Exhibit 99.1
Media 100 Reports First Quarter 2003 Financial Results,
844/X End-User Unit Shipments Increase 48% Sequentially
Business Editors/High-Tech Writers
MARLBORO, Mass.--(BUSINESS WIRE)--April 3, 2003--Media 100 Inc.
(NASDAQ: MDEA), a leading developer of advanced media systems, today
reported financial results for its first quarter ending February 28,
2003.
Net sales for the first quarter increased 6.6% to $4.8 million,
versus $4.5 million in the first quarter of fiscal 2002, and increased
82% versus the $2.6 million reported in the fourth quarter of fiscal
2002.
On a generally accepted accounting principles (GAAP) basis, the
Company reported a net loss of $1.4 million, or $0.10 per share in the
first quarter, versus a net loss of $5.9 million, or $0.46 per share,
in the first quarter of 2002.
During the first quarter the Company increased end-user unit
shipments of 844/X--the award-winning editing system for
lightning-fast compositing of unlimited layers--by 48% over the fourth
quarter of fiscal 2002. In addition, in January the Company announced
three major new 844/X product advancements--The Version 2.0 Finishing
Release, XBLUR, and HDX Technology--that it expects will contribute to
further growth in fiscal 2003.
"We are pleased we exceeded our revenue guidance by 20% and
continued our progress toward profitability by increasing our sales of
844/X in the first quarter," said John Molinari, president and chief
executive officer for Media 100. "We are excited about our
announcement in January of the Version 2.0 software expansion and the
incorporation of new visual effects and support for HD. These advanced
developments are leading-edge technically and important to customers;
they will help us increase our market penetration in key segments,
including independent content design, regional over-the-air and cable
broadcasting, and Fortune 500 and higher-education video."
In the first quarter, Media 100 made inroads with 844/X in every
key market segment where the compositing of layers is a growing
requirement. Customers purchasing 844/X in the quarter included:
regional broadcasters like NBC affiliate KRNV in Reno, ABC affiliate
WABC TV in New York, MSNBC affiliate WKTV in New York, and Playboy TV
in the UK; cable operators Time Warner Cable and Charter
Communications; corporations such as BAE Systems, General Dynamics,
Honda Research and Development, and John Hancock Financial Services;
educational institutions like Kent State University; and a multitude
of post-production companies and creative agencies.
First Quarter 2003 Highlights
-- 844/X end-user unit shipments increased 48% over the fourth
quarter;
-- The Company began shipments in December of the affordable
844/Xi that targets current users of dual-stream editing
systems;
-- The Company announced in January:
- The Finishing Release--Version 2.0 software for 844/Xe and
844/Xi for expected shipment in May 2003;
- XBLUR--the first-ever incorporation of real-time Gaussian Blur
effects in a nonlinear editing system for expected shipment in
June 2003;
- HDX Technology--expansion of the GenesisEngine media processor
providing support for HD and SD applications in a single 844/X
system, expected for delivery in the second half of 2003;
-- The Company began shipments in February of The
Interoperability Release--Version 1.5 software for 844/X--that
includes OMF compatibility with Avid, Digidesign and Media 100
i systems plus tighter integration with Adobe After Effects
and Photoshop;
-- The installed base of 844/X increased 59% to over 190 systems
installed.
Forward Looking Guidance
For the second quarter of fiscal 2003, Media 100 anticipates net
sales to be in the range of $4.5 million to $5.0 million, based on
increased shipments of 844/X products to end users. The Company
anticipates its net loss in the second quarter of fiscal 2003 to be
between $0.09 and $0.11 per share.
Conference Call Information:
The Company will host a conference call today at 11:00 a.m. EST to
highlight details of its financial results.
Date:
Thursday, April 3, 2003
Time:
11:00 a.m. Eastern Standard Time
10:00 a.m. Central Standard Time
9:00 a.m. Mountain Standard Time
8:00 a.m. Pacific Standard Time
Dial-In Number:
800-473-6123 (Domestic)
973-582-2706 (International)
Additionally, a live Webcast of the conference call will be
available at www.media100.com or www.kcsa.com.
For those unable to participate, there will be an audio replay
available from April 3, 2003 at 1:00 p.m. EST, through April 16, 2003
at 11:59 p.m. EDT.
To listen to the audio replay, please dial:
Domestic: 877-519-4471
International: 973-341-3080
Replay Pin code: 3822320
A replay of the live Webcast will also be available through May 2,
2003 at www.media100.com or www.kcsa.com.
