TSSW Releases News - First in Two Year - Opportunity for Revenue Growth in upcoming Qtrs
Press Release Source: TouchStone Software Corporation
TouchStone Software Corp Reports First Quarter Results
Friday May 14, 8:00 am ET
TouchStone Enters the INTEL --NASDAQ:INTC-- Processor Upgrade Market
Increase in Revenue Yields Positive Earnings
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--May 14, 2004--TouchStone Software Corporation (OTC BB: TSSW - News) today announced revenue of $492,332 for its first quarter ended March 31, 2004 as compared to $480,094 for the same quarter of the previous. Product revenue has increased approximately $47,000 as compared to the same quarter of the previous year.
Operationally, TouchStone recorded net income before EBITDA (earnings before interest, taxes, depreciation and amortization) of $32,052 for the quarter as compared to $44,578 for the same quarter of the previous year. Gross margins decreased slightly from the previous year due to the company's recent decision to sell processor upgrades. Since January the Company has begun to repackage and sell processor upgrades that support the following processor platforms:
Socket 370 for Intel Pentium-III-S / Pentium-III / Celeron Tualatin-core processors
Socket 370 for Intel Pentium-III / Celeron Coppermine-core processors
FSB 66 / 100 / 133 MHz
The CPU kit that the Company integrates includes:
Genuine Intel (NASDAQ: INTC - News) CPU
CPU adaptor provides necessary voltage and FSB requirements
Heat Sink
HD Fan
The addition of processor upgrade solutions to TouchStone's product line enhances TouchStone's ability to generate additional revenue from existing and potential customers who visit TouchStone's web site. Jason K. Raza, President and Chief Executive Officer of TouchStone Software stated that, "We have completed our first goal of operating efficiencies and are now embarking upon our next step towards increased revenues and earnings. Processor upgrades are a natural brand extension and should help us to achieve our goal of increased revenues in the future."
The Company's primary web sites continue to receive, on average, in excess of 250,000 unique visitors per month and the Company believes that with the addition of the processor upgrade products, the Company will see an increase in web related traffic, which the Company hopes will result in increased revenues from the Company's entire product line.
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 and processor upgrades. 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. 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, 2004
(Unaudited)
ASSETS
Cash and marketable securities 370,592
Accounts receivable, net 20,651
Inventories 25,584
Prepaid expenses 22,394
Note Receivable related party 96,692
Investments Other 147,727
Property, and equipment, net 7,536
Other assets -
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Total Assets $691,176
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt 2,685
Accounts payable 41,326
Accrued expenses 141,137
Long-term debt -
Total stockholders' equity 506,028
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Total Liabilities and Stockholders' Equity $671,176
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TouchStone Software Corp.
Condensed Consolidated Statements of Operations
(Unaudited)
THREE MONTHS ENDED
March 31,
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2004 2003
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Total revenues 492,332 480,094
Cost of revenues 73,454 56,046
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Gross profit 418,878 424,048
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Operating expenses 386,826 379,470
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Income from operations 32,052 44,578
Other income, net 2,804 1,039
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Income before provision for income taxes 34,856 45,617
Provision for income taxes - -
-------------------------
Net income $34,856 $45,617
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Basic earnings per share $0.00 $0.00
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Basic weighted average shares outstanding 11,440,060 11,440,060
Diluted earnings per share $0.00 $0.00
Diluted weighted average shares outstanding 12,010,010 12,294,510
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Contact:
TouchStone Software Corporation
Pierre A. Narath, 978-686-6468 |
