Bitstream Inc. Reports First Quarter Results for 2009
The Company reported first quarter revenue of $5,001,000 and non-GAAP net income of $41,000.
CAMBRIDGE, MA – May 13, 2009. Bitstream Inc.(NASDAQ:
BITS) today reported that revenue decreased by $1,368,000 or 22% to $5,001,000 for the three months ended March 31, 2009 as compared to total revenue of $6,369,000 for the three months ended March 31, 2008. The Company’s cash and cash equivalents at March 31, 2009 totaled $17,057,000, an increase of $895,000 from a Balance of $16,162,000 at December 31, 2008.
“We are pleased to report that we increased our cash and cash equivalents during the quarter by $895,000 and that we achieved a non-GAAP net profit of $41,000 for the quarter. However, as our revenue is typically driven more by consumer-based spending in our first quarter than other quarters, we did experience a decrease in our first quarter revenue due to lower consumer spending, as well as, longer corporate sales cycles,” said Anna M. Chagnon, President and Chief Executive Officer. “We remain optimistic about our ability to drive future revenue growth given the growing pipeline for many of our products and given the opportunities we see to generate additional revenue by licensing our new Bolt Browser.”
GAAP Results
Our loss from operations was $(166,000) for the three months ended March 31, 2009, a decrease of $766,000 as compared to net income of $600,000 for the three months ended March 31, 2008. Our net loss for the three months ended March 31, 2009 was $(153,000) or $(0.02) per diluted share, a decrease of $812,000 as compared to net income of $659,000 or $0.06 per diluted share for the three months ended March 31, 2008.
Non-GAAP Results
Our income from operations, not including the effect of stock-based compensation expense, decreased $727,000 or 96% to $28,000 for the three months ended March 31, 2009 as compared to $755,000 for the three months ended March 31, 2008. Net income, not including the effect of stock-based compensation expense, decreased $773,000 or 95% to $41,000 or $0.00 per diluted share for the three months ended March 31, 2009 as compared to $814,000 or $0.08 per diluted share for the three months ended March 31, 2008.
A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
CONFERENCE CALL REMINDER
Today, May 13, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its results for the quarter ended March 31, 2009:
- Domestic Dial-in number: 1-866-793-1301
- International Dial-in number: 1-703-639-1307
Call into the conference number 5-10 minutes prior to the start time. An operator will request that you provide 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 at Bitstream: (617) 497-6222.
A replay of the conference call will be available through May 23, 2009 (access code): 1360380
- Domestic Replay number: 1-888-266-2081
- International Replay number: 1-703-925-2533
Bitstream Inc. |
Consolidated Statements of Operations |
(In Thousands, Except Per Share Data) |
(unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
2009 |
|
|
2008 |
Revenue: |
|
|
|
|
|
Software license |
$ |
3,765 |
|
$ |
5,126 |
Services |
|
1,236 |
|
|
1,243 |
Total revenue |
|
5,001 |
|
|
6,369 |
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
Software license |
|
1,565 |
|
|
2,014 |
Services |
|
583 |
|
|
581 |
Total cost of revenue |
|
2,148 |
|
|
2,595 |
|
|
|
|
|
|
Gross profit |
|
2,853 |
|
|
3,774 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Marketing and selling |
|
1,033 |
|
|
1,135 |
Research and development |
|
1,214 |
|
|
1,392 |
General and administrative |
|
772 |
|
|
647 |
|
|
|
|
|
|
Total operating expenses |
|
3,019 |
|
|
3,174 |
|
|
|
|
|
|
Operating income (loss) |
|
(166) |
|
|
600 |
|
|
|
|
|
|
Interest and other income, net |
|
19 |
|
|
96 |
|
|
|
|
|
|
Income (loss) before provision for
income taxes |
|
(147) |
|
|
696 |
Provision for income taxes |
|
6 |
|
|
37 |
|
|
|
|
|
|
Net income (loss) |
$ |
(153) |
|
$ |
659 |
|
|
|
|
|
|
Basic net earnings (loss) per share |
$ |
(0.02) |
|
$ |
0.07 |
Diluted net earnings (loss) per share |
$ |
(0.02) |
|
$ |
0.06 |
Basic weighted average shares outstanding |
|
9,723 |
|
|
9,758 |
Diluted weighted average shares outstanding |
|
9,723 |
|
|
10,527 |
Bitstream Inc. |
Consolidated Balance Sheets |
(In Thousands) |
(unaudited) |
|
|
ASSETS |
March 31,
2009 |
|
|
December 31,
2008 |
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
17,057 |
|
$ |
16,162 |
Accounts receivable, net |
|
1,075 |
|
|
1,827 |
Prepaid expenses and other current assets |
|
667 |
|
|
527 |
Restricted Cash |
|
150 |
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
18,949 |
|
|
18,666 |
|
|
|
|
|
|
Property and equipment, net |
|
363 |
|
|
427 |
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
Goodwill |
|
727 |
|
|
727 |
Intangible assets |
|
74 |
|
|
81 |
Total other assets |
|
801 |
|
|
808 |
|
|
|
|
|
|
Total assets |
$ |
20,113 |
|
$ |
19,901 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,251 |
|
$ |
832 |
Accrued payroll and other compensation |
|
620 |
|
|
1,057 |
Other accrued expenses |
|
462 |
|
|
583 |
Deferred revenue |
|
1,845 |
|
|
1,937 |
|
|
|
|
|
|
Total current liabilities |
|
4,178 |
|
|
4,409 |
|
|
|
|
|
|
Total liabilities |
|
4,178 |
|
|
4,409 |
|
|
|
|
|
|
Total stockholders’ equity |
|
15,935 |
|
|
15,492 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
20,113 |
|
$ |
19,901 |
Bitstream Inc. |
Non-GAAP Results |
(In Thousands, Except Per Share Data) |
(unaudited) |
|
The following table shows Bitstream’s non-GAAP results reconciled to GAAP results included in
this release. |
|
|
|
|
|
|
|
|
Three Months
Ended March 31, |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
GAAP operating income (loss) |
$ |
(166) |
|
$ |
600 |
SFAS 123R stock-based compensation |
|
194 |
|
|
155 |
|
|
|
|
|
|
Non-GAAP operating income |
$ |
28 |
|
$ |
755 |
|
|
|
|
|
|
GAAP net income (loss) |
$ |
(153) |
|
$ |
659 |
SFAS 123R stock-based compensation |
|
194 |
|
|
155 |
|
|
|
|
|
|
Non-GAAP net income (loss) |
$ |
41 |
|
$ |
814 |
|
|
|
|
|
|
Diluted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
$ |
(0.02) |
|
$ |
0.06 |
SFAS 123R stock-based compensation |
|
0.02 |
|
|
0.02 |
|
|
|
|
|
|
Non-GAAP net income (loss) |
$ |
0.00 |
|
$ |
0.08 |
|
|
|
|
|
|
Shares used to compute diluted
GAAP net income (loss) per share |
|
9,723 |
|
|
10,527 |
|
|
|
|
|
|
Shares used to compute diluted
Non-GAAP net income per share |
|
10,128 |
|
|
10,527 |
Forward Looking Statements Disclosure
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, 2008.
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.
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