Dave looks great! Am canceling any thoughts I had of selling a few on the pop...we've waited this long another 90 days should bring us way back knowing how fast this issue can move! Here's the release: Gordon
TouchStone Software Reports First Quarter Results
Business Wire - May 24, 1999 21:51
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--May 24, 1999--
Operational and Strategic Highlights:
--Company returns to profitability, excluding one-time charges
--Completed acquisition of Unicore Software, Inc. on March 10th
--Appoints Calvin Leong Chief Financial Officer
--Purchased CardWare product line and signed licensing agreement with Compaq Computer on April
7th
TouchStone Software Corporation (Nasdaq:TSSW) today reported, before the effect of
acquisition-related and restructuring charges associated with the Company's purchase of Unicore
Software, Inc. and re-organization of TouchStone management, pro forma net income of $59,660, or
$0.01 per share, for the 1999 first quarter ended March 31, 1999. This compares with net income of
$58,954, or $0.01 per share, in the 1998 first quarter. After the acquisition-related and restructure
charge of $1,502,624, or $0.19 per share, the Company reported a net loss of $1,442,964, or $0.18
per share.
The Company's revenues for the 1999 first quarter were $1,335,198, versus $1,985,859 for the 1998
first quarter and $1,445,000 in the 1998 fourth quarter. Of note, Unicore Software added
approximately $400,000 to net revenues in the 1999 first quarter.
Pierre A. Narath, TouchStone's President & CEO, said, "We are pleased that TouchStone was able
to return to profitability in the 1999 first quarter, exclusive of restructuring charges, reflecting the
Company's successful implementation of our near-term plan to maintain current revenue streams and
effectively manage our operating costs.
"Going forward, the acquisition of Massachusetts-based Unicore Software is expected to increasingly
contribute to Touchstone's top and bottom lines and enable us to access nearly 10 years of aggressive
sales experience in both direct and OEM channels. In short, the combined company is well positioned
to become an aggressive leader in diagnostic innovations and system management software," added
Mr. Narath.
"Our recent purchase of the CardWare product line from Phoenix Technologies Ltd. (Nasdaq:PTEC),
as well as a licensing agreement with Compaq Computer Corporation (NYSE:CPQ), the largest global
supplier of PCs, is consistent with our strategy to provide OEMs with competitive products, robust
technology and, most of all, dependability. We will pursue similar agreements with other global
suppliers in an effort to effectively market the CardWare product," noted Mr. Narath.
About TouchStone Software
TouchStone Software Corporation is a leading developer of innovative software designed to help
people use complex technologies. With the acquisition of Unicore Software, TouchStone is now a
leading provider of system management software, which includes BIOS upgrades, PC Diagnostics and
Year 2000 Solutions. The company's products, which include CheckIt 98 diagnostics, CheckIt 98
Diagnostic Suite bundle, CheckIt NetOptimizer Internet utility, FastMove! file transfer program,
Millennium/Pro Year 2000 solution and CardWare are distributed worldwide through the retail, VAR,
distributor, direct and OEM sales channels. TouchStone's corporate headquarters are located at 1538
Turnpike Street, North Andover, MA, 01845. European headquarters are located at Sonnnenstrasse
26b 85622 Feldkirchen, Germany 011-49-89-900479-16 (Phone), 011-49-89-900479-11 (Fax).
Additional information about TouchStone Software is available at www.touchstonesoftware.com.
(Note: This release contains certain forward-looking statements regarding product development
schedules, sales of products in the future, return to profitability, financial position and growth plans.
Such statements are subject to risks and uncertainties. Actual results could vary materially from these
statements or current trends. Investors should refer to TouchStone's 1998 10-KSB and first quarter
1999 10-QSB, for a fuller description of risk factors.)
TouchStone Software Corporation
Consolidated Balance Sheet
(Unaudited)
March 31,
1999
ASSETS
Current assets:
Cash and cash equivalents $ 940,308
Investments 1,732,325
Restricted cash 500,000
Accounts receivable, net 2,521,693
Inventories, net 152,588
Prepaid expenses and other current assets 363,382
Total current assets 6,210,296
Investments 568,524
Property, net 186,766
Other assets
Goodwill 6,363,127
$13,328,713
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current Maturities of Long-Term Debt $ 66,972
Accounts payable 111,169
Accrued payroll and related expenses 193,891
Accrued cooperative advertising expense 405,069
Accrued Merger and Acquisition Costs 1,600,029
Deferred revenue 1,889,076
Deferred Acquisition Costs 2,077,000
Other accrued liabilities 409,956
Total current liabilities 6,753,162
Long-Term Debt, Net of Current Maturities 528,266
Other liabilities 189,893
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 3,000,000 shares
authorized; no shares issued or outstanding
Common stock, $0.001 par value, 20,000,000 shares
authorized; shares issued and outstanding,
7,963,060 (1999)
7,963,060 (1998) 8,063
Additional paid-in capital 19,095,433
Accumulated deficit (13,246,104)
Total shareholders' equity 5,857,392
$13,328,713
TouchStone Software Corporation
Consolidated Statement of Income
(Unaudited)
Three months ended
March 31,
1999 1998
Net revenues $ 1,335,198 $ 1,985,859
Cost of revenues 254,109 443,999
Gross profit 1,081,089 1,541,860
Operating expenses:
Research and development 238,782 487,849
Sales and marketing 108,537 866,970
General and administrative 738,054 294,219
Restructure 1,502,624 --
Total operating expenses 2,587,997 1,649,038
Income (loss) from operations (1,506,908) (107,178)
Interest and other income, net 63,944 166,132
Income (loss) before income taxes (1,442,964) 58,954
Provision for income taxes 1,267 --
0
Net income (loss) $(1,444,231) $ 58,954
Net income (loss) per share, basic and $ (0.18) $ 0.01
diluted
Weighted average common shares, basic
and diluted 7,963,060 7,889,000
CONTACT: TouchStone Software Corporation
Pierre A. Narath, 978/686-6468
or
Rich West, 978/686-6468
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