|Wednesday, January 20, 1999||< Prev||Next >|
SEATTLE, Jan. 20 /PRNewswire/ — Visio Corporation (Nasdaq: VSIO) today reported results for the first quarter of fiscal 1999. Revenues for the quarter ended December 31, 1998 were $48.2 million, a 29 percent increase over first quarter fiscal 1998 revenues of $37.5 million. Net income for the first quarter increased 36 percent to $10.0 million compared to net income for the first quarter of fiscal 1998 of $7.4 million. Diluted earnings per share for the first quarter of fiscal 1999 were $0.32 compared to diluted earnings per share of $0.24 for the first quarter of fiscal 1998, and represented an increase of 33 percent.
The company sold a record 272,000 new seats during the quarter, a 44 percent increase over the prior year quarter, bringing the total installed base to nearly 2.8 million users. In the December 1998 quarter the volume licensing channel grew 150 percent over the December 1997 quarter to $17.2 million, representing a record 36 percent of total revenue. "The continued strength of our volume licensing channel, and strong product line spanning across the enterprise, contributed to the increase in new users," stated Jeremy Jaech, president and CEO of Visio Corporation. "We will continue to invest in growing our worldwide corporate sales organization to further tap into the great potential within large organizations. This team will focus on further penetrating our existing accounts and bringing new users to Visio® technology."
The introduction of Visio Enterprise in November 1998, a new product for the IT market segment, also drove revenue growth in the quarter. The IT design and documentation product group contributed $25.7 million in revenue, or 53 percent of total revenue. "We're very pleased with the initial acceptance of Visio Enterprise and recognize that we are just at the front end of the cycle for upgrades and new user purchases," said Steve Gordon, chief financial officer for Visio Corp. "Research that we've gathered shows that the market for our IT products in the U.S. alone represents approximately 2.7 million IT professionals."
For the December 1998 quarter international revenues were $18.7 million, representing 39 percent of total revenue. European revenue for the quarter increased 33 percent over the prior year quarter to $13.6 million.
Visio Corp. is the leading supplier of enterprise-wide business diagramming and technical drawing software, with an installed base of nearly 2.8 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 12 language versions and are sold in more than 45 countries.
This press release (including the quoted language above and the reference to Visio becoming a worldwide 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, 1998, 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 is a 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.
Dec. 31, Sept. 30, 1998 1998 Assets Current assets: Cash $76,427 $67,088 Short-term investments 44,570 41,930 Accounts receivable 20,704 15,934 Inventories 1,363 1,228 Prepaid expenses 6,369 6,662 Deferred income taxes 4,978 4,709 Total current assets 154,411 137,551 Equipment and leasehold improvements 12,680 10,191 Capitalized technology 4,317 4,609 Other assets 441 380 Deferred income taxes 6,612 6,646 Total assets $178,461 $159,377 Liabilities and shareholders' equity Current liabilities: Accounts payable $6,452 $5,223 Accrued compensation and benefits 5,456 4,464 Deferred revenue 8,220 7,830 Other accrued liabilities 15,290 13,717 Income taxes payable 3,603 936 Total current liabilities 39,021 32,170 Shareholders' equity: Common stock 77,820 75,434 Retained earnings 61,620 51,773 Total shareholders' equity 139,440 127,207 Total liabilities and shareholders' equity $178,461 $159,377 Visio Corporation Statements of Income (In thousands, except per share data) Three Months Ended December 31, 1998 1997 Revenues $48,191 100% $37,497 100% Cost of revenues 4,297 9 3,392 9 Gross profit 43,894 91 34,105 91 Operating expenses: Research and development 7,779 16 6,122 16 Sales and marketing 20,365 42 16,059 43 General and administrative 3,309 7 3,145 9 Total operating expenses 31,453 65 25,326 68 Operating income 12,441 26 8,779 23 Interest and other income, net 1,085 2 1,113 3 Income before income taxes 13,526 28 9,892 26 Provision for income taxes 3,517 7 2,514 6 Net income $10,009 21% $7,378 20% Basic earnings per share $0.33 $0.26 Shares used in computing basic earnings per share 30,257 28,607 Diluted earnings per share $0.32 $0.24 Shares used in computing diluted earnings per share 31,570 31,395