NEWS NEWS Year end numbers out...up 39%+++ GP jumps from 71% to 83%....loss cut nearly in half, and if one takes out the acquistion/ merger related charges a .10 profit was achieved!!
Bayclipper
NORTH ANDOVER, Mass., Mar 22, 2000 (BUSINESS WIRE) -- TouchStone Software Corp.
(OTC BB:TSSW) Wednesday announced its financial results for its fiscal year
ended Dec. 31, 1999.
The company reported total revenues of $6,739,355, compared with total revenues
of $4,835,823 for the year prior, representing a 39 percent increase in total
revenues. The company stated the increase in revenues was attributable to the
acquisition of Unicore Software, a world leader in the development of BIOS
Upgrades, which effectively contributed to the increase in sales.
The company reported a loss for the year ended Dec. 31, 1999, of $2,326,107, or
$0.25 per share, compared with a loss of $3,096,916 or $0.39 per share for the
year prior. Before the one-time merger-related charges and amortization expense,
the company reported net income for the year ended Dec. 31, 1999, of $961,062,
or $0.10 per share.
Gross profit as a percentage of total revenue improved from 71.7 percent in 1998
to 83.4 percent for 1999, based on lower royalty expenses and an increase in the
sales of the company's higher priced, high gross margin products.
The one-time merger-related charges recorded in the first quarter, along with
the amortization expense related to the goodwill and capitalized purchased
software, were adjusted in the fourth quarter resulting in a reduction to the
overall expense originally recorded.
Subsequent to the end of the last fiscal year, the company has made several
fundamental changes to its operations, including the proposed sale of its PC
diagnostics and upgrade technology unit to Phoenix Technologies Ltd.
(Nasdaq:PTEC) and is in the process of a corporate name change to TouchStone
Capital Group Inc., to reflect its new business model.
The company has repositioned itself as a Business to Business (B2B) Internet
incubator dedicated to the task of nurturing new business entities through the
early stages of development by providing management guidance, promoting
financing and lending necessary business support such as legal counsel,
accounting assistance and marketing advice.
"During the 1999 fiscal year we restructured our business model to become more
focused in the new Internet economy and we believe we have taken the appropriate
steps to ensure the long-term value proposition we established for our company
and our shareholders," said Pierre Narath, CEO of TouchStone.
"The company believes the proceeds from the sale of its PC diagnostics and
upgrade technology unit will provide additional capital to strengthen its new
business incubator strategy and help the company establish favorable equity
investments in early and mid-stage technology companies."
About TouchStone Software Corp.
With headquarters in North Andover, TouchStone Software is recognized as a major
force in the utility software market focusing on PC system diagnostics and
utilities. Founded in 1982, TouchStone designs, develops and markets a
comprehensive line of utility programs, highlighted by the CheckIt(R) Family of
system diagnostics.
The CheckIt Family consists of WinCheckIt 6.5(TM), FastMove! 2000(R) and CheckIt
NetOptimizer(TM). TouchStone sells and distributes its product throughout the
retail, direct and OEM sales channels. In March 1999, TouchStone acquired
Unicore Software Inc., which was previously a wholly owned subsidiary of Phoenix
Technologies.
Unicore is a full-service computer engineering company that is also the world's
oldest and largest supplier of BIOS upgrades. The company also provides
diagnostics, hard drive installation utilities and drivers to many leading
manufacturers in the PC industry.
TouchStone is looking forward to implementing its new B2B Internet business
model by the proposed sale of its PC diagnostics and upgrade technology unit to
Phoenix Technologies and by making strategic minority investments and managing a
portfolio comprised of well managed, early- to late-stage technology companies
with market presence in e-commerce, content and community and enabling
technologies.
TouchStone believes that its expertise in identifying opportunities, and its
targeted strategic focus on unique and successful business models, creates both
short-term growth potential for investors and long-term value for shareholders.
TouchStone's operating model combines the talents of its management team with
those of its portfolio of companies. Each of these companies hold niche
positions with the promise of leadership in proven Internet sectors. With a
strong cash position, minimal debt and millions of dollars in marketable
securities, TouchStone is in a position to swiftly act on opportunities as they
present themselves.
For more information, visit the company's Web site at www.touchstonesoftware.com
or www.tscgi.com |
