Exhibit 99.1
Media 100 Reports Third Quarter 2003 Financial Results; 844/X
Shipments to End Users Continue to Grow
MARLBORO, Mass.--(BUSINESS WIRE)--Oct. 2, 2003--Media 100 Inc.
(NASDAQ: MDEA), a leading developer of advanced media systems, today
reported financial results for its third quarter ending August 31,
2003.
Net sales for the third quarter were $3.4 million, versus $5.4
million reported in the third quarter of fiscal 2002. On a generally
accepted accounting principles (GAAP) basis, the Company reported a
net loss attributable to common stockholders of $2.1 million, or $0.16
per share, in the third quarter versus $2.3 million, or $0.17 per
share, in the third quarter of 2002.
The Company shipped a record number of 844/X units to end users in
the third quarter, growing the installed base by 33% over the second
quarter of fiscal 2003. This increase was due in large part to the
hiring of a new sales organization in North America that is focused on
selling 844/X directly to end-users.
"During the third quarter we transitioned from selling 844/X
solely through resellers to also selling systems direct to end users
ourselves," said John Molinari, president and chief executive officer
for Media 100. "As the quarter progressed, we began to benefit with
higher 844/X sales, which we expect to continue in the fourth quarter,
particularly as our direct sales organization and new sales offices
are up and running in full, and more and more 844/X users are
spreading the word about the business and creative benefits of using
the system."
Third Quarter 2003 Highlights
-- Shipped a record number of 844/X units, including more
multiple-unit orders than in any previous quarter;
-- Grew 844/X end-user installed base 33% versus Q2;
-- Opened 844/X showcase offices supporting direct sales in
Chicago, Denver, London (Soho), Los Angeles, Miami, and New
York (TriBeCa);
-- Shipped iFinish Version 4.6 software for Windows;
-- Shipped Media 100 i Version 8.2 software for Mac OS X;
-- Media 100 stockholders approved the remaining $1.5 million of
the committed $2.5 million investment from Coghill Capital
Management;
-- Continued to ship 844/X to such flagship customers as:
-- KXII, the CBS affiliate in Dallas, TX;
-- WCAX, the CBS affiliate in Burlington, VT;
-- WSET, the ABC affiliate in Lynchburg, VA;
-- KLRN, the PBS affiliate in San Antonio, TX;
-- First Tennessee Bank in Memphis, TN;
-- The World Bank in Washington D.C.
Forward Looking Guidance
The Company is targeting increased revenues, based on sales growth
of 844/X, and a lower net loss in the fourth quarter versus the third
quarter.
Conference Call Information:
The Company will host a conference call today at 11:00 a.m. EDT to
highlight details of its financial results.
Date:
Thursday, October 2, 2003
Time:
11:00 a.m. Eastern Daylight Time
10:00 a.m. Central Daylight Time
9:00 a.m. Mountain Daylight Time
8:00 a.m. Pacific Daylight Time
Dial-In Number:
888-417-2317 (Domestic)
973-935-2405 (International)
For those unable to participate, there will be an audio replay
available from October 2, 2003 at 1:00 p.m. EDT through October 15,
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: 4205473
Additionally, a live Webcast of the conference call will be
available at www.media100.com. A replay of the live Webcast will also
be available through October 30, 2003 at www.media100.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, the
raising of additional funds and the dilutive effect to existing
stockholders caused by the issuance of equity or convertible debt
securities along with the rights, preferences and privileges of the
securities being sold that may be superior to those of holders of the
Company's common stock, possible future delisting of the Company's
common stock by Nasdaq (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 Quarterly Report on Form 10-Q. The
Company does not undertake any obligation to update forward-looking
statements made herein.
