|Wednesday, October 28, 1998||< Prev||Next >|
SEATTLE, Oct. 28 /PRNewswire/ — Visio Corporation (Nasdaq: VSIO) today reported results for the fourth quarter and fiscal year ended September 30, 1998. Revenues for the quarter ended September 30, 1998 were $44.2 million, a 41 percent increase over fourth quarter fiscal 1997 revenues of $31.4 million. Net income for the fourth quarter, excluding a pre-tax acquisition related charge of $1.2 million resulting from the acquisition of Kaspia Systems, Inc., increased 54 percent to $9.8 million compared to net income for the fourth quarter of fiscal 1997 of $6.4 million. Diluted earnings per share, excluding the pre-tax acquisition related charge, for the fourth quarter of fiscal 1998 were $0.31 compared to diluted earnings per share of $0.20 for the fourth quarter of fiscal 1997, and represented an increase of 55 percent.
Revenues for fiscal year 1998 were $166.0 million, a 65 percent increase over fiscal year 1997 revenues of $100.8 million. Net income for the year, excluding pre-tax acquisition related charges of $9.3 million, was $35.0 million and diluted earnings per share were $1.10 compared to net income of $21.3 million and diluted earnings per share of $0.69 for fiscal 1997, excluding pre-tax acquisition related charges of $10.3 million.
Net income for the fourth quarter of fiscal 1998, including the pre-tax acquisition related charge, was $9.0 million and diluted earnings per share were $0.28. Net income for fiscal year 1998, including the pre-tax acquisition related charges, was $28.1 million and diluted earnings per share were $0.89.
The company sold a record 248,000 new seats during the quarter, reaching an installed base of nearly 2.5 million users. "Third party data validates that Visio products represent the number one selling business drawing and diagramming tools in the world as measured by new unit shipments," stated Jeremy Jaech, president and CEO of Visio Corporation. "Our products deliver compelling value to companies all over the world by allowing people in business to create all types of drawings with their PCs."
September quarter revenues were driven by sales from the IT market segment in which Visio products enjoy broad market acceptance. Revenues in this segment increased an impressive 99% in the September 1998 quarter as compared to the same quarter in 1997. In addition, the Visio product family continued to be widely deployed through the volume licensing channel which grew 155% in the September 1998 quarter to $12.5 million, representing 28% of total revenue.
For the September 1998 quarter, international revenues increased 72 percent as compared to the September 1997 quarter to $17.2 million, representing 39 percent of total revenue. International revenues for fiscal 1998 were $67.3 million and represented 41 percent of total revenues, an 89 percent increase over fiscal 1997 revenues.
"In the September quarter we completed the acquisition of Kaspia Systems, Inc. and have since successfully incorporated Kaspia's AutoDiscovery™ technology into our recently announced product, Visio® Enterprise, which will be available in November," said Jaech. "We're very excited about the expanded depth and value that this product will offer to network administrators, database designers and software engineers. As such, Visio Enterprise is expected to further solidify the company's position as the standard for creating, storing and exchanging graphical information in business."
Visio Corp. is the leading supplier of enterprise-wide business diagramming and technical drawing software, with an installed base of nearly 2.5 million users worldwide. Founded in September 1990, the Seattle-based company pioneered the drawing and diagramming software market with the release of Visio 1.0 in November 1992 and has since released additional Windows-based graphics applications that offer users a unique and effective way to communicate and work. Visio's powerful product line is becoming a worldwide standard for graphical solutions in business, with the support of partner programs and third-party relationships in key market segments. Visio products are available in as many as eleven language versions and are sold in more than 40 countries.
This press release (including the quoted language above and the reference to establishment of Visio as a desktop platform standard) contains forward-looking statements. There are certain important factors that could cause actual results to differ materially from those anticipated by some of the statements made above. Among these are fluctuations in quarterly performance, dependence on other products including Microsoft Windows, competition in the business drawing and diagramming software market, timing and customer acceptance of new products, the company's ability to manage growth and integrate acquired technology, potential changes in licensing and marketing methods, and changes in general economic conditions. Additional information concerning these and other risks is described in the section entitled "Certain Risk Factors That May Impact Future Results of Operations" contained in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 1997, and, from time to time, in other reports filed by the company with the Securities and Exchange Commission.
Additional information about Visio Corporation is available on the Internet at http://www.visio.com.
NOTE: Visio and AutoDiscovery are registered trademarks of Visio Corporation in the United States and/or other countries. All other trademarks, trade names or company names referenced herein are used for identification only and are the property of their respective owners.
Visio Corporation Statements of Income (In thousands, except per share data) Including Acquired Technology Three Months Ended September 30, 1998 1997 Revenues $44,223 100% $31,389 100% Cost of revenues 3,963 9 3,525 11 Gross profit 40,260 91 27,864 89 Operating expenses: Research and development 7,538 17 5,337 17 Sales and marketing 17,375 39 12,595 40 General and administrative 3,279 7 2,504 8 Acquired technology 1,185 3 — — Total operating expenses 29,377 66 20,436 65 Operating income 10,883 25 7,428 24 Interest and other income, net 1,219 3 1,141 4 Income before income taxes 12,102 27 8,569 27 Provision for income taxes 3,147 7 2,184 7 Net income $8,955 20% $6,385 20% Basic earnings per share $0.30 $0.23 Shares used in computing basic earnings per share 29,987 28,369 Diluted earnings per share $0.28 $0.20 Shares used in computing diluted earnings per share 31,604 31,300 Visio Corporation Statements of Income (In thousands, except per share data) Including Acquired Technology Twelve Months Ended September 30, 1998 1997 Revenues $165,995 100% $100,775 100% Cost of revenues 15,132 9 10,682 11 Gross profit 150,863 91 90,093 89 Operating expenses: Research and development 27,257 16 16,073 16 Sales and marketing 68,596 41 40,576 40 General and administrative 12,973 8 8,353 8 Acquired technology 9,251 6 10,255 10 Total operating expenses 118,077 71 75,257 75 Operating income 32,786 20 14,836 15 Interest and other income, net 4,894 3 3,466 3 Income before income taxes 37,680 23 18,302 18 Provision for income taxes 9,572 6 4,602 5 Net income $28,108 17% $13,700 14% Basic earnings per share $0.96 $0.49 Shares used in computing basic earnings per share 29,406 27,872 Diluted earnings per share $0.89 $0.44 Shares used in computing diluted earnings per share 31,669 30,792 Visio Corporation Balance Sheets (in thousands) Sept. 30, Sept. 30, 1998 1997 Assets Current assets: Cash and short-term investments $109,018 $81,212 Accounts receivable 15,934 6,587 Inventories 1,228 1,079 Prepaid expenses 6,662 4,231 Deferred income taxes 4,709 4,873 Total current assets 137,551 97,982 Equipment and leasehold improvements 10,191 8,254 Capitalized technology and other assets 4,989 2,861 Deferred income taxes 6,646 3,604 Total assets $159,377 $112,701 Liabilities and shareholders' equity Current liabilities: Accounts payable $5,223 $6,019 Accrued compensation and benefits 4,464 2,706 Deferred revenue 7,830 9,082 Other accrued liabilities 13,717 11,751 Income taxes payable 936 2,988 Current portion of notes payable — 1,000 Total current liabilities 32,170 33,546 Long-term notes payable — 387 Shareholders' equity: Common stock 75,434 56,367 Retained earnings 51,773 22,401 Total shareholders' equity 127,207 78,768 Total liabilities and shareholders' equity $159,377 $112,701