Bitstream Inc. Reports First Quarter Results for 2006.CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass. -- Total revenue increased by $1,159,000 or 34% as compared to the quarter ended March 31, 2005 contributing to the Company's attainment of a $398,000 net income or $0.04 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share for the quarter. Bitstream Inc. (Nasdaq: BITS) today reported that its total revenue increased $1,159,000 or 34% to $4,555,000 for the three months ended March 31, 2006 as compared to $3,396,000 for the three months ended March 31, 2005. We generated a profit from operations of $389,000 for the three months ended March 31, 2006, an increase of $474,000 as compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $(85,000) for the three months ended March 31, 2005. Our net income for the three months ended March 31, 2006 increased $470,000 to $398,000 or $0.04 per diluted share as compared to a loss of $(72,000) for the three months ended March 31, 2005. The Company's cash and cash equivalents at March 31, 2006 totaled $6,393,000, an increase of $929,000 from $5,464,000 at December 31, 2005 and an increase of $2,298,000 from $4,095,000 at March 31, 2005. "Strong sales across all of our product lines allowed us to achieve our highest first quarter revenue level since becoming a publicly-held company. We exceeded our revenue growth goal for the quarter, increasing revenue by 34% as compared to the first quarter of 2005 and we continue to improve our operating performance as evidenced by our operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and cash from operations of $389,000 and $447,000, respectively, for the quarter ended March 31, 2006." said Anna M. Chagnon, President and Chief Executive Officer. "Based on another strong quarter and our continued focus on increasing revenue and managing operations we expect to enhance our operating performance and profitability throughout 2006." Our results for the quarter ended March 31, 2006 include $62,000 in non-cash compensation expense associated with our adoption of Statement of Financial Accounting Standards No. 123R, Share-Based Payments, ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R") which is effective for periods beginning January 1, 2006. We have adopted SFAS 123R on a modified prospective basis and thus periods prior to January 1, 2006 do not include stock-based compensation expense. We estimate our non-cash stock-based compensation expense on currently issued options as of March 31, 2006 will be approximately $220,000 for the year ending December 31, 2006. FIRST QUARTER 2006 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS January 11, 2006 -- Bitstream announced the December release Pageflex Storefront 3.0. This is a major software release that includes several new features that enable users to expand their e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. capabilities to include online ordering and campaign management services. February 1, 2006 -- Bitstream and Canon U.S.A., Inc. announced that Pageflex Persona persona /per·so·na/ (per-so´nah) [L.] in jungian psychology, the personality mask or facade presented by a person to the outside world, as opposed to the anima, the inner being. per·so·na n. (TM) Cross Media Suite has been designated by Canon U.S.A. as "Canon Compatible" under the Canon U.S.A. Alliance program after successful completion of testing by VeriTest, a service of Lionbridge and a leading provider of independent outsourced testing services. February 6, 2006 -- Bitstream announced the addition of The New Lincoln Lincoln, city and district, England Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. Gothic font font or typeface or type family Assortment or set of type (alphanumeric characters used for printing), all of one coherent style. Before the advent of computers, fonts were expressed in cast metal that was used as a template for printing. set to its New Font Collection program. This set includes 24 OpenType fonts in one extended family. February 13, 2006 -- Bitstream announced the release of ThunderHawk Windows Mobile The Windows platform from Microsoft for handheld devices, including PDAs, cellphones and Portable Media Centers. See Pocket PC, Pocket PC Phone Edition, Smartphone and Portable Media Center. 5.0 Pocket PC Edition, which offers users a fast, secure desktop browsing See browse. experience with new Windows Mobile 5.0 technology. March 8, 2006 -- Bitstream announced that the Berthold BQ Library is available at MyFonts.com. March 9, 2006 -- Bitstream announced that Brandspring Solutions, located in Eden Prairie, Minnesota The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. and a leader in the development of Web-based media delivery systems, selected Pageflex Storefront to support its work developing brand management Web applications for clients, ranging from financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies to manufacturing companies to franchise networks. March 28, 2006 -- Bitstream announced that Metzgers Printing and Mailing of Toledo, Ohio
April 3, 2006 -- Bitstream announced that mPhase Technologies signed an agreement to license Bitstream's Font Fusion Bitstream Font Fusion is a small, fast, object-oriented font engine written in ANSI C capable of rendering high-quality text on any platform, any device, and at any resolution. The entire source code is portable, optimized, and executes independent of operating system and processor. technology and Bitstream fonts for its mPhase TV + System. Under this agreement, mPhase Technologies will use Bitstream's Font Fusion technology to create programming guides in a range of languages. April 4, 2006 -- Bitstream announced an expanded strategic partnership with Four51 Inc., a rapidly growing commerce-on-demand (COD) network provider to deliver a scalable Internet-based solution that enables companies to easily manage over time their evolving use of targeted direct mail campaigns, personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. and highly-customized variable data print solutions, and cost effective Web-to-print and on-demand print program languages. April 5, 2006 -- Bitstream previewed the company's ThunderHawk Java/J2ME(TM) mobile browser A mobile browser (earlier referred to as a microbrowser or minibrowser) is a web browser designed for use on a mobile device such as a mobile phone or PDA. Mobile browsers are optimised so as to display Web content most effectively for small screens on portable , which