Broderbund Reports Fourth Quarter and Fiscal Year 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)--Oct. 8, 1997--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 fourth quarter and fiscal year ended August 31, 1997. Fourth Quarter Financial Review Net revenues in the fourth fiscal quarter were $45.7 million, up 42% from the $32.2 million reported during the same quarter last year. During the fourth quarter of fiscal 1997, the Company incurred several one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges associated with acquisitions of purchased technology, royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. advance write-offs and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . The total of these charges was $27.2 million. (See Table C.) Excluding these one-time pretax charges, the Company would have reported a net loss for the quarter ended August 31, 1997 of $2.2 million or $.11 per share as compared with net income of $4.2 million or $.20 per share in the prior year. (See Table B.) Including the one-time charges, the Company reported a net loss for the fourth fiscal quarter of $18.9 million or $.91 per share versus a net loss of $4.2 million or $.20 per share for the same quarter last year. (See Table A.) Fiscal Year Financial Review For the year ended August 31, 1997, net revenues were $190.8 million as compared with the $186.2 million reported during the prior year. During fiscal 1997, Broderbund recorded several one-time pretax charges which totaled $36.5 million resulting from acquisitions of purchased technology, royalty advance write-offs and restructuring charges. (See Table C.) Exclusive of the one-time charges, net income for fiscal 1997 would have been $9.8 million or $.46 per share as compared with $35.9 million or $1.67 per share in fiscal 1996. (See Table B.) Including the one-time charges, the Company reported a net loss for the fiscal year of $13.5 million or $.65 per share versus net income of $36.8 million or $1.71 per share for the prior year. (See Table A.) Fiscal 1997 Business Review "The last year has been a period of transition for Broderbund. We are nearing the end of an intensive development cycle with increased marketing activities to build support for our new products. While our financial results were impacted by higher 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. and acquisition costs, we made great progress in building a stronger revenue base," said Joe Durrett, chief executive officer. "The additions of Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. Technology, Living Books and ClickArt(R) have added strength to our direct-to-consumer, education and productivity capabilities. We also maintained an aggressive product release schedule with the introduction of over 45 new titles, consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. important new marketing alliances, increased our branding efforts, reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. into business units and established the Red Orb Entertainment Red Orb Entertainment was a division of the Brøderbund software company created to market its gaming titles, distinguishing them from its considerable library of edutainment titles, which it marketed to schools. (TM) division. We believe these activities were a significant investment in our future and provide an even stronger foundation for the company as we move into next year." Broderbund released a total of 16 new titles during the fourth fiscal quarter. Some of the new titles released in the fourth quarter included: The Print Shop(R) Premier Edition 5.0 with a redesigned engine to provide more power, new features and added graphics, The Print Shop(R) Publishing Suite providing a complete publishing solution for home and business needs, The Print Shop(R) Signature Greetings greetings interj an expression of friendly salutation (TM) customizing distinctive greeting cards See e-card. from the Papyrus papyrus (pəpī`rəs), a sedge (Cyperus papyrus), now almost extinct in Egypt but so universally used there in antiquity as to be the hieroglyphic symbol for Lower Egypt and a common motif in art. retail chain, Family Tree Maker(TM) Deluxe de·luxe also de luxe adj. Particularly elegant and luxurious; sumptuous: deluxe accommodations; a de luxe automobile. adv. Edition III with two new search engines, an expanded version of Just Grandma and Me(TM) including new skill-building activities, Warlords Warlords may refer to:
Welsh springer spaniel. . Factors That May Affect Future Results This press release contains 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. . 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 competitive environment in the consumer software industry, the competition and continuing uncertainties in the consumer software distribution channels, the anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of growth of certain market segments, the positioning of Broderbund's products in those segments, the importance of successful and timely new Broderbund product releases and the successful integration of new products and businesses, including without limitation, Parsons Technology, Inc. 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. and Forms 10-Q for the first three quarters of fiscal 1997 on file with the Securities and Exchange Commission. Company Information Broderbund Software, Inc. develops, publishes and markets a broad line of interactive software 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. Broderbund has a successful track record of identifying and capitalizing on emerging trends. Broderbund's web site is located at: http://www.broderbund.com . -0-
TABLE A
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Year ended
August 31, August 31,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited)
