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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

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  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)

      Total stockholders'
       equity

21,889,000

36,644,000

 

$ 41,248,000

$ 60,103,000