| Bitstream Inc. Reports Fourth Quarter and Annual
2004 Results As a result of an increase in quarterly revenue of $684,000 or 26% to $3,323,000, the Company's highest fourth quarter revenue level since 1997, the Company generated an operating profit for the fourth quarter of $22,000 and achieved a $152,000 positive cash flow resulting in positive cash flow of $38,000 for the year ended December 31, 2004 CAMBRIDGE, MA — (Business Wire) — February 28, 2005 — Bitstream Inc. (NASDAQ: BITS) today reported that its total revenue increased $684,000 or 26% to $3,323,000 for the three months ended December 31, 2004 as compared to $2,639,000 for the three months ended December 31, 2003. Total revenue for the twelve months ended December 31, 2004 increased $1,906,000 or 20% to $11,632,000 as compared to $9,726,000 for the twelve months ended December 31, 2003. The Company generated a profit from operations of $22,000 for the three months ended December 31, 2004, an improvement of $256,000 as compared to a loss of $(234,000) for the three months ended December 31, 2003. The Company’s operating loss for the year ended December 31, 2004 decreased $1,032,000 or 58% to $(735,000) from $(1,767,000) for the year ended December 31, 2003. The Company's net income for the three months ended December 31, 2004 improved $269,000 to $40,000 as compared to a loss of $(229,000) for the three months ended December 31, 2003. The Company’s net loss for the year ended December 31, 2004 decreased $590,000 or 49% to $(615,000) from $(1,205,000) for the year ended December 31, 2003. The Company’s cash and cash equivalents at December 31, 2004 totaled $4,405,000, an increase of $152,000 from $4,253,000 at September 30, 2004 and an increase of $38,000 from $4,367,000 at December 31, 2003. “Driven by increased market demand across all of our product lines, we achieved our highest fourth quarter and annual revenue levels since 1997 during 2004. We are very pleased with our performance for the quarter and year ended December 31, 2004 which resulted in a profit for the quarter and a significant reduction in our operating loss for the 2004 year of $1,032,000 or 58% to $(735,000) as compared to the year ended December 31, 2003.” said Anna M. Chagnon, President and Chief Executive Officer. “The increase in revenue helped the Company to be cash flow positive for the quarter and the year ended December 31, 2004 while we continued to invest in the research and development of our technologies.” FOURTH QUARTER 2004 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
CONFERENCE CALL REMINDER Today, February 28, 2005, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its fourth quarter and annual 2004 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 March 10, 2005 (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 Inc. (NASDAQ: BITS) is a software development company that makes communications compelling. Bitstream enables customers worldwide to render high-quality text, browse the Web on wireless devices, select from the largest collection of fonts online, and customize documents over the Internet. Its core competencies include fonts and font technology, browsing technology, and publishing technology. For more information about Bitstream please visit www.bitstream.com. 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 Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenue:
Software license $ 2,839 $ 2,282 $ 9,805 $ 8,487
Services 484 357 1,827 1,239
--------- --------- --------- ---------
Total revenue 3,323 2,639 11,632 9,726
Cost of revenue:
Software license 911 742 3,196 2,477
Services 232 144 829 540
--------- --------- --------- ---------
Total cost of revenue 1,143 886 4,025 3,017
--------- --------- --------- ---------
Gross profit 2,180 1,753 7,607 6,709
--------- --------- --------- ---------
Operating expenses:
Marketing and selling 679 598 2,644 2,653
Research and development 963 858 3,847 3,826
General and administrative 516 531 1,851 1,997
--------- --------- --------- ---------
Total operating expenses 2,158 1,987 8,342 8,476
--------- --------- --------- ---------
Operating profit (loss) 22 (234) (735) (1,767)
Other income:
Gain on investment in
DiamondSoft, Inc. --- --- 91 591
Other income, net 13 27 71 48
--------- --------- --------- ---------
Income (loss) before provision
for income taxes 35 (207) (573) (1,128)
Provision for (benefit from)
income taxes (5) 22 42 77
--------- --------- --------- ---------
Net income (loss) $ 40 $ (229)$ (615)$ (1,205)
========= ========= ========= =========
Basic and diluted net
earnings
(loss) per share $ 0.00 $ (0.03)$ (0.07)$ (0.14)
========= ========= ========= =========
Basic weighted average
shares outstanding 8,611 8,421 8,524 8,374
========= ========= ========= =========
Diluted weighted average
shares outstanding 9,073 8,421 8,524 8,374
========= ========= ========= =========
Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
December 31,
--------------------------
ASSETS 2004 2003
------------- ------------
Current assets:
Cash and cash equivalents $ 4,405 $ 4,367
Accounts receivable, net 962 1,016
Prepaid expenses and other current assets 233 61
------------ ------------
Total current assets 5,600 5,444
------------ ------------
Property and equipment, net 282 347
------------ ------------
Other assets:
Restricted cash 250 250
Goodwill 727 727
Intangible assets 174 243
------------ ------------
Total other assets 1,151 1,220
------------ ------------
Total assets $ 7,033 $ 7,011
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 278 $ 513
Accrued expenses 1,199 877
Deferred revenue 792 547
------------ ------------
Total current liabilities 2,269 1,937
------------ ------------
Long-term liabilities 200 135
------------ ------------
------------ ------------
Total liabilities 2,469 2,072
------------ ------------
Total stockholders' equity 4,564 4,939
------------ ------------
Total liabilities and stockholders' equity $ 7,033 $ 7,011
============ ============
Contact Anna M. Chagnon James P. Dore |