NEWS: : MUZE in big financial turnaround
MUSE Technologies, Inc. Announces Record Fiscal 1998 Revenues and Income
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Dec. 21, 1998--MUSE
Technologies, Inc. (NASDAQ: MUZE, MUZEW; BSE: MUZ), an advanced
software and technology firm, today announced revenues of $6.2 million
for the fiscal year ended September 30, 1998, an increase over the
$756,000 reported for the previous fiscal year. Net income totaled
$324,000, or $0.04 per share versus a loss recorded in the previous
fiscal year of $2 million or ($0.28) per share.
According to Brian Clark, Chief Financial Officer of MUSE
Technologies, "The significant increase in revenues for fiscal 1998 is
primarily attributable to a $5 million transaction with one of the
company's principal customers. The balance of revenue for the fiscal
year was derived from the sales of products and services to other
customers." Revenues for the quarter ended September 30, 1998 were
$4.4 million, while net income was $2.4 million.
Company President Curtiz Gangi stated, "Fiscal 1998 was not only
a record-setting year for MUSE Technologies, but also a year in which
a number of important events took place. We successfully commenced our
'Strategic Reselling Partner' distribution program; our collaboration
software known as Continuum received one of the most notable awards in
our industry; and several of our customers-including Goodyear Tire &
Rubber and NASA-revealed plans to expand or continue the use of our
technologies on specific programs. We are extremely pleased with the
progress that we have made in our three short years of operation and
believe that MUSE Technologies is strongly positioned for entry into
new markets and opportunities in fiscal year 1999."
MUSE Technologies raised net proceeds of $9.6 million in a
November initial public offering.
During fiscal 1998, the company introduced its Strategic
Reselling Partner ("SRP") distribution program, which is a key method
of revenue and product sales at MUSE Technologies. While somewhat
similar in structure to a traditional Value Added Reseller (VAR)
program, under the SRP program MUSE Technologies generally receives a
significant non-refundable payment from the SRP for exclusive trading
area rights to sell MUSE Technologies products in a particular
geographic territory or vertical market. In exchange for such payment,
the company and the SRP act as closely knit strategic partners in
adopting and enhancing MUSE Technologies' software for use in the
SRP's vertical market or territory.
In July, MUSE Technologies announced its first SRP contract, with
Continuum Resources ASA ("CoRe"), a Norwegian company with US offices
located in Houston, TX. Under the terms of a three-year agreement
(with a provision for three successive three year renewal periods),
CoRe acquired the exclusive worldwide right to sell MUSE Technologies
products to the Oil & Gas industry for a non-refundable payment of $5
million and certain minimum annual sales commitments.
In August, MUSE Technologies announced that its award-winning
data visualization software known as MuSE (pronounced "muse," short
for Multidimensional user-oriented Synthetic Environment) was
operating on the Windows NT(R) platform for the first time. The
software, which was originally developed at Sandia National
Laboratories and exclusively licensed to MUSE Technologies, Inc. in
1995, was designed to operate in a UNIX environment. The company
successfully made the transition to Windows NT as a part of a
multi-phase contract with the US Navy.
During 1998 the company's customers included Goodyear Tire and
Rubber, NASA, Shell Oil, Department of Defense, Schlumberger, Jet
Propulsion Laboratory, Los Alamos National Laboratory and Sandia
National Laboratories. MUSE Technologies products are used by these
and other companies to create immersive environments that enhance a
computer user's ability to visualize, analyze and understand large and
diverse forms of data. The company's products provide solutions to
complex data integration and data management problems encountered by
scientists, engineers, developers and other computing professionals.
MUSE Technologies also develops advanced collaborative software that
enables groups of users to work together over local and global
networks.
According to Mr. Clark, "MUSE Technologies was in a strong
liquidity position as of September 30, with cash on hand of
approximately $3.5 million. Since the fiscal year end, our cash
position has been further strengthened from our November IPO.
Additionally, the company received a total of $6 million from CoRe, of
which $4 million completes an equity investment in MUSE Technologies
and $2 million represents payments made as part of their SRP agreement
with the company."
