Coda Music Technology, Inc. Announces Fourth Quarter and Year-End Results.Business Editors EDEN PRAIRIE Eden Prairie A city of eastern Minnesota, a residential suburb of Minneapolis. Population: 57,300. , Minn.--(BUSINESS WIRE)--Feb. 23, 2000 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 fourth quarter ended December December: see month. 31, 1999 it recorded profits for the second quarter in a row. 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 $1,719,735 and resulted in net income of $132,905 or $.02 per share for the quarter. This compares to net sales of $1,550,332 and net income of $204,747 or $.03 per share for the fourth quarter ended December 31, 1998. Fourth quarter sales increased to $1,719,735, an 11% improvement over 1998. The sales increase was due to strong demand for the new version 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. . Gross margin dollars in the fourth quarter improved 12% as a result of the sales increases. Expenses in the fourth quarter increased 20%, primarily as a result of higher sales and marketing expenses related to the timing of material design and duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. costs. A significant amount of work was done creating box designs and promotional materials for existing and new product. For the year ended December 31, 1999, net sales totaled $6,356,136, a 1% decrease over net sales of $6,413,045 for the year ended December 31, 1998. The Company's net loss for the year ended December 31, 1999 was $(455,612) or $(.07) per share, a 43% improvement over the loss of $(804,455) or $(.13) per share for the year ended December 31, 1998. The 1999 year end results include $989,491 of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the investment expenses. Had it not been for these expenses, the Company would have recorded net income of $533,879. The $56,909 or 1% year-to-year sales decrease was primarily due to decreases in sales levels of SmartMusic Studio SmartMusic Studio is a software used to help with practicing instruments. (TM) and accompaniments. The release of the SmartMusic Studio upgrade with its new product configurations and price points was delayed until the fourth quarter, which hurt sales of both the applications and accompaniments. Finale(R) sales for 1999 increased 5%, even though Finale 2000 was released later in 1999 than Finale 98 was released in 1998. Finale Allegro (operating system) Allegro - The code name for the major Mac OS release due in mid-1998. http://devworld.apple.com/mkt/informed/appledirections/mar97/roadmap.html. (R) sales increased over 43%. PrintMusic!(TM), introduced in 1999 was a new addition to the Company's 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. line. Even though sales were down slightly on an annual basis, gross margin dollars actually improved $330,736 or 6%, due to strong demand for the new version of Finale. Expenses for the year decreased 1%, but two significant factors need to be taken into account: 1998 expenses included a $856,000 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. cost and 1999 expenses included Internet investments totaling $989,491. Considering these factors, 1999 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. reflected a $168,623, or 3%, decrease. 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. John Paulson Paulson may refer to:
v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. for deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. on the Internet and the Company is actively seeking strategic partners and customers to exploit the new Internet See Web 2.0 and Internet2. opportunities SmartMusic and Finale offer." Financial table follows. 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: expenditures for the Company's Internet strategy; 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; 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 31, 1999.
Coda Music Technology, Inc.
Consolidated Condensed Balance Sheets
As of December 31
1999 1998
ASSETS ------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,345,599 $563,685
Short-term investments 608,600 1,411,420
Accounts receivable,
less allowance of $25,000 484,515 275,817
Inventories 200,242 274,163
Other current assets 119,480 93,825
------------ ------------
Total current assets 2,758,436 2,618,910
EQUIPMENT, FURNITURE AND FIXTURES,
less accumulated depreciation
of $841,348
and $1,1018,108 249,660 273,425
SOFTWARE DEPOSIT 200,000
REPERTOIRE DEVELOPMENT COSTS,
net of accumulated amortization
of $869,548 and
$548,553 486,891 643,248
PREPAID ROYALTIES 192,490 185,144
OTHER ASSETS 99,527 87,881
------------ ------------
$3,987,004 $3,808,608
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $619,944 $228,677
Accrued expenses 759,302 564,324
Deferred revenue 89,548 61,017
------------ ------------
Total current liabilities 1,468,794 854,018
------------ ------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common Stock, without par value,
15,000,000 shares authorized;
6,216,319 and 6,194,732 issued
and outstanding 13,726,491 13,707,259
Accumulated deficit (11,208,281) (10,752,669)
------------ ------------
Total shareholders' equity 2,518,210 2,954,590
------------ ------------
$3,987,004 $3,808,608
============ ============
Coda Music Technology, Inc.
Consolidated Statements of Operations
Quarter ended December 31, Year ended December 31,
-------------------------- ------------------------
1999 1998 1999 1998
--------------- ---------- ----------- ------------
NET SALES $1,719,735 $1,550,332 $6,356,136 $6,413,045
COST OF SALES 214,967 214,575 772,421 1,160,066
----------- ---------- ----------- ------------
GROSS PROFIT 1,504,768 1,335,757 5,583,715 5,252,979
87% 86% 88% 82%
OPERATING EXPENSES:
Sales and marketing 616,635 350,765 2,040,615 1,697,715
Product development 276,553 375,623 1,341,166 1,657,213
General and
administrative 497,988 426,480 2,729,191 1,935,176
Product Repositioning - - 856,000
----------- ---------- ----------- ------------
Total operating
expenses 1,391,176 1,152,868 6,110,972 6,146,104
----------- ---------- ----------- ------------
INCOME (LOSS)
FROM OPERATIONS 113,592 182,889 (527,257) (893,125)
Interest Income, net 19,313 21,858 71,645 88,670
----------- ---------- ----------- ------------
Net Income (Loss) $132,905 $204,747 $(455,612) $(804,455)
=========== ========== =========== ============
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 6,216,319 6,196,689 6,202,036 6,198,965
=========== ========== =========== ============
Diluted 6,753,200 6,208,919 6,202,036 6,198,965
=========== ========== =========== ============
EARNINGS (LOSS) PER
COMMON SHARE:
Basic $0.02 $0.03 $(0.07) $(0.13)
=========== ========== =========== ============
Diluted $0.02 $0.03 $(0.07) $(0.13)
=========== ========== =========== ============
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