Capitol Multimedia, Inc. reports 2nd fiscal quarter results.BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md.--(BUSINESS WIRE)--Nov. 11, 1996--Capitol Multimedia, Inc. (Nasdaq: CDIM CDIM Clerkship Directors in Internal Medicine CDIM Context-Driven Information Model CDIM Change Delivery & Implementation Manager CDIM Conditioned Di-Phase Modem , CDIMW, or "the Company"), today reported that excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. consolidation charges, losses for the three and six months ended September September: see month. 30, 1996 amounted to $564,000 and $482,500 or $0.12 and $0.10 per share. Including the one-time consolidation charges, losses for the three and six months ended September 30, 1996 were $1,027,000 and $945,000 or $0.21 and $0.20 per share on revenues of $327,000 and $1,340,000. On a comparative pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, the Company generated net income of $253,000 and $404,500 or $0.05 and $0.08 per share on revenues of $1,029,500 and $2,073,500 for the three and six months ended September 30, 1995. Actual earnings for the three and six months ended September 30, 1995 were $2,661,000 and $2,691,500 or $0.48 and $0.49 per share. In September 1996, the Company announced that it would be consolidating its Bethesda, Maryland Bethesda is an urbanized, but unincorporated, area in southern Montgomery County, Maryland, just Northwest of Washington, D.C. It takes its name from a church located there, the Bethesda Presbyterian Church, built in 1820 and rebuilt in 1850, which in turn took its name from headquarters with current operations in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. by the end of the calendar year. $462,500 in
charges, consisting of 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 benefits and fees relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc subleasing its facilities in Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , were recognized during the quarter ended September 1996. The Company expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. an additional $100,000 in expenses, the majority of which will be recognized during the quarter ended December December: see month. 1996, relating to its move to Massachusetts. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Company's new Chairman 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. , Igor Razboff: "The quarterly results cannot be attributed to a lack of performance by the Company. Its five new titles were commercially released by our licensing partners during the quarter. The poor operating results are directly attributable to widely reported problems in our industry, including a glut glut pronounced as rut, slut Vox populi An excess of a service or skilled labor in a particular area. See Physician glut. of 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). titles and the resulting intense competition for children's animated story and adventure titles. Even though the Company's titles are distributed by Broderbund and Davidson Da·vid·son , Jo(seph) 1883-1952. American sculptor best remembered for his vigorous portrait busts of Woodrow Wilson, Franklin D. Roosevelt, and Albert Einstein, among others. , leading children's CD-ROM publishers, actual sales did not meet sales projections. In addition, software development revenues suffered as publishers cut back on 1997 title development. Fortunately, the Company has a very strong balance sheet and a low cost production infrastructure which should allow us to withstand what we hope are short term adverse conditions in our industry. In the near term we will concentrate our efforts on securing development contracts utilizing our excellent record of top quality production and on-time delivery." In July July: see month. 1996, the Company announced the release of Gregory and the Hot Air Balloon This article is about hot air balloons themselves. For the associated activity, see Hot air ballooning. The hot air balloon is the oldest successful human-carrying flight technology, dating back to its invention by the Montgolfier brothers in Annonay, and Darby Darby, borough (1990 pop. 11,140), Delaware co., SE Pa., a suburb adjacent to Philadelphia; settled by Quakers 1682, inc. 1853. Although residential, it has some manufactures. One of the oldest settlements in the state, it retains many colonial landmarks. The Dragon dragon, mythical beast usually represented as a huge, winged, fire-breathing reptile. For centuries the dragon has been prominent in the folklore of many peoples; thus, its physical characteristics vary greatly and include combinations of numerous animals. , two of its interactive animated adventures, by Broderbund Software, Inc. (Nasdaq: BROD BROD Big Bike Riders of Dagupan (Motorcycle Club in the Philippines) ), a leading publisher and distributor of interactive children's entertainment and educational software for both the home and school markets. These titles are part of a Broderbund line of products known as StoryQuests(TM). In September 1996, three of the Company's international folk tale titles -- Liam Finds a Story, an Irish folk tale; Sleeping Cub's Test of Courage, a Native American folk tale; and The Princess and the Crab, an Italian folk tale, were released for distribution by Davidson & Associates, Inc., a subsidiary of CUC International CUC (Comp-U-Card) International Inc., a huge membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based out of Stamford, Connecticut and headed by Kirk , Inc. (NYSE NYSE See: New York Stock Exchange : CU), another industry leader, under its Magic Tales(TM) product line. Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. Multimedia, Inc. with offices in Bethesda, MD; Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. , MA; and St. Petersburg, Russia is a high end producer of children's animated story and adventure CD-ROM titles. The Company employs more than 150 professionals, including animators Famous animators no longer living
Capitol Multimedia, Inc.
