In Perspective:Q4 '97 (v. pending q4 '98):
SoftQuad International Inc. Reports Estimated Fourth Quarter 1997 Financial Results
TORONTO, Canada (January 30, 1998) - "SoftQuad International Inc. ("SoftQuad" or the "Company") (NASDAQ: SWEBF; TSE: SKI) announced estimated fourth quarter 1997 results, which reflect the rapid slow down in the market for discrete dictation products, an investment in new product introductions and the impact of a restructuring charge of CND $2.2 million. The restructuring charge was primarily attributed to staff reductions and reserves for price reductions on products in the retail channel.
For the quarter, estimated sales were approximately CND $4.4 million and the estimated net operating loss was approximately CND $4.9 million.
Through its Alpha Software subsidiary, SoftQuad launched three new products into the retail channel in the quarter -- utility titles Gimme Space and System Selector, and game title 747 Jumbo Jet, an add-on to Microsoft Flight Simulator 98.
The company also announced a strategic update to HoTMetaL PRO 4.0, its award-winning Web authoring tool, as it took its first steps toward acquiring products for release under the HoTMetaL brand. At the same time, Alpha Software collaborated with industry leader InstallShield Corp. of Schaumberg, Ill., to incorporate Alpha's WebFiler Internet database technology into RegisterOnTheWeb, a new InstallShield offering scheduled for release early this year.
In the quarter, Alpha Software filed an arbitration proceeding for breach of contract against Kurzweil Inc., a division of Lernout & Hauspie, over rights to market a forthcoming line of their continuous speech products. "The fourth quarter did not meet our expectations," said Richard Rabins, CEO, SoftQuad International. "By not launching a continuous speech dictation product we were unable to counteract the rapidly declining market for discrete speech dictation products."
"As a result of the restructuring, we now have a new lower cost structure in place, we're expanding our relationships with quality developers, and we're strengthening the Alpha and HoTMetaL brand names with new titles and increased retail penetration," said Selwyn Rabins, President, SoftQuad International.
In addition, Selwyn Rabins indicated that the company is considering the repurchase of some of its stock.
Through the Alpha Software brand, SoftQuad remained solidly in the top 50 in PC Data's ranking of software publishers by revenue. During the quarter, the company continued to expand its channels of distribution in office superstores and office specialty stores, and signed agreements with mass marketers Walmart, Target, and on-line leader America Online. At a recent retail symposium hosted by the office superstore Staples, Alpha Software was acknowledged as one of the top four software vendors in sales growth from 1996 to 1997. Alpha Software-branded products are available at more than 7,000 retail outlets in North America, including such major chains as CompUSA, Best Buy, Computer City, Egghead, Staples, Fry's Electronics, Office Depot and Walmart.
SoftQuad's critically acclaimed HoTMetaL PRO emerged as a finalist for PC Computing Magazine's MVP Award and remains an acknowledged leader in the category. SoftQuad moved to take advantage of both the emerging XML standard and the demand for database-driven Web sites, announcing its Live Database Pages upgrade to HoTMetaL PRO 4.0. The company also completed an agreement with HTMLScript for additional client and server software, to be marketed under the HoTMetaL brand name during the first quarter of 1998.
ABOUT SOFTQUAD INTERNATIONAL INC.
Alpha Software Corporation (Alpha, Alpha Software), based in Burlington, Mass., and SoftQuad Inc. (SoftQuad), based in Toronto, Canada, are wholly-owned operating companies of SoftQuad International Inc.
The mission of Alpha Software Corporation is two-fold. Expanding on its tradition of providing solution-based software, Alpha now develops and publishes a diverse array of leading products in the utility, business and consumer software categories. These products are sold nationwide through the retail channel. Additionally, in a move to influence the direction of the Internet, Alpha Software is developing "thin-client" end-user Web database products under the WebFiler" DB brand (http://www.webfiler.com/).
SoftQuad Inc. provides a broad range of multi-platform, standards-based software tools that help information creators, gatherers and providers create and publish information. SoftQuad is a founding member and active participant in the World Wide Web Consortium, the Internet Engineering Task Force and Editorial Review Boards.
SoftQuad International Inc.'s European operations are based in London..."
For more information contact:
Steven H. Schneider
SoftQuad International Inc.
Chief Financial Officer
(781) 229-2924
investor@softquad.com
---
source: sq.com [emphasis added] |
