Press Release

Wednesday, October 23, 1996 < Prev Next >

Visio Corporation Announces Fourth Quarter and Fiscal 1996 Results

SEATTLE, Oct. 23 /PRNewswire/ — Visio Corporation (NASDAQ: VSIO) today reported results for the fourth quarter and audited results for the fiscal year ended September 30, 1996. Revenues for the fourth quarter of fiscal 1996 were $16.5 million, a 61 percent increase over fourth quarter fiscal 1995 revenues of $10.3 million. Net income was $3.8 million and earnings per share were $0.26, compared to net income of $0.9 million and earnings per share of $0.08 for the fourth quarter of fiscal 1995. The Company achieved an operating margin of 29 percent, compared to 14 percent for the same period last year.

Revenues for fiscal 1996 were $59.7 million, a 74 percent increase over fiscal year 1995 revenues of $34.2 million. Net income for the year was $11.1 million and earnings per share were $0.76, compared to net income of $2.3 million and earnings per share of $0.20 for fiscal 1995. The Company achieved an operating margin of 24 percent for the year, compared to 9 percent for fiscal 1995.

"I'm very proud of Visio's performance in the past fiscal year," said Jeremy Jaech, president and CEO of Visio Corp. "We have proven we can deliver an expanded product offering and achieve our financial benchmarks. During fiscal 1996 we diversified by channel, saw results from our investments in Europe and the Pacific Rim, completed an acquisition, strengthened our balance sheet with our IPO in November and surpassed our internal revenue and operating profit objectives. Our results to date indicate that the business drawing and diagramming market on the Windows desktop is real, and we are gratified to own the dominate share of this rapidly expanding market."

During fiscal 1996 Visio Technical generated revenues of $17.7 million which were 30 percent of total revenues. Visio Technical revenues for the fourth quarter are $6.2 million which represents 38 percent of total revenues. Volume licensing revenues of $2.2 million increased 144 percent over the prior year's comparable quarter. New product introductions during the quarter include Visio 4.0 localized in Dutch, Swedish and Chinese and Visio Technical 4.1 in Kanji for the Japanese market.

"The drivers to future growth of our business are continued increase in awareness of Visio, further penetration of the Windows market, and the acquisition of new users through vertical solutions developed by Visio and third party partners," said Jaech. "Our core Visio products help us reach a large, untapped population of users who want or need to create and use drawings electronically. Visio addresses the diverse needs of the general business user, Visio Technical reaches key verticals in the technical drawing arena, while Visio Professional, scheduled for release late in the December quarter, is allowing us to address the needs of the IS professional."

Visio Corp., a leading supplier of enterprisewide business diagramming and technical drawing software, was founded in September 1990. The Seattle-based company pioneered the drawing and diagramming market with the release of Visio 1.0 in November 1992, and has since released additional Windows-based products for the creation and exchange of drawings and diagrams in business. Visio's powerful product architecture, combined with partner programs and third-party relationships in key market segments, is establishing Visio as a desktop platform standard for the creation of graphical solutions. The company markets the Visio product line in more than 26 countries throughout the world.

This press release contains forward-looking statements. There are certain important factors that could cause 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, and changes in general economic conditions. Additional information concerning these and other risks is described in the "Risk Factors" section of the prospectus contained in the Registration Statement on Form S-1 filed by the Company on September 15, 1995, and, from time to time, in the Company's Securities and Exchange Commission reports, which include the Report on Form 10-Q for the quarter ended March 31, 1996. Actual results may differ materially.

NOTE: Additional information about Visio Corporation is available on the Internet at http://www.visio.com. Details about Visio Corporation are also available on CompuServe and MSN, The Microsoft Network.

Visio is a registered trademark of Visio Corporation. Microsoft and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. CompuServe is a registered trademark of CompuServe Inc.


                              Visio Corporation
                             Statements of Income
                    (In thousands, except per share data)
                                  Three Months Ended
                                        Sep. 30
                                  1996             1995
    Revenues                   $16,524  100%    $10,285  100%
    Cost of revenues             1,847   11       2,105   21
    Gross Margin                14,677   89       8,180   79
    Operating expenses:

    Research and development     2,320   14       1,473   14
    Sales and marketing          6,267   38       4,538   44
    General and administrative   1,309    8         719    7
    Total operating expenses     9,896   60       6,730   65
    Income from operations       4,781   29       1,450   14
    Other income, net              479    3           7    0
    Income before income taxes   5,260   32       1,457   14
    Provision for income taxes   1,414    9         509    5
    Net Income                  $3,846   23%       $948    9%
    Net income per share         $0.26            $0.08
    Shares used in computing
       net income per share     14,964           12,213

                                  Fiscal Year Ended
                                       Sep. 30
                                  1996             1995
    Revenues                   $59,699  100%     $34,224  100%
    Cost of revenues             8,701   15        6,077   18
    Gross Margin                50,998   85       28,147   82
    Operating expenses:

    Research and development     8,842   15        5,086   15
    Sales and marketing         22,974   38       17,340   51
    General and administrative   4,609    8        2,515    7
    Total operating expenses    36,425   61       24,941   73
    Income from operations      14,573   24        3,206    9
    Other income, net            1,500    3          403    1
    Income before income taxes  16,073   27        3,609   10
    Provision for income taxes   4,982    8        1,263    3
    Net Income                 $11,091   19%      $2,346    7%
    Net income per share         $0.76             $0.20
    Shares used in computing net
      income per share          14,576            11,838

                              Visio Corporation
                                Balance Sheets
                                (in thousands)
                                               Sept. 30,        Sept. 30,
                                                 1996             1995
    ASSETS

    CURRENT ASSETS:

      Cash and cash equivalents                 $42,506          $7,063
      Marketable securities                      18,601             —
      Trade accounts receivable, net              2,242           4,462
      Inventories                                   604           1,431
      Prepaid expenses                            2,426           1,662
      Deferred income taxes                       1,779           2,136
    Total current assets                         68,158          16,754
    Equipment and leasehold improvements, net     3,445           2,308
    Other assets                                      5             185
    Total  assets                               $71,608         $19,247
    LIABILITIES AND SHAREHOLDERS' EQUITY

     (DEFICIT)

    CURRENT LIABILITIES:

      Accounts payable                          $ 3,525         $ 4,176
      Accrued compensation and benefits           2,002           1,025
      Other accrued liabilities                   8,798           5,041
      Income taxes payable                        1,584           2,653
      Current portion of long-term obligations      326             394
    Total current liabilities                    16,235          13,289
    Long-term obligations                           148             453
    Convertible & redeemable preferred stock          0           6,545
    SHAREHOLDERS' EQUITY (DEFICIT):

      Common stock                                  137              56
      Additional paid-in capital                 45,551             487
      Translation adjustments                       (45)            (74)
      Retained earnings (accumulated deficit)     9,582          (1,509)
    Total shareholders' equity (deficit)         55,225          (1,040)
    Total liabilities and shareholders'
     equity (deficit)                           $71,608         $19,247

SOURCE Visio Corp.

/CONTACT: Leslie Deitz of Visio Corporation, 206-521-4546/

/Visio Corp. press releases available through Company News On-Call by fax, 800-758-5804, ext. 107036, or at http://www.prnewswire.com/

(VSIO)

CO: Visio Corp. ST: Washington IN: CPR SU: ERN

CL — SFW052 — 4604 10/23/96 16:16 EDT http://www.prnewswire.com

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