Mr. Gangi noted, "Fiscal 1998 showed MUSE Technologies moving
from a development-stage company to an aggressive business development
organization. Our Strategic Reselling Partner program is establishing
a new distribution paradigm for the software industry, and most
importantly, our technologies are achieving their goal of making
computer-based information easier for users to understand. As MUSE
Technologies moves into fiscal 1999, we look forward to leading what
we call 'the new age of perceptual computing' and expanding into new
vertical markets with strong strategic partners."
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MUSE TECHNOLOGIES, INC.
BALANCE SHEET
SEPTEMBER 30, 1998
ASSETS
CURRENT ASSETS:
Cash $ 3,539,403
Accounts receivable 4,364,000
Stock subscription receivable 4,000,000
Prepaid insurance 22,877
TOTAL CURRENT ASSETS 11,926,280
PROPERTY AND EQUIPMENT- net 438,164
NOTES RECEIVABLE - RELATED PARTIES 55,000
DEFERRED OFFERING COSTS 363,860
OTHER ASSETS 29,242
TOTAL ASSETS $ 12,812,546
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 135,099
Accrued liabilities 851,658
Capital lease - current portion 9,093
Notes payable (net of discount of $25,521) 599,479
TOTAL CURRENT LIABILITIES 1,595,329
CAPITAL LEASE, less current portion 3,121
TOTAL LIABILITIES 1,598,450
STOCKHOLDERS' EQUITY:
Common stock, $.015 par value, 50,000,000 shares
authorized, issued and outstanding 8,763,893 131,458
Additional paid-in capital 14,444,091
Stock subscription receivable (87,500)
Accumulated deficit (3,273,953)
TOTAL STOCKHOLDERS' EQUITY 11,214,096
$ 12,812,546
MUSE TECHNOLOGIES, INC.
STATEMENTS OF OPERATIONS
Year Ended
September 30,
1998 1997
REVENUE $ 6,206,135 $ 755,705
EXPENSES:
Selling, general and
administrative expenses 2,702,359 1,467,240
Research and development 956,946 741,910
Non-cash imputed compensation expense 948,355 0
Depreciation 475,928 427,735
Interest expense 798,653 167,922
TOTAL EXPENSES 5,882,241 2,804,807
NET INCOME (LOSS) $ 323,894 $(2,049,102)
NET LOSS PER SHARE:
Basic $ 0.04 $ (0.28)
Diluted $ 0.04 $ (0.28)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES AND COMMON EQUIVALENTS:
Basic 7,672,010 7,193,169
Diluted 8,654,838 7,193,169
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About MUSE Technologies, Inc.
MUSE Technologies, Inc. (Albuquerque, NM) develops and markets
software products that enhance a computer user's ability to visualize,
analyze and understand large and diverse forms of data using UNIX and
WindowsNT(R)-based systems. The company's products provide solutions
to complex data integration and data management problems encountered
by scientists, engineers, developers and other computing
professionals. The company also develops advanced collaborative
software that enables groups of users to work together over local and
global networks. For more information on MUSE Technologies, Inc., call
800-711-3899, or visit the company's Web site at www.musetech.com.
MuSE (spelled with the Greek mu symbol as the first character)
and the MUSE Technologies logo are trademarks of MUSE Technologies,
Inc., registered in the United States Patent & Trademark Office.
Continuum is a trademark of MUSE Technologies, Inc. Windows NT and
Windows are either registered trademarks or trademarks of Microsoft
Corp. in the United States and/or other countries. Any other
trademarks or copyrights referenced herein are the property of their
respective owners.
Information contained in this press release includes statements
that are forward-looking. Actual results could differ materially from
those projected in the forward-looking statements. Information
concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is described
in each referenced company's filings with the Securities and Exchange
Commission.
NOTE TO EDITORS: The word MuSE should be spelled as follows: The
Greek symbol "mu" followed by a lower case "u" and a capital "S"
and capital "E."
CONTACT:
MUSE Technologies, Albuquerque
(Media) Steve Sukman, (505) 843-6873
steve@musetech.com
or
Ruder Finn, New York
(Financial) Lev Janashvili, (212) 583-2761
janashvilil@ruderfinn.com
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