| Bitstream Inc. Reports First Quarter
2005 Results Adoption of Pageflex technologies and strong MyFonts.com Sales Drive 24% Year-Over-Year Quarterly Revenue Growth in Q1 2005 CAMBRIDGE, MA — (Business Wire) — May 9, 2005 — Bitstream Inc. (NASDAQ: BITS) today reported that its total revenue increased $666,000 or 24% to $3,396,000 for the three months ended March 31, 2005 as compared to $2,730,000 for the three months ended March 31, 2004. The Company's operating loss for the three months ended March 31, 2005 decreased $265,000 or 76% to $(85,000) from $(350,000) for the three months ended March 31, 2004. The Company's net loss for the three months ended March 31, 2005 decreased $273,000 or 79% to $(72,000) from $(345,000) for the three months ended March 31, 2004. The Company's cash and cash equivalents at March 31, 2005 totaled $4,095,000, a decrease of $310,000 as compared to $4,405,000 at December 31, 2004. "We exceeded our goal of growing first quarter revenue by 20% allowing us to achieve our highest first quarter calendar year revenue level since the Company went public and the highest quarterly revenue of any quarter since 1997." said Anna M. Chagnon, President and Chief Executive Officer. "The increase in revenue helped the Company decrease its net loss by 79% to $(72,000) for the quarter. We also continued to increase our investment in sales and marketing personnel and activities to drive revenue growth in future quarters while maintaining a significant level of investment in research and development activities for all of our technologies." FIRST QUARTER 2005 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
CONFERENCE CALL REMINDER Today, May 9, 2005, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its first quarter 2005 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 contact Bitstream at (617) 497-6222. A replay of the conference call will be available through May 19, 2005 (access code): 701368
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, 2004. 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
March 31,
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2005 2004
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Revenue:
Software license $ 2,809 $ 2,284
Services 587 446
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Total revenue 3,396 2,730
Cost of revenue:
Software license 1,005 681
Services 316 180
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Total cost of revenue 1,321 861
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Gross profit 2,075 1,869
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Operating expenses:
Marketing and selling 669 693
Research and development 1,006 1,030
General and administrative 485 496
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Total operating expenses 2,160 2,219
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Operating loss (85) (350)
Other income, net 14 28
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Loss before provision for income taxes (71) (322)
Provision for income taxes 1 23
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Net loss $ (72) $ (345)
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Basic and diluted net earnings
(loss) per share $ (0.01) $ (0.04)
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Basic and diluted weighted average
shares outstanding 8,640 8,449
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Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
March 31, December 31,
ASSETS 2005 2004
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Current assets:
Cash and cash equivalents $ 4,095 $ 4,405
Accounts receivable, net 1,262 962
Prepaid expenses and other current
assets 210 233
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Total current assets 5,567 5,600
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Property and equipment, net 338 282
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Other assets:
Restricted cash 250 250
Goodwill 727 727
Intangible assets 163 174
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Total other assets 1,140 1,151
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Total assets $ 7,045 $ 7,033
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 967 $ 278
Accrued expenses 635 1,199
Deferred revenue 753 792
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Total current liabilities 2,355 2,269
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Long-term liabilities 198 200
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Total liabilities 2,553 2,469
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Total stockholders' equity 4,492 4,564
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Total liabilities and stockholders'
equity $ 7,045 $ 7,033
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Contact Anna M. Chagnon James P. Dore |