brings a real desktop browsing experience to mass-market mobile phones that typically do not have enough memory to run a full HTML HTML in full HyperText Markup Language Markup language derived from SGML that is used to prepare hypertext documents. Relatively easy for nonprogrammers to master, HTML is the language used for documents on the World Wide Web. browser browser Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used , to mobile operators, device manufacturers and content providers at the CTIA (1) See CompTIA. (2) (Cellular Telecommunications & Internet Association, Washington, DC, www.ctia.org, www.wow-com.com) A membership organization founded in 1984 that is involved with regulatory and public affairs issues in the wireless industry. Wireless 2006 exhibition. April 11, 2006 -- Bitstream announced the release of a new automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Windows font installer, greatly simplifying the process of downloading downloading - download and installing fonts from its MyFonts.com website. Windows users can now install purchased fonts immediately with just a few clicks. April 25, 2006 -- Bitstream announced the release of Font Fusion(R) 3.2, the Latest Update to Its Leading Font Rendering See render. (graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display. For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. Solution for Small Embedded Systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. . This release is the latest update to Bitstream's Font Fusion technology, the company's smallest, most advanced font rasterizing rasterizing - rasterising engine, and the fastest font engine on the market today. May 1, 2006 -- Bitstream announced the successful launch by Marketing Services by Vectra, Inc., a marketing services and full-service printing company, of an interactive marketing portal that enables ministers of the national Breakthrough Ministries to create customized marketing materials designed to grow their local parishes. Vectra developed the portal using Pageflex's award-winning technology that enables customers to easily customize marketing materials on demand. CONFERENCE CALL REMINDER Today, May 8, 2006, at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. , Bitstream will host a conference call with the financial community to discuss its first quarter results for the period ended March 31, 2006: --International Dial-in number: 1-703-639-1320 --Domestic Dial-in number: 1-866-802-4323 Call into the conference number 5-10 minutes prior to the start time. An operator will check your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call number, please contact at Bitstream: (617) 497-6222. A replay of the conference call will be available through May 18, 2006 (access code): 900355 --International Replay number: 1-703-925-2533 --Domestic Replay number: 1-888-266-2081 This press release may contain 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on management's current expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, including, without limitation, market acceptance of the Company's products, competition and the timely introduction of new products. Additional information concerning certain risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission, including Bitstream's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005. About Bitstream Bitstream Inc. (NASDAQ: BITS) is a software development company that makes communications compelling. Bitstream enables customers worldwide to render high-quality text, browse (1) To view the contents of a file or a group of files. Browser programs generally let you view data by scrolling through the documents or databases. In a database program, the browse mode often lets you edit the data. See Web browser. the Web on wireless devices, select from the largest collection of fonts online, and customize documents over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Bitstream and MyFonts.com are registered trademarks, and Pageflex, the Bitstream logo and ThunderHawk are trademarks, of the Company. Other technologies and brand names are used for information only and remain trademarks or registered trademarks of their respective companies.
Bitstream Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(unaudited)
Three Months
Ended March 31,
---------------------
2006 2005
---------- ----------
Revenue:
Software license $ 3,715 $ 2,809
Services 840 587
---------- ----------
Total revenue 4,555 3,396
Cost of revenue:
Software license 1,385 1,005
Services 376 316
---------- ----------
Total cost of revenue 1,761 1,321
---------- ----------
Gross profit 2,794 2,075
---------- ----------
Operating expenses:
Marketing and selling 756 669
Research and development 1,089 1,006
General and administrative 560 485
---------- ----------
Total operating expenses 2,405 2,160
---------- ----------
Operating profit (loss) 389 (85)
Other income, net 20 14
---------- ----------
Income (loss) before provision for income taxes 409 (71)
Provision for income taxes 11 1
---------- ----------
Net income (loss) $ 398 $ (72)
========== ==========
Basic net earnings (loss) per share $ 0.05 $ (0.01)
========== ==========
Diluted net earnings (loss) per share $ 0.04 $ (0.01)
========== ==========
Basic weighted average shares outstanding 8,745 8,640
========== ==========
Diluted weighted average shares outstanding 10,588 8,640
========== ==========
Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
(unaudited)
March December
31, 31,
----------- -----------
ASSETS 2006 2005
----------- -----------
Current assets:
Cash and cash equivalents $ 6,393 $ 5,464
Accounts receivable, net 1,601 1,663
Prepaid expenses and other current assets 420 341
---------- ----------
Total current assets 8,414 7,468
---------- ----------
Property and equipment, net 321 315
---------- ----------
Other assets:
Restricted cash 200 200
Goodwill 727 727
Intangible assets 108 125
---------- ----------
Total other assets 1,035 1,052
---------- ----------
Total assets $ 9,770 $ 8,835
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 820 $ 664
Accrued expenses 778 1,191
Deferred revenue 1,279 1,085
---------- ----------
Total current liabilities 2,877 2,940
---------- ----------
Long-term liabilities 193 194
---------- ----------
---------- ----------
Total liabilities 3,070 3,134
---------- ----------
Total stockholders' equity 6,700 5,701
---------- ----------
Total liabilities and stockholders' equity $ 9,770 $ 8,835
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