Capitol Multimedia, Inc. reports fiscal third quarter results.CONCORD, Mass.--(BUSINESS WIRE)--Feb. 11, 1997--Capitol Multimedia, 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 : 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 losses for the three and nine months ended December December: see month. 31, 1996 amounting to $328,000 and $1,273,000, or $0.07 and $0.26 per share, on revenues of $528,000 and $1,867,000. On a comparative pro-forma basis (excluding results from the professional CD-I (Compact Disc-Interactive) A compact disc format developed by Philips and Sony that held text, audio and animated graphics. It required a CD-I player that contained its own operating system. business, which was sold in 1995), the Company generated net income of $210,000 and $614,000 or $0.04 and $0.13 per share on revenues of $1,034,000 and $3,108,000 for the three and nine months ended December 31, 1995. Actual earnings for the three and nine months ended December 31, 1995 were $210,000 and $2,901,000, or $0.04 and $0.55 per share. In the quarter ended December 31, 1996, the Company completed its consolidation of operations from 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 to Concord, Massachusetts Concord is a town in Middlesex County, Massachusetts, in the United States. As of the 2000 Census, the town population was about 17,000. Although a small town, Concord is noted for its leading roles in American history and literature. . In the fiscal third quarter, the Company incurred approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $120,000 of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. transition costs related to the move. The Company expects to save at least $300,000 annually beginning in fiscal year 1998 as a result of its consolidation actions. 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. Igor Razboff, the Company's recently appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. 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. , "The quarterly and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results demonstrate the continued problems in our industry and the lack of consumer sales and 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. revenue from products released for distribution over the past year. Our performance in the fiscal third quarter represents an improvement over our second quarter due to higher revenues from work-for-hire projects and containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. of 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. . Improved operating results demonstrate progress in bringing the 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). business back to profitability. "Recently, we have begun development and production of products for the adult games market. In 1996, we entered into an agreement with CUC CUC Cuban Convertible Peso (ISO currency code) CUC Columbia Union College (Takoma Park, MD, USA) CUC Canadian Unitarian Council CUC Canadian Ultimate Championships Software to develop an exciting, new animated CD-ROM game. Additionally, we are exploring strategic initiatives to leverage our top quality and low cost software development capabilities to produce software products for the professional and business segments of the market." 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 its offices in Concord, MA and St. Petersburg Petersburg, city (1990 pop. 38,386), politically independent and in no county, SE Va., on the Appomattox River; inc. 1850. A port of entry and an important tobacco market, it has industries producing chemicals, pharmaceuticals, furniture, structural steel, lumber, , Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). , is a high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. producer of CD-ROM titles. The company employs more than 150 professionals, including animators Famous animators no longer living
-0- This press release contains certain 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. . The phrase "expects to", or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigaton Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Capitol cautions readers not to place undue reliance on any forward-looking statements, which speak only as to management's expectations on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Capitol does not undertake - and specifically declines any obligation - to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
Capitol Multimedia, Inc.
Financial Summary
Three Months Ended Nine Months Ended
DEC. 31 DEC. 31 DEC. 31 DEC. 31
1996 1995 1996 1995
----(unaudited)---- -----(unaudited)----
Net Sales $527,755 $1,034,466 $1,867,465 $3,489,809
Consolidation charges - - 462,566 -
Operating income (loss) (429,952) 135,318 (1,496,253) 125,824
Gain on sale of assets - - - 2,539,820
Net income (loss) (327,563) 209,528 (1,272,595) 2,900,942
Net income (loss) per share (0.07) 0.04 (0.26) 0.55
Weighted average
shares outstanding 4,832,065 4,824,352 4,832,065 5,371,745
31-Dec 31-Mar
1996 1996
----(unaudited)---
Current assets 4,757,130 5,502,115
Total assets 6,273,291 7,145,485
Total liabilities (including $462,566
accrual for consolidation
charges at December 31, 1996) 736,695 336,294
PRO FORMA FINANCIAL SUMMARY
(Excluding Professional CD-i Operations)
Three Months Ended Nine Months Ended
DEC. 31 DEC. 31 DEC. 31 DEC. 31
1996 1995 1996 1995
---(unaudited)---- ----(unaudited)----
Net Sales $527,755 $1,034,466 $1,867,465 $3,108,064
Consolidation charges - - 462,566 -
Operating income (loss) (429,952) 135,318 (1,496,253) 403,670
Net income (loss) (327,563) 209,528 (1,272,595) 614,178
Net income (loss)
per share (0.07) 0.04 (0.26) 0.13
Weighted average
shares outstanding 4,832,065 4,824,352 4,832,065 4,820,328
-0-
Capitol Multimedia, Inc.
