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CYBERMEDIA ANNOUNCES
RESULTS FOR THE SECOND QUARTER OF 1998
AND TENDER OFFER BY NETWORK ASSOCIATES
SANTA MONICA, CA –
(July 28, 1998) - - CyberMedia, Inc. (Nasdaq/NMS: CYBR) today announced
financial results for the second quarter ended June 30, 1998. Total
revenues for the three months ended June 30, 1998 were $5.9 million,
compared to $20.4 million for the three months ended June 30, 1997.
Net loss was $11.9 million, or $0.91 per basic and diluted common
share, for the three months ended June 30, 1998, compared with net
loss of $6.7 million, or $0.55 per basic and diluted common share,
for the comparable prior year period.
Total revenues for the six months ended June 30, 1998 were $10.6
million, compared to $37.0 million for the six months ended June
30, 1997. Net loss was $27.9 million, or $2.18 per basic and diluted
common share, for the six months ended June 30, 1998, compared with
net loss of $5.4 million, or $0.45 per basic and diluted common
share, for the comparable prior year period.
Commenting on the quarter, Kanwal Rekhi, CyberMedia’s Chairman
and Chief Executive Officer, said, "During this transition
quarter, we were able to begin to increase revenues from the $4.7
million achieved in the first quarter of 1998 as we re-established
the flow of products through our retail channel. This revenue increase,
as well as a reduction in operating expenses, brought our net loss
is down sequentially from last quarter. In addition, Days Sales
Outstanding in Accounts Receivable dropped from 99 days in the first
quarter of 1998 to 77 days in the second quarter of 1998."
Rekhi continued, "During the second quarter First Aidâ
98 and UnInstallerä both won PC
Magazine’s Best Buy award, First Aidâ
98 was listed in Windows Magazine’s Top 100, and Oil Changeä
won the CNET Editor’s Choice Award. We also announced two partnerships,
one with Gatewayä and one with Microsoftâ
, which have helped increase our visibility in the marketplace."
In a separate announcement today, Network Associates
(NASDAQ: NETA) announced an agreement with CyberMedia whereby Network
Associates intends, within five business days, to commence a tender
offer for all the outstanding shares of CyberMedia at $9.50 per
share net to selling shareholders.
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’s (Nasdaq: CYBR) headquarters are in
Santa Monica, CA, with offices in San Jose, CA, Portland, OR, Washington,
D.C., and Ireland. 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 March 31, 1998.
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:
Elizabeth Fairchild, Director of Corporate Communications @ (310)
664-5049;
elfairch@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)
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|
Quarter ended June 30, 1998
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Quarter ended
June
30, 1997
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Six months ended
June 30, 1998
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Six months
ended
June 30, 1997
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|
Net revenues
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$ 5,875,000
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$ 20,447,000
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$ 10,572,000
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$36,980,000
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Cost of revenues
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3,083,000
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3,875,000
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4,364,000
|
8,088,000
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Gross profit
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2,792,000
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16,572,000
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6,208,000
|
28,892,000
|
| |
|
|
|
|
| |
|
|
|
|
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Research and development
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2,446,000
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2,740,000
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5,276,000
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4,285,000
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Sales and marketing
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8,902,000
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9,584,000
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22,826,000
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17,739,000
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General and administrative
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3,309,000
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1,679,000
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6,292,000
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2,649,000
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One-time-in-process R&D
and acquisition expenses
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---
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9,091,000
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---
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9,091,000
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Total operating expenses
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14,657,000
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23,094,000
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34,394,000
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33,764,000
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Loss from operations
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(11,865,000)
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(6,522,000)
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(28,186,000)
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(4,872,000)
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Other income (expense)
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(19,000)
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398,000
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261,000
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919,000
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Loss before income taxes
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(11,884,000)
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(6,124,000)
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(27,925,000)
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(3,953,000)
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Income tax expense
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1,000
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582,000
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9,000
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1,421,000
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Net loss
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$ (11,885,000)
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$ (6,706,000)
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$ (27,934,000)
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$ (5,374,000)
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Net loss per
common share – basic and diluted
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$ (0.91)
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$ (0.55)
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$ (2.18)
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$ (0.45)
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Shares used in calculation
of net
loss per common share – basic and diluted
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13,008,000
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12,178,000
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12,823,000
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12,050,000
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CYBERMEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
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June 30, 1998
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December 31, 1997
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(Unaudited)
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Current assets:
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Cash and cash equivalents
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$ 12,848,000
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$ 25,059,000
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Marketable securities
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----
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1,001,000
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Trade accounts receivable,
net
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5,001,000
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19,851,000
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Inventory
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2,104,000
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3,590,000
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Prepaid expenses
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611,000
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1,417,000
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Deferred taxes
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3,619,000
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3,619,000
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Other current assets
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561,000
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1,091,000
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Total current assets
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24,744,000
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55,628,000
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Furniture, fixtures and
equipment,
net
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4,191,000
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4,191,000
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Other assets
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170,000
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284,000
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$ 29,105,000
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$60,103,000
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Current liabilities:
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Accounts payable
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$ 9,016,000
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$ 8,753,000
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Accrued expenses
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2,366,000
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2,917,000
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Related party payable
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---
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618,000
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Income taxes payable
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17,000
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2,787,000
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Unearned revenue
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3,822,000
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3,655,000
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Grant payable
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390,000
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390,000
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Current portion of capital
lease
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----
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17,000
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Deferred obligation for
acquired R&D
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2,750,000
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2,913,000
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Total current liabilities
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18,361,000
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22,050,000
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Capital lease obligation
and deferred rent
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255,000
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284,000
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Deferred obligation for
acquired R&D
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---
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1,125,000
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Total liabilities
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18,616,000
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23,459,000
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Stockholders' equity:
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|
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Common stock, $0.01 par
value.
Authorized 50,000,000 shares;
issued and outstanding
13,101,858 and 12,511,654 shares
in
1998 and 1997, respectively
|
134,000
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126,000
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Additional paid-in capital
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59,307,000
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57,587,000
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Accumulated deficit
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(48,708,000)
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(20,774,000)
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|
Accumulated other comprehensive
income
(loss)
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(244,000)
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(295,000)
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Total stockholders' Equity
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10,489,000
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36,644,000
|
|
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$ 29,105,000
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$ 60,103,000
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