Q3 1999 Results
Third Quarter Revenues Increase 65 Percent Over Preceding Year
VANCOUVER, British Columbia, Oct. 4 /CNW/ -- Multiactive Software
Inc. (Toronto: E), a leading provider of e-business front office solutions,
released its third quarter financial results for fiscal year 1999 (Q3: FY99)
which ended Aug. 31, 1999. Multiactive Software reported gross revenues of
$6.92 million for the quarter, which represents a 65 percent increase over the
corresponding period of 1998. Year-to-date revenues amounted to
$18.71 million, which represents an increase of 60 percent over the
$11.73 million recorded for the nine months ended August 31, 1998.
Net income for the quarter ended Aug. 31, 1999 amounted to a loss of
$48,000 (or $0.0 per share) as compared to a loss of $2.38 million (or
$0.10 per share) for the preceding year (Q3: FY98). The year-to-date net
income for the current year amounts to a loss of $90,000 (or $0.0 per share)
as compared to a loss of $5.26 million (or $0.43 per share) for the nine
months ended August 31, 1998. The results for the prior periods have been
adjusted to reflect the acquisition of the rights to the ecBuilder product
line from a related party on March 1, 1999. The acquisition is being accounted
for on a basis similar to the pooling of interest method.
Quarterly Highlights
The following highlights occurred since Multiactive Software's last
earnings statement:
TSE Listing
On August 30, 1999 the common shares of Multiactive were listed on the
Toronto Stock Exchange where they trade under the symbol "E."
"Software 500" Award
In June, Multiactive Software was ranked on Software Magazine's annual
"Software 500" list as a leading independent software solutions provider based
on total revenue. In winning this award, Multiactive stands out as a major
industry leader.
Product Launches
On June 30, 1999, Multiactive began shipping its Entice! comprehensive
e-business solution, and the first of Entice! sales have commenced. Entice! is
the first customer-focused solution that transitions a traditional business
into an e-business by integrating its sales, marketing and customer service
functions with the Internet. Entice! ensures implementation occurs with little
impact on existing infrastructures. Entice! includes software modules that
automate the process of finding new leads, qualifying prospects, building
detailed customer profiles and stepping customers through a repeatable sales
process -- all of which is accomplished at fractional cost and effort to
comparable solutions.
About Multiactive Software:
Multiactive Software Inc. is a leading developer of innovative e-business,
sales, marketing, and customer management software, including Entice!(TM),
ecBuilder(R), ecBuilder Pro, Maximizer(TM), and Maximizer Enterprise(TM).
Designed to attract and retain customers, these award-winning applications are
used by more than a million people worldwide. Earlier this year, ecBuilder won
the prestigious "Best Internet Commerce Software" Codie Award for 1999 from
the Software and Information Industry Association (SIIA).
The company has offices located throughout North America, Latin America,
Europe, and Asia Pacific and a customer base that includes such leading
companies and institutions as Siemens, BankBoston, Travelers Insurance, Virgin
Records, and Pennzoil. To find out more about Multiactive Software and its
products, call 800-804-6299 or visit multiactive.com .
This release may contain certain forward-looking statements reflecting
Multiactive Software Inc.'s current expectations in the electronic business
and sales and customer management software markets. Investors are cautioned
that all forward-looking statements involve risks and uncertainties,
including, without limitation, changes in market and competition,
technological and competitive developments, and potential downturns in
economic conditions generally. Additional information on these and other
potential factors that could affect the Company's financial results are
detailed in documents filed from time to time with the Ontario Securities
Commission.
NOTE: All trademarks or registered trademarks stated herein are
properties of their respective owners.
For further information, contact:
Brenda Christensen, VP, Corporate Communications
Multiactive Software Inc.
Phone: 818-884-5391
E-mail: blcmultiactive.com
Brent Halverson, President
Multiactive Software Inc.
