MSTG.....more good news.
Mustang Software Announces 94% Increase In Revenue, Breaking Even On Profitability Ahead Of Schedule
BAKERSFIELD, Calif.--(BUSINESS WIRE)--April 22, 1999--
Broader Market Acceptance and Industry Recognition of
Company's Internet Message Center Results in Fifth Consecutive
Quarter of Improved Financial Performance
Mustang Software, Inc. (Nasdaq:MSTG) today announced that revenue for the three months ended March 31, 1999 increased 94% to $772,981 compared to revenue of $398,480 posted for the three month reporting period ended March 31, 1998. Net income for the quarter ended March 31, 1999 totaled $10,299, or $0.00 income per share, compared to net losses of $443,551, or $0.13 per share, reported for the first quarter of 1998. This marks the fifth consecutive quarter of revenue increases and the first time Mustang has overcome losses since launching its "reinvention" in 1997.
Despite Mustang's dramatic improvement in top line revenue growth, which nearly doubled, operating expenses decreased 7% to $728,470 for the three months ended March 31, 1999 compared to operating expenses of $781,881 reported in the first quarter of 1998. Gross profit margins on sales for the three months ended March 31, 1999 were 94% - an 11% improvement over gross profit margins of 83% on sales achieved for the three months ended March 31, 1998.
Jim Harrer, President and Chief Executive Officer of Mustang Software, stated, "Our 1999 Q1 financial performance is a direct reflection of the growing market acceptance of our Internet-directed products, most notably our Internet Message Center (IMC) e-mail management solutions. Our products have continued to win awards and new customers. Growth of our customer base on a consecutive quarter over quarter basis is probably our most significant achievement to date. When we closed fiscal 1998, our products had been retained by 140 organizations - including many Fortune 1000 companies. Our customer base is now nearing 200 and includes additional prestigious American enterprises. "But, this is just the beginning", continued Mr. Harrer. "Mustang plans to continue implementing our strategic marketing initiatives in an effort to increase market penetration and further enhance sales."
Concluding, Mr. Harrer added, "Long term shareholder value is of the utmost importance to Mustang's management team. In the immediate future, we intend to implement an aggressive growth strategy at the cost of short-term profitability. We believe that we have already established the standard by which all our competitors must adhere. Now, it's time to raise the bar and seek to expand a leadership position in this new market."
About Mustang Software, Inc.
Founded in 1986, Mustang Software, Inc. delivers creative e-mail management solutions through a combination of the Company's innovative products and services, its extensive e-mail management experience and expertise and alliances with leading companies involved in the technology that enables Internet commerce. Mustang presently counts more than 190 IMC customers worldwide including 3Com (Nasdaq:COMS), GTE (NYSE:GTE), The U.S. Mint, Time Warner New Media (NYSE:TWX), Victoria's Secret (NYSE:IBI) and Playboy Enterprise, Inc. (NYSE:PLA).
Mustang Software's corporate headquarters is located at 6200 Lake Ming Road, Bakersfield, California, 93306 with offices in Chicago, Illinois and Washington, D.C.. Inquiries can be addressed via voice, 661-873-2500; fax, 661-873-2599; and e-mail, info@mustang.com; or by visiting Mustang Software on the Web at mustang.com.
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 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.
Mustang Software, Inc.
Statements of Operations
Three Months Ended March 31,
1999 1998
Revenue $ 772,982 $ 398,480
Cost of Revenue 48,561 66,409
Gross Profit 724,421 332,071
Operating Expenses:
Research & development 129,520 174,278
Selling and marketing 251,629 247,018
General and Administrative 347,321 360,585
Total operating expenses 728,470 781,881
Income (loss) from operations (4,049) (449,810)
Other income (expenses), net 14,348 6,259
Income (loss) before
provision for income taxes 10,299 (443,551)
Provision (benefit) for
income taxes 0 0
Net income (loss) $ 10,299 $ (443,551)
Net income (loss) per
common share (Basic) $ 0.00 $ (0.13)
Weighted average number
of shares outstanding
(Basic) 4,145,313 3,417,961
CONTACT: Mustang Software, Inc., Bakersfield
Don Leonard, 661/873-2575 (media)
investor@mustang.com
or
Continental Capital & Equity
Dodi B. Zirkle, 407/682-2001 (investors)
dodi@insidewallstreet.com |