Net revenues $45,686 $32,209 $190,787 $186,207
Cost of revenues 14,753 8,231 65,056 58,259
------ ------ ------- ------
Gross margin 30,933 23,978 125,731 127,948
------ ------ ------ ------
Operating expenses:
Sales and marketing 19,321 7,541 57,311 34,381
Research and development 15,852 7,473 43,670 29,244
General and administrative 3,863 2,535 13,603 11,256
Charge for acquired
in-process technology and
amortization 21,734 8,440 34,724 8,654
Restructuring charge 1,986 -- 1,986 --
------ ------ ------ ------
Total operating expenses 62,756 25,989 151,294 83,535
------ ------ ------ ------
Income (loss) from
operations (31,823) (2,011) (25,563) 44,413
Interest and dividend
income, net 1,049 1,586 5,556 6,499
Equity in earnings of joint
venture -- (1,074) (603) 217
Terminated merger fees, net -- -- -- 15,464
------- ------ ------- -----
Income (loss) before
income taxes (30,774) (1,499) (20,610) 66,593
Provision (benefit)
for income taxes (11,848) 2,679 (7,128) 29,816
------ ----- ------ ------
Net income (loss) $(18,926) $(4,178) $(13,482) $36,777
====== ====== ====== ======
Net income (loss)
per share $ (0.91) $ (0.20) $ (0.65) $ 1.71
====== ====== ====== ======
Shares used in computing
per share data 20,725 20,680 20,686 21,509
====== ====== ====== ======
TABLE B
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
EXCLUDING ACQUISITIONS OF PURCHASED TECHNOLOGY, ROYALTY ADVANCE
WRITE-OFFS, RESTRUCTURING CHARGES AND TERMINATED MERGER FEE, NET
(In thousands, except per share data)
(Unaudited)
Three months ended Year ended
August 31, August 31,
1997 1996 1997 1996
---- ---- ---- ----
Net revenues $45,686 $32,209 $190,787 $186,207
Cost of revenues 14,753 8,231 65,056 58,259
------ ------ ------- ------
Gross margin 30,933 23,978 125,731 127,948
------ ------ ------ ------
Operating expenses:
Sales and marketing 19,321 7,541 57,311 34,381
Research and development 10,660 7,473 38,478 29,244
General and administrative 3,863 2,535 13,603 11,256
Charge for amortization of
purchased technology 1,686 71 5,426 285
------ ------ ------ ------
Total operating expenses 35,530 17,620 114,818 75,166
------ ------ ------ ------
Income (loss) from
operations (4,597) 6,358 10,913 52,782
Other income, net 1,049 512 4,953 6,716
Income (loss) before
income taxes (3,548) 6,870 15,866 59,498
Provision (benefit) for
income taxes (1,366) 2,645 6,108 23,549
------ ----- ------ ------
Net income (loss) $(2,182) $ 4,225 $ 9,758 $35,949
====== ====== ====== ======
Net income (loss)
per share $ (0.11) $ 0.20 $ 0.46 $ 1.67
====== ====== ====== ======
Shares used in computing
per share data 20,725 21,247 21,087 21,509
====== ====== ====== ======
TABLE C
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
IMPACT OF ACQUISITIONS OF PURCHASED TECHNOLOGY, ROYALTY ADVANCE
WRITE-OFFS, RESTRUCTURING CHARGES AND TERMINATED MERGER FEE, NET
(In thousands, except per share data)
(Unaudited)
Three months ended Year ended
August 31, August 31,
1997 1996 1997 1996
---- ---- ---- ----
Income (loss) before
income taxes (Table A) $(30,774) $(1,499) $(20,610) $66,593
Charge for acquired
in-process technology 20,048 8,369 29,298 8,369
Royalty advance write-offs 5,192 -- 5,192 --
Restructuring charges 1,986 -- 1,986 --
Terminated merger fee, net -- -- -- (15,464)
------ ------ ------ ------
Income (loss) excluding
charge for acquired
in-process technology,
royalty advance write-
offs, restructuring
charges and terminated
merger fee, net
(Table B) (3,548) 6,870 15,866 59,498
------ ------ ------ ------
Provision (benefit) for
income taxes (1,366) 2,645 6,108 23,549
------ ----- ------ ------
Net income (loss)
excluding charge for
acquired in-process
technology, royalty
advance write-offs,
restructuring charges
and terminated merger
fee, net (Table B) $(2,182) $4,225 $9,758 $35,949
====== ====== ====== ======
Net income (loss)
per share $ (0.11) $ 0.20 $ 0.46 $ 1.67
====== ====== ====== ======
Shares used in computing
per share data 20,725 21,247 21,087 21,509
====== ====== ====== ======
TABLE D
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Aug. 31, 1997 Aug. 31, 1996
ASSETS
Current assets:
Cash and short-term investments $ 94,078 $150,893
Accounts receivable, net 18,047 5,956
Inventories 4,527 3,140
Deferred income taxes 14,975 15,057
Other current assets 3,799 869
Total current assets 135,426 175,915
Buildings and land, net 7,242 --
Equipment and improvements, net 11,422 7,014
Purchased technology 20,308 13,090
Investment in affiliates -- 4,053
Deferred income taxes 11,002 --
Other assets 1,203 360
-------- --------
$186,603 $200,432
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,928 $ 4,442
Accrued income taxes 4,621 8,966
Other current liabilities 22,942 20,014
Total current liabilities 36,491 33,422
Deferred income taxes -- 1,462
Other liabilities 2,030 --
Total liabilities 38,521 34,884
Stockholders' equity 148,082 165,548
-------- --------
$186,603 $200,432
-0- NOTE TO EDITORS: Broderbund, Red Orb Entertainment, ClickArt, The Print Shop Premier Edition 5.0, The Print Shop Publishing Suite, The Print Shop Signature Greetings, Family Tree Maker Deluxe Edition III, Just Grandma and Me, Reign of Heroes, Active Mind Series, Preschool Success Starter, Kindergarten Success Starter and 1st Grade Success Starter are trademarks or registered trademarks of Broderbund Software, Inc. All other marks are trademarks or registered trademarks of their respective companies. CONTACT: Broderbund Software, Inc. Robin Linstrom, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 415/382-4449 robin_linstrom@broder Broder is the surname of:
This page or section lists people with the surname Broder. .com or Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Winkler Winkler may refer to:
eric_winkler@broder.com |
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