We got a significant rise in share price today along with an amazing surge in volume. Any ideas why? They just reported earnings, which on a percentage basis were good, but in real terms revenues were so small the company is hardly worth following.
So, any guesses what could be up, if anything?
Regards, Mark
Midisoft Corporation Reports Q2 1999 Results
Business Wire - August 20, 1999 19:11
ISSAQUAH, Washington--(BUSINESS WIRE)--Aug. 20, 1999--
Improved Gross Margins on Lower Revenue Compared to Prior Year;
Revenues Up Sequentially Over Q1 1999
Midisoft Corporation (OTC/BB:MIDI), music technology pioneer and recognized leader of innovative applications for creation of music and audio on personal computers and the Internet, today reported results for the quarter ended June 30, 1999.
Midisoft reported improvement in gross margin to 91% for the quarter ended June 30, 1999, compared to 57% for the same period last year, and improvement to 81% for the six months ending June 30, 1999, compared to 59% for the same period last year. The Company reported that these increases resulted from greater emphasis on its higher margin Internet products and packaged software targeted for direct distribution.
The Company's second quarter revenues for this year of $157,000 were up sequentially over this year's first quarter revenues of $133,000. This compared to revenues of $389,000 reported for the second quarter last year. Revenue was $290,000 for the six months ended June 30, 1999 compared to $754,000 in the same period the prior year. The Company reduced its operating loss by 35%, or $266,000, to $484,000 for the quarter just ended, from $750,000 reported for the same period last year. The net loss was also reduced to $674,000 for the quarter ending June 30, 1999, compared to $810,000 for the same period last year. On a per share basis, this was a 28% and 43% reduction in net loss over the same three-month and six-month periods of last year, respectively.
"In the second quarter, we released a new version of the Internet Media Player(TM) and announced a licensing program to independent content providers for player branding and promotion of digital audio and video," commented Larry Foster, President and C.E.O. "We also launched the first customized product designed for a targeted market with special requirements for music creation software. We applied substantial marketing and sales resources to the introduction of Worship Studio(TM) to augment our retail distribution with more direct sales channels. It is worth noting that we saw an 13% increase in revenue over the first quarter."
Mr. Foster elaborated, "As we position our music creation software and Internet products to exploit trends in online promoting, marketing and selling of music creation and related products, we remain fully committed to our research and development program. Expenditures for R&D continued at a substantial level, 50% of revenue, directed at refining and improving to our core technology. For example, Internet Media Player provides enhanced content organization and management capabilities and incorporates current Internet market dynamics for media players. It contains an ad banner that reflects a potential additional revenue stream for the Company."
"Two recent executive management additions to Midisoft bring valuable years of experience in the Internet space and in the music industry. Scott Parris came to Midisoft from IUMA, the oldest community-based website for musicians. Tim Heile previously served as the Executive Director of the Music Producer's Guild of the Americas."
Midisoft Corporation is the music technology pioneer and a recognized leader of sound applications for use on personal computers and the Internet. The Company develops and sells music creation software for musicians to compose, edit and record music and print engraver-quality sheet music. It develops and markets sound management products for users to conveniently access Internet content, sound controls and media files directly from their desktops. Midisoft's products help make the wealth of web-based content available and accessible for the enjoyment of the increasing number of consumers who join the Internet daily. Based in Issaquah, Washington, the Company develops award-winning consumer and business products that are sold at retail and licensed to third-party manufacturers, destination websites and content portals. For further information on the Company, please visit the Midisoft web site at www.midisoft.com
All statements in this press release other than statements of historical fact are forward-looking statements that involve substantial risks and uncertainties. There can be no assurance that the Company's capital requirements will not increase in the future, that the Company's operations will improve, or that revenues will increase. Reference is made to Midisoft's Annual Report on Form 10-KSB for the year ended December 31, 1998 and to the Company's other reports filed with the Securities and Exchange Commission for a discussion of such risks and uncertainties and other factors that may have a material effect on the Company's business.
MIDISOFT CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
Revenues $ 157,000 $ 389,000 $ 290,000 $ 754,000
Cost of revenues 14,000 167,000 55,000 307,000
----------- ----------- ----------- -----------
Gross profit 143,000 222,000 235,000 447,000
Operating
expenses:
Sales and
marketing 157,000 365,000 360,000 674,000
General and
administrative 391,000 410,000 748,000 789,000
Research and
development 79,000 197,000 180,000 422,000
----------- ----------- ----------- -----------
Total
operating
expenses 627,000 972,000 1,288,000 1,885,000
----------- ----------- ----------- -----------
Operating loss (484,000) (750,000) (1,053,000) (1,438,000)
Interest and
other income/
(expense) (190,000) (60,000) (437,000) (836,000)
----------- ----------- ----------- -----------
Net loss $ (674,000) $ (810,000) $(1,490,000) $(2,274,000)
=========== =========== =========== ===========
Net loss per
share $ (0.09) $ (0.13) $ (0.21) $ (0.36)
=========== =========== =========== ===========
Weighted average
shares
outstanding 7,251,000(a) 6,297,000 7,251,000(a) 6,297,000
=========== =========== =========== ===========
(a) 1999 weighted average shares outstanding include 862,000 shares
the Company was obligated to issue, but had not issued at June
30, 1999.
CONTACT: Gary M. Cully, Chief Financial Officer
425/313-3440; garyc@midisoft.com
or
Juan Dominguez & Dian Griesel, Ph.D.
The Investor Relations Group, NY, NY
212/736-2650 |
