Press Release

Thursday, July 8, 1999 < Prev Next >

Visio Corporation Announces Preliminary Third Quarter Results and Expectations for Fiscal 1999 Fourth Quarter

Company Reiterates Guidance for Fiscal Year 2000

SEATTLE, July 8 /PRNewswire/ — Visio Corporation (Nasdaq: VSIO), the leading developer and supplier of drawing and diagramming software for business and personal computer users, today announced preliminary results for the third quarter ended June 30, 1999. For the quarter, the Company estimates revenues will be $50.0 million and earnings per share will be in the range of $0.29-$0.30, compared to consensus estimates of $53.5 million and $0.35. Third quarter results were impacted by a continued slowdown in sales through the distribution channel and delays in closing several large corporate licensing agreements. The Company expects that revenue for its fourth quarter will be at the lower end of current analyst estimates, or approximately $61.0-$62.0 million. Visio Corp. will release final results for the June 1999 quarter on Wednesday, July 21, 1999.

"We met our previously announced goal of employing approximately 110 corporate sales representatives by the end of June 1999 and recorded solid growth in our corporate licensing business. However, several corporate licensing agreements did not close in the quarter as anticipated," stated Jeremy Jaech, president and CEO of Visio Corp. "In addition, we continued to be affected by an industry-wide shift away from the sale of packaged product through the traditional distribution channel and expect that this will remain a factor throughout fiscal 1999. The fact that the Visio® 5.0 product line is nearing the end of its life cycle also appears to have impacted the run rates of our packaged product through these traditional distribution channels."

"We continue to focus aggressively on the enterprise opportunity," Mr. Jaech continued. "We are encouraged by our results to date in securing corporate volume licensing agreements and will continue to leverage our sales force to bring Visio 2000 technology to the corporate market."

Mr. Jaech concluded, "Despite the current results, our business is strong and our outlook for fiscal 2000 remains unchanged. Visio 2000, the most significant upgrade in our Company's history, will be available starting in the September quarter. We expect this upgrade to be a key revenue driver throughout next year and we are excited about the prospect of delivering valuable new functionality to our customers."

About Visio Corp.

Visio Corp. is the leading supplier of enterprise-wide business diagramming and technical drawing software, with an installed base of over 3 million users worldwide. Founded in September 1990, the Seattle-based company pioneered the drawing and diagramming software market with the release of Visio in 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 regarding preliminary quarterly financial results contains forward-looking statements. Final accounting adjustments made in the course of closing the quarter could cause actual results to differ. There are also certain other important factors that could cause actual results to differ materially from those anticipated by some of the statements made above. Among these are timing and customer acceptance of new products, transition in the company's distribution channels, product lifecycles, Year 2000 issues, changes in general economic conditions, dependence on other products including Microsoft Windows, competition in the business drawing and diagramming software market, the company's ability to manage growth and integrate acquired technology, and potential changes in licensing and marketing methods. 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 trademark 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.

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