Coda Music Technology, Inc. Announces A Profit for the Third Quarter.EDEN PRAIRIE Eden Prairie A city of eastern Minnesota, a residential suburb of Minneapolis. Population: 57,300. , Minn.--(BUSINESS WIRE)--Nov. 5, 1998--Coda Music Technology, 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 :COMT COMT Catechol-O-Methyltransferase COMT Certified Ophthalmic Medical Technologist ) announced today for the third quarter ended September September: see month. 30, 1998 it recorded profits for the first time in the Company's public history. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight totaled $2,147,589 and resulted in net income of $351,923 or $.06 per share for the quarter. This compares to net sales of $952,080 and a loss of $(798,597) or $(.13) per share for the third quarter ended September 30, 1997. For the nine months ended September 30, 1998, net sales totaled $4,862,713, a 36% increase over net sales of $3,584,135 for the nine months ended September 30, 1997. The Company's net loss for the nine months ended September 30, 1998 was $(1,009,202) or $(.16) per share, a 28% improvement over the loss of $(1,403,904) or $(.27) per share for the nine months ended September 30, 1997. When considering the nine months ended September 30, 1998 numbers include previous quarters product repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. write-offs of $856,000, the Company had a net loss for the first nine months ended September 30, 1998 of $(153,202). One major contributor to the strong performance in the third quarter was the release of Finale For the music notation program, see . A finale (italian word) is a closing part, act or movement of a dramatic or musical composition, or more generally any event or procedure with a dramatically concluding effect. 98, Coda's newest version of the world's best selling music notation notation: see arithmetic and musical notation. How a system of numbers, phrases, words or quantities is written or expressed. Positional notation is the location and value of digits in a numbering system, such as the decimal or binary system. software. The Company achieved its objective of releasing this upgrade in June June: see month. , which is earlier than upgrades have been released in past years. This early release contributed significantly to the 126% increase in sales in the third quarter 1998 over the third quarter in 1997, thus shifting net sales earlier into the fiscal year. Although management believes the Finale 98 upgrade will be the best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best upgrade ever, it expects net sales to decrease in the fourth quarter, as is typical for upgrade sales after the third or fourth month following release. "The Finale 98 upgrade, which continues Coda's tradition of useful, valuable upgrades, provides end-users and publishers with the features they have been requesting to make their work as productive and enjoyable as possible" stated John Paulson Paulson may refer to:
The period beginning at the start of the calendar year up to the current date. trade-ups from competitor products such as Encore grew 147% over the prior year and further increased Finale's dominant market share." The third quarter also reflected the initial results of the Company's new SmartMusic strategy implemented during the first and second quarters of this year. SmartMusic accompaniment unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. increased 32% over the third quarter of 1997 and overall SmartMusic net sales increased 38%. President Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Raup stated, "SmartMusic sales are starting to grow. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the growth will continue as more musicians, music teachers and music students have the opportunity to experience first-hand first-hand Adjective obtained directly from the original source Adverb 1. directly from the original source 2. the important benefits SmartMusic Intelligent Accompaniments(TM) provide. Our much lower production cost which results in a much lower selling price of the application allows greater access for customers and thus creates the opportunity to build accompaniment sales." Combined gross margins for Finale and SmartMusic improved from 65% in the third quarter of 1997 to 83% in 1998. While management expects lower fourth quarter operating results due to the timing of the Finale 98 upgrade, future results should continue to reflect the positive impact of lower operating costs operating costs npl → gastos mpl operacionales for both Finale and SmartMusic. Detail balance sheets and statements of operations follow. Coda Music Technology, Inc. develops and markets proprietary music technology products, including Finale music notation software products and the SmartMusic Intelligent Accompaniment products, a comprehensive system that makes practicing music fun and productive. The Company cautions investors that actual results of future operations may differ from those anticipated in 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. due to a number of factors. The Company has a limited operating history from which investors might judge its ability to market at a profit its SmartMusic products. Investors should also consider: sales and distribution issues, the potential need for additional capital; additional development work required for new products; dependence on accompaniment sales and development; competition; dependence on suppliers; the impact of Year 2000 issues internally and from third parties; and dependence on proprietary technology. For a more complete description, see "Cautionary Statements" under Item 1 of the Company's Form 10-KSB for the year ended December December: see month. 31, 1997.
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Coda Music Technology, Inc.
Condensed Balance Sheets
(Unaudited)
September 30, December 31,
ASSETS 1998 1997
CURRENT ASSETS:
Cash and cash equivalents $ 1,795,810 $ 2,212,454
Accounts receivable 459,948 477,960
Inventories 385,565 616,696
Prepaid royalties 196,713 181,105
Other current assets 84,008 93,200
-------------- -------------
Total current assets 2,922,044 3,581,415
EQUIPMENT, FURNITURE
AND FIXTURES 228,186 370,105
REPERTOIRE DEVELOPMENT COSTS 712,112 591,445
OTHER ASSETS 96,323 88,279
--------------- -------------
$ 3,958,665 $ 4,631,244
=============== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 242,012 $ 294,398
Accrued product repositioning 149,812 -
Accrued expenses 612,859 389,885
Deferred revenue 218,826 202,603
-------------- -------------
Total current liabilities 1,223,509 886,886
SHAREHOLDERS' EQUITY
Common Stock 13,712,572 13,712,572
Accumulated (Deficit) (10,977,416) (9,968,214)
-------------- -------------
Total Shareholders' Equity 2,735,156 3,744,358
-------------- -------------
$ 3,958,665 $ 4,631,244
============== =============
Coda Music Technology, Inc.
Condensed Statements of Operations
(Unaudited)
Quarter Nine Months
Ended September 30 Ended September 30
------------------- ------------------
1998 1997 1998 1997
---- ---- ---- ----
NET SALES $2,147,589 $952,080 $4,862,713 $3,584,135
COST OF SALES 361,620 335,844 929,934 1,097,802
----------- ----------- ----------- -----------
GROSS PROFIT 1,785,969 616,236 3,932,779 2,486,333
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Sales and marketing 466,555 610,742 1,415,987 1,598,115
Product development 444,184 419,061 1,281,590 1,122,531
General and
administrative 540,538 421,135 1,455,216 1,237,843
Product Repositioning - - 856,000 -
---------- ---------- ----------- -----------
Total operating
expenses 1,451,277 1,450,938 5,008,793 3,958,489
----------- ----------- ----------- -----------
INCOME (LOSS)
FROM OPERATIONS 334,692 (834,702) (1,076,014) (1,472,156)
Interest Income, net 17,231 36,105 66,812 68,252
----------- ----------- ----------- -----------
NET INCOME (LOSS) $351,923 $(798,597) $(1,009,202) $(1,403,904)
=========== =========== =========== ===========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 6,199,732 6,199,732 6,199,732 5,177,637
=========== =========== =========== ===========
BASIC AND DILUTED NET
INCOME (LOSS) PER SHARE $.06 $(.13) $(.16) $(.27)
=========== =========== =========== ===========
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