Looking good!
MapInfo Reports Record EPS in
Fourth Quarter on 33% Revenue
Growth Full Year EPS of $0.54 vs. Prior Year Breakeven
TROY, N.Y.--(BUSINESS WIRE)--Nov. 4, 1998--MapInfo Corporation (NASDAQ/NM:
MAPS - news) today announced financial results for the three months ended September 30, 1998.
Revenues for the fourth quarter of fiscal 1998 increased 33% to $17,110,000 from $12,902,000
reported last year. Net income for the fourth quarter was $1,282,000, or $0.22 per share, compared
to $649,000 or $0.11 per share in the prior year period.
Revenues for fiscal 1998 increased 28% to $60,603,000 from $47,393,000 reported a year ago.
Net income for fiscal 1998 was $3,181,000, or $0.54 per share, compared to net income of
$5,000, or no earnings per share reported last year.
Fourth quarter revenues reflect 69% revenue growth in Europe, resulting from strong growth in
Germany and the successful integration of The Data Consultancy. In the Americas, revenues grew by
35%, led by strong demand for the Company's recently-introduced server software and data
products as well as improved execution by the sales organization. Asia Pacific remained soft as
revenues declined 15% due to a decline in the Australian dollar and economic conditions in the
region.
''Our superb performance this quarter is a culmination of an excellent year for MapInfo during which
we achieved double-digit revenue growth and dramatic earnings improvements each quarter. We are
especially proud of achieving solid revenue growth for the year of 28%, consistent with our stated
goal of doubling our fiscal 1997 revenue growth rate of 14%,'' said John C. Cavalier, president and
CEO.
''During the quarter, we made considerable progress in our strategy to accelerate revenue growth: by
selling higher priced server-based products, by the successful introduction of demographic data
products powered by the new MapInfo data engine, TargetPro, and by securing multi-product,
multi-user contracts from customers broadly deploying MapInfo technology. We are seeing rapid
market acceptance for our new Internet server technology, MapXtreme, and significant growth in
licenses for our software and data products as more customers make broad commitments to
MapInfo solutions for mission-critical applications.
''Based on this quarter's momentum, we believe that MapInfo is poised for continued improvement
in fiscal 1999. We have a solid foundation in place - an integrated product suite, market-driven data
products, a sizeable installed base, meaningful alliances with IT industry leaders along with a cohesive
management team - on which to expand our penetration of the market for mapping solutions,''
Cavalier concluded.
During the fourth quarter the Company repurchased 69,600 shares of its Common Stock at an
average price of $10.76 per share, bringing total purchases under the repurchase program to
$4,463,000 or 384,600 shares at an average purchase of $11.60 per share.
About MapInfo
MapInfo Corporation, the information discovery company, is the worldwide leader in mapping
solutions and a preeminent supplier of spatial technologies. More than 300,000 users in virtually
every industry use MapInfo solutions to transform location into meaningful decisions. Its data
visualization products are deployed on the desktop, on enterprise servers, on the Internet, and as
embeddable mapping objects in decision support and enterprise-wide applications. Available in 20
languages, MapInfo products are distributed in 58 countries by more than 1,000 partners.
Headquartered in Troy, NY, MapInfo Corporation is on the World Wide Web at
mapinfo.com.
Of Note
This press release contains forward-looking statements that involve a number of risks and
uncertainties. Among the important factors that could cause actual results to differ from those
indicated by such forward-looking statements are delays in product development schedules,
competitive and market conditions, and the other risk factors detailed in the Company's Annual
Report on Form 10-K for fiscal 1997.
MapInfo Corporation and Subsidiaries
Income Statements
(in thousands, except earnings per share)
Three Months Year
Ended September 30, Ended September 30,
------------------- ------------------
1998 1997 1998 1997
-------- -------- -------- --------
Net revenues $17,110 $12,902 $60,603 $47,393
Cost of revenues 3,915 2,573 13,573 9,737
--------- --------- ---------- --------
Gross profit 13,195 10,329 47,030 37,656
--------- --------- ---------- --------
Operating expenses:
Research and development 2,605 2,265 10,231 9,020
Selling and marketing 6,751 5,939 25,606 22,864
General and administrative 2,228 1,960 8,019 7,036
--------- --------- ---------- --------
Total operating
expenses 11,584 10,164 43,856 38,920
--------- --------- ---------- --------
Operating income
(loss) 1,611 165 3,174 (1,264)
Other income - net 246 318 1,150 931
--------- --------- ---------- --------
Income (loss) before income
taxes 1,857 483 4,324 (333)
Provision for (benefit from)
income taxes 575 (166) 1,143 (338)
========= ========= ========= =========
Net income $ 1,282 $ 649 $ 3,181 $ 5
========= ========= ========= =========
Dilutive earnings per share $ 0.22 $ 0.11 $ 0.54 $ 0.00
Average shares outstanding 5,825 5,963 5,935 5,915
MapInfo Corporation and Subsidiaries
Balance Sheets
(in thousands)
September 30, September 30,
1998 1997
------------ -------------
ASSETS
Current Assets:
Cash and investments $ 28,923 $ 31,211
Receivables 15,224 9,291
Inventories 601 866
Other current assets 2,705 2,145
------------ ------------
Total current assets 47,453 43,513
Property and equipment - net 4,430 3,809
Product development costs - net 1,272 1,739
Intangibles, investments and
other assets 6,376 1,981
============ ============
Total assets $ 59,531 $ 51,042
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
expenses $ 13,714 $ 7,956
Deferred revenue 3,781 2,380
------------ ------------
Total current liabilities 17,495 10,336
Other liabilities 322 211
------------ ------------
Total liabilities 17,817 10,547
------------ ------------
Stockholders' Equity:
Common Stock 12 12
Paid in capital 31,046 30,795
Retained earnings 13,828 10,567
------------ -------------
44,886 41,374
Less treasury stock, at cost 3,172 879
------------ -------------
Total stockholders' equity 41,714 40,495
============ =============
Total liabilities and
stockholders' equity $ 59,531 $ 51,042
============ =============
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