MECA SOFTWARE ANNOUNCES SECOND QUARTER RESULTS
MECA SOFTWARE ANNOUNCES SECOND QUARTER RESULTS FAIRFIELD, Conn., Jan. 22 /PRNewswire/ -- MECA Software, Inc.
(NASDAQ: MECA) today announced that revenues for its second fiscal quarter ended Dec. 31, 1991, were $5,043,000 as compared to revenues for the same period of fiscal 1991 of $6,156,000. Revenues for the six months ended Dec. 31, 1991 were $7,045,000. During the comparable period of fiscal 1991 revenues were $8,424,000.
For the three-month period ended Dec. 31, 1991, MECA reported net income of $48,000 or 1 cent per share, compared with $696,000 or 15 cents per share, for the same period of fiscal 1991. Net loss for the first half of fiscal 1992 was $685,000 or 15 cents per share compared to net income of $766,000 or 17 cents per share, for the same period in the prior year. Commenting on the decrease in revenues in the second quarter of fiscal 1992 as compared with the same period of fiscal 1991, MECA Software President, Daniel M. Schley said, "Early in this fiscal year, we made a strategic decision to not automatically send fall release versions of our TaxCut software program to those existing customers who have purchased the 1991 TaxCut upgrade. In the past, shipping the fall release to all upgrade customers resulted in revenue recognition of TaxCut upgrade revenues in the fall -- our second fiscal quarter. The decision to ship only a single, final release version to our upgrade customers defers approximately $1.4 million of upgrade revenues until the third fiscal quarter. This decision also substantially reduces the cost of goods associated with upgrading TaxCut customers, and does so without reducing the quality of the software or the service to our customers. Taking this deferral of revenues into account, we are generally pleased with operating results for the second quarter of fiscal 1992." Added Schley, "Our results for the first half of the fiscal year are in line with our operating plan to return the company to growth and profitability in our current fiscal year. Looking ahead, we anticipate our operating results will be further enhanced by our recently completed acquisition of Great American Software. With this acquisition, we have positioned ourselves as a major player in the small business finance marketplace, and expect to achieve the economies of scale associated with the combination of the two companies." MECA Software, Inc., develops, publishes and markets a family of personal and business productivity software designed to assist individuals in managing personal or small business finances, preparing their income taxes, managing personal legal affairs and organizing their business environemnt. MECA's products, which include One-Write Plus Accounting, Andrew Tobias' Managing Your Money, Andrew Tobias' TaxCut, Hyatt Legal Services Home Lawyer and The Manager's Organizer, are sold through independent distributors, software spoecialty chains and mail order outlets. MECA SOFTWARE, INC. Statement of Operations (unaudited, in thousands except per share data) Three Months Ended Six Months Ended Dec. 31 Dec. 31 1991 1990 1991 1990 Net revenues $5,043 $6,156 $7,045 $8,424 Cost of revenues 1,385 1,190 2,015 1,535 Royalty expense 671 827 921 1,138 Research & development 534 252 956 514 Sales and marketing 2,131 2,475 3,547 3,552 General and admin. 390 436 759 779 Amortization of purchase intangibles 0 18 0 39 Total costs and operating expenses 5,111 5,198 8,198 7,557 Operating income (loss) (68) 958 (1,153) 867 Interest income (net) 116 211 248 421 Income before provision (benefit) for income taxes 48 1,169 (905) 1,288 Provision (benefit) for income taxes 0 473 (220) 522 Net income (loss) $48 $696 $(685) $766 Net income (loss) per share 1 cent 15 cents (15 cents) 17 cents Weighted average common shares and equivalents 4,372 4,715 4,441 4,622 MECA Software, Inc. Balance Sheet (unaudited, in thousands except per share data) 12/31/91 6/30/91 ASSETS Current assets: Cash $9,486 $10,531 Accounts receivable 1,692 881 Taxes receivable 280 1,356 Inventories 481 241 Deferred income tax 488 600 Other current assets 811 580 Total current assets 13,238 14,189 Furn., fix. and equip. -- net 1,709 1,421 Intangible assets -- net 280 148 Other assets 212 78 Total assets $15,439 $15,836 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $1,690 $1,532 Royalties payable 303 341 Accrued compensation 263 304 Deferred revenue 4,184 3,462 Total current liabilities 6,440 5,639 Deferred Revenue 479 280 Stockholder's equity Common stock 47 47 Paid-in-capital 9,848 9,848 Treasury stock (1,163) (450) Retained earnings (Accum. deficit) (212) 472 Total stockholders' equity 8,520 9,917 Total liability and stockholders' equity $15,439 $15,836 -0- 1/22/91 /CONTACT: Paul D. Harrison, chief financial officer of MECA Software, Inc., 203-256-5000/ (MECA) CO: MECA Software, Inc. ST: Connecticut IN: CPR SU: ERN
DD-SD -- NE020 -- 2375 01/22/92 14:04 EST
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|Date:||Jan 22, 1992|
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