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EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: NEWS
AMEX: PCD
PLANETCAD RESTATES FIRST QUARTER FINANCIAL RESULTS
Boulder, CO., JULY 19, 2001 - PlanetCAD Inc. (AMEX-PCD), a leading developer of
engineering software solutions that integrate engineering processes and data
with the manufacturing supply chain, today announced that management, led by the
Company's new chief financial officer, has discovered accounting errors in the
Company's previously reported financial results for the first quarter ended
March 31, 2001, and has consequently restated those results.
First quarter sales, which were previously reported as $480,000, were restated
at $337,000. The restated revenue represents a 120% increase over first quarter
sales a year ago, rather than the previously reported increase of 214%. The
Company reversed $101,000 in royalty revenue, reversed $77,000 of maintenance
revenue and increased license revenue by $35,000.
Net loss, which had been reported as $2.2 million, or $0.18 per diluted share,
has been restated as a net loss of $2.5 million, or $0.20 per diluted share.
This compares with a net loss of $1.5 million, or $0.14 per diluted share, in
the first quarter a year ago.
In the restatement, the Company reversed $101,000 in royalties that were
incorrectly recorded as a result of a misinterpretation of a single customer
contract. In addition, the Company reversed $77,000 of maintenance revenue
because of accounting errors related to maintenance contracts, and reclassified
royalty expenses of $35,000 from license revenue to cost of revenue. The Company
also restated cost of revenue to record additional royalty expenses of $77,000.
Cost of revenue and operating expenses were also adjusted to properly reflect
health benefits and depreciation expenses, as well as to reclassify certain
expenses among sales and marketing, research and development and general and
administrative expenses.
Jim Bracking, president and CEO, said, "We are very disappointed that mistakes
occurred in the reporting of our first quarter results and consequently are
taking aggressive steps to strengthen our financial reporting processes and
ensure the accuracy of our reported results going forward. The extensive
financial management experience that Joy Godesiabois Sullins, our new CFO,
brings is proving to be a valuable asset in this process."
Bracking said the accounting errors were discovered in a routine review
conducted by Ms. Sullins upon her arrival at the Company shortly after first
quarter results were reported. "The first quarter was a period of considerable
transition within the Company's financial department, which was being managed by
an interim staff working under very tight deadlines as we searched for a
full-time CFO," Bracking said. "It was under these circumstances that the errors
occurred."
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Sullins said, "Our review and subsequent analysis has helped us identify where
we need to strengthen our financial systems and processes. Furthermore, we
anticipate adding key support personnel to the finance team in the coming
months."
ABOUT PLANETCAD INC.
PlanetCAD develops and delivers high quality enterprise solutions for
streamlining engineering data interchange throughout the digital manufacturing
supply chain. PlanetCAD's products include the PrescientQA(TM) design-quality
engineering software suite, which reduces costly design errors, accelerates
time-to-market, and improves the product development process; and
IntraVISION(R), which enables viewing, markup, measuring and conversion of more
than 300 file formats.
PlanetCAD is headquartered in Boulder, Colorado and has offices in
Westborough, Massachusetts and the United Kingdom. For more information, visit
www.planetcad.com, or call (888) 319-0871.
Statements made in this news release that are not historical facts may
be forward-looking statements. Actual results may differ materially from those
projected in any forward-looking statement. There are a number of important
factors that could cause actual results to differ materially from those
anticipated by any forward-looking information. A description of risks and
uncertainties attendant to PlanetCAD and its industry, and other factors which
could affect PlanetCAD's financial results, are included in PlanetCAD's
Securities and Exchange Commission filings, including, but not limited to,
PlanetCAD's annual report on Form 10-KSB for the year ended December 31, 2000.
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PLANETCAD AND PRESCIENTQA ARE TRADEMARKS OF PLANETCAD INC. DESIGNQA IS A
REGISTERED TRADEMARK OF PLANETCAD INC. INTRAVISION IS A REGISTERED TRADEMARK OF
SPATIAL CORP. ALL OTHER PRODUCTS ARE TRADEMARKS OF THEIR RESPECTIVE OWNERS.
CONTACT:
Joy Godesiabois Sullins, CFO, PlanetCAD, (303) 209-9100
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The following financial statements should be read in conjunction with the
Company's amended quarterly report on Form 10-QSB/A, which was filed with the
Securities and Exchange Commission on the date of this press release, and the
notes to the financial statements contained therein.
INCOME STATEMENT INFORMATION (UNAUDITED)
(In thousands, except per share data)
THREE MONTHS ENDED
MARCH 31, 2001
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(AS PREVIOUSLY (AS
REPORTED) RESTATED)
Revenue:
License fees $ 189 $ 123
Services 291 214
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Total revenue 480 337
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Cost of revenue:
License fees 75 176
Services 243 273
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Total cost of revenue 318 449
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Gross profit (loss) 162 (112)
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Operating expenses:
Sales and marketing 535 545
Research and development 1,497 1,410
General and administrative 1,042 1,128
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Total operating expenses 3,074 3,083
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Loss from operations (2,912) (3,195)
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Interest income 241 241
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Loss from continuing operations (2,671) (2,954)
Income from discontinued operations, net of tax 447 447
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Net loss $ (2,224) $ (2,507)
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Earnings (loss) per common share, basic and diluted:
Continuing operations $ (0.22) $ (0.24)
Discontinued operations $ 0.04 $ 0.04
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Net loss per share $ (0.18) $ (0.20)
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Weighted average shares outstanding 12,406 12,406
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BALANCE SHEET INFORMATION (UNAUDITED)
(In thousands, except share and per share data)
ASSETS MARCH 31, 2001
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(AS PREVIOUSLY (AS
REPORTED) RESTATED)
Current assets:
Cash and cash equivalents $ 13,816 $ 13,963
Accounts receivable, net of allowance of $493 898 797
Prepaid expenses and other 662 368
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Total current assets 15,376 15,128
Equipment, net 1,291 1,366
Purchased computer software and other intangibles, net 821 821
Other assets 174 174
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Total assets $ 17,662 $ 17,489
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,016 $ 1,016
Accrued expenses 913 946
Deferred revenue 620 697
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Total current liabilities 2,549 2,659
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Stockholders' equity:
Common stock, $.01 par value; 22,500,000 shares authorized;
12,409,480 shares issued and outstanding 124 124
Additional paid-in capital 35,994 35,994
Accumulated deficit (21,005) (21,288)
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Total stockholders' equity 15,113 14,830
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Total liabilities and stockholders' equity $ 17,662 $ 17,489
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