Bitstream reports first quarter results and the completion of the Archetype Acquisition.CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 28, 1997--Bitstream Inc. (Nasdaq: BITS) today reported revenues of approximately $2.5 million for the three months ended March 31, 1997, as compared to $2.7 million for the three months ended March 31, 1996. Net income for the quarter ended March 31, 1997 was $232,000, as compared to $540,000 for the quarter ended March 31, 1996. Earnings per share was $0.03 for the three months ended March 31, 1997 versus $0.13 for the three months ended March 31, 1996. Bitstream reported that the decrease in revenue, net income and earnings per share from the prior period in fiscal 1996 was a result of the timing of the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of certain transactions which were consummated in early April. The revenues associated with such transactions will be recorded in the second quarter of 1997. This delay in revenue recognition resulting from the timing of these transactions will have no effect on year end results. Bitstream also announced that effective today it had completed its previously announced 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. of Burlington, Mass., pursuant to which Archetype has become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Bitstream. In connection with the merger, the Archetype stockholders will receive an aggregate of approximately $1.2 million in cash and 525,000 shares of Bitstream Class A Common Stock. In addition, on the closing of the merger, Bitstream satisfied approximately $1.5 million of obligations and indebtedness owed by Archetype, and issued options or warrants to purchase approximately 375,000 shares of Class A Common Stock at an exercise price of $0.90 per share and options to purchase approximately 200,000 shares of Class A Common Stock at $3.94 per share. The acquisition will be accounted for as a purchased with a significant portion of the purchase price being allocated to, and expensed as in process research and development. Archetype recorded revenues of approximately $3 million for its fiscal year ended Dec. 31, 1996. Archetype's products include: Mediabank, a digital asset management product that allows for the cataloging, archiving and management of electronic images, text and documents; InterSep OPI (Open Prepress Interface) An extension to PostScript that provides color separations. It was developed by Aldus Corporation, which was later acquired by Adobe. and InterSep Output Manager, advanced open prepress interface and print management products for raster image processors See RIP. Remember... try the acronym first! (application, printer) Raster Image Processor - (RIP) A device (usually hardware but can be software) that takes a Page Description Language description of a page and converts it into a bitmap for printing. and servers; and NuDoc, an advanced document composition technology. Following the merger, Archetype Inc., as a subsidiary of Bitstream, will continue to develop and sell electronic publishing An umbrella term for non-paper publishing, which includes publishing online or on media such as CDs and DVDs. solutions through the VAR channel and technology will be sold through the Bitstream 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 channel. The combination creates a strong growth company that is well poised to take advantage of its combined operation Noun 1. combined operation - a military operation carried out cooperatively by two or more allied nations or a military operation carried out by coordination of sea, land, and air forces . "It has been an exciting and historical quarter for Bitstream. In just two years, our Bitstream TrueDoc technology has gained wide acceptance throughout the electronic publishing industry, culminating with this quarter's announcement of Netscape Communications Corp.'s incorporation of TrueDoc into Netscape Communicator An earlier suite of Web browsing and groupware tools from Netscape that were packaged as a bundle starting with Navigator 4.0. Communicator refers to any Netscape Navigator product with a version number less than 6.0. ," said Ray Boelig 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. . The Netscape announcement has since been endorsed by a multitude of software companies including an announcement on April 24 of 18 authoring companies and tools vendors endorsing the Bitstream and Netscape initiative. "In addition, we are also excited about the completion of our merger with Archetype Inc., a leading supplier of publishing solutions including Mediabank -- the most comprehensive solution for managing digital assets, InterSep OPI -- the leading solution for managing high resolution prepress processes, and NuDoc, a promising new composition technology. Archetype's innovative solutions allow Bitstream to expand its product offering beyond type and enabling technologies and allow us to enter into new sales channels and enhance our ability to grow revenues and earnings to provide value to our customers and shareholders," continued Boelig. Other highlights of the first quarter include the company's acquisition of Mainstream Software Solutions, formerly Bitstream's republisher re·pub·lish tr.v. re·pub·lished, re·pub·lish·ing, re·pub·lish·es 1. To publish again. 