EXHIBIT 99.1
Bitstream Inc. Reports First Quarter Results for 2007
The Company reported first quarter revenue of $5,491,000 and net income of $716,000 or $0.07 diluted net income per share.
CAMBRIDGE, MA—(Business Wire)—May 7, 2007—Bitstream Inc. (Nasdaq: BITS) today reported that it increased total revenue by $936,000 or 20.5% to $5,491,000 for the three months ended March 31, 2007 as compared to $4,555,000 for the three months ended March 31, 2006. We generated operating income of $603,000 for the three months ended March 31, 2007, as compared to $389,000 for the three months ended March 31, 2006. Our net income increased $318,000 or 80% to $716,000 or $0.07 per diluted share for the three months ended March 31, 2007 as compared to net income of $398,000 for the three months ended March 31, 2006. The Company’s cash and cash equivalents at March 31, 2007 totaled $11,688,000, an increase of $1,146,000 from $10,542,000 at December 31, 2006.
“We are very pleased with our continued revenue growth, achieving 20% growth for the quarter ended March 31, 2007 as compared to the quarter ended March 31, 2006”, said Anna M. Chagnon, President and Chief Executive Officer. “We continue to improve our operating performance as demonstrated by operating income of $603,000 for the quarter ended March 31, 2007, an increase of $214,000 or 55% as compared to the first quarter of 2006 and an increase of $130,000 or 27.5% as compared to the fourth quarter of 2006. Based on our results for the quarter ended March 31, 2007, we believe that our targets for the year ended December 31, 2007 of $25 million in revenue and $3 million in operating profit continue to be achievable.”
FIRST QUARTER 2007 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
January 15, 2007 — Bitstream announced the release of Pageflex™ Storefront 5, a major release of the product that gives print service providers and corporate marketing departments an easy-to-use system to develop, implement, and manage attractive Web-to-print document customization and purchasing sites.
February 12, 2007 — Bitstream announced its latest offerings in mobile browsing, messaging and font technology solutions at the 3GSM World Congress in Barcelona, Spain. Products featured in the Company’s booth included: the ThunderHawk™ browser for mobile handsets, myMMS™, a creative mobile messaging application, and Bitstream core mobile technologies for rendering worldwide text in handsets and mobile applications.
February 13, 2007 — Bitstream announced that it is the first PPML producer to be awarded certification by the Print On Demand Initiative (PODi). The Company achieved PPML Certification for its Pageflex product line of variable data publishing software.
February 15, 2007 — Bitstream announced that three of its Pageflex-based solutions customers have been selected as winners in the annual PODi Best Practices Awards, dominating the PODi Best Practice Awards for Digital Printing and Variable Data.
March 1, 2007 — Bitstream announced the release of Pageflex™ Persona™ Cross Media Suite 2007. This is a significant upgrade to the Company’s desktop software that enables the creation of database-driven variable data print and personalized HTML emails. This release introduces new features that provide unlimited design and content variability within an individual document, as well as graphic design and production workflow enhancements.
April 18, 2007 — Bitstream announced a robust new campaign tracking technology. These campaign tracking features are available with the Pageflex product, and enable users to track each aspect of their marketing campaigns. This level of detail gives marketers a solid understanding of whether their marketing campaigns are effective and where they are getting the best return on their marketing investment.
April 19, 2007 — Bitstream announced that Pageflex Storefront was named the Best of Show Award winner in the category of Web-to-Print Solutions at the On Demand Conference and Exhibition and that Pageflex 5.0, Bitstream’s enterprise solution for variable publishing, was given an honorable mention award in the category of Document Creation Software. This marks the second consecutive year that Pageflex Storefront has been honored with the Best in Show Award at the On Demand Conference
CONFERENCE CALL REMINDER
Today, May 7, 2007, at 4:30 p.m. EST, Bitstream will host a conference call with the financial community to discuss its results for the quarter ended March 31, 2007:
• | Domestic Dial-in number: 1-866-835-8903 |
• | International Dial-in number: 1-703-639-1410 |
Call into the conference number 5-10 minutes prior to the start time. An operator will check your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call number, please contact at Bitstream: (617) 497-6222.
