sw....MSTG.
a revisit
to this "e-mail specialist"
might be warranted...my sense is that should
one wait until it's fully "percolated", it will
no longer present the compelling value it does now.
#reply-8001200
for fundamental insight, start here:
#reply-7770746
4th Quarter Records 129% Year-over-year Revenue Growth
and 41% Sequential Quarterly Growth
BAKERSFIELD, CALIF. (Feb. 11) BUSINESS WIRE -Feb. 11, 1999-
Mustang Software, Inc. (Nasdaq: MSTG), a leading provider of e-mail management
solutions,
today reported results for its fourth quarter and twelve months ended December 31,
1998 which
reflected four consecutive quarters of revenue growth -- at a compounded rate of 23%
-- as well
as a rapid trend toward profitability.
Revenues for the fourth quarter ended December 31, 1998 increased 129% to
$706,120 as
compared to $308,488 reported for the prior year period. The net loss for the quarter
was
$146,718, or $0.04 per basic and diluted share, as compared to the net loss of
$517,212, or
$0.15 per basic and diluted share, reported a year ago.
Revenues for the year ended December 31, 1998 increased 6% to $2,010, 721 as
compared to
$1,898,402 reported for the prior year period. The net loss for the period was
$1,156,515, or $0.31
per basic and diluted share, as compared to a net loss of $1,340,673, or $0.40 per
basic and
diluted share, reported a year ago.
Revenues for both the fourth quarter and year resulted primarily from sales of the
Company's
e-mail management products -- namely the Internet Message Center(TM).
While the Company recorded a loss for both the fourth quarter and year, the losses
diminished
progressively throughout the year due to increasingly higher revenues and gross margins
without
a corresponding increase in operating expenses. Gross margins increased 10% for the
year to
91.2% and increased 17% to 94.8% for the fourth quarter when compared to the prior
year
periods. Margins in the fourth quarter also demonstrate continued sequential quarterly
expansion
when comparing the 91.7% margin recorded in the recent third quarter. Operating
expenses for
the year remained relatively constant compared to last year, resulting in a 72% reduction
in net
losses in the fourth quarter and 14% for the year.
Commenting on the Company's accomplishments for the year, President and CEO,
James
Harrer, remarked, "Everyone at Mustang Software is quite proud of our achievements.
Throughout
the year, we managed very successful product roll-outs, drove early market acceptance
of a new
technology in a new market, and garnered numerous prestigious awards for our Web
Essentials(TM) product line. We are particularly pleased with the recent acceleration in
sales of
the Internet Message Center product, driven primarily by purchases from many Fortune
500
companies. Being first-to-market with the most comprehensive e-mail management tools
available enabled us to establish the market standard and take the leading role in actually
developing this new niche. In the process, we have amassed the leading marketshare
and have a
great deal of momentum behind us -- we clearly designed the right product at the right
time."
"Other important events marking a truly exciting year of multiple achievements included
our
securing $1.75 million in new equity capital, the opening of sales offices in Chicago, IL
and
Washington, D.C., the sale of our legacy BBS product line, and newly demonstrated
financial
performance. Today, we wish to thank all of the individuals and firms outside of
Mustang who
helped us execute this ambitious, yet successful business strategy."
Looking ahead, Harrer stated, "With over 150 companies now counting on our
products to provide
world-class e-mail management 24 hours a day, 7 days a week, we feel we have
established an
excellent installed base of customers enabling not only recurring revenue today from
service
contracts, but potential future sales of new products as well. More importantly,
however, is the
growing use of our product and the reputation we are amassing in the market place. To
continue
building on our present position, we're earmarking investments in four specific areas:
engineering,
sales, marketing and professional services."
