Y.--(BUSINESS WIRE)--Jan. 20, 1999--MapInfo Corporation
(NASDAQ/NM:MAPS - news), the information discovery company, today announced financial
results for the three months ended December 31, 1998.
Revenues for the first quarter of fiscal 1999 increased 23% to $16,145,000 from $13,145,000 for
the first quarter last year. Operating income grew five-fold to $610,000 on the strength of solid
revenue growth combined with ongoing cost management. Net income for the first quarter was
$608,000, or $0.10 per share, compared to $304,000, or $0.05 per share, in the same period a
year ago.
Revenues from Europe grew 55% primarily due to growth in the data business as well as from
penetrating major utilities. In the Americas, revenues grew by 21%, reflecting solid sales execution.
Asia-Pacific remained soft as revenues declined 16% reflecting growth in Greater China offset by
ongoing economic weakness in Japan and a decline in the Australian dollar.
''Fiscal 1999 is off to a quick start as we continue to make headway in establishing our presence in
the market for enterprise-wide business intelligence solutions,'' said John C. Cavalier, president and
CEO. ''By combining MapInfo's product suite, deliverable on any IT architecture with our partners'
databases, we are able to provide powerful cost-effective business intelligence solutions that improve
our customers' decision-making across the enterprise.''
Cavalier added, ''During the quarter we established a stronger foothold in the utilities market, using
SpatialWare as the cornerstone, with the addition of two new customers -- Berlin Water Authorities,
which is integrating Berlin's formerly separate utility infrastructures, and BEB, one of the largest gas
distribution companies in Germany. A relatively new market for MapInfo, the utilities sector offers
significant growth opportunities for the Company going forward. As with telecommunications, utility
companies need to maximize the use of their extensive databases to improve business decision
making.
''Other examples this quarter of enterprise-wide business intelligence solutions include AT&T,
Southwest Bell and the U.S. Air Force, all existing MapInfo customers who continue to broaden
their deployment of our solutions.''
Cavalier concluded, ''In order to extend our presence in the rapidly growing business intelligence
solutions market, we will concentrate on further solidifying our strategic partnerships, refining our
sales strategy, introducing new products and solutions, strengthening our value-added reseller
network, and making strategic acquisitions. This quarter, in addition to acquiring On Target Mapping,
we created industry teams composed of experienced marketing and sales people to focus on two of
our key markets, telecommunications and government.''
About MapInfo
MapInfo Corporation is a leading provider of Internet-enabled products and solutions for business
intelligence applications. MapInfo solutions enable customers to transform information into a business
advantage by discovering unseen patterns and trends in their corporate databases. This leads to
better business intelligence, improved customer relations, and bottom line performance, especially for
organizations with vast physical and information infrastructures that need to understand marketplace
demographics, manage assets, and allocate resources to compete effectively. Headquartered in Troy,
New York, MapInfo is a global company with products and solutions available in 20 languages and a
network of strategic partners and distribution channels in 58 countries. For more information, visit
MapInfo at www.mapinfo.com.
Of Note
This press release contains forward-looking statements that involve a number of risks and
uncertainties. Among the important factors that could cause actual results to differ from those
indicated by such forward-looking statements are delays in product development schedules, the
transition in the Company's distribution strategy, competitive and market conditions, and the other
risk factors detailed in the Company's Annual Report on Form 10-K for fiscal 1998.
MapInfo Corporation and Subsidiaries
Income Statements
(in thousands, except earnings per share)
(unaudited)
Three Months
Ended December 31,
1998 1997
Net revenues $ 16,145 $ 13,145
Cost of revenues 3,560 2,854
Gross profit 12,585 10,291
Operating expenses:
Research and development 2,688 2,431
Selling and marketing 7,118 6,072
General and administrative 2,169 1,686
Total operating expenses 11,975 10,189
Operating income 610 102
Other income - net 258 278
Income before provision
for income taxes 868 380
Provision for income taxes 260 76
Net income $ 608 $ 304
Dilutive earnings per share $ 0.10 $ 0.05
Average shares outstanding 5,902 5,985
MapInfo Corporation and Subsidiaries
Balance Sheets
(in thousands)
December 31, September 30,
1998 1998
ASSETS (unaudited)
Current Assets:
Cash and investments $ 26,213 $ 28,923
Receivables 12,934 15,224
Inventories 542 601
Other current assets 2,531 2,705
Total current assets 42,220 47,453
Property and equipment - net 4,626 4,430
Product development costs - net 1,292 1,272
Intangibles - net 6,260 3,458
Investments and other assets 3,964 2,918 ------------ -------------------
Total assets $ 58,362 $ 59,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued expenses $ 12,029 $ 13,714
Deferred revenue 3,955 3,781
Total current liabilities 15,984 17,495
Other non-current liabilities 196 322
Total liabilities 16,180 17,817
Stockholders' Equity:
Common stock 12 12
Paid-in capital 31,026 31,046
Retained earnings 14,250 13,828
45,288 44,886
Less treasury stock, at cost 3,106 3,172
Total stockholders' equity 42,182 41,714
Total liabilities and
stockholders' equity $ 58,362 $ 59,531
Contact:
MapInfo Corporation, Troy
D. Joseph Gersuk/Barbara Pilliod, 518/285-6000
or
Investor Contact:
Lippert/Heilshorn & Associates, New York
John Heilshorn/Jody Burfening, 212/838-3777
john@lhai.com or jody@lhai.com
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