M.A.I.D First Quarter Revenues Up 58%, U.S. Revenues More Than Double.CARY, N.C.--(BUSINESS WIRE)--May 15, 1997-- Company Reports Net Income of $1.0 Million After Exceptional Item M.A.I.D plc (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 : MAIDY), the leading online supplier of business intelligence, today announced that total revenues for the first quarter ended March 31, 1997, were $10.7 million, up 58% compared with $6.8 million for the first quarter of 1996. Gross profit rose 87% to $5.8 million. A one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. capital gain of $5.7 million, which included shares received from Fourth Communications Network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. in association with the transfer by M.A.I.D of its hotel technology, resulted in net income of $1.0 million, or $0.04 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. ("ADS"). The comparative net loss for the 1996 first quarter was $4.0 million, or $0.18 per ADS. Cash outflow was reduced by 41%, or $1.3 million, compared with the fourth quarter of 1996, which in turn was down 48% compared with the third quarter of 1996. The period-end cash position was $11.3 million. "The year 1997 has started well for the company, with revenues continuing a growth trend in direct sales activity established last year," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Mander Man´der v. t. & i. 1. See Maunder. , Chairman. "New customer gains in the quarter were 650, representing a year-over-year increase of 62%." Mr. Mander added that, as anticipated in the plan for the current year, U.S. customer gains have been particularly successful achieving an 80% increase in the number of new subscribers over the 1996 first quarter, all gained at a higher average value. As a result, the U.S. business contributed $3.8 million in revenues, up 102% from last year's first quarter. Sales and marketing costs declined to 52% of revenues, compared with an average of 66% for the year ended December December: see month. 31, 1996, reflecting the company's improved sales targeting strategy. Furthermore, the company's operating costs operating costs npl → gastos mpl operacionales have decreased by $1.3 million since the fourth quarter of 1996. Alliance Relationships During the quarter, the company continued to establish alliances with corporate partners that can extend and strengthen global distribution. The transfer of the company's South African distributorship to Primedia Primedia Inc., NYSE: PRM, formerly known as K-III Communications, is a New York City-based mass media corporation. It is publicly owned, trading on the New York Stock Exchange, but private equity giant KKR holds a controlling stake in the company. , one of the largest media groups in the region, and a similar arrangement with Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. , Japan's largest computer company, provide substantial foundations upon which to build the business in these regions. "We anticipate revenues from these partnerships to be derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from increased sales of the company's direct product range, Profound, in addition to the development of locally focused business services targeting a new and broader customer base," stated Mr. Mander. The company also partnered during the quarter with the South China Morning Post The South China Morning Post, together with its Sunday edition, the Sunday Morning Post, is a English-language newspaper of Hong Kong, with a circulation of 104,000. , the leading English-language newspaper in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . Under the terms of the contract, M.A.I.D will design, build and maintain a business service that will be a key component of the South China Morning Post's interactive service strategy on the 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 . This service is due to be launched later this year. The transfer of the company's Internet in Hotel technology and distribution contracts to San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.-based Fourth Communications Network generated a substantial return on a non-core technology within 12 months of development. This has provided the company with an exceptional profit as well as a firm long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. global position in this sector. The combined technologies and hotel contracts place Fourth Communications Network in an advantageous position in the business of providing hotel groups with Internet access See how to access the Internet. as well as a range of complementary business services. Under the terms of the agreement, M.A.I.D received a 10% equity stake in Fourth Communications Network and will receive 10% of global Internet access revenues for the next 30 years, supported by substantial guaranteed revenues as well as retaining the agency for Fourth Communications Network in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .InfoSort - Creating a Standard At the beginning of April, M.A.I.D agreed to enter into a technology initiative with AltaVista (AltaVista Company, Palo Alto, CA, www.altavista.com) The first search engine to index every word on a page and provide a retrieval system to extract relevant information. Developed by Digital's Research Labs in Palo Alto in 1995, the AltaVista search engine is available in more than 25 , a leading Internet search engine widely recognized for its speed of searching. Under the terms of the agreement, the companies will develop jointly and market a range of corporate Intranet and general Internet software solutions that are based on a fusion fusion, in physics. 1 The change of a substance from the solid to the liquid state, also known as melting. The heat given up by a unit mass of a substance during fusion is called the latent heat of fusion. See also melting point. of M.A.I.D's InfoSort data-indexing tools and the AltaVista search engine. The agreement is expected to result in one of the world's fastest and most accurate data-retrieval engines for business applications. New Products Following careful evaluation of market changes brought about by the adoption of Internet technology by corporations worldwide, the company has updated its product range to reflect current and anticipated market needs. Two new and complementary products for the corporate marketplace, Profound LiveWire See Netscape LiveWire. and Profound for Intranets, have been extensively demonstrated to existing customers and controlled beta trials are currently underway. M.A.I.D has consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: 27 newswires into Profound LiveWire, a fixed-price service that provides executives with breaking