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CyberMedia Announces Results for the First Quarter of 1998
SANTA MONICA, CA – (April 24, 1998) - - CyberMedia, Inc. (NASDAQ: CYBR) today announced financial results for the first quarter ended March 31, 1998. Total revenues for the three months ended March 31, 1998 were $4.7 million, compared to $16.5 million for the three months ended March 31, 1997. Net loss was $16.0 million, or $1.27 per basic and diluted common share, for the three months ended March 31, 1998, compared with net income of $1.3 million, or $0.10 per diluted common share, for the comparable prior year period.
Commenting on the loss, Kanwal Rekhi, Chairman and Acting Chief Executive Officer of CyberMedia, said, "During the first quarter of 1998, when it became clear that a mismatch between channel inventory levels and our run rate retail business had occurred, we took the steps necessary to correct the problem. In our March 12, 1998 press release we shared the early results of our actions and our estimate of how these actions would impact the Company’s financial performance for the first quarter of 1998. The results we are announcing today are consistent with our earlier message."
During the quarter net accounts receivable dropped from $19.9 million at December 31, 1997 to $5.2 million at March 31, 1998. This decrease was due primarily to collections on accounts receivable. Cash use was $3.7 million for the quarter.
Days sales in accounts receivable (DSO) dropped from over 150 days in the fourth quarter of 1997 to 99 days in the first quarter of 1998. With respect to CyberMedia’s balance sheet Rekhi continued, "We are continuing to monitor inventories at all levels of distribution and we believe we are taking the steps necessary to put CyberMedia back on track."
About CyberMedia
CyberMedia's mission is to help computer users, anytime, anywhere with a complete set of products and services that provide the highest quality of immediate help to computer users at home and work, all over the world.
CyberMedia’s ActiveHelp(TM) product line includes First Aid(R) to fix the common problems Windows users face; Oil Change(TM) to update PCs with the latest bug fixes, patches and drivers; UnInstaller(TM) to remove unwanted Window’s applications; Guard Dog Deluxe(TM) to safeguard Internet security and privacy; and the CyberMedia Support Server line of technical support software for corporations and mid-size businesses.
Founded in 1991, CyberMedia (Nasdaq: CYBR) employs more than 250, with company headquarters in Santa Monica, CA, and offices in San Jose, CA, Portland, OR, Washington, D.C., Japan, Ireland, and India. For additional information contact CyberMedia, Inc., 2850 Ocean Park Boulevard, Santa Monica, CA 90405; phone (310) 664-5000; fax (310) 664-4720; or visit the CyberMedia Web site at www.cybermedia.com.
This press release contains forward-looking statements which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "expects," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. For a more detailed discussion of factors that affect the Company’s operating results, interested parties should review the Company’s SEC reports, including CyberMedia’s S-1 dated October 23, 1996, and Annual Report on Form 10-K for the year ended December 31, 1997 and Quarterly Report on Form 10-Q for the quarter ended September 30, 1997.
Note: CyberMedia and First Aid are registered trademarks and Oil Change, Guard Dog, UnInstaller and the CyberMedia logo are trademarks of CyberMedia, Inc. All other trade names are trademarks of their respective owners.
For more information on CyberMedia, Inc. via facsimile at no cost,
simply call 1-800-PRO-INFO and dial client code CYBR.
- Financial Tables Follow -
# # #
Press Contact:
Kristin Gabriel, Director of Corporate Communications @ (310) 664-5049; krgabriel@cybermedia.com
Chris Lumby, Public Relations Manager @ (310) 664-5455; chrisl@cybermedia.com
Investor Relations Contact:
Fiona Ross, Vice President and Group Supervisor, Financial Relations Board @ (310) 442-0599; far@la.frbd.com
CYBERMEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Quarter ended March 31, 1998 |
Quarter ended March 31, 1997 |
|
Net revenues |
$ 4,697,000 |
$16,533,000 |
|
Cost of revenues |
1,281,000 |
4,213,000 |
|
Gross profit |
3,416,000 |
12,320,000 |
|
Research and development |
2,830,000 |
1,545,000 |
|
Sales and marketing |
13,924,000 |
8,155,000 |
|
General and administrative |
2,983,000 |
970,000 |
|
Total operating
expenses |
19,737,000 |
10,670,000 |
|
Loss from operations |
(16,321,000) |
1,650,000 |
|
Other income (expense) |
280,000 |
521,000 |
|
Income (loss) before income taxes |
(16,041,000) |
2,171,000 |
|
Income tax expense |
8,000 |
839,000 |
|
Net income (loss) |
$ (16,049,000) |
$ 1,332,000 |
|
Net income (loss)
per common share - basic |
$ (1.27) |
$ 0.11 |
|
Net income (loss)
per common share - diluted |
$ (1.27) |
$ 0.10 |
|
Shares used in calculation of
net income (loss) per common
share - basic |
12,655,000 |
11,932,000 |
|
Shares used in calculation of
net income (loss) per common
share - diluted
|
12,655,000 |
13,420,000 |
CYBERMEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
|
|
March 31, 1998 |
December 31, 1997 |
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 22,536,000 |
$ 25,059,000 |
|
Marketable securities |
---- |
1,001,000 |
|
Trade accounts receivable, net |
5,174,000 |
19,851,000 |
|
Inventory |
3,667,000 |
3,590,000 |
|
Prepaid expenses |
1,150,000 |
1,417,000 |
|
Deferred taxes |
3,619,000 |
3,619,000 |
|
Other current assets |
686,000 |
1,091,000 |
|
Total current assets |
36,832,000 |
55,628,000 |
|
Furniture, fixtures and equipment,
net |
4,200,000 |
4,191,000 |
|
Other assets |
216,000 |
284,000 |
|
|
$41,248,000 |
$60,103,000 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
|
|
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Accounts payable |
$ 9,443,000 |
$ 8,753,000 |
|
Accrued expenses |
2,519,000 |
2,917,000 |
|
Related party payable |
--- |
618,000 |
|
Income taxes payable |
17,000 |
2,787,000 |
|
Unearned revenue |
3,494,000 |
3,655,000 |
|
Grant payable |
390,000 |
390,000 |
|
Current portion of capital lease |
---- |
17,000 |
|
Deferred obligation for acquired
R&D |
2,663,000 |
2,913,000 |
|
Total current liabilities |
18,526,000 |
22,050,000 |
|
Capital lease obligation and deferred
rent |
270,000 |
284,000 |
|
Deferred obligation for acquired
R&D |
563,000 |
1,125,000 |
|
Total liabilities |
19,359,000 |
23,459,000 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Preferred Stock, par
Value $.01. Authorized 2,000,000
shares; none issued and outstanding
|
— |
— |
|
Common stock, $0.01 par value.
Authorized 50,000,000 shares;
issued and outstanding
12,773,120 and 12,511,654 shares
in 1998 and 1997, respectively |
129,000 |
126,000 |
|
Additional paid-in capital |
58,911,000 |
57,587,000 |
|
Accumulated deficit |
(36,823,000) |
(20,774,000) |
|
Foreign currency translation
adjustment |
(328,000) |
(295,000) |
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Total stockholders'
equity |
21,889,000 |
36,644,000 |
|
|
$ 41,248,000 |
$ 60,103,000 |
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