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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

 

CYBERMEDIA, INC.

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

 

CYBERMEDIA, INC.

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)

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

 

 


CYBERMEDIA, INC.

BALANCE SHEETS

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

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