| Bitstream Inc. Reports Third Quarter 2004 Results
As a result of an increase in quarterly revenue of $470,000 or 20.4% to $2,772,000, the highest third quarter revenue level since 1998, the Company reduced its operating loss by $446,000 or 75.0% and achieved a positive cash flow from operations CAMBRIDGE, MA — (Business Wire) — November 8, 2004 — Bitstream (NASDAQ: BITS) today reported that revenue increased $470,000 or 20.4% to $2,772,000 for the three months ended September 30, 2004 as compared to $2,302,000 for the three months ended September 30, 2003. Revenue for the nine months ended September 30, 2004 increased $1,222,000 or 17.2% to $8,309,000 as compared to $7,087,000 for the nine months ended September 30, 2003. The Company’s loss from operations decreased $446,000 or 75.0% to $(149,000) for the three months ended September 30, 2004 as compared to $(595,000) for the three months ended September 30, 2003. The Company's net loss for the three months ended September 30, 2004 was $(150,000), or $(0.02) per share, as compared to a loss of $(191,000) or $(0.02) per share for the three months ended September 30, 2003. The Company’s net loss for the three months ended September 30, 2004 decreased $440,000 or 74.6% to $(150,000) from $(590,000) for the three months ended September 30, 2003 excluding a non-recurring gain of $399,000 on the sale of the Company’s investment in DiamondSoft Inc. recognized during the three months ended September 30, 2003. The Company’s cash position at September 30, 2004 was $4,253,000, an increase of $86,000 from $4,167,000 at June 30, 2004. The Company’s cash position decreased for the nine months ended September 30, 2004 by $114,000 versus an increase of $74,000 for the nine months ended September 30, 2003. During the period ended September 30, 2003 the Company’s cash position was enhanced by the receipt of $1,339,000 in proceeds from the sale of the Company’s investment in DiamondSoft Inc. “Driven by increased market demand for our Pageflex publishing technologies, we achieved our highest third quarter revenue level since 1998 during the third quarter of 2004. Our third quarter performance resulted in a strong nine month revenue total of $8,309,000 and helped to significantly decrease our operating loss by $795,000 or 51.8% to $(739,000) from an operating loss of $(1,534,000) for the nine months ended September 30, 2003.” said Anna M. Chagnon, President and Chief Executive Officer. “We were cash flow positive for the quarter, generating $86,000 in cash. Given our third quarter performance, the Company remains well positioned to achieve its financial and business goals for the year ended December 31, 2004.” THIRD QUARTER HIGHLIGHTS Browsing Technology
Today, November 8, 2004, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its third quarter results:
Call into the conference number 5-10 minutes prior to the start time. An operator will check your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call number, please call Kristen Colpus at Bitstream: (617) 497-6222. A replay of the conference call will be available through November 19, 2004 (access code): 591453
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 and MyFonts.com are registered trademarks, and 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 Nine Months
Ended Ended
September 30, September 30,
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2004 2003 2004 2003
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Revenue:
Software license $ 2,325 $1,975 $6,966 $ 6,205
Services 447 327 1,343 882
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Total revenue 2,772 2,302 8,309 7,087
Cost of revenue:
Software license 808 587 2,285 1,735
Services 222 145 597 396
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Total cost of revenue 1,030 732 2,882 2,131
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Gross profit 1,742 1,570 5,427 4,956
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Operating expenses:
Marketing and selling 590 730 1,965 2,055
Research and development 914 966 2,884 2,968
General and administrative 387 469 1,317 1,467
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Total operating expenses 1,891 2,165 6,166 6,490
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Operating loss (149) (595) (739) (1,534)
Other income:
Gain on investment in
DiamondSoft, Inc. --- 399 91 591
Other income, net 15 10 58 21
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Loss before provision for
income taxes (134) (186) (590) (922)
Provision for income taxes 16 5 65 54
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Net loss $ (150) $ (191) $ (655)$ (976)
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Basic and diluted net loss
per share $ (0.02) $(0.02) $(0.08)$ (0.12)
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Basic and diluted weighted
average shares outstanding 8,551 8,377 8,495 8,359
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Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
ASSETS Sept. 30, Dec. 31,
2004 2003
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Current assets:
Cash and cash equivalents $4,253 $4,367
Accounts receivable, net 679 1,016
Prepaid expenses and other current assets 183 61
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Total current assets 5,115 5,444
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Property and equipment, net 306 347
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Other assets:
Restricted cash 250 250
Goodwill 727 727
Intangible assets 192 243
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Total other assets 1,169 1,220
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Total assets $6,590 $7,011
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 232 $ 513
Accrued expenses 931 877
Current portion of deferred revenue 762 547
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Total current liabilities 1,925 1,937
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Long-term liabilities 202 135
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Total liabilities 2,127 2,072
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Total stockholders' equity 4,463 4,939
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Total liabilities and stockholders' equity $6,590 $7,011
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Contact Anna Chagnon, President and Chief
Executive Officer or James P. Dore, Vice President and Chief Financial Officer |