Monday March 22, 1:23 pm Eastern Time
Company Press Release
SOURCE: Accent Software International
Accent Software Reports 1998
Financial Results; Company Shows
Continued Improvement
COLORADO SPRINGS, Colo., March 22 /PRNewswire/ -- Accent Software International (OTC
Bulletin Board: ACNTF - news, ACNUF - news) announced today that it reduced its 1998 net loss
by 49% from its 1997 level, incurring a net loss of $6,819,000 ($0.25 per share) in 1998 compared
to a net loss of $13,474,000 ($1.08 per share) in 1997. The 1996 net loss was $21,034,000
($2.12 per share). Revenue for 1998 was $1,949,000 compared to $3,125,000 in 1997. Cost of
sales as a percentage of revenue declined sharply resulting in an approximately 47% improvement in
the Company's gross margin to 49% in 1998 from just 2% in 1997.
The net loss for the fourth quarter of $710,000, excluding a restructuring charge of $689,000,
represented an 88% improvement over the fourth quarter of 1997 when the net loss was
$5,787,000. Revenue in the most recent quarter was $431,000, compared with 1997 fourth quarter
revenue of $572,000.
''Accent's financial results continue to improve, but slower than management's expectations. We
have strengthened our balance sheet during the first quarter of 1999 by converting our long-term
debt to equity and securing additional financing. Our new Internet products are being received well in
the market, while our monthly expenses and working capital requirements have been reduced
significantly and sales are increasing. If we continue this quarterly improvement, we could see
profitability in 1999,'' reported Todd Oseth, president and CEO.
This press release contains historical information and forward-looking statements. Statements
looking forward in time are included pursuant to the ''safe harbor'' provision of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and unknown risks and the
Company's actual results in future periods may be materially different from any future performance
suggested herein.
Accent Software International
Condensed Consolidated Statements of Operations
(U.S. Dollars and Shares in Thousands, Except Per Share Data)
Three Months Twelve Months
Ended December 31, Ended December 31,
1998* 1997 1998 1997
Net Sales $431 $572 $1,949 $3,125
Cost of Sales 296 975 997 3,062
Gross Margin 135 (403) 952 63
Operating costs and expenses
Product Development Costs 199 1,238 2,540 4,813
Marketing Expenses 264 275 1,404 2,177
General and administrative
expenses 335 1,253 2,465 3,169
Restructuring charge 689 -- 1,257 --
Total operating costs
and expenses 1,487 2,766 7,666 10,159
Operating loss (1,352) (3,169) (6,714) (10,096)
Other expenses, net (47) (2,618) (105) (3,378)
Net loss (1,399) $(5,787) $(6,819) $(13,474)
Net loss per share (0.05) $(0.41) $(0.25) $(1.08)
Weighted average 28,963 14,115 27,242 12,495
number of shares outstanding
*not including adjustments related to earlier quarters in 1998.
About Accent Software International: Accent Software International, founded in 1988, provides
software products and services that help internationalize software and media in any language over the
Internet. Accent's current products and services are enabling the Internet with Language Information
Technologies that facilitate global communication. For additional information visit the company's web
sites at accentsoft.com and languageware.net
SOURCE: Accent Software International
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