|Wednesday, July 16, 1997||< Prev||Next >|
SEATTLE, July 16 /PRNewswire/ — Visio Corporation (Nasdaq: VSIO) today reported results for the third quarter of fiscal 1997. Revenues for the quarter ended June 30, 1997, were $25.8 million, a 69 percent increase over third quarter fiscal 1996 revenues of $15.2 million. Net income for the third quarter, excluding a one-time pretax charge of $3.6 million resulting from the acquisition of technology from SysDraw Software Company, increased 108 percent to $5.9 million, compared to net income of $2.8 million for the third quarter of fiscal 1996. Earnings per share for the third quarter, excluding the one-time charge resulting from the acquisition of the Sysdraw technology, were $.39 compared to $.19 for the third quarter of fiscal 1996, an increase of 105 percent. The company achieved an operating margin of 27 percent prior to the one-time charge related to the acquisition, compared to 25 percent for the same period last year.
For the nine months ended June 30, 1997, revenues were $68.4 million, a 58 percent increase from revenues of $43.2 million for the comparable period last year. Net income for the nine-month period, excluding the one-time charge resulting from the acquisition of the Sysdraw technology and the one-time charge of $6.7 million resulting from the acquisition of the Boomerang technology in the second fiscal quarter of 1997, was $15.7 million or $1.04 per share compared to $7.2 million, or $.50 per share reported during the same period in the prior year.
Net income for the third quarter of fiscal 1997, including the one-time charge resulting from the acquisition of the Sysdraw technology, was $3.3 million or $.22 per share. For the nine month period ending June 30, 1997, including the one-time charges resulting from the acquisitions of both the Sysdraw technology and the Boomerang technology, net income was $8.2 million or $.54 per share.
During the third quarter of fiscal 1997, Visio® Professional generated $7.4 million in revenue, representing 29% of total revenue. Visio, at $11.0 million in revenue, represented 43% of total revenue, while Visio Technical, at $7.3 million in revenue, represented 28% of total revenue. The impact of Visio Professional drove domestic revenue to $17.0 million, representing 66% of total revenue.
"Visio Professional closed another strong quarter with revenues increasing 37% sequentially," said Jeremy Jaech, president and CEO of Visio Corp. "Our product revenue mix continues to evolve as we help both new and existing customers select the Visio product with the best functionality to meet their needs."
During the third quarter of fiscal 1997, Visio acquired technology including the world's largest library of network diagramming shapes from SysDraw Software Company. Under the terms of the agreement, Visio acquired certain assets for a committed consideration totaling $6.5 million with $3.6 million of the purchase price expensed as in-process R&D in the June quarter.
"The addition of the SysDraw network equipment shapes library combined with Visio Professional will provide an unparalleled solution for network design and documentation," said Jaech. "SysDraw's relationships with network equipment vendors as well as its organization to efficiently create and deliver new shapes are proving to be important assets for Visio."
Visio Corporation, 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 nine languages and in more than 35 countries, with more than 1 million users throughout the world.
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, 1996, and, from time to time, in other reports filed by the company with the Securities and Exchange Commission.
NOTE: Visio is a registered trademark of Visio Corporation. 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) (Unaudited) Three Months Ended June 30, 1997 1996 Revenues $25,805 100% $15,231 100% Cost of revenues 2,731 11 2,125 14 Gross Profit 23,074 89 13,106 86 Operating expenses: Research and development 4,175 16 2,138 14 Sales and marketing 9,988 39 5,929 39 General and administrative 1,899 7 1,181 8 Acquired technology 3,558 14 0 0 Total operating expenses 19,620 76 9,248 61 Operating income 3,454 13 3,858 25 Interest and other income, net 987 4 388 3 Income before income taxes 4,441 17 4,246 28 Provision for income taxes 1,155 4 1,401 9 Net Income $3,286 13% $2,845 19% Earnings per share $0.22 $0.19 Shares used in computing earnings per share 15,270 14,944 Nine Months Ended June 30, 1997 1996 Revenues $68,351 100% $43,175 100% Cost of revenues 7,099 10 6,854 16 Gross Profit 61,252 90 36,321 84 Operating expenses: Research and development 10,339 15 6,522 14 Sales and marketing 26,791 39 16,707 39 General and administrative 5,081 8 3,300 7 Acquired technology 10,255 15 0 1 Total operating expenses 52,466 77 26,529 61 Operating income 8,786 13 9,792 23 Interest and other income, net 2,229 3 1,021 2 Income before income taxes 11,015 16 10,813 25 Provision for income taxes 2,864 4 3,568 8 Net Income $8,151 12% $7,245 17% Earnings per share $0.54 $0.50 Shares used in computing earnings per share 15,134 14,447 Visio Corporation Balance Sheets (in thousands) Jun. 30, Sep. 30, 1997 1996 Assets Current assets: Cash and short-term investments $67,369 $61,107 Accounts receivable 5,410 2,242 Inventories 433 604 Prepaid expenses 5,000 2,431 Deferred income taxes 5,335 1,779 Total current assets 83,547 68,163 Equipment and leasehold improvements 5,614 3,445 Other assets 3,047 0 Total assets $92,208 $71,608 Liabilities and shareholders' equity Current liabilites: Accounts payable $3,946 $3,525 Accrued compensation and benefits 3,098 2,002 Other accrued liabilities 14,198 8,798 Income taxes payable 1,288 1,584 Current portion of long-term obligations 448 326 Total current liabilities 22,978 16,235 Long-term obligations 709 148 Shareholders' equity: Common stock 50,877 45,688 Retained earnings 17,644 9,537 Total shareholders' equity 68,521 55,225 Total liabilities and shareholders' equity $92,208 $71,608 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/
CO: Visio Corp. ST: Washington IN: CPR SU: ERN
CS-CL — SFW056 — 7833 07/16/97 16:22 EDT http://www.prnewswire.com