Media 100, 844/X and i are registered trademarks and iFinish is a
trademark 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
Percent Percent
(in thousands, except Aug. 31, of Aug. 31, of
per share data) 2003 Sales 2002 Sales
---------------------------------
Net sales:
Products $2,138 63.8% $3,931 73.2%
Services 1,213 36.2% 1,437 26.8%
-------- ------- -------- -------
Total net sales 3,351 100.0% 5,368 100.0%
Cost of sales 1,697 50.6% 2,734 50.9%
-------- ------- -------- -------
Gross profit 1,654 49.4% 2,634 49.1%
Operating expenses:
Research and development 1,431 42.7% 2,101 39.1%
Selling and marketing 1,412 42.1% 1,650 30.7%
General and administrative 672 20.1% 796 14.8%
Amortization and write-off of
intangible assets - 0.0% 279 5.2%
Restructuring charge (21) -0.6% 299 5.6%
-------- ------- -------- -------
Total operating expenses 3,494 104.3% 5,125 95.5%
-------- ------- -------- -------
Operating loss (1,840) -54.9% (2,491) -46.4%
Interest income, net 2 0.1% 31 0.6%
Other income (expense) (135) -4.0% 204 3.8%
-------- ------- -------- -------
Loss before benefit from
income taxes (1,973) -58.9% (2,256) -42.0%
Benefit from income taxes - 0.0% - 0.0%
-------- ------- -------- -------
Net loss (1,973) -58.9% (2,256) -42.0%
-------- ------- -------- -------
Dividend payable to preferred
stockholder 89 2.7% 0 0.0%
-------- ------- -------- -------
Net loss attributable to common
stockholders ($2,062) -61.5% ($2,256) -42.0%
======== ======= ======== =======
Loss per share attribuable to common:
Basic ($0.16) ($0.17)
Diluted ($0.16) ($0.17)
Weighted average common shares
outstanding:
Basic 13,196 12,910
Diluted 13,196 12,910
MEDIA 100 INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended
As a As a
Percent Percent
(in thousands, except Aug. 31, of Aug. 31, of
per share data) 2003 Sales 2002 Sales
----------------------------------
Net sales:
Products $9,564 72.0% $11,862 72.1%
Services 3,716 28.0% 4,583 27.9%
-------- ------- --------- -------
Total net sales 13,280 100.0% 16,445 100.0%
Cost of sales 6,648 50.1% 8,606 52.3%
-------- ------- --------- -------
Gross profit 6,632 49.9% 7,839 47.7%
Operating expenses:
Research and development 4,993 37.6% 7,227 43.9%
Selling and marketing 4,468 33.6% 6,614 40.2%
General and administrative 1,858 14.0% 3,329 20.2%
Amortization and write-off of
intangible assets - 0.0% 1,044 6.3%
Accelerated depreciation - 0.0% 849 5.2%
Settlement of litigation - 0.0% 924 5.6%
Restructuring charge 193 1.5% 299 1.8%
-------- ------- --------- -------
Total operating expenses 11,512 86.7% 20,286 123.4%
-------- ------- --------- -------
Operating loss (4,880) -36.8% (12,447) -75.7%
Interest income, net 38 0.3% 146 0.9%
Other income 217 1.7% 390 2.5%
-------- ------- --------- -------
Loss before benefit from
income taxes (4,625) -34.8% (11,911) -72.3%
Benefit from income taxes 0 0.0% (102) -0.6%
-------- ------- --------- -------
Net loss ($4,625) -34.8% ($11,809) -71.8%
======== ======= ========= =======
Dividend payable to preferred
stockholder 89 1.3% 0 0.0%
-------- ------- --------- -------
Net loss attributable to common
stockholders ($4,714) -70.9% ($11,809) -137.2%
======== ======= ========= =======
Loss per share attribuable to
common:
Basic ($0.36) ($0.92)
Diluted ($0.36) ($0.92)
Weighted average common shares
outstanding:
Basic 13,106 12,777
Diluted 13,106 12,777
MEDIA 100 INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Aug. 31, Nov. 30,
(in thousands) 2003 2002
--------- ---------
ASSETS:
Current assets:
Cash, cash equivalents and
securities $1,249 $4,699
Restricted cash 215 3,184
Accounts receivable, net 1,703 2,435
Inventories,net 1,065 2,447
Prepaid expenses and other current assets 761 516
--------- ---------
Total current assets 4,993 13,281
Property and equipment, net 1,349 1,870
Intangible assets, net 102 145
--------- ---------
Total assets $6,444 $15,296
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $711 $1,295
Accrued expenses 2,624 5,588
Deferred revenue 2,759 4,504
--------- ---------
Total current liabilities 6,094 11,387
Series A convertible preferred stock 1,045 -
Stockholders' equity:
Common stock 218,500 218,449
Treasury stock (78) (78)
Accumulated deficit (218,944) (214,319)
Accumulated other comprehensive loss (173) (143)
--------- ---------
Total stockholders' equity (695) 3,909
--------- ---------
Total liabilities and stockholders' equity $6,444 $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