For Immediate Release
Expert Software, Inc. Announces Results
for the Year and Fourth-Quarter 1998
And Acquisition By Activision
CORAL GABLES, FL -- March 3, 1999 -- Expert Software, Inc.
(Nasdaq: XPRT) today announced operating results for the year and
fourth quarter ended December 31, 1998. The Company also
announced under a separate joint release that it has signed a
definitive merger agreement with Activision, Inc. to be acquired
for $2.65 per share.
The Company reported net revenues of $30.9 million for the year
ended December 31, 1998, compared to $33.2 million in 1997. Net
loss for the year was $8.5 million or $1.12 per share, compared
to net income of $1.7 million or $.21 per share for 1997. Fourth
quarter net revenues were $8.7 million, compared to $9.1 million
reported for the fourth quarter of 1997. Net income for the
quarter was $0.4 million or $.04 per share, compared to net
income of $0.4 million or $.05 per share for 1997. Earnings per
share are reported on a diluted basis.
Expert Software, Inc. (Nasdaq: XPRT) is a leading developer and
publisher of over 170 high-quality, value-priced software titles.
The Company specializes in sophisticated yet easy-to-use programs
addressing a broad array of everyday consumer interests,
including entertainment, education, lifestyle, productivity and
small office/home office. Over 27 million units of Expert
products have been sold, including Home Design 3D(R), Landscape
Design 3D(R), Diet & Fitness, Resume Writer, and Casino. The Expert
Software family of brands also includes the popular Sega PC
Collection(TM), and Bicycle(R) Card Games. Expert Software can be
found on the World Wide Web at http://www.expertsoftware.com.
# # # #
The statements contained in this release that are not historical
facts are "forward-looking statements." The Company cautions
readers of this press release that a number of important factors
could cause Expert's actual future results to differ materially
from those expressed in any such forward-looking statements.
These important factors, and other factors that could affect
Expert, are described in the Company's Annual Reports on Form
10-K and quarterly reports on Form 10-Q, which have been filed
with the U.S. Security and Exchange Commission. Readers of this
press release are referred to such filings.
Marks mentioned above are trademarks, registered trademarks or
tradenames of Expert Software, Inc., except Bicycle(R), which is a
trademark of The United States Playing Card Company, and Sega(R)
and Sega PC Collection(TM) which are trademarks of Sega. Sega
Entertainment, Inc. was formed through a joint venture between
Sega of America and SOFTBANK Holdings, Inc. Windows(R) is a
registered trademark of Microsoft Corporation. All other
trademarks are acknowledged.
Expert Software, Inc.: 802 Douglas Road, Suite 600, Coral Gables,
Florida 33134.
Tel: (305) 567-9990 Fax: (305) 569-1111 Web:
http://www.expertsoftware.com.
For More Information Contact:
Michelle Dominguez
Public Relations Specialist
(305) 569-1310
michelle_dominguez@expertsw.com
EXPERT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Year Ended
Ended December 31,
December 31,
------------------ -----------------
1998 1997 1998 1997
-------- -------- -------- --------
(unaudited)(unaudited)
NET REVENUES...................... $8,732 $9,071 $30,896 $33,208
-------- -------- -------- --------
OPERATING COSTS AND EXPENSES:
Cost of revenues................ 3,669 3,699 13,692 12,985
Marketing and sales............. 3,107 3,075 12,446 10,489
General and administrative...... 1,039 1,068 6,271 4,554
Development..................... 581 636 2,367 2,744
-------- -------- -------- --------
Total operating costs and 8,396 8,478 34,776 30,772
expenses..........................
-------- -------- -------- --------
Operating income (loss)....... 336 593 (3,880) 2,436
Other income, net................. 18 106 289 268
-------- -------- -------- --------
Income (loss) before provision 354 699 (3,591) 2,704
for income taxes................
Provision for income taxes........ -- 259 4,927 1,001
-------- -------- -------- --------
Net income (loss)............... $354 $ 440 $(8,518) $1,703
======== ======== ======== ========
Earnings (loss) per share:
Basic......................... $ .05 $ .06 $ (1.12) $ .23
======== ======== ======== ========
Diluted....................... $ .04 $ .05 $ (1.12) $ .21
======== ======== ======== ========
-- more --
EXPERT SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December December
31, 31,
1998 1997
---------- -----------
ASSETS
Cash and equivalents...................... $1,595 $5,685
Accounts receivable, net.................. 5,411 4,636
Income taxes receivable................... 65 1,924
Inventories............................... 2,830 2,922
Prepaid expenses.......................... 854 834
Deferred income taxes.................... -- 1,616
---------- -----------
Total current assets................... 10,755 17,617
Property and equipment, net............... 854 1,270
Deferred income taxes..................... -- 3,311
Acquired intangibles, net................. 5 35
---------- -----------
$11,614 $22,233
========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Total current liabilities................. $7,508 $9,701
Noncurrent obligations.................... -- --
Stockholders' equity...................... 4,106 12,532
========== ===========
$11,614 $22,233
========== ===========
[End of press release]