| Bitstream Inc. Reports Fourth Quarter and Annual Financial Results for 2005 CAMBRIDGE, MA—(Business Wire)—February 27, 2006—Bitstream Inc. (Nasdaq: BITS) today reported that its total revenue increased $1,295,000 or 39% to $4,618,000 for the three months ended December 31, 2005 as compared to $3,323,000 for the three months ended December 31, 2004. Total revenue for the twelve months ended December 31, 2005 increased $4,021,000 or 34.6% to $15,653,000 as compared to $11,632,000 for the twelve months ended December 31, 2004. We generated a profit from operations of $799,000 for the three months ended December 31, 2005, an increase of $777,000 as compared to $22,000 for the three months ended December 31, 2004. Our operating income for the year ended December 31, 2005 was $1,038,000 an improvement of $1,773,000 as compared to a loss of $(735,000) for the year ended December 31, 2004. Our net income for the three months ended December 31, 2005 increased $748,000 to $788,000 or $0.08 per diluted share as compared to $40,000 for the three months ended December 31, 2004. Our net income for the year ended December 31, 2005 improved $1,649,000 to $1,034,000 or $0.11 per diluted share as compared to a loss of $(615,000) for the year ended December 31, 2004. The Company’s cash and cash equivalents at December 31, 2005 totaled $5,464,000, an increase of $665,000 from $4,799,000 at September 30, 2005 and an increase of $1,059,000 from $4,405,000 at December 31, 2004. “Strong sales during the fourth quarter across all of our product lines allowed us to achieve our highest quarterly and annual sales, and highest overall revenue growth rates since we went public in 1996. All of our products demonstrated enhanced market penetration in markets that we expect to continue to develop and grow in the year ahead. Our revenue for the year and the quarter allowed us to exceed our prediction of breakeven performance in 2005 and to achieve a very profitable year as evidenced by our net profit for the quarter and year ended December 31, 2005 of $788,000 and $1,034,000.” said Anna M. Chagnon, President and Chief Executive Officer. “We believe that we are well positioned to extend this momentum in 2006 by focusing on increasing revenue across all of our product lines and managing costs to enhance our profitability in the year ahead.”
FOURTH QUARTER 2005 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS November 3, 2005 — Bitstream announced the release of Font Fusion® 3.1, company’s smallest, most advanced font rasterizing engine and the fastest font engine on the market today. December 5, 2005 — A research study released by The Center for Women's Leadership at Babson College and The Commonwealth Institute named Bitstream as one of the Top 100 Women Led Businesses in Massachusetts. December 7, 2005 — Bitstream announced the release of Pageflex Persona Cross Media Suite, a completely new desktop software application suite that enables customers to create targeted, personalized content in both print and email. December 14, 2005 — Bitstream announced the release of ThunderHawk Symbian Series60 (S60) Edition. The new version gives users of select Symbian platform devices access to award-winning ThunderHawk technology, including the browser's unique split screen view for effortless navigation on small screen phones. January 11, 2006 — Bitstream announced the December release Pageflex Storefront 3.0. This is a major new software release that includes several new features that enable users to expand their e-commerce capabilities to include online ordering and campaign management services. February 1, 2006 — Bitstream and Canon U.S.A., Inc. announced that Pageflex Persona™ Cross Media Suite has been designated by Canon U.S.A. as “Canon Compatible” under the Canon U.S.A. Alliance program after successful completion of testing by VeriTest, a service of Lionbridge and a leading provider of independent outsourced testing services. February 6, 2006 — Bitstream announced the addition of The New Lincoln Gothic font set to its New Font Collection program. This set includes 24 OpenType fonts in one extended family. February 13, 2006 — Bitstream announced the release of ThunderHawk Windows Mobile 5.0 Pocket PC Edition, which offers users a fast, secure desktop browsing experience along with new Windows Mobile 5.0 technology. CONFERENCE CALL REMINDER Today, February 27, 2006, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its fourth quarter and annual results for the periods ended December 31, 2005:
A replay of the conference call will be available through March 10, 2006 (access code): 861584
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. )
Three Months Twelve Months
Ended December 31, Ended December 31,
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2005 2004 2005 2004
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Revenue:
Software license $ 3,947 $ 2,839 $ 13,156 $ 9,805
Services 671 484 2,497 1,827
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Total revenue 4,618 3,323 15,653 11,632
Cost of revenue:
Software license 1,182 911 4,321 3,196
Services 352 232 1,223 829
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Total cost of revenue 1,534 1,143 5,544 4,025
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Gross profit 3,084 2,180 10,109 7,607
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Operating expenses:
Marketing and selling 753 679 2,936 2,644
Research and development 1,005 980 3,929 3,914
General and
administrative 527 499 2,206 1,784
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Total operating expenses 2,285 2,158 9,071 8,342
--------- --------- --------- ---------
Operating profit (loss) 799 22 1,038 (735)
Other income:
Gain on investment in
DiamondSoft, Inc. --- --- --- 91
Other income, net 12 13 52 71
--------- --------- --------- ---------
Income (loss) before
provision for income
taxes 811 35 1,090 (573)
Provision for (benefit
from) income taxes 23 (5) 56 42
--------- --------- --------- ---------
Net income (loss) $ 788 $ 40 $ 1,034 $ (615)
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Basic net earnings (loss)
per share $ 0.09 $ 0.00 $ 0.12 $ (0.07)
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Diluted net earnings (loss)
per share $ 0.08 $ 0.00 $ 0.11 $ (0.07)
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Basic weighted average
shares outstanding 8,663 8,611 8,685 8,524
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Diluted weighted average
shares outstanding 9,514 9,073 9,620 8,524
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Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
(unaudited)
December 31,2005
---------------------
ASSETS 2005 2004
---------- ---------
Current assets:
Cash and cash equivalents $ 5,464 $ 4,405
Accounts receivable, net 1,663 962
Prepaid expenses and other current assets 341 233
--------- ---------
Total current assets 7,468 5,600
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Property and equipment, net 315 282
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Other assets:
Restricted cash 200 250
Goodwill 727 727
Intangible assets 125 174
--------- ---------
Total other assets 1,052 1,151
--------- ---------
Total assets $ 8,835 $ 7,033
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 664 $ 278
Accrued expenses 1,191 1,199
Deferred revenue 1,085 792
--------- ---------
Total current liabilities 2,940 2,269
--------- ---------
Long-term liabilities 194 200
--------- ---------
--------- ---------
Total liabilities 3,134 2,469
--------- ---------
Total stockholders' equity 5,701 4,564
--------- ---------
Total liabilities and stockholders' equity $ 8,835 $ 7,033
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Contact Anna M. Chagnon James P. Dore |