Did anyone listen to the con call?
JetForm Announces Preliminary Third-Quarter Results for Fiscal Year 1999
OTTAWA - Feb. 4, 1999 -- JetForm Corporation (Nasdaq: FORMF; TSE: JFM), the global leader in enterprise workflow and electronic forms solutions, today announced that its results will be below analysts' estimates and management's expectations for the third quarter of fiscal 1999, which ended January 31, 1999.
Management expects revenue for the third quarter of fiscal 1999 to be approximately $23.7 million which represents a 17 percent decrease from $28.6 million in the third quarter of fiscal 1998. Net loss is expected to be approximately $7.2 million or $0.36 per fully diluted share for the third quarter compared to net income of $2.9 million or $0.17 in the third quarter of fiscal 1998. Operating loss is estimated to be approximately $7.8 million compared to operating income of $4.3 million, for the same period last fiscal year.
Management is reviewing its operations and the carrying value of certain assets, and expects to incur impairment and restructuring charges in its fourth quarter. The total amount of these charges cannot be reasonably estimated at this time.
As of January 31, 1999, the Company had cash and cash equivalents of approximately $50 million.
"Results for the third quarter were clearly disappointing as we saw a significant shortfall in our North American operations," said John Kelly, President and Chief Executive Officer of JetForm. "Distractions created by the reality of the year 2000 problem or "Y2K" have stalled a number of our enterprise contracts," Kelly added. "There is also significant focus by our customers on Internet based strategies and our Internet announcements of today should enhance our opportunities in this market."
"Both of these factors are having a dramatic impact on our ability to sell enterprise wide licenses, in part due to the lengthy implementation time frame. However, beyond these issues, we also recognize that steps must be taken to improve performance," said Kelly.
"Despite our disappointing quarter, we believe that there are significant opportunities to extend our technology leadership into the Internet market," said Kelly. "To that end, we have also announced today a four-part Internet strategy that allows the Company to fully exploit these opportunities."
These preliminary results are estimates only and actual results may vary. Finalized results for the third quarter of fiscal 1999 will be reported on February 23, 1999. The Company's preliminary results are in accordance with accounting principles generally accepted in the United States.
An analyst conference call to discuss the preliminary results has been scheduled for 8:30 a.m. EST on February 4, 1999. Interested participants should call (1-800) 741-8477 or (416) 695-9399 10 minutes prior to the call. A media conference call is scheduled for 10:30 a.m. EST on February 4, 1999. Interested participants should call (1-800) 273-9672 or (416) 695-5806, 10 minutes prior to the call.
About JetForm Corporation
JetForm Corporation, with headquarters in Ottawa, Canada (Nasdaq: FORMF, TSE: JFM) is the global leader in enterprise workflow and electronic forms automation, providing solutions that streamline business processes. JetForm products help reduce costs and increase efficiency across local and wide area networks as well as the Internet. JetForm has offices in the United States, Canada, the United Kingdom, Ireland, France, Germany, Sweden, China, Singapore and Australia. For more information on JetForm, visit the Company's web site at www.jetform.com.
JetForm is a registered trademark of JetForm Corporation. All other trademarks referenced are trademarks of the respective companies named above.
In this announcement, under the provisions of the new "safe harbour" section of the Private Securities Litigation Reform Act of 1995, JetForm makes forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual future results to differ materially are variability in quarterly results, general competitive pressures in the marketplace, rapid technological change, evolving market for e-forms based workflow solutions, third party dependence, integration of the Delrina Assets, management of growth and other factors as discussed in the Company's prospectus and Form-10K as filed with the Securities and Exchange Commission.
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