Exhibit 99
INTERLEAF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 31,1999 January 31,1999 March 31, 1998
(Pro Forma) (Historical)
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Unaudited
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In thousands, except for share and per share amounts
ASSETS
Current assets
Cash and cash equivalents $ 13,632 $ 9,405 $ 21,112
Accounts receivable, net of reserve for doubtful accounts
of $1,159 at January 31, 1999 and $1,364 at March 31, 1998 11,072 11,072 12,706
Prepaid expenses and other current assets 1,351 1,351 838
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Total Current Assets 26,055 21,828 34,656
Property and equipment, net 2,115 2,115 3,321
Intangible assets, net 2,092 2,092 583
Other assets 385 385 828
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Total Assets $ 30,647 $ 26,420 $ 39,388
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LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,357 $ 1,357 $ 2,079
Accrued expenses 10,322 9,972 11,657
Unearned revenue 8,630 8,630 12,136
Accrued restructuring 1,137 1,137 2,143
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Total Current Liabilities 21,446 21,096 28,015
Long-term restructuring 1,179 1,179 2,063
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Total Liabilities 22,625 22,275 30,078
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Shareholders' Equity
Preferred stock, par value $.10 per share, authorized 5,000,000 shares: Series
A Junior Participating, none issued and outstanding Senior Series B
Convertible, shares issued and outstanding,
726,003 at January 31, 1999 and 861,911 at March 31, 1998 73 73 86
Senior Series C Convertible, shares issued and outstanding,
none at January 31,1999 and 1,010,348 at March 31, 1998 -- -- 101
Senior Series D 6% Convertible, shares issued and outstanding,
1,350 at January 31, 1999 and 7,625 at March 31, 1998 -- -- 1
Common stock, par value $.01 per share, authorized 50,000,000 shares,
issued and outstanding, 7,652,292(historical), 9,413,459(pro forma)
at January 31, 1999 and 6,051,770 at March 31, 1998 94 77 61
Additional paid-in capital 94,077 90,217 93,490
Retained earnings (accumulated deficit) (85,914) (85,914) (84,072)
Cumulative translation adjustment (308) (308) (357)
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Total Shareholders' Equity 8,022 4,145 9,310
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Total Liabilities and Shareholders' Equity $ 30,647 $ 26,420 $ 39,388
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INTERLEAF, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Ten Months
Ended
January 31, 1999
(unaudited)
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In thousands, except for per share amounts
Revenues:
Products $ 6,805
Maintenance 18,752
Services 10,753
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Total revenues 36,310
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Costs of Revenues:
Products 2,013
Maintenance 2,636
Services 10,073
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Total costs of revenues 14,722
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Gross margin 21,588
Operating Expenses:
Selling, general and administrative 16,342
Research and development 6,593
Acquisition Costs 990
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Total operating expenses 23,925
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Income (loss) from operations (2,337)
Other income (expense) 520
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Income (loss) before income taxes (1,817)
Provision for income taxes 25
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Net Income (loss) $ (1,842)
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