2. Law To revive (a libel or a canceled will). in the United Kingdom; the release of a new version of TrueDoc Imaging System, an advanced font subsystem A unit or device that is part of a larger system. For example, a disk subsystem is a part of a computer system. A bus is a part of the computer. A subsystem usually refers to hardware, but it may be used to describe software. for printer manufacturers and embedded system Any electronic system that uses a CPU chip, but that is not a general-purpose workstation, desktop or laptop computer. Such systems generally use microprocessors, or they may use custom-designed chips or both. developers; as well as a new version of Bitstream TrueDoc that includes enhanced features optimized for interactive televisions, memory-constrained devices and thin-client systems. In addition, Bitstream's sales of its type products and custom font services were strong as evidenced by licensing agreements with several leading original equipment manufacturers, independent software vendors and corporations such as Be Inc (company) Be Inc - The company that produced the BeBox, founded by Jean-Louis Gassee, former product chief at Apple. .; Corel Corp.; Power Computing Not to be confused with the extant computer hardware company also called Power Computing. Power Computing was a short-lived manufacturer of Apple Macintosh-compatible computers. ; QNX A multiuser, multitasking, real time operating system for PCs from QNX Software Systems, Ltd., Ottawa, Ontario (www.qnx.com), that is noted for its low-memory requirement and rapid response. Similar to Unix, it has been in use since the early 1980s. Software Systems; Silicon Graphics Inc. and Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. . Bitstream Inc. develops and sells software solutions for the creation, enhancement, transport, viewing and printing of electronic information. In addition, Bitstream licenses type libraries and font technology to hardware and software developers worldwide. Headquartered in Cambridge, Mass. USA, Bitstream licenses its products and technologies both directly and through its subsidiaries, business agents and distributors in the USA, Europe and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . More information on Bitstream and its products may be obtained from the company's home page at www.bitstream.com . -0-
BITSTREAM INC.
Unaudited Consolidated Statement of Operations Data
(Dollars in Thousands)
Three Months Ended
March 31,
1997 1996
Revenues $ 2,522 $ 2,706
Cost of revenues 289 356
Gross profit: 2,233 2,350
Operating expenses:
Marketing and selling 2,216 1,160
Research and development 509 333
General and
administrative 425 399
Total operating expenses: 2,149 1,838
Operating income: 83 512
Other income
(expense), net: 172 (9)
Provision for
(benefit from)
income taxes 23 (37)
Net income: $ 232 $ 540
Pro forma net income per
share: .03 .13
Pro forma weighted average
common and common
equivalent shares
outstanding: 6,945,390 4,735,771
-0-
BITSTREAM INC.
Unaudited Consolidated Balance Sheet Data
(Dollars in Thousands)
March 31, 1997 Dec. 31, 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 11,109 $ 11,718
Trade receivables, net 1,980 1,552
Current portion of long-term
account and extended
plan accounts
receivable, net 1,752 1,667
Deferred income taxes 868 868
Other current assets 239 493
Total current assets: 15,947 16,298
Property and
equipment, net: 887 924
Other assets: 760 255
Total Assets: $ 17,594 $ 17,477
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short term debt $ 26 $ 36
Accounts payable 413 513
Accrued expenses 1,536 1,470
Total current liabilities: 1,975 2,019
Leases, LTD and other liabilities 95 99
Total Shareholders' Equity: 15,524 15,359
Total Liabilities &
Shareholders' Equity: $ 17,594 $ 17,477
CONTACT: Bitstream Inc. Colleen col·leen n. An Irish girl. [Irish Gaelic cailín, diminutive of caile, girl, from Old Irish. Cronin 617/520-8329 ccronin@bitstream.com or James D. Hart 617/520-8341 jhart@bitstream.com |
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