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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)

 

Quarter ended June 30, 1998

Quarter ended
June 30, 1997

Six months ended
June 30, 1998

Six months
ended
June 30, 1997

Net revenues

$ 5,875,000

$ 20,447,000

$ 10,572,000

$36,980,000

Cost of revenues

3,083,000

3,875,000

4,364,000

8,088,000

Gross profit

2,792,000

16,572,000

6,208,000

28,892,000

         
         

Research and development

2,446,000

2,740,000

5,276,000

4,285,000

Sales and marketing

8,902,000

9,584,000

22,826,000

17,739,000

General and administrative

3,309,000

1,679,000

6,292,000

2,649,000

One-time-in-process R&D and acquisition expenses

---

9,091,000

---

9,091,000

Total operating expenses

14,657,000

23,094,000

34,394,000

33,764,000

Loss from operations

(11,865,000)

(6,522,000)

(28,186,000)

(4,872,000)

Other income (expense)

(19,000)

398,000

261,000

919,000

Loss before income taxes

(11,884,000)

(6,124,000)

(27,925,000)

(3,953,000)

Income tax expense

1,000

582,000

9,000

1,421,000

Net loss

$ (11,885,000)

$ (6,706,000)

$ (27,934,000)

$ (5,374,000)

Net loss per common share – basic and diluted

 

$ (0.91)

 

$ (0.55)

 

$ (2.18)

 

$ (0.45)

Shares used in calculation of net
loss per common
share – basic and diluted

 

13,008,000

 

12,178,000

 

12,823,000

 

12,050,000

 

CYBERMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ASSETS

June 30, 1998

December 31, 1997

 

 

(Unaudited)

 

 

Current assets:

Cash and cash equivalents

$ 12,848,000

$ 25,059,000

Marketable securities

----

1,001,000

Trade accounts receivable, net

5,001,000

19,851,000

Inventory

2,104,000

3,590,000

Prepaid expenses

611,000

1,417,000

Deferred taxes

3,619,000

3,619,000

Other current assets

561,000

1,091,000

Total current assets

24,744,000

55,628,000

Furniture, fixtures and equipment,

net

 

4,191,000

 

4,191,000

Other assets

170,000

284,000

 

$ 29,105,000

$60,103,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 9,016,000

$ 8,753,000

Accrued expenses

2,366,000

2,917,000

Related party payable

---

618,000

Income taxes payable

17,000

2,787,000

Unearned revenue

3,822,000

3,655,000

Grant payable

390,000

390,000

Current portion of capital lease

----

17,000

Deferred obligation for acquired R&D

2,750,000

2,913,000

Total current liabilities

18,361,000

22,050,000

Capital lease obligation and deferred rent

255,000

284,000

Deferred obligation for acquired R&D

---

1,125,000

Total liabilities

18,616,000

23,459,000

 

Stockholders' equity:

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

 

 

126,000

Additional paid-in capital

59,307,000

57,587,000

Accumulated deficit

(48,708,000)

(20,774,000)

Accumulated other comprehensive
income (loss)

(244,000)

(295,000)

Total stockholders' Equity

10,489,000

36,644,000

 

$ 29,105,000

$ 60,103,000