Phone: 604-601-8048
E-mail: brenthmultiactive.com
Multiactive Software Inc.
Consolidated Balance Sheet
As at August 31, 1999
(unaudited)
(in thousands of Canadian dollars)
1999 1998
Assets
Current assets
Cash $5,889 $0
Accounts receivable 7,197 2,341
Inventory 533 618
Prepaid expenses and deposits 730 411
14,349 3,370
Capital assets 1,454 1,365
$15,803 $4,735
Liabilities
Current liabilities
Bank indebtedness $0 $2,082
Accounts payable and accrued liabilities 5,558 4,815
Due to related parties 258 6,266
Deferred revenue 265 107
6,081 13,270
Minority interest 122 53
6,203 13,323
Shareholders' deficiency
Share capital 29,723 10,226
Deficit (20,123) (18,814)
9,600 (8,588)
$15,803 $4,735
Multiactive Software Inc.
Consolidated Statement of Operations
For the three and nine month periods ended August 31, 1999
(unaudited)
(in thousands of Canadian dollars)
For the three For the three
month period ended month period ended
August 31, 1999 August 31, 1999
1999 1998 1999 1998
Revenue $6,920 $4,191 $18,711 $11,726
Cost of sales 946 873 2,433 1,944
Gross profit 5,974 3,318 16,278 9,782
Expenses
Selling and marketing 3,510 2,637 9,561 6,662
Customer support 289 397 819 1,043
Research and development 1,075 1,142 3,204 3,130
Finance, administrative
and other 1,141 1,403 2,691 3,853
Interest on debt 14 36 101 113
Minority interest (3) (35) 58 25
6,026 5,580 16,434 14,826
Loss before taxes (52) (2,262) (156) (5,044)
Income tax recovery/expense (4) 121 (66) 212
Net Income (Loss) $(48) $(2,383) $(90) $(5,256)
Earnings per share $0.0 $(0.10) $0.0 $(0.43)
Fully diluted earnings
per share $0.0 $(0.10) $0.0 $(0.43)
Multiactive Software Inc.
Consolidated Statement of Changes in Financial Position
For the three and nine month periods ended August 31, 1999
(unaudited)
(in thousands of Canadian dollars)
For the three For the three
month period ended month period ended
August 31, 1999 August 31, 1999
1999 1998 1999 1998
Cash flows from
operating activities
Net income for
the period $(48) $(2,382) $(90) $(5,256)
Items not
affecting cash:
Depreciation 118 406 325 889
Minority interest (3) (35) 58 25
67 (2,011) 293 (4,342)
Net change in
non-cash working
capital items
Accounts receivable (2,413) (93) (4,778) (666)
Inventory (16) 128 141 (98)
Prepaid expenses
and deposits (238) (122) (495) (211)
Accounts payable
and accrued
liabilities 437 853 342 2,085
Due to related parties 81 551 540 2,936
Deferred revenue 70 (64) 88 107
(2,079) 1,253 (4,162) 4,153
Cash from Operating
Activities (2,012) (758) (3,869) (189)
Cash flows from
financing activities
Partners
capital/contribution -- 495 671 1,187
Issue of common
shares (net) (84) -- 18,375 8,000
Due to related parties -- -- (7,000) (8,000)
(84) 495 12,046 1,187
Cash flows from
investing activities
Additions to
capital assets (312) (170) (464) (1,086)
(312) (170) (464) (1,086)
Increase in
cash resources (2,408) (433) 7,713 (88)
Cash resources -
beginning of period 8,297 (1,649) (1,824) (1,994)
Cash resources -
end of period $5,889 $(2,082) $5,889 $(2,082)
-30-
For further information: Brenda Christensen, VP, Corporate
Communications, 818-884-5391, or blc@multiactive.com, or Brent Halverson,
President, 604-601-8048, or brenth@multiactive.com, both of Multiactive
Software, Inc.
/Web site: multiactive.com |
