METROWERKS ANNOUNCES FIRST QUARTER 1998 REVENUES OF US$6.2 MILLION
Company Records Profit of US$237,000, or $0.02 per Share, for Quarter
AUSTIN, Texas-December 1, 1997- Metrowerks Inc. (NASDAQ: MTWKF,
TSE/ME:MWK), a provider of software development tools, today announced its
results of operations for the first quarter of its fiscal year ending July
31, 1998 (Q1FYJuly98).
Revenues for Q1FYJuly98 totaled US$6.15 million, an increase of 65% over
revenues of US$3.77 million for the corresponding Q1FYJuly97. Revenues for
Q4FYJuly97 totaled US$6.23 million. As in previous years, revenues for
Q1FYJuly98 were approximately the same as revenues for Q4FYJuly 97.
In Q1 FYJuly98, the Company reported a net profit of US$237,000 (US$0.02
per share on a fully diluted basis), compared to a net loss of US$135,000
(US$0.01 per share) for the corresponding Q1FYJuly97, and compared to net
income of US$155,000 for the previous quarter, Q4FYJuly97.
The Company completed a financing during the quarter, whereby the Company
will issue 1.25 million shares at $10.08 per share. The Company had a cash
balance of approximately $15.5 million on October 31, 1997.
"The first quarter was significant for Metrowerks, as revenues from the
embedded and windows markets totaled 75 percent of total revenues for the
quarter," said Jean Belanger, Metrowerks CEO and Chairman of the Board.
"Moreover, we maintained strong revenue growth while increasing our
The Company has two main revenue streams; the sale of shrink-wrapped
software, or product revenues, and product agreement revenues, whereby
companies pay Metrowerks to support their platforms. Product revenues for
Q1FYJuly98 comprised 74 percent of total revenues, or $4.53 million.
Cost of goods sold for Q1FYJuly98 were 18% of net revenues compared to 17%
for Q4FYJuly97. In Q1FYJuly98, R&D expenses totaled US$2.1 million as
compared to US$2.3 million in Q4FYJuly97. R&D expenses were down slightly
as the Company has ramped up headcount to a point where less third party
consultants are needed for development projects. SG&A and technical support
expenses totaled US$2.37 million in Q1FYJuly98 and US$2.44 million in
Q4FYJuly97. SG&A expenses were down slightly, as the Company increased its
focus on operational expenses.
This release, other than historical financial information, may consist of
forward-looking statements that involve risks and uncertainties. These
statements may differ materially from actual future events or results. For
instance, factors which could cause results to differ from future events
include the state of the Mac OS tools market, the timing of product
deliveries, competitive pricing actions and marketing programs, among
others. Additional information on these and other factors which could
affect the Company's financial results are included in the Company's 1997
annual report to shareholders and most recent quarterly reports on file
with the Securities and Exchange Commission.
Founded in 1985, Metrowerks develops, markets and supports CodeWarrior
software development solutions for a number of operating systems targeting
the most popular microprocessors. Intended for use for embedded systems or
desktop computers, the cross-platform compilers support C, C++, Java, and
Object Pascal, and allow programmers to build applications for a number of
different target platforms, all from one unique Integrated Development
Environment (IDE). Metrowerks' CodeWarrior products are used by more than
100,000 registered users in 75 countries. For more information, please
visit the Metrowerks web site at www.metrowerks.com .
Maria Krinsky Jim Welch
Investor Relations Chief Financial Officer
Metrowerks Inc. Metrowerks Inc.
(512) 873-4719 (512) 873-4777