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CYBERMEDIA, INC. ANNOUNCES
FOURTHQUARTER AND FULL YEAR RESULTS FOR 1997
SANTA MONICA, CA
– (January 29, 1998) - - CyberMedia,
Inc. (NASDAQ/NMS: CYBR), the leader in automatic service
and support, today announced its operating results for the
quarter and full year ended December 31, 1997.
For the quarter ended December 31, 1997, the
company reported revenues of $19,190,000, a 21% increase over
the $15,830,000 reported for the same period in 1996. Net income
for the period was $119,000 or $.01 per share versus $68,000
or $.01 per share during the fourth quarter the previous year.
During the quarter the Company more than doubled its reserves
for potential returns which resulted in an approximately $4.6
million reduction in reported revenues for the quarter. This
action was taken in order to help the Company better manage
rising DSOs.
Revenues for the full year ended December 31,
1997 were $78,627,000, a 104% increase from the $38,524,000
reported during 1996. Before one time acquisition related charges
associated with UnInstallerÔ
, Walk Softly, Inc. and the ServiceWare agreement, net income
for the year was $5,708,000 or $.42 per share versus a loss
of $3,483,000 or $.42 per share for 1996. After these one time
acquisition related charges CyberMedia reported a net loss of
$3,607,000 or $.30 per share for the full year 1997.
Quarterly Highlights
During the quarter, CyberMedia completed the
successful launch of First AidÒ
98 and Guard DogÔ ,
both of which dominated their sales categories according to
sell-through data for December published by PC Data. CyberMedia’s
UnInstaller and First Aid 98 ranked number 5 and
6 on PC Data’s list of best selling windows business software
for December. In addition, CyberMedia launched the CyberMedia
Support Server (CSS), a solution that reduces total cost
of ownership in corporations by enabling networked PC users
to automatically fix common problems, escalating only the more
complex problems to the system administrator. CSS represents
CyberMedia’s first initiative to address the potentially huge
enterprise market for automatic service and support for PC users.
CyberMedia continued to strengthen its industry partnerships
during the quarter, announcing a technology partnership with
Hewlett-Packard to provide an automatic software update service
to update HP LaserJet printer drivers using CyberMedia’s Oil
ChangeÔ technology.
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 ActiveHelpÔ
product line includes First Aid, to fix Windows problems automatically;
Oil Change, to update PCs with the latest bug fixes, patches
and drivers; UnInstaller, to clean Window's applications; Guard
Dog Deluxe, to automatically safeguard Internet security and
privacy and the new CyberMedia Support Server line of automatic
technical support software for corporations and mid-size businesses.
Founded in 1991, CyberMedia (NASDAQ/NMS: CYBR)
employs more than 270, 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., 3000 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.
# # #
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.
Investor Relations: Lisa Stein (310) 664-5487; listein@cybermedia.com
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CYBERMEDIA, INC.
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STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter Ended
|
|
Twelve Months Ended
|
|
Twelve Months
Ended
|
|
|
|
|
December 31, 1997
|
|
December 31, 1996
|
|
December 31,
1997
|
|
December 31,
1996
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$19,190,000
|
|
$15,830,000
|
|
$78,627,000
|
|
$38,524,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
2,889,000
|
|
4,710,000
|
|
14,927,000
|
|
11,991,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
16,301,000
|
|
11,120,000
|
|
63,700,000
|
|
26,533,000
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and Development
|
2,187,000
|
|
1,225,000
|
|
9,333,000
|
|
3,300,000
|
Sales & Marketing
|
|
11,595,000
|
|
9,688,000
|
|
39,464,000
|
|
24,125,000
|
General & Administrative
|
|
2,196,000
|
|
526,000
|
|
6,940,000
|
|
2,941,000
|
One-time in-process R&D and acquisition
expenses
|
-
|
|
-
|
|
11,341,000
|
|
-
|
|
Total operating expenses
|
|
15,978,000
|
|
11,439,000
|
|
67,078,000
|
|
30,366,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
323,000
|
|
(319,000)
|
|
(3,378,000)
|
|
(3,833,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
(226,000)
|
|
387,000
|
|
1,170,000
|
|
351,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income taxes
|
97,000
|
|
68,000
|
|
(2,208,000)
|
|
(3,482,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
(22,000)
|
|
-
|
|
1,399,000
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$119,000
|
|
$68,000
|
|
$(3,607,000)
|
|
$(3,483,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
$0.01
|
|
$0.01
|
|
$(0.30)
|
|
$(0.42)
|
|
Shares used in computing net income (loss)
per share
|
14,051,000
|
|
12,550,000
|
|
12,128,000
|
|
8,353,000
|
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CYBERMEDIA, INC.
