1
SOFTKEY Exhibit 99.1
- --------------------------------------------------------------------------------
CONTACT: R. SCOTT MURRAY
CHIEF FINANCIAL OFFICER
617-494-5861
FOR IMMEDIATE RELEASE
- ---------------------
SOFTKEY INTERNATIONAL INC.
REPORTS SECOND QUARTER EARNINGS PER SHARE GROWTH OF 67%
AND
THE ACQUISITION OF TEWI VERLAG GmbH, A GERMAN SOFTWARE PUBLISHER
Cambridge, MA, July 25, 1995 -- SoftKey International Inc. (Nasdaq: SKEY and
TSE: SSK) today announced both its second quarter June 30, 1995 results and
the acquisition of Tewi Verlag GmbH, a software publisher and distributor
located in Munich, Germany.
Net income for the quarter increased by 101% to $7,954,000 compared to
$3,954,000 in the prior year. Net income for the six months ended June 30,
1995 increased by 75% to $17,973,000 as compared to $10,275,000 in the prior
year. Earnings per fully diluted share increased by 67% in the second quarter
1995 to $.35 per share from $.21 in the prior year. Earnings per fully diluted
share for the six month period ended June 30, 1995 were $.79 versus $.54 in the
prior year. Revenues for the three and six month periods ended June 30, 1995
were $33,717,000 and $74,721,000 as compared to $26,786,000 and $62,090,000 in
the prior year.
Softkey also announced today the acquisition of Tewi Verlag GmbH, a German
software publisher and distributor. Tewi, which was privately held, had
revenues of approximately $15 million in its most recently completed fiscal
year. The purchase price was settled by a combination of cash and issuance of
SoftKey common stock totaling approximately $16 million. Tewi publishes over
110 German language software titles sold in over 11,000 retail stores in
Germany.
Michael Perik, SoftKey's Chairman and Chief Executive Officer said, "The
results of our most recent quarter confirm that consumers have a strong demand
for quality consumer software at affordable prices. SoftKey has seen revenues
in its core publishing business grow in the first six months of 1995 by 47%
over revenues of the prior year. This growth has been fueled by the strong
demand for CD-ROM titles, which now comprise over 90% of our retail sales." In
addition, Mr. Perik said, "SoftKey's balance sheet now reflects the proceeds
from its recent common stock offering. Our strong capital and cash base has
positioned the company to be a leader in the consolidation of the consumer
software industry."
Kevin O'Leary, SoftKey's President said, "SoftKey's acquisition of Tewi
positions the company to become a leader in the German language software
market. We believe that Europe is just beginning the growth that the software
industry in the United States has been enjoying for the last three years. We
plan to consolidate our current German facilities with the Tewi operations.
Tewi's strong retail relationships will enable us to increase market
penetration of our 40 German sofware titles."
SoftKey International Inc. is ranked as one of the world's largest consumer
software publishers by the 1995 Soft-Letter 100. SoftKey develops, publishes
and markets over 300 consumer software titles targeted at the home user in the
edutainment, lifestyle and productivity categories. SoftKey's product
offerings include popular titles such as Calendar Creator Plus, BodyWorks 4.0,
The American Heritage Talking Dictionary, Sports Illustrated Swimsuit Calendar,
MPC Wizard, KeyCAD Complete, Mosby's Medical Encyclopedia, Time Almanac and the
Platinum jewel case, KeyKids and PowerPak lines. SoftKey's products are sold
in over 15,000 stores in over 40 countries in the retail, direct mail and OEM
sales channels.
SOFTKEY INTERNATIONAL INC. ONE ATHENAEUM STREET CAMBRIDGE, MA 02142
UNITED STATES OF AMERICA TEL 617 494-1200 FAX 617 494-1219