TSSW Reports Profit in First Qtr. News Below:
TouchStone Software Corp Reports First Quarter Results
Improved Operational Efficiencies Yield Positive Earnings
NORTH ANDOVER, Mass., May 8, 2002 (BUSINESS WIRE) -- TouchStone Software Corporation (OTC BB: TSSW chart, msgs) today announced revenue of $552,757 for its first quarter ended March 31, 2002. The Company's continued efforts at reducing operating inefficiencies were realized during the quarter. As a result a 34 % decrease in operational expenditures was realized by the Company as compared to the same quarter of the previous year. The reduction in operating expenditures was a result of management's cost cutting strategies, including, but not limited to, a review of its outside service providers, the renegotiation of a new facility lease and salary adjustments for certain upper management positions put into effect throughout the past three quarters. It is anticipated that such reductions in operating expenses will continue to benefit the Company on a go-forward basis.
During the past twelve months the Company has placed significant emphasis on the BIOS upgrade business as its core product line. Product revenues increased by approximately $1,300, but were offset by a decrease in royalty revenue of approximately $14,000, as compared to the same quarter a year ago. The reduction in royalty revenue is due to a reduction in our partners' revenue on which they pay royalties to the Company. Over all, the Company experienced a decline in gross revenues of 2% as compared to the same quarter one year ago.
TouchStone recorded income from operations of approximately $38,000 for the quarter versus a loss of approximately $167,000 for the same quarter in the previous year. The Company recognized approximately $25,000 in other income related to a refund of foreign tax payments that were made prior to 1999. As a result of the benefit of this refund, along with the income from operations; the Company recorded net income of $62,000 or basic and diluted earnings of $0.01 per share versus a loss of approximately $350,000 or $0.03 per share for the same quarter last year.
The Company's primary web sites continue to receive, on average, in excess of 150,000 unique visitors per month and the Company believes that with the recently announced addition of the BIOS Wizard and BIOS Agent products, the Company will see an increase in web related traffic, which the Company hopes will result in increased revenues from the Company's BIOS Upgrade product line.
Jason K. Raza, President and Chief Executive Officer of TouchStone Software stated that, "Achieving a positive bottom line has been our number one priority and the first quarter results complement our successful focus on integrating our operations to realize efficiencies along with creating economies of scale. By doing so, I believe we are well positioned to focus on growing our revenues through further systems integration, along with the addition of other product lines."
Additional information on TouchStone Software Corporation / eSupport.com is available on the Company's web site at www.esupport.com.
About TouchStone Software Corporation and eSupport.com
TouchStone Software Corporation, Inc. and its consolidated subsidiaries, ("TouchStone" or "the Company") is a provider of system management software, which includes basic input/output ("BIOS") software upgrades, personal computer ("PC") diagnostics for personal computers and embedded systems. System management software is one of the fundamental layers in any microprocessor-based system (including PCs) architecture and provides an essential interface between the systems's operating software and hardware. Organized in 1982 as a California corporation, the Company reincorporated in Delaware in January 1997. The Company's executive offices are located at 1538 Turnpike Street, North Andover, Massachusetts 01845, and its telephone number is (978) 686-6468.
Safe Harbor Statement
This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, the company's projected return to profitability. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are new and changing technologies and customer acceptance of those technologies fluctuations or cancellations in orders from distribution customers, and the company's ability to compete effectively with other software companies. These and other factors that could cause actual results to differ materially are discussed in the company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-KSB and 10-QSB.
TouchStone Software Corp., the eSupport logo, is trademarks or registered trademarks of TouchStone Software Corp. All other trademarks are the property of their respective owners.
TouchStone Software Corp.
Condensed Consolidated Balance Sheet
March 31, 2002
(Unaudited)
ASSETS
Cash and marketable securities 224,378
Accounts receivable, net 36,096
Inventories 26,720
Note Receivable related party 96,811
Investments Other 397,000
Property, and equipment, net 38,036
Other assets 7,776
Total Assets $826,817
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable 297,631
Accrued expenses 102,255
Long-term debt 63,267
Total stockholders' equity 363,664
Total Liabilities and Stockholders'
Equity $826,817
TouchStone Software Corp.
Condensed Consolidated Statements of Operations
(Unaudited)
THREE MONTHS ENDED
March 31,
2002 2001
Total revenues 552,757 565,237
Cost of revenues 58,399 43,974
Gross profit 494,358 521,263
Operating expenses 456,053 688,510
Income (loss) from operations 38,305 (167,247)
Other income (expense), net 25,583 (180,247)
Income (loss) before provision for
income taxes 63,888 (347,494)
Provision for income taxes 1,824 2,168
Net income (loss) $ 62,064 $ (349,662)
Basic earnings (loss) per share $ 0.01 $ (0.03)
Basic weighted average shares
outstanding 11,440,060 11,440,060
Diluted earnings (loss) per share $ 0.01 $ (0.03)
Diluted weighted average shares
outstanding 12,434,510 11,440,060 |
