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MECA SOFTWARE ANNOUNCES THIRD QUARTER RESULTS

 MECA SOFTWARE ANNOUNCES THIRD QUARTER RESULTS
 FAIRFIELD, Conn., May 8 /PRNewswire/ -- MECA Software, Inc.


(NASDAQ: MECA) today announced that revenues for the third fiscal quarter of 1992, ended March 31, 1992, were $8,470,000.
 Revenues for the same period of fiscal 1991, were $6,228,000. As MECA's products are closely tied to the calendar year-end holiday season and tax preparation periods, a disproportionate amount of the company's revenues are realized in the second and third quarters of its fiscal year.
 Revenues for the nine months ended March 31, 1992, were $15,515,000. During the comparable period of fiscal 1991 revenues were $14,652,000.
 For the three-month period ended March 31, 1992, MECA reported a net loss of $4,949,000 or $1.10 per share which includes a $4,859,000 non-recurring charge for purchased research and development related to its Jan. 15, 1992, acquisition of Live Free or Die Ltd., the parent company of Great American Software, Inc. This compares with net income of $31,000 or 1 cent per share, for the same period of fiscal 1991.
 The net loss for the first nine months of fiscal 1992 was $5,634,000 or $1.26 per share compared to net income of $797,000 or 17 cents per share for the same period in the prior year.
 "As discussed in our press release of March 16, 1992, retail sales of Managing Your Money fell short of our expectations during the recently completed quarter," stated MECA's President and Chief Executive Officer Daniel M. Schley. "In response, we have recently announced a major restructuring of our pricing, positioning and distribution strategies for our personal finance products. Effective May 1, 1992, the retail price of Managing Your Money has been reduced to $79.95 from its current level of $199.95 -- a price which will place Managing Your Money in the mainstream of pricing in the personal finance category. Additionally, we have embarked on an aggressive direct-mail marketing effort. As a result of these actions, we expect to significantly increase new unit sales of Managing Your Money, regain marketshare, and substantially expand our base of registered users to whom we will aggressively promote our upgrades and related products."
 Schley also noted that the company's cash balance had decreased to $6,300,000 and the company's current ratio was now under 1:1 as a result of the acquisition of Great American Software and losses incurred during fiscal 1992.
 MECA Software, Inc. develops, publishes and markets a family of personal and business productivity software designed to assist in managing personal or small business finances, preparing their income taxes, manage personal legal affairs and organize their business environment. MECA's products, which include Andrew Tobias' Managing Your Money, Andrew Tobias' TaxCut, Hyatt Legal Services Home Lawyer and the One-Write Plus series of accounting products, are sold through independent distributors, software specialty chains mail order outlets and through direct mail.
 MECA SOFTWARE, INC.
 Consolidated Statements of Operations
 (unaudited, in thousands except per share data)
 3 months ended 9 months ended
 March 31, March 31,
 1992 1991 1992 1991
 Net revenues $8,470 $6,228 $15,515 $14,652
 Cost of revenues 1,576 1,498 3,590 3,033
 Royalty expense 951 657 1,872 1,795
 Research & development 881 781 1,837 1,295
 Sales and marketing 4,120 2,932 7,666 6,484
 General & admin. 903 475 1,662 1,254
 Amort. of purch. intangibles 189 18 189 57
 Charge for purchased
 research & develop. 4,859 0 4,859 0
 Total costs and operating
 expenses 13,479 6,361 21,675 13,918
 Operating income (loss) (5,009) (133) (6,160) 734
 Interest income (net) 60 185 307 606
 Income (loss) before provision
 (benefit) for income taxes (4,949) 52 (5,853) 1,340
 Provision (benefit) for income
 taxes 0 21 (219) 543
 Net income (loss) $(4,949) $31 $(5,634) $797
 Net income (loss) per share $(1.10) 1 cent $(1.26) 17 cents
 Weighted average common
 shares and equivalents 4,517 4,709 4,454 4,626
 MECA SOFTWARE, INC.
 Consolidated Balance Sheets
 (Unaudited, in thousands)
 March 31 June 30
 1992 1991
 Assets:
 Current assets:
 Cash $6,334 $10,531
 Accounts receivable 1,506 881
 Taxes Receivable 272 1,356
 Inventories 427 241
 Deferred income tax 488 600
 Other current assets 528 580
 Total current assets 9,555 14,189
 Furn., fix. and equip.-net 2,347 1,421
 Intangible assets -net 4,194 148
 Other assets 84 78
 Total assets $16,180 $15,836
 Liabilities and Shareholder's Equity:
 Current liabilities:
 Accounts payable $3,932 $1,532
 Accrual for returns 1,538 0
 Royalties payable 868 341
 Accrued compensation 490 304
 Deferred revenue 3,853 3,462
 Notes payable 210 0
 Total current liabilities 10,891 5,639
 Deferred revenue 375 280
 Notes payable -- Long term 800 0
 Stockholder's equity:
 Common stock 48 47
 Paid-in capital 10,391 9,848
 Treasury stock (1,163) (450)
 Retained earnings
 (Accum. deficit) (5,162) 472
 Total S/H's equity 4,114 9,917
 Total liab. and S/H's equity $16,180 $15,836
 -0- 5/8/92
 /CONTACT: Paul D. Harrison, chief financial officer of MECA Software, 203-256-5000/
 (MECA) CO: MECA Software, Inc. ST: Connecticut IN: CPR SU: ERN


MP-SH -- NE014 -- 8293 05/08/92 17:44 EDT
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