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CyberMedia, Inc. Announces its Full Year and Quarterly Results for 1997
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SANTA MONICA, CA – (March 30, 1998) – CyberMedia, Inc. (NASDAQ/NMS: CYBR), today filed its annual report on Form 10-K with the Securities and Exchange Commission. This report reflects and is consistent with changes announced on March 12, 1998 relating to decreases in fourth quarter revenue and net income (loss), compared with amounts shown in the fourth quarter earnings release on January 29, 1998.
Revenues for the full year ended December 31, 1997 were $71,227,000, an 85% increase from the $38,524,000 reported during 1996. Including the one-time acquisition related charges associated with UnInstallerÔ
and ServiceWare of $11,341,000, CyberMedia reported a net loss of $11,740,000 or $.97 per share for the full year 1997, compared to a net loss of $3,483,000 or $.88 per share in 1996.
For the quarter ended December 31, 1997, the company reported revenues of $11,790,000, a 26% decrease from the $15,830,000 reported for the same period in 1996. Net loss for the period was $8,014,000 or $.64 per share versus net income of $68,000 or $.01 per share during the fourth quarter the previous year.
The per share calculation for the quarter ended December 31, 1997 reflects a reduction of shares outstanding from that reported on January 29, 1998 to eliminate the anti-dilutive effect of common stock equivalents in a loss situation. The per share calculation for the year ended December 31, 1996 has also been changed to reflect the requirements of SFAS No.128 and SAB No. 98 as further described in the Annual Report on Form 10-K.
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 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 250, with company headquarters in Santa Monica, CA, and offices in San Jose, CA, Portland, OR, Washington, D.C., Japan and Ireland. 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.
Press Contact:
Kristin Gabriel, Director of Corporate Communications
CyberMedia, Inc.
(310)664-5049
krgabriel@cybermedia.com
Investor Contact:
Fiona Ross / Edward Stansfield
Financial Relations Board
(310)442-0599
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CYBERMEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
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Quarter ended December 31, 1997 |
Quarter ended December 31, 1996 |
Year ended December 31, 1997 |
Year ended December 31, 1996 |
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Net revenues
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$ 11,790,000 |
$15,830,000 |
$71,227,000 |
$38,524,000 |
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Cost of revenues |
2,439,000 |
4,710,000 |
14,477,000 |
11,991,000 |
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Gross profit |
9,351,000 |
11,120,000 |
56,750,000 |
26,533,000 |
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Research and development |
2,187,000 |
1,225,000 |
9,333,000 |
3,300,000 |
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Sales and marketing |
11,595,000 |
9,688,000 |
39,464,000 |
24,125,000 |
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General and administrative |
2,196,000 |
526,000 |
6,940,000 |
2,941,000 |
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One-time in-process R&D and acquisition expenses
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— |
— |
11,341,000 |
— |
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Total operating expenses
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15,978,000 |
11,439,000 |
67,078,000 |
30,366,000 |
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Loss from operations |
(6,627,000) |
(319,000) |
(10,328,000) |
(3,833,000) |
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Other income (expense) |
(226,000) |
387,000 |
1,170,000 |
351,000 |
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Income (loss) before income taxes |
(6,853,000) |
68,000 |
(9,158,000) |
(3,482,000) |
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Income tax expense |
1,161,000 |
— |
2,582,000 |
1,000 |
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Net income (loss) |
$ (8,014,000) |
$ 68,000 |
$(11,740,000) |
$ (3,483,000) |
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Basic and diluted net income (loss) per share |
$ (0.65) |
$ 0.01 |
$ (0.97) |
$ (0.88) |
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Shares used in calculation of net income (loss) per common share – basic and diluted
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12,388,000 |
12,550,000 |
12,128,000 |
3,943,000 |
CYBERMEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
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December 31, 1997 |
December 31, 1996 |
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Current assets: |
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Cash and cash equivalents |
$ 25,059,000 |
$ 39,322,000 |
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Marketable securities |
1,001,000 |
— |
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Trade accounts receivable, net |
19,851,000 |
12,318,000 |
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Inventory |
3,590,000 |
2,365,000 |
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Prepaid expenses |
1,417,000 |
1,270,000 |
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Deferred taxes |
3,619,000 |
— |
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Other current assets |
1,091,000 |
185,000 |
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Total current assets |
55,628,000 |
55,460,000 |
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Furniture, fixtures and equipment, net
