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Softlink Announces Second Quarter/Six Months Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 22, 1999--
Revenues for Quarter and Six Months Nearly Double Over Prior Year
Softlink, Inc. (OTC BB: SFLK), the leader in multimedia email
software, today announced financial results for the three and six
months ended Sept. 30, 1999.
For the quarter, revenues totaled $336,300, up 92 percent from
$175,100 in the three months ended Sept. 30, 1998, and up four percent
from $324,600 in the first quarter of the fiscal 2000. Gross profit
for the quarter equaled $217,300, versus $155,700 last year, an
increase of 40 percent. The net loss for the period was $1,183,100, or
15 cents per basic and diluted share, compared with a net loss of
$231,700, or three cents per basic and diluted share, for the
corresponding period in 1998.
For the first six months of fiscal 2000, Softlink's revenues rose
97 percent to $660,900, compared with $335,500 for the first six
months of fiscal 1999. Gross profit for the six-month period totaled
$484,900, up 61 percent from $300,400 for the same period last year.
The net loss for the first six months of fiscal 2000 was $1,745,800,
or 22 cents per basic and diluted share, versus a net loss of
$272,000, or four cents per basic and diluted share, for the
corresponding period in fiscal 1999.
The company attributes the sharp rise in revenues to increased
sales of its VOICELink and inChorus products, which allow users to
record and send email messages in their own voice at extremely high
transmission speeds. Operating expenses for the three and six month
periods of fiscal 2000 compared to the corresponding periods in fiscal
1999 increased significantly, largely as the result of the company's
continued investment in its infrastructure, including expenditures for
new staff, research and development, and marketing and sales.
"We are very pleased with the strong market acceptance of our
products, which has led to steadily rising sales," said Pat Coan,
Softlink's chief financial officer. "We continue to improve our gross
profit margins and to invest heavily in our infrastructure by tripling
our head count and undertaking new sales and marketing initiatives. We
believe these investments are critical to helping us increase our
market penetration and achieve sustainable revenue growth."
Commented William Yuan, CEO of Softlink, "During this quarter, we
took steps to further solidify our position among email technology
leaders. Among the highlights, we introduced our new inChorus Pro
product, which allows recipients to view messages on any platform with
no plug-ins or players required and which we'll target to high-end
corporate users. We significantly expanded our retail and OEM markets,
and we have signed distribution and bundling agreements with many
national retail chains and major electronic manufacturers, which we
have previously announced.
"Our goal is to pursue additional strategic partnerships that
will help us bring our products to broader markets worldwide and to
continue to improve our operating results."
About Softlink, Inc.
Founded in 1996 and based in Santa Clara, CA, Softlink, Inc. (OTC
BB: SFLK), is an innovator in multimedia-based Internet
communications. Using advanced compression and composition technology,
Softlink's eMail inChorus and eMail VOICELink products revolutionize
conventional text-based email with voice, graphics, pictures,
animation and live annotation.
For more information, visit the company's web site at
inchorus.com.
Information contained in this press release contains
"forward-looking statements," which can be identified by the use of
forward-looking terminology such as "believes", "expects", "may"
"should", or "anticipates" or the negatives thereof, or implying that
the future results covered by the forward-looking statements will be
achieved. Various risk factors could cause actual results to vary
materially from the future results covered in such forward-looking
statements. Such statements are subject to other risks and
uncertainties.
Note to Editors: eMail inChorus and eMail VOICELink are
trademarks of Softlink, Inc. All other trademarks are the property of
their respective owners.
SOFTLINK, INC.
Financial Highlights
Three Months Ended Six Months Ended
September 30, September 30,
1999 1998 1999 1998
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Net Sales,
including
license
fee income $ 336,300 $ 175,100 $ 660,900 $ 335,500
Cost of
Sales 119,000 19,400 176,000 35,100
--------- ---------- --------- ----------
Gross
Profit 217,300 155,700 484,900 300,400
--------- --------- --------- ---------
Operating
Expenses 1,377,300 387,700 2,200,500 572,600
--------- --------- --------- ---------
Loss From
Operations (1,160,000) (232,000) (1,715,600) (272,200)
Other Income
(Expense) 7,000 300 700 1,000
------------ ------------ ----------- -----------
Loss Before
Provision for
Income Taxes (1,153,000) (231,700) (1,714,900) (271,200)
Provision for
Income Taxes 30,100 - 30,900 800
------------ ------------ -----------
Net Loss $(1,183,100) $(231,700) $(1,745,800) $(272,000)
============ ========== ============ ==========
Basic and
diluted loss
per share $ (0.15) $ (0.03) $ (0.22) $ (0.04)
============ ============= ============= ============
Basic and diluted
weighted-average
common shares
outstanding 7,909,600 6,625,400 7,856,700 6,062,900
============ =========== =========== ===========
-0-
SOFTLINK, INC.
CONSOLIDATED BALANCE SHEET
September 30, March 31,
1999 1999
---------------- -------------
(Unaudited) (Audited)
Assets
Current Assets $3,149,600 $ 861,200
Property and Equipment, net 121,400 54,300
Deposits and Other Assets 25,600 52,000
-------------- ------------
Total Assets $ 3,296,600 $ 967,500
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities $ 358,700 $ 86,400
------------- -----------
Commitments, Contingencies
and Subsequent Events
Stockholders' Equity:
Convertible preferred
stock $0.001 par value;
1,000,000 shares
authorized; 300 shares
issued and outstanding 3,026,300 --
Common stock, $0.001 par
value; 50,000,000
shares authorized;
9,364,130 and 9,363,130
shares issued and
outstanding, respectively 9,400 9,400
Additional paid-in capital 6,077,300 5,634,700
Accumulated deficit (3,418,600) (1,646,500)
----------- -----------
5,694,400 3,997,600
Less: Treasury stock at
cost (1,454,356 and
1,593,750 shares, respectively) (2,756,500) (3,116,500)
Total Stockholders' Equity $ 2,937,900 $ 881,100
----------- -----------
$ 3,296,600 $ 967,500
CONTACT:
Porter, LeVay & Rose, Inc. =========== ===========
Lori Parks, VP
Jonathan Gordon, Investor Relations
212/564-4700
or
Softlink, Inc
Lauren deVries
408/970-1488
ldevries@inChorus.com
KEYWORD: CALIFORNIA
BW1124 NOV 22,1999
5:37 PACIFIC
8:37 EASTERN |
