RECORD FIRST-QUARTER RESULTS FOR FISCAL YEAR 1999
Record Revenue and Net Income
OTTAWA, Sept. 2 /CNW/ - JetForm Corporation (NASDAQ: FORMF; TSE: JFM),
the global leader in enterprise workflow and electronic forms solutions, today
announced financial results for its first quarter ended July 31, 1998.
Revenues for the first quarter of fiscal year 1999 were $32.6 million
(CDN), an increase of 38 percent compared to $23.6 million in the first
quarter of fiscal 1998. Earnings before interest and other income, taxes and
depreciation and amortization (EBITDA) for the quarter was $8.3 million, an
increase of 71 percent over $4.9 million for the same period last year.
Operating income for the first quarter was $5.5 million, an increase of
154 percent over $2.2 million in the first quarter of fiscal 1998. Net income
for the quarter was $5.7 million or $0.28 per share (fully diluted 20.7
million shares), an increase of 500 percent over $957,000 or $0.06 per share
(fully diluted 16.7 million shares) a year ago.
''Once again, JetForm is starting a new fiscal year on the right foot
with a very strong first quarter in spite of turbulent global economic
conditions,'' said John B. Kelly, President and Chief Executive Officer of
JetForm. ''We continue to enjoy profitable growth with our two-pronged
product strategy: continuing investment and expansion in our core business of
electronic forms and output management; and rapid gains in the enterprise
workflow market, where we are enjoying excellent market momentum.''
A STRATEGIC PARTNER FOR PRE-PRINTED FORMS PROVIDERS
During the quarter, JetForm announced a five-year extension of its
strategic alliance with Moore Corp., a leading maker of pre-printed forms.
Under the non-exclusive agreement, Moore will use JetForm's InTempo as part of
its strategic offerings for its customers that want to migrate from
paper-based processes to enterprise workflow.
''Leaders in pre-printed forms are turning to JetForm for their solutions
to assist their customers in transitioning to electronic forms,'' said Phil
Weaver, Chief Operating Officer and Executive Vice President. ''So, these
very large companies with impressive customer bases are becoming reseller
partners, giving us very large reach and penetration.''
BANKING SOFTWARE OEMS TURN TO JETFORM
JetForm E-forms technology continues to find strong demand in the
financial services sector. During the quarter, the Company announced three
new OEM license agreements with three leading banking software providers:
ALLTEL Information Services, SLM Software, and USERS Incorporated. The
contracts call for these customers to embed JetForm Design, JetForm Filler,
and JetForm Central electronic forms technologies within their respective
banking software solutions.
''Many software categories - such as ERP and financial services - have a
major requirement for fast, professional printed information,'' said Kelly.
''We continue to be a de facto standard for software makers who want to embed
premium E-forms technology.''
JETFORM ENTERS JAPANESE MARKET
''In spite of recent economic turmoil in Japan we are confident that the
opportunity in this market, the second largest software market in the world,
is significant,'' said Kelly. With this in mind, JetForm completed a
non-exclusive agreement with Toppan Forms and Sharp Corporation two industry
leading technology companies. Under the partnership, Toppan Forms and Sharp
Corporation will resell JetForm's electronic forms, print output, and
enterprise workflow technologies to Japan-based organizations.
These partnerships are very strategic for JetForm. With such a strong
beachhead, the Company will be better positioned to provide greater coverage
and support throughout the Japanese market. JetForm's technology supports
double-byte character sets and will be further localized for the Japanese
market in the coming months. JetForm's solutions are already installed in
Japan at several customers, including Tokyo-Mitsubishi Bank, Nortel, Nike, and
Storage Technology.
IAN GLEN HIRED AS SENIOR VICE PRESIDENT OF CORPORATE SERVICES
Subsequent to the close of the quarter, JetForm named D. Ian Glen, Q.C.
its Senior Vice President of Corporate Services. In this newly created
position, Glen will be responsible for all aspects of corporate
administration, including the Company's worldwide finance, legal, MIS,
facilities, and human resources operations. Glen has a distinguished record
of service as a senior official in the Canadian federal government and brings
more than 25 years of legal and managerial expertise to JetForm. ''We are
pleased that an executive of Ian's caliber would have such strong faith in the
future of JetForm to leave a very distinguished career in government to enter
the private sector with us,'' said Kelly. ''Ian's appointment significantly
complements and strengthens the JetForm management team.''