A replay of the conference call will be available through May 17, 2007 (access code): 1082926
• | Domestic Replay number: 1-888-266-2081 |
• | International Replay number: 1-703-925-2533 |
Forward Looking Statements Disclosure
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, including, without limitation, market acceptance of the Company’s products, competition and the timely introduction of new products. Additional information concerning certain risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission, including Bitstream’s Annual Report on Form 10-K for the year ended December 31, 2006.
About Bitstream
Bitstream Inc. (NASDAQ: BITS) is a software development company that makes communications compelling. Bitstream enables customers worldwide to render high-quality text, browse the Web on wireless devices, select from the largest collection of fonts
online, and customize documents over the Internet. Its core competencies include fonts and font technology, browsing technology, and publishing technology. For more information about Bitstream please visit www.bitstream.com.
Bitstream and MyFonts.com are registered trademarks, and Pageflex, the Bitstream logo and ThunderHawk are trademarks, of the Company. Other technologies and brand names are used for information only and remain trademarks or registered trademarks of their respective companies.
Bitstream Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(unaudited)
Three Months Ended March 31, | ||||||
2007 | 2006 | |||||
Revenue: | ||||||
Software license | $ | 4,472 | $ | 3,715 | ||
Services | 1,019 | 840 | ||||
Total revenue | 5,491 | 4,555 | ||||
Cost of revenue: | ||||||
Software license | 1,708 | 1,385 | ||||
Services | 492 | 376 | ||||
Total cost of revenue | 2,200 | 1,761 | ||||
Gross profit | 3,291 | 2,794 | ||||
Operating expenses: | ||||||
Marketing and selling | 992 | 756 | ||||
Research and development | 1,112 | 1,089 | ||||
General and administrative | 584 | 560 | ||||
Total operating expenses | 2,688 | 2,405 | ||||
Operating profit | 603 | 389 | ||||
Interest income, net | 124 | 20 | ||||
Income before provision for income taxes | 727 | 409 | ||||
Provision for income taxes | 11 | 11 | ||||
Net income | $ | 716 | $ | 398 | ||
Basic net earnings per share | $ | 0.08 | $ | 0.05 | ||
Diluted net earnings per share | $ | 0.07 | $ | 0.04 | ||
Basic weighted average shares outstanding | 9,409 | 8,745 | ||||
Diluted weighted average shares outstanding | 10,931 | 10,589 | ||||
Bitstream Inc.
Consolidated Balance Sheets
(In Thousands)
(unaudited)
March 31, 2007 | December 31, 2006 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 11,688 | $ | 10,542 | ||
Accounts receivable, net | 2,172 | 2,349 | ||||
Prepaid expenses and other current assets | 520 | 460 | ||||
Total current assets | 14,380 | 13,351 | ||||
Property and equipment, net | 437 | 402 | ||||
Other assets: | ||||||
Restricted cash | 150 | 150 | ||||
Goodwill | 727 | 727 | ||||
Intangible assets | 92 | 87 | ||||
Total other assets | 969 | 964 | ||||
Total assets | $ | 15,786 | $ | 14,717 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 1,104 | $ | 887 | ||
Accrued expenses | 932 | 1,680 | ||||
Deferred revenue | 1,355 | 1,425 | ||||
Total current liabilities | 3,391 | 3,992 | ||||
Long-term liabilities | 89 | 99 | ||||
Total liabilities | 3,480 | 4,091 | ||||
Total stockholders’ equity | 12,306 | 10,626 | ||||
Total liabilities and stockholders’ equity | $ | 15,786 | $ | 14,717 | ||
Contact:
Anna M. Chagnon, President and Chief Executive Officer
Bitstream Inc.
(617) 520-8619
achagnon@bitstream.com
or
James P. Dore, Vice President and Chief Financial Officer
Bitstream Inc.
(617) 520-8377
jdore@bitstream.com