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PROFORMA STATEMENTS
OF OPERATIONS
|
|
EXCLUDING ONE TIME WRITE-OFF
OF R&D AND ACQUISITION EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Quarter Ended
|
|
Twelve Months Ended
|
|
Twelve Months
Ended
|
|
|
|
|
December 31, 1997
|
|
December 31, 1996
|
|
December 31,
1997
|
|
December 31,
1996
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$19,190,000
|
|
$15,830,000
|
|
$78,627,000
|
|
$38,524,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
2,889,000
|
|
4,710,000
|
|
14,927,000
|
|
11,991,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
16,301,000
|
|
11,120,000
|
|
63,700,000
|
|
26,533,000
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and
Development
|
2,187,000
|
|
1,225,000
|
|
9,333,000
|
|
3,300,000
|
Sales
and
Marketing
|
|
11,595,000
|
|
9,688,000
|
|
39,464,000
|
|
24,125,000
|
General
and
Administrative
|
|
2,196,000
|
|
526,000
|
|
6,940,000
|
|
2,941,000
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating expenses
|
|
15,978,000
|
|
11,439,000
|
|
55,737,000
|
|
30,366,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
323,000
|
|
(319,000)
|
|
7,963,000
|
|
(3,833,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
(226,000)
|
|
387,000
|
|
1,170,000
|
|
351,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income taxes
|
97,000
|
|
68,000
|
|
9,133,000
|
|
(3,482,000)
|
|
|
|
|
|
|
|
|
|
|
|
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Provision for income taxes
|
(22,000)
|
|
-
|
|
3,425,000
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$119,000
|
|
$68,000
|
|
$5,708,000
|
|
$(3,483,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
$0.01
|
|
$0.01
|
|
$0.42
|
|
$(0.42)
|
|
Shares used in computing net income (loss)
per share
|
14,051,000
|
|
12,550,000
|
|
13,727,000
|
|
8,353,000
|
*Note - does not include $9,091,000
and $2,250,000 of one-time R & D and acquisition expenses
incurred in the second and third quarters respectively and in
the twelve months ended December 30, 1997
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CYBERMEDIA, INC.
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BALANCE SHEETS
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|
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December 31,
1997
|
|
December 31,
1996
|
|
|
Assets
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$25,059,000
|
|
$39,322,000
|
|
|
|
Marketable securities
|
1,001,000
|
|
-
|
|
|
|
Trade accounts receivable, net
|
27,851,000
|
|
12,318,000
|
|
|
|
Inventory
|
|
3,140,000
|
|
2,365,000
|
|
|
|
Prepaid expenses
|
3,417,000
|
|
1,270,000
|
|
|
|
Deferred taxes
|
4,427,000
|
|
-
|
|
|
|
Other current assets
|
1,091,000
|
|
185,000
|
|
|
|
Total current assets
|
65,986,000
|
|
55,460,000
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill, net
|
159,000
|
|
-
|
|
|
|
Furniture, fixtures and equipment, net
|
4,191,000
|
|
990,000
|
|
|
|
Other assets
|
125,000
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$70,461,000
|
|
$56,450,000
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
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|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
$8,753,000
|
|
$7,004,000
|
|
|
|
Accrued expenses
|
3,535,000
|
|
1,247,000
|
|
|
|
Income taxes payable
|
4,412,000
|
|
|
|
|
|
Unearned revenue
|
4,255,000
|
|
4,024,000
|
|
|
|
Grant payable
|
390,000
|
|
413,000
|
|
|
|
Current portion of capital lease
|
17,000
|
|
45,000
|
|
|
|
Deferred obligation for acquired R&D
|
2,913,000
|
|
-
|
|
|
|
Total current liabilities
|
24,275,000
|
|
12,733,000
|
|
|
|
|
|
|
|
|
|
|
|
Capital lease obligation & deferred
rent
|
284,000
|
|
49,000
|
|
|
|
Deferred obligation for acquired R&D
|
1,125,000
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
25,684,000
|
|
12,782,000
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Common stock
|
126,000
|
|
119,000
|
|
|
|
Additional paid-in capital
|
57,587,000
|
|
52,583,000
|
|
|
|
Accumulated deficit
|
(12,641,000)
|
|
(9,034,000)
|
|
|
|
Currency Translation
|
(295,000)
|
|
-
|
|
|
|
Total Stockholders' Equity
|
44,777,000
|
|
43,668,000
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$70,461,000
|
|
$56,450,000
|
|
|