About Media 100
Media 100 develops advanced media systems for content design,
enabling creative professionals to design highly evocative
effects-intensive work all on a personal computer. Creative artists
and content design teams around the world use the Company's Emmy
Award-winning solutions. Media 100 is headquartered in Marlboro,
Massachusetts. For more information, please visit www.media100.com.
Forward Looking Statements
This press release includes "forward-looking statements". All
statements other than statements of historical fact are statements
that could be deemed forward-looking statements. All forward-looking
statements in this press release are made based on management's
current expectations and estimates, which involve risks, uncertainties
and other factors that could cause results to differ materially from
those expressed in forward-looking statements. Among these factors are
changes in overall economic conditions, changes in demand for the
Company's products, changes in inventories at the Company's customers
and distributors, technological and product development risks,
competitors' actions, loss of key customers, order cancellations or
reduced bookings, control of costs and expenses, significant
litigation, risks associated with acquisitions and dispositions,
possible future delisting of the Company's common stock by Nasdaq or
the transfer to The Nasdaq SmallCap Market (including impairment of
the marketability and liquidity of the Company's common stock, the
impairment of the Company's ability to raise capital and other risks
associated with trading on the Nasdaq SmallCap Market), and risks
associated with the Company's international operations. For detailed
information about factors that could cause actual results to differ
materially from those described in the forward-looking statements,
please refer to the Company's filings with the Securities and Exchange
Commission, including the Company's most recent Annual Report on Form
10-K. The Company does not undertake any obligation to update
forward-looking statements made herein.
Media 100 is a registered trademark and 844/X, XBLUR, and HDX
Technology are trademarks of Media 100 Inc. All other products and
brand names are trademarks or registered trademarks of their
respective holders.
MEDIA 100 INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
As a As a
February Percent February Percent
28, of 28, of
(in thousands, except per share data) 2003 Sales 2002 Sales
Net sales:
Products $3,557 74.2% $2,852 63.4%
Services 1,240 25.8% 1,646 36.6%
Total net sales 4,797 100.0% 4,498 100.0%
Cost of sales 2,462 51.3% 2,238 49.8%
Accelerated depreciation - 0.0% 248 5.5%
Gross profit 2,335 48.7% 2,012 44.7%
Operating expenses:
Research and development 1,773 37.0% 2,567 57.1%
Selling and marketing 1,465 30.5% 2,248 50.0%
General and administrative 645 13.4% 1,106 24.6%
Amortization and write-off of
intangible assets - 0.0% 492 10.9%
Accelerated depreciation - 0.0% 634 14.1%
Settlement of litigation - 0.0% 924 20.5%
Total operating expenses 3,883 80.9% 7,971 177.2%
Operating loss (1,548) -32.3% (5,959) -132.5%
Interest income, net 24 0.5% 78 1.7%
Other income (expense), net 172 3.6% (84) -1.9%
Loss before benefit from incomes
taxes (1,352) -28.2% (5,965) -132.6%
Benefit from income taxes - 0.0% (102) -2.3%
Net loss ($1,352) -28.2% ($5,863) -130.3%
Net loss per share:
Basic ($0.10) ($0.46)
Diluted ($0.10) ($0.46)
Weighted average common shares
outstanding:
Basic 13,039 12,636
Diluted 13,039 12,636
MEDIA 100 INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
February November
28, 30,
(in thousands) 2003 2002
ASSETS:
Current assets:
Cash, cash equivalents and
securities $3,388 $4,699
Restricted cash 3,191 3,184
Accounts receivable, net 2,135 2,435
Inventories,net 1,953 2,447
Prepaid expenses and other current assets 781 516
Total current assets 11,448 13,281
Property and equipment, net 1,687 1,870
Intangible assets, net 135 145
Total assets $13,270 $15,296
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $996 $1,295
Accrued expenses 5,766 5,588
Deferred revenue 3,910 4,504
Total current liabilities 10,672 11,387
Stockholders' equity:
Common stock 218,524 218,449
Treasury stock (78) (78)
Accumulated deficit (215,671) (214,319)
Accumulated other comprehensive loss (177) (143)
Total stockholders' equity 2,598 3,909
Total liabilities and stockholders' equity $13,270 $15,296
CONTACT: Media 100 Inc.
Steve Shea, 508/263-5200
sshea@media100.com
or
KCSA Worldwide
Evan Smith, 212/896-1251
esmith@kcsa.com