Bitstream Inc. Reports Year-End 1998 Results.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.--(BUSINESS WIRE)--March 8, 1999--Bitstream Inc. (Nasdaq:BITS) today reported net income for the year ended December December: see month. 31, 1998 of $2,834,000, as compared to a net loss of $(5,990,000), for the year ended December 31, 1997. Basic and fully-diluted net income per share were $0.42 and $0.38, respectively, for the fiscal year ended December 31, 1998, versus basic and fully-diluted net loss per share of $(0.95) for the fiscal year ended December 31, 1997. Net loss for the three months ended December 31, 1998 was $(1,598,000), as compared to net income of $118,000 for the three months ended December 31, 1997. Basic and fully-diluted net loss per share was $(0.23) for the three months ended December 31, 1998, as compared to basic and fully-diluted net income per share of $0.02 for the three months ended December 31, 1997. The Company's operating results for the three months and year ended December 31, 1998 reflect a charge of approximately $671,000 to record federal and state income taxes payable primarily related to a pre-tax gain of approximately $10,317,000 on the sale of substantially all assets of its MediaBank(TM) and InterSep(TM)OPI (Open Prepress Interface) An extension to PostScript that provides color separations. It was developed by Aldus Corporation, which was later acquired by Adobe. product lines to Inso Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. Corporation of Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New . Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the year ended December 31, 1998 reflect severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other non-recurring expenses of $2,647,000. Operating expenses for the year ended December 31, 1997 reflect severance and other non-recurring expenses of $6,301,000 incurred in connection with the merger with Archetype archetype (är`kĭtīp') [Gr. arch=first, typos=mold], term whose earlier meaning, "original model," or "prototype," has been enlarged by C. G. Jung and by several contemporary literary critics. , Inc. on April 28, 1997. The Archetype merger was accounted for as a purchase and Archetype's operating results have been consolidated with Bitstream's since the merger date. Revenues for the fiscal year ended December 31, 1998 were approximately $8,870,000 compared to $13,102,000 for the fiscal year ended December 31, 1997, a decrease of 32%. Revenues for the three months ended December 31, 1998 were $1,591,000 compared to $3,757,000 for the three months ended December 31, 1997, a decrease of 58%. Although revenues for the three months and year ended December 31, 1998 were significantly lower than revenues for the three months and year ended December 31, 1997, this decrease in revenues was primarily related to the sale of the Company's MediaBank and InterSep OPI product lines during the third quarter. Revenue from sales of the Company's type and technology products met the Company's revised expectations for the quarter. "Due to the sale of our MediaBank and InterSep OPI product lines to Inso Providence Corporation in August of this year, we are in a very strong financial position. This has enabled us to focus on the development of applications based on our advanced composition engine (NuDoc(TM)) and our award-winning on-demand XML-Based publishing solution, Pageflex(TM), our 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 business of 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. licensing and the deployment of our patented TrueDoc(R) font technology in areas such as 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 , Interactive TV, and Palmtop palmtop or hand-held personal computer, lightweight, small, battery-powered, general-purpose programmable computer. It typically has a miniaturized full-function, typewriterlike keyboard for input and a small, full color, liquid-crystal display ," said Charles Ying, Chief Executive Officer and Chairman of the Board of Bitstream Inc. "During the fourth quarter, the Company's type and technology business exceeded its quarterly revenue expectations and provided additional financial resources to our bottom line. These resources allowed us to successfully launch Pageflex, an XML-based publishing application that enables the fully automatic production of customized documents. We also enhanced our future financial position by entering into a multi-million dollar licensing and development agreement with Atex Media Solutions, Inc. for our NuDoc composition engine. The actions we have taken in 1998 position Bitstream to be successful in achieving its overall strategic and technological goals in 1999 and beyond." Highlights for the year include: -0-
-- The Company launched Pageflex, an XML-based publishing
application that enables the fully automatic production of
customized documents.
-- The Company entered into an agreement in which IBM will market
Pageflex as part of an IBM dynamic publishing solution.
-- The Company entered into a long term multi-million dollar
licensing and development arrangement with Atex Media Solutions
of Bedford, Massachusetts, a leading software provider to the
newspaper industry for NuDoc, the Company's XML-based composition
engine.
-- The Company acquired all of the outstanding stock of Type
Solutions, Inc., a leading provider of font rasterizing
technology to the set-top box and interactive television market,
in the fourth quarter.
-- The Company acquired certain assets of Alaras Corporation, a
developer of the Tropix workflow automation tools, in the fourth
quarter.
-- The Company sold the assets relating to its MediaBank and
InterSep OPI product lines to Inso Providence Corporation.
-- The Company successfully launched WebFont Maker(TM), a new retail
product that enables web page designers to display any TrueType
or PostScript Type 1 fonts directly within a web page.
-- The Company licensed its award-winning TrueDoc technology to
industry-leading internet, web, and publishing software
applications developers for incorporation into their products.
-- The Company was awarded a key patent to cover aspects of creating
subsetted fonts, managing and rendering portable font objects,
and using portable fonts for web publishing.