Consolidated Balance Sheets
December 31 March 31
1996 1996
---(unaudited)---
Assets
Current assets:
Cash and cash equivalents $ 1,115,962 $ 1,961,393
Short-term investments 2,248,311 2,362,975
Accounts receivable, less
allowance for doubtful accounts
of $6,000 and $12,500 at
December 31, 1996 and
March 31, 1996 1,012,855 503,306
Notes and guaranteed royalties
receivable 250,000 500,000
Prepaid expenses and other
current assets 130,002 174,441
Total current assets 4,757,130 5,502,115
Property and equipment:
Technical equipment 1,208,472 1,070,337
Leasehold improvements 33,495 -
Furniture and fixtures 44,163 44,163
Other equipment 124,109 94,176
1,410,239 1,208,676
Less: accumulated depreciation
and amortization (988,293) (841,861)
Net property and equipment 421,946 366,815
Notes and guaranteed royalties
receivable 1,053,343 1,244,074
Other long-term assets 40,872 32,481
Total assets $ 6,273,291 $ 7,145,485
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and
accrued liabilities $ 628,578 $ 173,019
Unearned revenue and deferred rent 21,343 66,160
Total current liabilities 649,921 239,179
Other long-term liabilities 86,774 97,115
Total liabilities 736,695 336,294
Commitments
Shareholders' equity:
Common stock, $.10 par value;
25,000,000 and 10,000,000 shares
authorized and 5,657,153 shares
issued at December 31, 1996 and
March 31, 1996 565,715 565,715
Additional paid-in capital 15,817,202 15,817,202
Accumulated deficit (8,795,977) (7,523,382)
7,586,940 8,859,535
Less treasury stock, at cost,
825,088 shares at December 31,
1996 and March 31, 1996 (2,050,344) (2,050,344)
Total shareholders' equity 5,536,596 6,809,191
Total liabilities and
shareholders' equity 6,273,291 7,145,485
-0-
Capitol Multimedia, Inc.
Consolidated Statements of Operations
Three Months Nine Months
Ended Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1996 1995 1996 1995
----(unaudited)----- ----(unaudited)----
Net Sales $ 527,755 $ 1,034,466 $ 1,867,465 $ 3,489,809
Operating
expenses
Research and
Development 494,129 505,404 1,662,323 1,823,495
Depreciation
and
amortization 54,417 30,260 146,432 296,969
General and
Administrative 409,161 363,484 1,092,397 1,243,521
Consolidation
charges - - 462,566 -
Total operating
expenses 957,707 899,148 3,363,718 3,363,985
Operating
income (loss) (429,952) 135,318 (1,496,253) 125,824
Other income:
Interest and
other income,
net 82,710 78,486 218,379 292,814
Gain on sale
of assets - - - 2,539,820
Income (loss)
before income
taxes (347,242) 213,804 (1,277,874) 2,958,458
Income taxes (19,679) 4,276 (5,279) 57,516
Net income
(loss) $ (327,563) $ 209,528 $ (1,272,595) $ 2,900,942
Net income
(loss) per share (0.07) 0.04 (0.26) 0.55
Weighted average
shares
outstanding 4,832,065 4,824,352 4,832,065 5,371,745
Pro Forma Consolidated Statements of Operations
(Excluding Professional CD-i Operations)
Three Months Nine Months
Ended Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1996 1995 1996 1995
-----(unaudited)------ -----(unaudited)----
Software
development
revenues 517,500 513,868 1,241,409 1,793,463
Consumer software
sales & royalties 10,255 520,598 626,056 1,081,985
CD-I licensing
& distribution
fees - - - 232,616
Net Sales $ 527,755 $ 1,034,466 $ 1,867,465 $ 3,108,064
Operating expenses:
Research and
Development 494,129 505,404 1,662,323 1,485,786
Depreciation and
amortization 54,417 30,260 146,432 94,242
General and
Administrative 409,161 363,484 1,092,397 1,124,366
Consolidation
charges - - 462,566 -
Total operating
expenses 957,707 899,148 3,363,718 2,704,394
Operating income
(loss) (429,952) 135,318 (1,496,253) 403,670
Other Income:
Interest and
other income,
net 82,710 78,486 218,379 223,042
Income (loss)
before income
taxes (347,242) 213,804 (1,277,874) 626,712
Income taxes (19,679) 4,276 (5,279) 12,534
Net income (loss) $ (327,563) $ 209,528 $(1,272,595) $ 614,178
Net income (loss)
per share (0.07) 0.04 (0.26) 0.13
Weighted average
shares
outstanding 4,832,065 4,824,352 4,832,065 4,820,328
CONTACT: Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide Terino, Chief Financial Officer 508-287-5888 EXT EXT Extension EXT Extended EXT External Ext Extraction EXT Exterior (screenwriting) EXT Extinguisher EXT Extruded EXT Extinguished EXT Exeter, England, United Kingdom - Exeter (Airport Code) . 113 ed@capitol.com |
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