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4,191,000 |
990,000 |
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Other assets |
284,000 |
— |
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$60,103,000 |
$ 56,450,000 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ 8,753,000 |
$ 7,004,000 |
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Accrued expenses |
2,917,000 |
1,247,000 |
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Related party payable |
618,000 |
— |
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Income taxes payable |
2,787,000 |
— |
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Unearned revenue |
3,655,000 |
4,024,000 |
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Grant payable |
390,000 |
413,000 |
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Current portion of capital lease |
17,000 |
45,000 |
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Deferred obligation for acquired R&D
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2,913,000 |
— |
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Total current liabilities |
22,050,000 |
12,733,000 |
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Capital lease obligation and deferred rent
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284,000 |
49,000 |
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Deferred obligation for acquired
R&D |
1,125,000 |
— |
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Total liabilities |
23,459,000 |
12,782,000 |
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Stockholders' equity: |
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Preferred Stock, par
Value $.01. Authorized 50,000,000 shares; none issued and outstanding
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— |
— |
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Common stock, $0.01 par value. Authorized 50,000,000 shares; issued and outstanding 12,511,654 and 11,825,354 shares in 1997 and 1996, respectively
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126,000 |
119,000 |
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Additional paid-in capital |
57,587,000 |
52,583,000 |
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Accumulated deficit |
(20,774,000) |
(9,034,000) |
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Foreign currency translation adjustment
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(295,000) |
— |
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Total stockholders' equity
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36,644,000 |
43,668,000 |
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$ 60,103,000 |
$ 56,450,000 |
CYBERMEDIA INC., AND SUBSIDIARIES
SUPPLEMENTAL STATEMENTS OF INCOME
FOR THE QUARTERS IN AND YEAR ENDED 1997
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Mar. 31, 1997 |
June 30, 1997 |
Sept. 30, 1997 |
Dec. 31, 1997 |
Full Year 1997 |
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Net revenues |
$ 16,533,000 |
$ 20,447,000 |
$ 22,457,000 |
$ 11,790,000 |
$ 71,227,000 |
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Cost of revenues |
4,213,000 |
3,875,000 |
3,950,000 |
2,439,000 |
14,477,000 |
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Gross profit |
12,320,000 |
16,572,000 |
18,507,000 |
9,351,000 |
56,750,000 |
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Operating expenses: |
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Research and development |
1,545,000 |
2,740,000 |
2,861,000 |
2,187,000 |
9,333,000 |
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Sales and marketing |
8,155,000 |
9,584,000 |
10,130,000 |
11,595,000 |
39,464,000 |
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General and administrative |
970,000 |
1,679,000 |
2,095,000 |
2,196,000 |
6,940,000 |
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One-time in-process research and development and acquisition expenses
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— |
9,091,000 |
2,250,000 |
— |
11,341,000 |
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Total operating expenses |
10,670,000 |
23,094,000 |
17,336,000 |
15,978,000 |
67,078,000 |
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Income (loss) from operations |
1,650,000 |
(6,522,000) |
1,171,000 |
(6,627,000) |
(10,328,000) |
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Other income (expense), net |
521,000 |
398,000 |
477,000 |
(226,000) |
1,170,000 |
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Income (loss) before income taxes |
2,171,000 |
(6,124,000) |
1,648,000 |
(6,853,000) |
(9,158,000) |
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Income tax expense |
839,000 |
582,000 |
— |
1,161,000 |
2,582,000 |
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Net income (loss) |
$ 1,332,000 |
$ (6,706,000) |
$ 1,648,000 |
$ (8,014,000) |
$ (11,740,000) |
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Net income (loss)per common share - basic
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$ 0.11 |
$ (0.55) |
$ 0.13 |
$ (0.65) |
$ (0.97) |
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Net income (loss)per common share - diluted
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$ 0.10 |
$ (0.55) |
$ 0.12 |
$ (0.65) |
$ (0.97) |
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Shares used in calculation of net income (loss) per common share - basic
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11,932,000 |
12,178,000 |
12,318,000 |
12,388,000 |
12,128,000 |
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Shares used in calculation of net income (loss) per common share - diluted
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13,420,000 |
12,178,000 |
13,803,000 |
12,388,000 |
12,128,000 |
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