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CyberMedia, Inc. Announces its Full Year and Quarterly Results for 1997

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

 CYBERMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Quarter ended December 31, 1997

Quarter ended December 31, 1996

Year ended December 31, 1997

Year ended December 31, 1996

Net revenues

$ 11,790,000

$15,830,000

$71,227,000

$38,524,000

Cost of revenues

2,439,000

4,710,000

14,477,000

11,991,000

    Gross profit

9,351,000

11,120,000

56,750,000

26,533,000

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

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

Loss from operations

(6,627,000)

(319,000)

(10,328,000)

(3,833,000)

Other income (expense)

(226,000)

387,000

1,170,000

351,000

    Income (loss) before income taxes

(6,853,000)

68,000

(9,158,000)

(3,482,000)

Income tax expense

1,161,000

2,582,000

1,000

Net income (loss)

$ (8,014,000)

$ 68,000

$(11,740,000)

$ (3,483,000)

Basic and diluted net income (loss) per share

$ (0.65)

$ 0.01

$ (0.97)

$ (0.88)

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

 

12,388,000

 

12,550,000

 

12,128,000

 

3,943,000

 

 

CYBERMEDIA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ASSETS

December 31, 1997

December 31, 1996

 

Current assets:

    Cash and cash equivalents

$ 25,059,000

$ 39,322,000

    Marketable securities

1,001,000

    Trade accounts receivable, net

19,851,000

12,318,000

    Inventory

3,590,000

2,365,000

    Prepaid expenses

1,417,000

1,270,000

    Deferred taxes

3,619,000

    Other current assets

1,091,000

185,000

      Total current assets

55,628,000

55,460,000

Furniture, fixtures and equipment, net

4,191,000

990,000

Other assets

284,000

 

$60,103,000

$ 56,450,000

          LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Accounts payable

$ 8,753,000

$ 7,004,000

    Accrued expenses

2,917,000

1,247,000

    Related party payable

618,000

    Income taxes payable

2,787,000

    Unearned revenue

3,655,000

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

22,050,000

12,733,000

Capital lease obligation and deferred rent

284,000

49,000

Deferred obligation for acquired

R&D

 

1,125,000

 

      Total liabilities

23,459,000

12,782,000

 

 

Stockholders' equity:

Preferred Stock, par

Value $.01. Authorized 50,000,000 shares; none issued and outstanding

 

 

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

 

126,000

 

119,000

Additional paid-in capital

57,587,000

52,583,000

Accumulated deficit

(20,774,000)

(9,034,000)

Foreign currency translation adjustment

(295,000)

    Total stockholders' equity

36,644,000

43,668,000

 

$ 60,103,000

$ 56,450,000

 

 

CYBERMEDIA INC., AND SUBSIDIARIES

SUPPLEMENTAL STATEMENTS OF INCOME

FOR THE QUARTERS IN AND YEAR ENDED 1997

 

Mar. 31, 1997

June 30, 1997

Sept. 30, 1997

Dec. 31, 1997

Full Year 1997

 

   

Net revenues

$ 16,533,000

$ 20,447,000

$ 22,457,000

$ 11,790,000

$ 71,227,000

Cost of revenues

4,213,000

3,875,000

3,950,000

2,439,000

14,477,000

    Gross profit

12,320,000

16,572,000

18,507,000

9,351,000

56,750,000

Operating expenses:

    Research and development

1,545,000

2,740,000

2,861,000

2,187,000

9,333,000

    Sales and marketing

8,155,000

9,584,000

10,130,000

11,595,000

39,464,000

    General and administrative

970,000

1,679,000

2,095,000

2,196,000

6,940,000

    One-time in-process research and development and acquisition expenses

 

 

9,091,000

 

2,250,000

 

 

11,341,000

Total operating expenses

10,670,000

23,094,000

17,336,000

15,978,000

67,078,000

    Income (loss) from operations

1,650,000

(6,522,000)

1,171,000

(6,627,000)

(10,328,000)

Other income (expense), net

521,000

398,000

477,000

(226,000)

1,170,000

    Income (loss) before income taxes

2,171,000

(6,124,000)

1,648,000

(6,853,000)

(9,158,000)

Income tax expense

839,000

582,000

1,161,000

2,582,000

Net income (loss)

$ 1,332,000

$ (6,706,000)

$ 1,648,000

$ (8,014,000)

$ (11,740,000)

    Net income (loss)per common share - basic

$ 0.11

$ (0.55)

$ 0.13

$ (0.65)

$ (0.97)

    Net income (loss)per common share - diluted

$ 0.10

$ (0.55)

$ 0.12

$ (0.65)

$ (0.97)

Shares used in calculation of net income (loss) per common share - basic

11,932,000

12,178,000

12,318,000

12,388,000

12,128,000

Shares used in calculation of net income (loss) per common share - diluted

13,420,000

12,178,000

13,803,000

12,388,000

12,128,000