Coda Music Technology, Inc. Announces Second Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Aug. 14, 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 that for the second quarter ended June June: see month. 30, 2000 it recorded 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 of $1,056,946 and a net loss of $345,269 or $.05 per share for the quarter. This compares to net sales of $955,785 and a loss of $531,373 or $.09 per share for the second quarter ended June 30, 1999. For the six months ended June 30, 2000 the Company recorded net sales of $2,869,257 and a net loss of $285,232 or $.05 per share. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to a loss of $806,663 or $.13 per share for the six months ended June 30, 1999. For the second quarter ended June 2000 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. (R) sales were 21% higher than the same period of 1999 due primarily to the acceptance of the new 2000 version, reflected both in current user upgrades and new user purchases. "Finale continues to break sales records with each new release," stated John Paulson Paulson may refer to:
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. family, including triple digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. increases of 161% for its entry-level en·try-lev·el adj. Appropriate for or accessible to one who is inexperienced in a field or new to a market: an entry-level job in advertising; an entry-level computer. product, PrintMusic!(TM), and 31% increase in its mid-range
http://devworld.apple.com/mkt/informed/appledirections/mar97/roadmap.html. (R)." 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. decreased $125,671 for the second quarter and increased $57,192 for six months ended June 2000. The second quarter decrease was due primarily to the high 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 exploration expenses incurred in the prior year. The Company is continuing to pursue its Internet strategy with the proposed acquisition of Net4Music, previously announced. Expenses for the six months ended June 2000 increased primarily due to personnel costs including benefit improvements, training and higher personnel levels due to sales increases; attendance at more trade shows and related travel expenditures; and the timing of marketing projects. Detail balance sheets and statements of operations follow. Cautionary Statements 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. Forward-looking statements provide current expectations or forecasts of future events and can be identified by the use of terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "believe," "estimate," "expect," "intend," "may," "could," "will" and similar words or expressions. The Company's forward-looking statements generally relate to its growth strategy, financial results, product development and sales efforts. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. The Company undertakes no obligation to update any forward-looking statements. The Company has a limited operating history from which investors might judge its ability to market at a profit its SmartMusic Studio SmartMusic Studio is a software used to help with practicing instruments. products. Investors should also consider: expenditures for the Company's Internet strategy; the possibility that the transaction with Net4Music is not completed; the risks associated with integrating the Net4Music operations, which also has risks, if the transaction with Net4Music is completed; 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. Investors are advised to consult any further disclosures by the Company on this subject in its filings with the SEC. 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, 1999. The Company notes these factors as permitted by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. It is not possible to foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. or identify all factors that could cause actual results to differ from expected or historic results. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks, uncertainties or potentially inaccurate assumptions.
Coda Music Technology, Inc.
Condensed Consolidated Balance Sheets
June 30, December 31,
2000 1999
------------- --------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 730,403 $ 1,345,599
Short-term investments 778,677 608,600
Accounts Receivable 323,893 484,515
Inventories 228,941 200,242
Other current assets 117,829 119,480
---------- ----------
Total current assets 2,179,743 2,758,436
EQUIPMENT, FURNITURE AND
FIXTURES 956,226 249,660
SOFTWARE INSTALLATION IN
PROGRESS - 200,000
REPERTOIRE DEVELOPMENT COSTS 430,071 486,891
PREPAID ROYALTIES 203,485 192,490
OTHER ASSETS 126,883 99,527
---------- ----------
$ 3,896,408 $ 3,987,004
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities on long-term
debt $ 77,013 $ -
Accounts payable 342,533 619,944
Reserve for product returns 202,841 210,858
Accrued expenses 479,676 548,444
Deferred revenue 72,310 89,548
---------- ----------
Total current liabilities 1,174,373 1,468,794
LONG-TERM DEBT, less current
maturities 154,970 -
SHAREHOLDERS' EQUITY
Common Stock 14,060,578 13,726,491
Accumulated (Deficit) (11,493,513) (11,208,281)
---------- ----------
Total Shareholders' Equity 2,567,065 2,518,210
---------- ----------
$ 3,896,408 $ 3,987,004
========== ==========
Coda Music Technology, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Quarter Ended Six Months
June 30, Ended June 30,
--------------- ----------------
2000 1999 2000 1999
---- ---- ---- ----
NET SALES $ 1,056,946 $ 955,785 $ 2,869,257 $ 2,172,142
COST OF SALES 159,142 120,914 398,258 281,742
--------- -------- --------- ---------
GROSS PROFIT 897,804 834,871 2,470,999 1,890,400
OPERATING EXPENSES:
Sales and marketing 375,378 433,026 973,653 866,573
Product development 359,990 370,143 718,491 723,622
General and
administrative 520,601 578,471 1,097,260 1,142,017
--------- -------- --------- ---------
Total operating
expenses 1,255,969 1,381,640 2,789,404 2,732,212
--------- --------- --------- ---------
LOSS FROM OPERATIONS (358,165) (546,769) (318,405) (841,812)
Interest Income, net 12,896 15,396 33,173 35,149
--------- --------- --------- ---------
NET LOSS $ (345,269)$ (531,373) $ (285,232) $ (806,663)
========= ========= ========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
6,387,318 6,194,732 6,337,710 6,194,732
========= ========= ========= =========
BASIC AND DILUTED NET
LOSS PER SHARE $ (.05) $ (.09) $ (.05) $ (.13)
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