Statements in this news release that relate to future plans, financial results or projections,
events
or expected performance in future periods are forward-looking statements and fall
within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results
and
performance for such periods may differ materially. Specifically, it is possible that the
current
revenue uptrend and gross margin expansions may not continue due to reduced demand
for the
Company's products and a change in production costs. While management wishes to
provide
readers with reasonable opinions and viewpoints with respect to the Company's
progress,
marketplace acceptance, and business opportunities, and fiscal performance, such
statements,
opinions and viewpoints are forward-looking and involve risks and uncertainties,
including risks of
changing conditions in the overall economy, the capital markets, the computer and
telecommunications industries, as well as risks of changing consumer demand and the
success
of the Company's business strategies and other factors detailed in the Company's annual
and
other reports filed with the Securities and Exchange Commission.
About Mustang Software
Mustang Software, Inc. provides creative e-mail management solutions through a
combination of
the Company's unique Web Essentials tools and its unparalleled e-mail management
experience
and expertise. Mustang's Web Essentials line of tools includes the award-winning
Internet
Message Center, ListCaster(TM) and FileCenter(TM).
Mustang's Internet Message Center (IMC) is an intelligent e-mail management system,
designed
with an open modular-architecture, that provides sophisticated management capabilities
for
e-mail workflow in mission-critical, high-volume customer service operations. IMC
enables
organizations to manage incoming corporate and customer e-mail as it manages its
inbound
phone calls -- with logic, responsibility, structure, real-time management statistics, and
detailed
reporting.
Internet Message Center was named 1998 "Product of the Year" by CTI, ISP Today
and C@LL
CENTER Solutions magazines; 1998 "Best of Show" by Internet Telephony, and
C@LL CENTER
Solutions, Computer Telephony, CTI, Call Center News Service and Customer
Support
Management magazines; and 1998 "Editors Choice" by Internet Telephony and
Telemarketing &
Call Center Solutions magazines.
Mustang Software's corporate headquarters is located at 6200 Lake Ming Road,
Bakersfield,
California, 93306. Inquiries can be addressed via voice, 805-873-2500; fax,
805-873-2599; and
e-mail, info@mustang.com, or by visiting Mustang Software on the web at
mustang.com.
MUSTANG SOFTWARE, INC.
BALANCE SHEET
December 31, December 31,
1998 1997
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,849,700 $ 1,403,776
Accounts receivable 409,077 6,378
Other current assets 28,856 225,134
Total current assets 2,287,633 1,635,288
Property and equipment, net 592,855 711,434
Other assets 11,183 4,083
$ 2,891,671 $ 2,350,805
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 233,854 $ 242,451
Other current liabilities 347,417 342,318
Total current 581,271 584,769
liabilities
Capital lease obligation, net of current
portion 260,747 269,005
Shareholders' equity:
Preferred stock, no par
value 7,746 shares issued
and outstanding
at December 31, 1998 730,229 --
Common stock, no par value
4,098,845 shares issued
and outstanding at
December 31, 1998 7,618,954 6,640,045
Retained earnings (6,299,530) (5,143,014)
Total shareholders' equity 2,049,653 1,497,031
$ 2,891,671 $ 2,350,805
MUSTANG SOFTWARE, INC.
STATEMENTS OF OPERATIONS
Three months ended Twelve months ended
December 31, December 31,
1998 1997 1998 1997
Revenue $ 706,120 $ 308,488 $ 2,010,721 $ 1,898,402
Costs of revenue 36,503 57,545 177,928 330,828
Gross profit 669,617 250,943 1,832,793 1,567,574
Operating expenses 831,423 783,540 3,016,850 2,980,731
Income (loss) from
operations (161,806) (532,597) (1,184,057) (1,413,157)
Other income
(expenses), net 15,088 15,385 28,342 73,284
Income (loss)
before provision
for income taxes (146,718) (517,212) (1,155,715) (1,339,873)
Provision (benefit)
for income taxes -- -- 800 800
Net income (loss) $ (146,718) $ (517,212) $(1,156,515) $(1,340,673)
Net income (loss)
per common share $ (0.04) $ (0.15) $ (0.31) $ (0.40)
Weighted average
number of shares
outstanding 4,098,845 3,383,771 3,757,884 3,383,771
AJE/la* ECQ/la
CONTACT: Mustang Software, Inc., Bakersfield
Don Leonard, 805/873-2575
E-mail: investor@mustang.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
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