MathSoft Reports Fourth Quarter 2000.Business/Technology Editors CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass.--(BUSINESS WIRE)--Jan. 23, 2001 Historic Results restated to reflect Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of recently sold Engineering and Education Products Division (EEPD) and Closure of FreeScholarships.com Company to be renamed Insightful Corporation (Nasdaq:IFUL) MathSoft MathSoft was founded in 1984 by Allen Razdow to provide powerful mathematical programs to students, teachers, and professionals. The company became most famous for its Mathcad software, a powerful application for solving and visualizing nearly any type of mathematical problem. , Inc. (Nasdaq: MATH) today reported results for the fourth quarter and 12 months ended December December: see month. 31, 2000. Results for prior periods have been restated to reflect the closure of FreeScholarships.com in the third quarter ended September September: see month. 30, 2000 and the recent sale of the Engineering and Educational Products Division (EEPD). Continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the comprise the company's Data Analysis Products Division, which is to be renamed Insightful Corporation and trade on the Nasdaq under the stock symbol IFUL. Company's Data Analysis Products Division Reports Record Results Net revenues from continuing operations were $3.8 million and $15.2 million for the fourth quarter and 12 months ending December 31, 2000, respectively. This compares to net revenues from continuing operations of $3.3 million and $12.2 million for the comparable periods last year. This represents increases of 16 percent over the fourth quarter and 25 percent over the 12 months in Fiscal 1999. Net income from continuing operations for the fourth quarter of 2000 was $192,000 or $0.02 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, and $1.3 million, or $0.12 per basic and diluted share for the 12 months ending December 31, 2000. This compares to a net loss of $29,000, or $0.00 per share and a net profit of $875,000, or $0.09 per basic share and $0.08 per diluted share - reported in the corresponding quarter and 12 months ended December 30, 1999. Including the results of discontinued operations, net income for the fourth quarter of 2000 was $1.6 million or $0.15 per diluted share. This compares with net income of $186,000, or $0.02 per diluted share for the fourth quarter of 1999. 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: net income for fiscal 2000 was a $6.0 million loss or $0.54 loss per diluted share. This compares with consolidated net income of $1.5 million or $0.14 per diluted share for fiscal 1999. Company Aligns Resources to Focus on Faster Growing Markets "We are pleased with the progress that has been made during the fourth quarter, particularly with the growth experienced by our faster growing Data Analysis Products Division. As a result of this division's significant market opportunity, today the company announced the sale of its EEPD division for $7 million in gross cash proceeds. The sale of this division to its management team will allow the remaining company to focus its resources and more quickly capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. growing end markets. Reflecting this strategic 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. , the company is to be renamed Insightful Corporation (Nasdaq:IFUL). We believe the decision to focus the company on higher growth data analysis solutions will provide the best opportunity for Insightful to deliver 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. shareholder value," said Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Digate, 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. of MathSoft (Insightful). Results -- The Data Analysis Products Division enjoyed another strong quarter for professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , primarily provided to customers in the finance and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. markets. Software license sales in the fourth quarter of 2000 also showed good growth in the Windows version of S-PLUS S-PLUS is a commercial advanced statistics package sold by Insightful Corporation. It is a commercial implementation of the S programming language. Its full featured object-oriented programming capabilities and advanced analytical algorithms are slowly enabling it to become (R) and web-based StatServer(R). -- As previously reported, the company discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the operations of FreeScholarships.com at the end of the third quarter of 2000. The company had recorded a third quarter charge within discontinued operations for estimated expenses associated with the closure of the division and its Web site. In the fourth quarter of 2000, the company reversed $0.8 million of the reserve established for these expenses due to a reduced requirement resulting from successful negotiations with various vendors to the division. -- Historical results for the company's Engineering and Education Products Division also have been classified within discontinued operations. The Company recorded a profit of $0.6 million in the fourth quarter of 2000 from this division. -- The Engineering and Education Products Division was sold for $7 million in gross cash proceeds on January January: see month. 