ACCENT SOFTWARE INTERNATIONAL LTD. REPORTS SECOND QUARTER 1996 RESULTS.JERUSALEM, Israel--(BUSINESS WIRE)--August 15, 1996--Accent Software International Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACNTF) today announced results for the second quarter, 1996, ended June 30, 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three month period ended June 30, 1996 decreased approximately 15% to $1,285,000 compared to $1,518,000 in the same period in 1995. The net loss for the second quarter ended June 30, 1996 was $6,091,000, or $(0.63) per share on 9,732,000 weighted average shares, compared to a net loss of $1,064,000, or $(0.20) per share on 5,209,000 weighted average shares, in the same period in 1995. Net sales for the six month period ended June 30, 1996 increased approximately 92% to $4,128,000 compared to $2,151,000 in the same period in 1995. The net loss for the six month period ended June 30, 1996 was $10,023,000, or $(1.05) per share on 9,555,000 weighted average shares, versus a net loss of $2,869,000, or $(0.61) per share on 4,684,000 weighted average shares for the comparable 1995 period. Revenue in the second quarter fell below the Company's expectations, primarily due to a decision made by the Company not to immediately recognize certain revenues from a single large OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer, an Internet Service Provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , that is still in its start-up phase. While the Company believes that this particular deal continues to have long term revenue potential, the Company does not recognize revenues unless its revenue recognition criteria are met. In this case, those criteria have not been met to the Company's satisfaction. In early July, the Company filed a registration statement for an offering of its ordinary shares. Given the recent decline in the Company's stock price and generally unfavorable market conditions, the Company is consulting with Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , the Company's lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. , the offering's co-managers, JP Morgan and Oppenheimer, and other investment bankers Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. . Merrill Lynch, JP Morgan and Oppenheimer remain committed to the Company and are working with the Company on timing for the proposed offering and on potential alternative sources of interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. . Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . Rosenschein, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Accent, stated, The second quarter held some disappointments for the Company, primarily on the revenue side. The third quarter is shaping up to be a substantially better quarter than the second and is largely in-line with the Company's previous quarter-to-quarter growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and expectations. Our recently established European sales office is coming up-to-speed, our product development plans are solidly on track, with a number of exciting new products expected to fuel our revenue growth, coming on-line during the third and fourth quarters of 1996. The Company also announced that Avi Basher will not be joining Accent as Chief Financial Officer as planned on September 1, 1996. The Company is continuing its search for a qualified CFO See Chief Financial Officer. . Statements in this press release which are not historical data are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results may differ from those projected in the forward-looking statements. For a discussion of the factors that may cause results to differ, please refer to the Company's 10Q, filed yesterday, and other Securities and Exchange Commission filings as to certain factors which may impact the Company's future results. The Company has scheduled a conference call to discuss the second quarter results on August 15, 1996 at 10:00 am EST EST electroshock therapy. EST abbr. electroshock therapy . Interested persons may join the conference by calling 312-864-5011. Accent Software International Ltd. designs and develops multilingual Internet and text processing software products for retail, corporate, educational, government and OEM customers, and markets these products in more than 30 countries. Founded in 1988, Accent Software International Ltd. is headquartered in Jerusalem, Israel. The Company also recently formed a new subsidiary, AgentSoft, Ltd., which focuses on the development and marketing of sophisticated agent software products for the Internet and enterprise Intranet. Accent is a trademark of Accent Software International Ltd.
ACCENT SOFTWARE INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(U.S. Dollars, in thousands, except for per share data)
For the Three Months For the Six Months
Ended June 30 Ended June 30
1995 1996 1995 1996
Net Sales $ 1,518 $ 1,285 $ 2,151 $ 4,128 Operating Costs and Expenses: Cost of Sales 665 1,773 1,225 3,140 Product Development Costs 138 821 373 1,469 Marketing Expenses 1,138 2,998 2,385 6,271 General & Administrative Expenses 586 1,735 866 3,215 Total Operating Costs and Expenses 2,527 7,327 4,849 14,095 Operating Loss (1,009) (6,042) (2,698) (9,967) Financing Expenses, Net 55 49 171 56 Net Loss $ (1,064) $(6,091)$ 2,869) $(10,023) Net Loss Per Share $ (0.20) $ (0.63)$ (0.61) $ (1.05) Weighted Average Number of Shares 5,209 9,732 4,684 9,555 CONTACT: ACCENT SOFTWARE INTERNATIONAL LTD. Mitchell Joelson, Executive Vice President 612-945-0884 Internet: Mitchell@accentsoft.com Norman Kreger Director of Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 011-972-2-679-3723, ext. 243 Internet: Normank@accentsoft.com Home Page: http://www.accentsoft.com or WOLFE AXELROD ASSOCIATES Mona J. Walsh Joel Herskovits Gordon H. Wolfe Susan Bolen (Media) 212-370-4500, 212-370-4505 (FAX) e-mail: 76015.440@compuserve.com |
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