Financial Summary
Three Months Ended Six Months Ended
September 30 September 30
1996 1995 1996 1995
----- (unaudited)----- ----- (unaudited)-----
Net sales 327,161 1,059,162 1,339,710 2,455,343
Consolidation charges 462,566 - 462,566 -
Operating income
(loss) (1,102,438) 75,130 (1,066,301) (9,494)
Gain on sale of
assets - 2,539,820 - 2,539,820
Net income (loss) (1,026,772) 2,660,915 (945,032) 2,691,414
Net income (loss)
per share (.21) .48 (.20) .49
Weighted average
shares outstanding 4,832,065 5,650,842 4,832,065 5,645,442
Sept 30 1996 March 31 1996
-- (unaudited) --
Current assets 4,913,785 5,502,115
Total assets 6,632,246 7,145,485
Total liabilities (including
$462,566 accrual for consolidation
charges at September 30, 1996) 768,087 336,294
-0-
PRO FORMA FINANCIAL SUMMARY
(Excluding Professional CD-i Operations)
Three Months Ended Six Months Ended
September 30 September 30
1996 1995 1996 1995
----- (unaudited)----- ----- (unaudited)-----
Net sales 327,161 1,029,467 1,339,710 2,073,598
Consolidation Charges 462,566 - 462,566 -
Operating income
(loss) (1,102,438) 178,887 (1,066,301) 268,352
Net income (loss) (1,026,772) 253,153 (945,032) 404,650
Net income (loss)
per share (.21) .05 (.20) .08
Weighted average
shares outstanding 4,832,065 4,821,677 4,832,065 4,818,316
-0-
Capitol Multimedia, Inc.
Consolidated Balance Sheets
September 30 March 31
1996 1996
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,341,216 $ 1,961,393
Short-term investments 2,440,930 2,362,975
Accounts receivable, less
allowance for doubtful accounts
of $6,000 and $12,500 at
September 30, 1996
and March 31, 1996 570,913 503,306
Notes and guaranteed royalties
receivable 500,000 500,000
Prepaid expenses and other
current assets 60,726 174,441
Total current assets 4,913,785 5,502,115
Property and equipment:
Technical equipment 1,157,150 1,070,337
Leasehold Improvements 24,956 -
Furniture and fixtures 44,163 44,163
Other equipment 110,501 94,176
1,336,770 1,208,676
Less: accumulated depreciation
and amortization (933,876) (841,861)
402,894 366,815
Notes and guaranteed royalties
receivable 1,283,086 1,244,074
Other long-term assets 32,481 32,481
Total assets $ 6,632,246 $ 7,145,485
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued
liabilities $ 656,523 $ 173,019
Unearned revenue and deferred rent 21,343 66,160
Total current liabilities 677,866 239,179
Other long-term liabilities 90,221 97,115
Total liabilities 768,087 336,294
Commitments - -
Shareholders' equity:
Common stock, $.10 par value;
25,000,000 and 10,000,000 shares
authorized and 5,657,153 shares
issued at September 30, 1996 and
March 31, 1996 565,715 565,715
Additional paid-in capital 15,817,202 15,817,202
Accumulated deficit (8,468,414) (7,523,382)
7,914,503 8,859,535
Less treasury stock, at cost,
825,088 shares at September 30, 1996
and March 31, 1996 (2,050,344) (2,050,344)
Total shareholders' equity 5,864,159 6,809,191
Total liabilities and shareholders'
equity $ 6,632,246 $ 7,145,485
-0-
Capitol Multimedia, Inc.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
September 30 September 30
1996 1995 1996 1995
-----(Unaudited)----- -----(Unaudited)-----
Net sales $ 327,161 $1,059,162 $1,339,710 $2,455,343
Operating expenses:
Research and
development 619,042 521,823 1,168,194 1,318,091
Depreciation and
amortization 48,389 80,552 92,015 266,709
General and
administrative 299,602 381,657 683,236 880,037
Consolidation
charges 462,566 - 462,566 -
Total operating
expenses 1,429,599 984,032 2,406,011 2,464,837
Operating income
(loss) (1,102,438) 75,130 (1,066,301) (9,494)
Other income:
Interest and other
income, net 75,666 99,205 135,669 214,328
Gain on sale of
assets - 2,539,820 - 2,539,820
Income (loss) before
income taxes (1,026,772) 2,714,155 (930,632) 2,744,654
Income taxes - 53,240 14,400 53,240
Net income (loss) $ (1,026,772)$2,660,915 $(945,032) $2,691,414
Net income (loss)
per share (.21) .48 (.20) .49
Weighted average
shares outstanding 4,832,065 5,650,842 4,832,065 5,645,442
-0-
Pro Form Consolidated Statements of Operations
(Excluding Professional CD-i Operations)
Three Months Ended Six Months Ended
September 30 September 30
1996 1995 1996 1995
-----(Unaudited)----- -----(Unaudited)-----
Software development
revenues 280,409 498,445 903,909 1,279,595
Consumer software
sales & royalties 46,752 375,347 435,801 561,387
CD-i licensing &
distribution fees - 155,675 - 232,616
Net sales $ 327,161 $1,029,467 $1,339,710 $2,073,598
Operating expenses:
Research and
development 619,042 468,400 1,168,194 980,382
Depreciation and
amortization 48,389 29,968 92,015 63,982
General and
administrative 299,602 352,212 683,236 760,882
Consolidation
charges 462,566 - 462,566 -
Total operating
expenses 1,429,599 850,580 2,406,011 1,805,246
Operating income
(loss) (1,102,438) 178,887 (1,066,301) 268,352
Other income:
Interest and other
income, net 75,666 79,432 135,669 144,556
Income (loss) before
income taxes (1,026,772) 258,319 (930,632) 412,908
Income taxes - 5,166 14,400 8,258
Net income (loss) $(1,026,772) $ 253,153 $(945,032) $ 404,650
Net income (loss)
per share (.21) .05 (.20) .08
Weighted average
shares outstanding 4,832,065 4,821,677 4,832,065 4,818,316
CONTACT: Igor Razboff, Chairman & CEO (301) 907-7000 ext. 804 E-mail: razboff@capitol.com |
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