| Bitstream Inc. Reports First Quarter 2004 Results Consolidated Revenue for the first quarter increased 34.4% as compared to the quarter ended March 31, 2003 CAMBRIDGE, MASSACHUSETTS — May 12, 2004 — Bitstream Inc. (NASDAQ: BITS) today reported that consolidated revenue increased $698,000 or 34.4% to $2,730,000 for the three months ended March 31, 2004 as compared to $2,032,000 for the three months ended March 31, 2003. The Company's consolidated net loss for the three months ended March 31, 2004 was $(345,000), or $(0.04) per share, as compared a loss of $(917,000) or $(0.11) per share for the three months ended March 31, 2003. The Company's cash position at March 31, 2004 was $ 4,205,000, a decrease of $162,000 from $4,367,000 at December 31, 2003. This compares favorably to a cash decrease of $842,000 for the three months ended March 31, 2003. "The significant growth in first quarter revenues was a result of our continued commitment to expanding our business across all of our product lines," said Anna M. Chagnon, President and Chief Executive Officer. "With the first quarter as a solid foundation, the Company is positioned to achieve its financial and business goals for 2004, including increasing revenue by more than 20% as compared to 2003. To achieve our near and long-term goals, we will continue to devote substantial resources to sales and marketing during the remainder of 2004 to support a growing customer base and prospect list for all of our product lines. We believe the near-term investment in sales and marketing will result in greater revenue growth for the Company." FIRST QUARTER HIGHLIGHTS
CONFERENCE CALL REMINDER
A replay of the conference call will be available until 05/19/2004
The playback passcode (4744750) must be entered to access the playback. This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, including, without limitation, market acceptance of the Company's products, competition and the timely introduction of new products. Additional information concerning certain risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission, including Bitstream's Annual Report on Form 10-K for the year ended December 31, 2003. About Bitstream Bitstream is a registered trademark, and MyFonts.com, Pageflex, the Bitstream logo and ThunderHawk are trademarks, of the Company. Other technologies and brand names are used for information only and remain trademarks or registered trademarks of their respective companies. Bitstream Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Ended
March 31,
2004 2003
Revenue:
Software license $ 2,284 $ 1,744
Services 446 288
Total revenue 2,730 2,032
Cost of revenue:
Software license 681 539
Services 180 137
Total cost of revenue 861 676
Gross profit 1,869 1,356
Operating expenses:
Marketing and selling 693 720
Research and development 1,030 1,043
General and administrative 491 572
Total operating expenses 2,214 2,335
Loss from operations (345) (979)
Other income (expense):
Income on investment in DiamondSoft Inc. --- 93
Other income (expense), net 28 (10)
Loss before provision for income taxes (317) (896)
Provision for income taxes 28 21
Net loss $ (345) $ (917)
Basic and diluted net loss per share $ (0.04) $ (0.11)
Basic and diluted weighted average shares
outstanding 8,449 8,349
Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
ASSETS March 31, Dec. 31,
2004 2003
Current assets:
Cash and cash equivalents $ 4,205 $ 4,367
Accounts receivable, net 825 1,016
Prepaid expenses and other current assets 247 60
Total current assets 5,277 5,443
Property and equipment, net 325 347
Other assets:
Restricted cash 250 250
Goodwill 727 727
Intangible assets 231 243
Other assets 1 1
Total other assets 1,209 1,221
Total assets $ 6,811 $ 7,011
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 284 $ 513
Accrued expenses 1,112 877
Current portion of deferred revenue 612 547
Total current liabilities 2,008 1,937
Long-term liabilities 204 135
Total liabilities 2,212 2,072
Total stockholders' equity 4,599 4,939
Total liabilities and stockholders' equity $ 6,811 $ 7,011
Contact Anna Chagnon James P. Dore |