23, 2001. The net gain for this transaction will be reported within discontinued operations in the first quarter of 2001, and is presently expected to range between $3.5 and $4.0 million. Guidance -- Q101 revenues are expected to grow 25% to $4.4 million with earnings of $0.02 per diluted share, down from Q100 due to increased investments in sales and product development. -- The company projects revenues for the fiscal 2001 will grow 25% to 27%, with a 25% increase in earnings to $0.15 per diluted share. About Insightful Corporation, formerly known as MathSoft, Inc. Founded in 1984, and following its January 2001 sale of its Engineering and Educational Products Division, MathSoft will now do business as Insightful Corporation (Nasdaq:IFUL). Insightful Corporation is a leading supplier of software and services for predictive analysis, data mining, and business intelligence. Its customers include most of the major financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , biotechnology, pharmaceutical, high tech manufacturing and telecommunications firms throughout the world in addition to a large number of research institutions in government and academia. The company has more than 140 employees, with corporate offices in Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , WA and Bagshot, England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. and an extensive network of international distributors. This release contains information about management's future expectations, plans and prospects that constitute 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. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under 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. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, but not limited to, the risks associated with distribution channels; the risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; the risks associated with acquisitions; the risks associated with investments in new products and services, and the ability to enhance current products and to introduce new products in a timely fashion. Please refer to the cautionary statements appearing in Insightful's Annual and Quarterly Reports and prospectus filed with the Securities and Exchange Commission for a discussion of these and other various factors that could cause Insightful's actual results to differ materially from those discussed in the forward-looking statements. More information about Insightful Corporation, products and services is available at http://www.insightful.com, 1-800/569-0123, fax 206/283-8691 or mail 1700 Westlake Westlake, city (1990 pop. 27,018), Cuyahoga co., NE Ohio, a suburb of Cleveland; inc. as a city 1956. A growing city, its various manufactures include ink and plastics. Avenue North, Suite 500, Seattle, WA 98109. S-PLUS and StatServer are registered trademarks, and Insightful Corporation, Insightful and the Insightful logo are trademarks of Insightful Corporation.
MATHSOFT, INC. AND SUBSIDIARIES
d/b/a INSIGHTFUL SOLUTIONS CORPORATION
Consolidated Condensed Balance Sheets
(in Thousands)
(Unaudited)
Assets
Dec 31, Dec 31,
2000 1999
Current Assets:
Cash, cash equivalents and
short-term investments $ 3,745 $ 7,213
Accounts receivables, net 2,997 1,833
Other receivables 981 1,420
Inventories 71 78
Prepaid expenses 127 141
Total current assets 7,921 10,685
Property and Equipment, net 1,091 558
Net Assets from Discontinued Operations 1,291 2,399
Other Assets 202 269
Total Assets $ 10,505 $ 13,911
Liabilities and Stockholders' Equity
Dec 31, Dec 31,
2000 1999
Current Liabilities $ 6,593 $ 5,187
Other Long-term Liabilities 39 90
Stockholders' Equity 3,873 8,634
Total Liabilities and Stockholders' Equity $ 10,505 $ 13,911
MATHSOFT, INC. AND SUBSIDIARIES
d/b/a INSIGHTFUL SOLUTIONS CORPORATION
Consolidated Condensed Statements of Operations
(in Thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
Dec 31, Dec 31, Dec 31, Dec 31,
2000 1999 2000 1999
Revenues:
Software licenses $ 1,773 $ 1,673 $ 6,811 $ 6,463
Services and other 2,065 1,636 8,435 5,749
Total Revenues 3,838 3,309 15,246 12,212
Cost of Revenues:
Software licenses 436 458 1,697 1,611
Services and other 816 470 2,810 1,666
Total cost of revenues 1,252 928 4,507 3,277
Gross Profit 2,586 2,381 10,739 8,935
Operating Expenses:
Sales and marketing 1,227 1,080 4,862 4,033
Research and development 666 456 2,310 1,669
General and administrative 531 820 2,402 2,388
Total operating expenses 2,424 2,356 9,574 8,090
Income from Continuing
Operation 162 25 1,165 845
Interest Income , net 48 36 208 144
Income Before Provisions
for Income Taxes 210 61 1,373 989
Provision for Income Taxes 18 90 67 114
Net Income (loss) from
Continuing Operation 192 (29) 1,306 875
Discontinued Operations
Income (loss) from
Operations of
Discontinued Divisions 1,437 215 (7,307) 578
Net Income (loss) $ 1,629 $ 186 $ (6,001) $ 1,453
Basic earnings (loss)
per share - Continuing
Operation $ 0.02 $ (0.00) $ 0.12 $ 0.09
Diluted earnings (loss)
per share - Continuing
Operation $ 0.02 $ (0.00) $ 0.12 $ 0.08
Basic earnings (loss)
per share $ 0.15 $ 0.02 $ (0.57) $ 0.15
Diluted earnings (loss)
per share $ 0.15 $ 0.02 $ (0.54) $ 0.14
Weighted Average Common
Shares Outstanding 10,696 9,850 10,458 9,770
Weighted Average Common
Shares Assuming Dilution 10,765 10,467 11,028 10,494
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