stories that are directly relevant to their information needs. Due to the open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced of the Internet, M.A.I.D can provide a very competitively priced service, dramatically undercutting existing services whose proprietary networks prevent them from offering similarly priced products. Customer interest in both products is positive, and a number of customized Intranet contracts have been awarded and are currently being implemented. "The Board looks forward with confidence to reporting further growth and improvement in the company's operating performance for the remainder of 1997 and beyond," concluded Mr. Mander. About M.A.I.D Established in 1985, M.A.I.D is a leading online supplier of business intelligence services to professionals worldwide. The company's core product Profound includes market research reports, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. and archived business news, company statistics, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. research, economic analyses, and up-to-date stock market and commodity prices. With regional headquarters in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Cary, N.C., and Hong Kong, M.A.I.D is traded on NASDAQ and the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . Additional information about the company is available at http://www.maid.com. Except for any historical information contained herein, the matters discussed in this news release are 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. that involve risks and uncertainties, including the successful negotiations of new alliances, the timely development of products, the impact of competitive products and pricing, and other risks detailed from time to time in the company's U.S. Securities and Exchange Commission reports. -0-
M.A.I.D PLC
CONSOLIDATED INCOME & EXPENDITURE STATEMENT (unaudited)
FOR THE QUARTER ENDED MARCH 31, 1997 (U.S. GAAP basis)
Three Months Ended
March 31,
1997 1996
$'000 $'000
REVENUES 10,652 6,758
Cost of sales (4,807) (3,635)
GROSS PROFIT 5,845 3,123
Selling and marketing expenses (5,494) (4,115)
Research and development expenses (1,684) (1,529)
General and administrative expenses (1,651) (2,200)
LOSS FROM OPERATIONS (2,984) (4,721)
Exceptional item 5,745 -
INCOME/(LOSS) FROM OPERATIONS
BEFORE INTEREST AND PROVISION FOR
INCOME TAXES 2,761 (4,721)
Interest income 164 852
Interest expense (62) (93)
INCOME/(LOSS) BEFORE PROVISION FOR
INCOME TAXES 2,863 (3,962)
Provision for income taxes (1,824) (64)
INCOME/LOSS AFTER PROVISION FOR
INCOME TAXES 1,039 (4,026)
Minority equity interest (18) (3)
NET INCOME/(LOSS) 1,021 (4,029)
Net income/(loss) per share (in
dollars) 0.011 (0.044)
Shares used in computing net
income/(loss) per share (thousands) 92,720 91,763
Equivalent net income/(loss) per
ADS (in dollars)(a) 0.044 (0.176)
(a) Each ADS represents four Ordinary shares
The company maintains its books and records in accordance with U.K.
generally accepted accounting principles (GAAP). The financial
results set forth above represent the company's financial results
under U.K. GAAP converted to U.S. GAAP and translated for
convenience into U.S. dollars at the rate of US$: 1.6420, being the
rate of exchange on March 31, 1997, the last trading day of the
period.
-0-
M.A.I.D PLC
SUMMARIZED CONSOLIDATED BALANCE SHEET DATA (unaudited)
AS AT MARCH 31, 1997 (U.S. GAAP basis)
March 31, March 31, December 31,
1997 1996 1996
US$'000 US$'000 US$'000
ASSETS
Current assets 24,052 38,746 25,560
Investments 11,054 3,505 3,505
Fixed assets, net 11,518 11,208 11,480
System and product - -
development costs -
Total assets 46,624 53,459 40,545
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities 21,948 14,156 16,945
Long-term liabilities 968 2,259 1,307
Minority equity interest 55 33 71
Shareholders' equity 23,653 37,011 22,222
Total liabilities and 46,624 53,459 40,545
shareholders' equity
The company maintains its books and records in accordance with U.K.
generally accepted accounting principles (GAAP). The financial
results set forth above represent the company's financial results
under U.K. GAAP converted to U.S. GAAP and translated for
convenience into U.S. dollars at the rate of US$: 1.6420, being the
rate of exchange on March 31, 1997, the last trading day of the
period.
-0-
M.A.I.D PLC
NOTES TO THE CONSOLIDATED INCOME & EXPENDITURE STATEMENT
ANALYSIS OF REVENUES
The breakdown of revenues is analyzed as follows:
Three Months Ended
March 31,
1997 1996
Usage sales 43% 53%
Subscriptions sales 51% 46%
Other sales 6% 1%
100% 100%
The breakdown of revenues by market destination is
analyzed as follows:
Three Months Ended
March 31,
1997 1996
Europe, Middle East and Africa 57% 67%
The Americas 36% 28%
Asia Pacific 7% 5%
100% 100%
The company maintains its books and records in accordance with U.K.
generally accepted accounting principles (GAAP). The financial
results set forth above represent the company's financial results
under U.K. GAAP converted to U.S. GAAP and translated for
convenience into U.S. dollars at the rate of US$: 1.6420, being the
rate of exchange on March 31, 1997, the last trading day of the
period.
General
These results are unaudited and do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
The financial statements for the year ended December 31, 1996, have
been reported on by the Company's auditors, Price Waterhouse, and
will be delivered to the Registrar of Companies following the Annual
General Meeting on May 29, 1997. The audit report was not qualified
and neither did it contain any statements under Section 237 (2) or
(3) of the Companies Act 1985. The unaudited results for the three
months ended March 31, 1997 have been prepared in accordance with the
accounting policies stated in the 1996 Annual Report and Accounts, as
adjusted for the differences between U.K. and U.S. generally
accepted accounting principles.
Copies of the Group's full report and accounts will be sent to
all shareholders. Additional copies will be available from:
U.S. Head Office: 11000 Regency Parkway, Cary, North Carolina,
27511
Registered office: M.A.I.D plc, The Communications Building, 48
Leicester Square London WC2H 7DB
Home page: http://www.maid.com
CONTACT: Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Voss Shandwick Shandwick, a village near Tain in Easter Ross, Scotland. Hilton, Balintore, and Shandwick are known collectively as the Seaboard Villages. It is well-known because of the nearby Clach a' Charridh or Shandwick Stone, a Class II Pictish stone. for M.A.I.D plc (310) 201-8802 e-mail: bvoss@shandwick.com or David Mattey M.A.I.D plc 011 44 171 930-6900 e-mail: david_mattey@maid.com |
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