Exhibit 99 INTERLEAF, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS January 31,1999 January 31,1999 March 31, 1998 (Pro Forma) (Historical) --------------- --------------- Unaudited ------------------------------- 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 ---------- ---------- ----------- 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 ---------- ---------- ----------- Total Assets $ 30,647 $ 26,420 $ 39,388 ---------- ---------- ----------- ---------- ---------- ----------- 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 ---------- ---------- ----------- Total Current Liabilities 21,446 21,096 28,015 Long-term restructuring 1,179 1,179 2,063 ---------- ---------- ----------- Total Liabilities 22,625 22,275 30,078 ---------- ---------- ----------- ---------- ---------- ----------- 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) ---------- ---------- ----------- Total Shareholders' Equity 8,022 4,145 9,310 ---------- ---------- ----------- Total Liabilities and Shareholders' Equity $ 30,647 $ 26,420 $ 39,388 ---------- ---------- ----------- ---------- ---------- ----------- INTERLEAF, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS Ten Months Ended January 31, 1999 (unaudited) ----------- In thousands, except for per share amounts Revenues: Products $ 6,805 Maintenance 18,752 Services 10,753 -------- Total revenues 36,310 -------- Costs of Revenues: Products 2,013 Maintenance 2,636 Services 10,073 -------- Total costs of revenues 14,722 -------- Gross margin 21,588 Operating Expenses: Selling, general and administrative 16,342 Research and development 6,593 Acquisition Costs 990 -------- Total operating expenses 23,925 -------- Income (loss) from operations (2,337) Other income (expense) 520 -------- Income (loss) before income taxes (1,817) Provision for income taxes 25 -------- Net Income (loss) $ (1,842) -------- --------