MapInfo Corporation Announces THIRD Quarter 1999 Results
Operating Income Increases 111%; EPS up 36%
biz.yahoo.com
Happily Long MAPS,
Duke
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Thursday July 22, 5:58 am Eastern Time
Company Press Release
MapInfo Corporation Announces THIRD Quarter 1999 Results
Operating Income Increases 111%; EPS up 36%
TROY, N.Y.--(BUSINESS WIRE)--July 22, 1999-- MapInfo Corporation
(NASDAQ/NM: MAPS - news), The Information Discovery Company, today
announced financial results for the three months ended June 30, 1999.
Revenues for the third quarter of fiscal 1999 increased 23% to
$19,012,000 from $15,451,000 for the third quarter last year.
Operating income grew 111% to $1,437,000 from $681,000 for the same
period last year. Net income for the third quarter increased 36% to
$1,127,000, or $0.19 per share, compared to $831,000 or $0.14 per
share, in the same period a year ago.
Revenues for the nine months ended June 30, 1999 increased 22% to
$53,185,000 from $43,493,000 for the same period last year. Operating
income for the nine months ended June 30, 1999 grew 121% to
$3,448,000 from $1,563,000 for the same period last year. Net income
for the nine months ended June 30, 1999 increased 47% to $2,795,000,
or $0.47 per share, compared to $1,899,000 or $0.32 per share, in the
same period last year.
Third quarter revenues in the Americas grew 24% compared to the prior
year period, reflecting strong sales of data products and
telecommunications solutions. Revenue growth in Europe this quarter
was 36% led primarily by strong sales to telecommunications companies
and continued growth across the region, while Asia Pacific revenues
declined slightly.
''This quarter we continued to close higher-dollar value transactions
as our customers, particularly those in the telecommunications
sector, expanded their deployment of new enterprise products, both
data and software,'' said John C. Cavalier, president and CEO. ''The
recently-announced contract with Nextel Communications for a suite of
Java-based MapInfo products and data on Oracle8i(TM) is evidence of
our ability to close large contracts and an important early win
stemming from our agreement with Oracle announced earlier this
quarter. Overall, we attribute the excellent financial performance
this quarter to an increase in the number and value of large orders
coupled with a favorable product mix, follow-on orders from existing
customers, such as VIAG and AT&T, and operating performance of our
acquired businesses.
''We believe MapInfo technology is emerging as the de facto standard
for spatial Internet solutions used by telecommunications companies
worldwide to build better networks. For example, this quarter we
introduced a new Web-based platform called the MapInfo Coverage
Locator(TM) and, based on early sales and prospects, see strong
potential for this solution. It is targeted at telecommunications
companies seeking to better manage their customer relations, reduce
the high percentage of customer churn, and identify potential new
customers.''
Cavalier concluded, ''We see a growing pipeline of larger customer
orders. We also see increasing momentum in our business, based on our
ability to offer scalable spatial Internet solutions using MapInfo's
fully-integrated product suite, and broader penetration of several
service industries as we leverage our new relationship with Oracle.''
On February 17, 1999 MapInfo announced a share repurchase plan
totaling $5,000,000 of the Company's common stock effective until
September 30, 2000. As of June 30, 1999, the Company had repurchased
23,200 shares at an average price of $16.52 per share under the plan.
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
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, including any statement that is
not a statement of historical fact, such as statements using the
word ''believe.'' 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 and Quarterly
Report on Form 10-Q for the quarter ended March 31, 1999.
MapInfo Corporation and Subsidiaries
Income Statements
(in thousands, except earnings per share)
(unaudited)
Three Months Nine Months
Ended June 30, Ended June 30,
-----------------------------------
1999 1998 1999 1998
----------------- ----------------
Net revenues $ 19,012 $15,451 $53,185 $43,493
Cost of revenues 3,801 3,454 11,304 9,658
-------- ------- ------- -------
Gross profit 15,211 11,997 41,881 33,835
-------- ------- ------- -------
Operating expenses:
Research and development 2,787 2,519 8,195 7,626
Selling and marketing 8,260 6,633 22,828 18,855
General and administrative 2,727 2,164 7,410 5,791
-------- ------- ------ -------
Total operating expenses 13,774 11,316 38,433 32,272
-------- ------- ------ -------
Operating income 1,437 681 3,448 1,563
Other income - net 221 425 662 904
-------- ------- ------ -------
Income before provision
for income taxes 1,658 1,106 4,110 2,467
Provision for income taxes 531 275 1,315 568
-------- ------- ------ -------
Net income $ 1,127 $ 831 $ 2,795 $ 1,899
======== ======= ====== =======
Diluted earnings per share $ 0.19 $ 0.14 $ 0.47 $ 0.32
Average shares outstanding 6,090 5,955 5,990 5,976
MapInfo Corporation and Subsidiaries
Balance Sheets
(in thousands)
June 30, September 30,
1999 1998
------------ -----------
ASSETS (unaudited)
Current Assets:
Cash and investments $ 25,150 $ 28,923
Receivables 17,325 15,224
Inventories 529 601
Other current assets 3,532 2,705
----------- -----------
Total current assets 46,536 47,453
Property and equipment - net 4,547 4,430
Product development costs - net 1,237 1,272
Intangibles - net 5,546 3,458
Investments and other assets 4,273 2,918
----------- -----------
Total assets $ 62,139 $ 59,531
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 13,023 $ 13,714
Deferred revenue 4,073 3,781
----------- ----------
Total current liabilities 17,096 17,495
Deferred revenue, long term 541 322
----------- ----------
Total liabilities 17,637 17,817
----------- ----------
Stockholders' Equity:
Common stock 12 12
Paid-in capital 30,820 31,046
Retained earnings 16,024 13,828
----------- ----------
46,856 44,886
Less treasury stock, at cost 2,354 3,172
----------- ----------
Total stockholders' equity 44,502 41,714
----------- ----------
Total liabilities and
stockholders' equity $ 62,139 $ 59,531
=========== ==========
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Contact:
MapInfo Corporation
D. Joseph Gersuk, EVP/CFO
Barbara Pilliod, Public Relations Manager
518-285-6000
www.mapinfo.com
or
Investor Contact:
Lippert/Heilshorn & Associates
John Heilshorn/Jody Burfening
john@lhai.com
jody@lhai.com
212-838-3777
or
Media Contact:
Schwartz Communications
Merrill Freund/Jane Carpenter
merrillf@schwartz-pr.com
janec@schwartz-pr.com
781-684-0770
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