Broderbund Reports First Quarter Results.NOVATO Novato (nōvä`tō), residential city (1990 pop. 47,585), Marin co., W Calif., N of San Fransisco on San Pablo Bay; inc. 1960. In a farming and dairying area, it produces cosmetics, metal products, telephone apparatus, lumber, and wiring , Calif.--(BUSINESS WIRE)--Dec. 19, 1996--Broderbund Software Inc. (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 :BROD BROD Big Bike Riders of Dagupan (Motorcycle Club in the Philippines) ) announced today its operating results for the first quarter of fiscal year 1997. Revenues in the quarter ended November November: see month. 30, 1996, were $61.5 million as compared with the $71.0 million reported during the same quarter last year. Net income for the quarter totaled $8.9 million or $.42 per share as compared with the $15.9 million or $.73 per share earned in the first quarter of fiscal 1996. This fall, Broderbund announced an aggressive new sales and marketing strategy to increase unit volume and market share through expanded marketing programs. The impact of that strategy was reflected in both the quarterly results for the first quarter of fiscal 1997 and in the September September: see month. and October October: see month. 1996 PC Data retail sell-through sell-through Adjective of the sale of prerecorded video cassettes, without their first being for hire only numbers (the latest information available). Sales of both productivity and education products increased in the first quarter of fiscal 1997 as compared to the same period last year. Entertainment and affiliated label products reflected declines in the quarter as compared to last year due to lower sales of "Myst"(R) in the current quarter, the release of "In the 1st Degree In the 1st Degree is an interactive legal drama adventure computer game released in 1995 by Brøderbund in which the player plays the role of a prosecutor attempting to convict an artist for grand theft and the first-degree murder of his business partner. "(R) during the first quarter last year, as well as the strong sales of entertainment products from affiliated label companies in the comparable quarter last year. Living Books, Broderbund's largest affiliated label company, also reflected a decline in sales of their existing products, which was partially offset by the release of Dr. Suess' classic children's storybook sto·ry·book n. A book containing a collection of stories, usually for children. adj. Occurring in or resembling the style or content of a storybook: storybook characters; a storybook romance. , "Green Eggs and Ham Ham, in the Bible Ham, in the Bible, son of Noah. In biblical ethnography, Ham is the father of the nations Cush, Mizraim, Phut, and Canaan. In a story separate from the flood narrative, the legend related in the Book of Genesis and in the Qur'an suggests " this quarter. During the first quarter of fiscal 1997, Broderbund released ten new titles, including "Williams-Sonoma Williams-Sonoma, Inc. (NYSE: WSM) is an American company that sells specialty cooking utensils and other housewares, along with a variety of foods including gourmet coffees. Its principal office is in San Francisco, California. Guide to Good Cooking"(TM), "Where in the USA is Carmen Sandiego Carmen Sandiego refers to a media franchise of edutainment computer games, television programs, books and other media featuring a thieving villainess of the same name. ?"(R) and "Live Pix"(TM). In addition, Broderbund's products continue to be recognized for their quality and innovation. This year, two Broderbund products were nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. for the Software Publishers Association (SPA) Excellence in Software Awards (Codies). These products were "Family Tree Maker(TM) Deluxe de·luxe also de luxe adj. Particularly elegant and luxurious; sumptuous: deluxe accommodations; a de luxe automobile. adv. Edition II," the top-selling genealogy genealogy (jē'nēŏl`əjē, –ăl`–, jĕ–), the study of family lineage. Genealogies have existed since ancient times. program, and "Logical Journey of the Zoombinis Zoombinis are the main characters in a line of educational software created by TERC, and was originally released by Brøderbund Software (now The Learning Company) in 1995. The series is aimed at children older than 8 years. "(TM), part of the Active Minds Series(TM). Broderbund has won more SPA Awards for outstanding products than any other software publisher. "Although we are pleased our first quarter results met expectations, we are not satisfied with this level of overall operations. This fall we implemented new programs which we believe are beginning to show results," said Joe Durrett, chief executive officer. "We feel our strategy is on track. We remain proud of Borderbund's reputation for producing innovative