ABOUT JETFORM CORPORATION
JetForm Corporation, headquartered in Ottawa, Canada (NASDAQ:FORMF;
TSE:JFM), is the global leader in electronic forms automation and enterprise
workflow, providing solutions that streamline business processes. JetForm's
products help organizations reduce costs and increase efficiency across local
and wide area networks as well as the Internet. JetForm has offices in the
United States, Canada, the United Kingdom, France, Germany, Sweden, China,
Singapore, and Australia. For more information on JetForm visit the Company's
Web site at www.jetform.com.
JetForm is a registered trademark of JetForm Corporation. All other
trademarks referenced are trademarks of the respective companies named above.
In this announcement, under the provisions of the new ''safe harbour''
section of the Private Securities Litigation Reform Act of 1995, JetForm makes
forward-looking statements that involve a number of risks and uncertainties.
Among the factors that could cause actual future results to differ materially
are variability in quarterly results, general competitive pressures in the
marketplace, rapid technological change, evolving market for E-forms based
workflow solutions, third party dependence, integration of the Delrina Assets,
management of growth and other factors as discussed in the Company's
prospectus and Form-10K as filed with the Securities and Exchange Commission.
A summary of financial statements follows:
The condensed, unaudited, consolidated balance sheets for the Company
appear below and are in accordance with accounting principles generally
accepted in the United States. All amounts are expressed in thousands
of Canadian (CDN) dollars, except share amounts.
July 31, April 30,
1998 1998
---------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 76,811 $ 91,604
Accounts receivable 33,983 31,347
Term accounts receivable 12,313 9,993
Work in process 8,166 6,254
Inventory 999 1,127
Taxes and investment tax credits
recoverable 443 443
Prepaid expenses and deferred
charges 3,639 3,259
---------- ----------
136,354 144,027
Term accounts receivable 3,967 3,194
Taxes and investment tax credits
recoverable 2,713 2,510
Fixed assets 17,919 17,522
Other assets 48,883 49,314
---------- ----------
$ 209,836 $ 216,567
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 4,933 $ 4,499
Accrued liabilities 11,846 12,868
Unearned revenue 9,097 9,197
Current portion of Delrina obligation 42,262 47,093
---------- ----------
68,138 73,657
Deferred income taxes 4,354 4,450
Delrina obligation 17,390 26,311
---------- ----------
89,882 104,418
---------- ----------
Shareholders' equity Capital stock
(Issued and outstanding - 19,385,465
Common Shares, 450,448 Preference Shares
at July 31, 1998; 17,028,141 Common
Shares, 450,448 Preference Shares and
2,200,000 Special Warrants at April
30, 1998)
246,215 244,151
Deficit (126,261) (132,002)
---------- ----------
119,954 112,149
---------- ----------
$ 209,836 $ 216,567
---------- ----------
---------- ----------
The condensed, unaudited, consolidated statements of operations for the
Company appear below and are in accordance with accounting principles
generally accepted in the United States. All amounts are expressed in
thousands of Canadian (CDN) dollars, except share and per share amounts.
Three months ended
July 31,
1998 1997
---------- -----------
Revenues
Product $ 21,869 $ 15,538
Service 10,773 8,037
---------- -----------
32,642 23,575
---------- -----------
Costs and expenses
Cost of product 1,938 1,563
Cost of service 4,196 3,532
Sales and marketing 12,275 8,845
General and administrative 2,577 2,425
Research and development 3,356 2,358
---------- -----------
24,342 18,723
---------- -----------
EBITDA 8,300 4,852
---------- -----------
Depreciation and amortization 2,779 2,681
---------- -----------
Operating income 5,521 2,171
Interest and other income (expense) 1,243 (1,060)
---------- -----------
Income before taxes 6,764 1,111
Provision for income taxes 1,023 154
---------- -----------
Net income $ 5,741 $ 957
---------- -----------
---------- -----------
Basic income per share
Net income per share $ 0.29 $ 0.06
Weighted average number of shares 19,732,706 16,188,910
Fully diluted income per share
Net income per share $ 0.28 $ 0.06
Weighted average number of shares 20,700,487 16,667,288
%SEDAR: 00010237E
-30-
For further information: Heidi Vincent, JetForm Corporation,
(613) 751-4877 (voice), (613) 234-0039 (fax), hvincent@jetform.com
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