-0- 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, 1997 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 1998. Bitstream Inc., The Internet Font Company Bitstream Inc., headquartered in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , is a leading developer of type technology, digital typefaces This is a list of typefaces. Serif Here you can find a graphical version of this table.
T2K Time 2 Kill (gaming clan) (TM) font portability and 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. technology to hundreds of industry-leading internet, web, and publishing software applications developers, as well as to manufacturers of computers, printers, set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. and other devices. Bitstream has been awarded several patents to cover aspects of creating subsetted fonts, managing and rendering portable font objects, and using portable fonts for web publishing Creating a Web site and placing it on the Web server. A Web site is a collection of HTML pages with the home page typically named INDEX.HTML. Web sites are designed using Web authoring software which provides a graphical layout capability or by hand coding in HTML or both. . Bitstream also offers on-demand publishing software through its wholly-owned subsidiary, Pageflex Inc. For more information on Bitstream and its products, visit the Company on the World Wide Web at http://www.bitstream.com Pageflex Inc., The On-Demand Publishing Company Pageflex Inc., which was established as a wholly-owned subsidiary of Bitstream in 1999, develops, markets and supports on-demand publishing software and related technology. Driven by the profile of a particular target customer, on-demand publishing involves the automatic production of customized business marketing collateral Marketing collateral, in marketing and sales, is the collection of media used to support the sales of a product or service. These sales aids are intended to make the sales effort easier and more effective. such as datasheets and brochures directly from XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. text and graphics data stored in web servers and/or databases. Flexible templates based on page design rules that ensure the generated PostScript The de facto standard page description language (PDL) in the graphics arts industry as well as in commercial printing. Developed by Adobe, many printers and most imagesetters support PostScript by having a built-in PostScript interpreter. or PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. documents meet high stylistic sty·lis·tic adj. Of or relating to style, especially literary style. sty·lis  ti·cal·ly adv. quality standards. Pageflex also licenses its underlying NuDoc
XML-based composition engine on an OEM basis to independent software
vendors. For more information on Pageflex and its products
http://www.Pageflexinc.com. (NASDAQ:BITS) (http://www.bitstream.com).Bitstream and TrueDoc are registered trademarks and WebFont Maker and T2K are trademarks of Bitstream Inc. Pageflex is a trademark of Pageflex, Inc. MediaBank and InterSep OPI are trademarks of Inso Providence Corporation. All other trademarks mentioned are for identification purposes only and may be trademarks of their respective owners. -0-
BITSTREAM INC.
Consolidated Statement of Operations Data
(In Thousands, Except Per Share Data)
Three Months Year
Ended Ended
December 31, December 31,
1998 1997 1998 1997
Revenues $ 1,590 $ 3,757 $ 8,870 $ 13,102
Cost of revenues 402 468 1,522 1,518
Gross profit 1,188 3,289 7,348 11,584
Operating Expenses:
Marketing and
selling 853 1,740 5,696 6,621
Research and
development 783 827 4,404 2,826
General and
administrative 601 621 1,742 2,104
In-process research
and development -- -- -- 4,930
Severance and
other non-recurring
compensation -- -- 2,647 1,371
Total operating
expenses 2,237 3,188 14,489 17,852
Gain on sale
of assets -- -- 10,317 --
Operating
income (loss) (1,049) 101 3,176 (6,268)
Loss on investment
in DiamondSoft, Inc. (4) -- (56) --
Other income
(expense), net 184 51 489 510
Provision for
income taxes 729 34 775 232
Net income (loss) $ (1,598)$ 118 $ 2,834 $ (5,990)
Basic net income
(loss) per share $ (0.23)$ 0.02 $ 0.42 $ (0.95)
Basic weighted
average shares
outstanding 6,947,000 6,513,000 6,751,000 6,303,000
Diluted net
income (loss)
per share $ (0.23)$ 0.02 $ 0.38 $ (0.95)
Weighted average
common shares and
dilutive potential
common shares
outstanding 6,947,000 7,775,000 7,443,000 6,303,000
BITSTREAM INC.
Consolidated Balance Sheet Data
(In Thousands)
December 31, December 31,
1998 1997
ASSETS
Current Assets:
Cash and cash equivalents $ 14,252 $ 6,364
Accounts receivable, net 1,206 3,694
Current portion of long-term
accounts receivable, net 304 1,855
Deferred income taxes 868 868
Other current assets 390 684
Total current assets: 17,020 13,465
Property and equipment, net 853 1,399
Goodwill, net 2,133 1,948
Investment in DiamondSoft, Inc. 444 -
Other assets 261 197
Total Assets $ 20,711 $ 17,009
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Capital lease obligations $ 27 $ 28
Accounts payable 169 753
Accrued income taxes 692 -
Deferred revenue 1,148 313
Accrued expenses 2,344 3,159
Total current liabilities: 4,380 4,253
Other long-term liabilities 54 73
Total Stockholders' Equity 16,277 12,683
Total Liabilities & Stockholders' Equity: $ 20,711 $ 17,009
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