software of the highest caliber. However, the industry remains intensely competitive, particularly in the retail channel." This press release contains forward looking statements. There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Among, but not limited to these, are the anticipation of growth of certain market segments, the positioning of Broderbund's products in those segments, the competitive environment in the consumer software industry, the competition and continuing uncertainties in the consumer software distribution channels, and the importance of successful and timely new Broderbund product releases. Additional information on these and other factors which could affect the Company's financial results are included in the Company's 1996 Annual Report to Stockholders and 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. on file with the Securities and Exchange Commission. Broderbund Software, Inc. develops, publishes and markets a broad line of interactive content for use in homes, schools and small businesses. Since its founding in 1980, Broderbund has pioneered innovative, award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" products that take advantage of the latest technologies. The Company, headquartered in Novato, California Novato is a city located in the North Bay region of the San Francisco Bay Area, in northern Marin County. As of a 2000 census, the city population was 47,630. Novato is 30 miles north of San Francisco on US 101. , is committed to creating imaginative consumer software with lasting value for every member of the family. Broderbund's web site is located at: http://www.broderbund.com. -0- NOTE TO EDITORS: Broderbund, Myst, In the 1st Degree, Williams-Sonoma Guide to Good Cooking, Where in the USA is Carmen Sandiego?, Family Tree Maker Deluxe Edition II, Logical Journey of the Zoombinis, and Active Mind Series are trademarks or registered trademarks of Broderbund Software, Inc. Living Books is a registered trademark of Living Books, a Random House/Broderbund Company. Green Eggs and Ham CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). compilation Compiling a program. See compiler. copyright 1996 Living Books. All rights reserved. Dr. Seuss Noun 1. Dr. Seuss - United States writer of children's books (1904-1991) Geisel, Theodor Seuss Geisel characters, text and images (C) and (TM) 1996 Dr. Seuss Enterprises, L.P. All rights reserved. All other marks are trademarks or registered trademarks of their respective holders. -0-
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three months ended November 30,
1996 1995
---- ----
Net revenues $61,491 $70,961
Cost of revenues 22,177 24,920
-------- --------
Gross margin 39,314 46,041
-------- --------
Operating expenses:
Sales and marketing 14,154 10,792
Research and development 7,713 7,437
General and administrative 2,907 2,832
Amortization of purchased technology 1,022 --
-------- --------
Total operating expenses 25,796 21,061
-------- --------
Income from operations 13,518 24,980
Interest and dividend income, net 1,549 1,311
Equity in earnings of joint venture (603) 269
-------- --------
Income before income taxes 14,464 26,560
Provision for income taxes 5,569 10,624
-------- --------
Net income $ 8,895 $ 15,936
======== ========
Net income per share $ 0.42 $ 0.73
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Shares used in computing per share data 21,109 21,687
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BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Nov. 30, Nov. 30, Aug. 31,
1996 1995 1996
--------- -------- --------
ASSETS
Current assets:
Cash and short term investments $149,103 $135,898 $150,893
Accounts receivable, net 33,726 26,071 5,956
Inventories 3,327 3,285 3,140
Deferred income taxes 18,331 16,745 15,057
Prepaid expenses and other
current assets 878 1,688 869
-------- -------- --------
Total current assets 205,365 183,687 175,915
Equipment and improvements, net 5,573 6,282 7,014
Deferred income taxes -- 929 --
Purchased technology and advances 12,007 -- 13,090
Investments in affiliates 3,600 -- 4,053
Other assets 457 2,628 360
-------- -------- --------
$227,002 $193,526 $200,432
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,479 $ 10,520 $ 4,442
Accrued income taxes 18,498 13,901 8,966
Other current liabilities 20,397 23,019 20,014
-------- -------- -------
Total current liabilities 50,374 47,440 33,422
Deferred income taxes 1,140 -- 1,462
-------- -------- --------
Total liabilities 51,514 47,440 34,884
-------- -------- --------
Stockholders' equity 175,488 146,086 165,548
-------- -------- --------
$227,002 $193,526 $200,432
======== ======== ========
CONTACT: Broderbund Software, Inc. Robin Linstrom, 415/382-4449 (IR) Dana Henry, 415/382-3238 (PR) |
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