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MYSOFTWARE
ANNOUNCES STRONG THIRD QUARTER RESULTS
Gross
profits up 240% over Q3 1997
Earnings per share up 150% vs. Q2 1998
(PALO
ALTO, CA) MySoftware (NASDAQ: MYSW) today reported revenues of
$3.8 million for the third quarter ended September 30, 1998, a 14 percent
increase over revenues of $3.3 million in the same quarter last year
and a 9% increase over the record Q2 revenue number set last quarter.
The Company also reported a net income of $223,000 or $.05 per share,
compared to a net loss of $1.6 million or $.38 loss per share in the
same quarter of last year and net income of $81,000 or $.02 per share
in Q2 1998.
The
increase in third quarter revenues was due primarily to MySoftware's
continued success in the retail, Original Equipment Manufacturers (OEM)
and direct sales channels. The Company's subscription-based products
continued to demonstrate solid revenue growth and the OEM group concluded
some sizable new relationships. In addition, the Company experienced
a very successful sell-in to the retail channel of the Company's first
new seasonal promotion product, MyHolidayMailingKit, designed
specifically for holiday mailing. The Company also introduced six new
budget titles under the Company's "ProVenture" brand name: Newsletters,
Web Page Designer, Address Book, Invoices & Estimates, Postcards,
and Presentations & Charts.
The outstanding
Q3 results allowed MySoftware to return to profitability for the year
to date. For the nine months ended September 30, 1998, net revenues
increased 12 percent to $10.4 million, up from $9.2 million in the same
period last year. For the nine months ended September 30, 1998, MySoftware
reported a net income of $114,000 or $.02 earning per share compared
to net loss of $2.4 million or $.58 loss per share for the same period
a year ago.
The Company
experienced net positive cash flow for the quarter ended September 30,
1998. As of September 30, 1998, the Company had $5.3 million in cash
and cash equivalents and working capital of $4.1 million, up from $4.9
million in cash and $3.9 million in working capital as of June 30th.
MySoftware has no debt.
"I'm
very pleased with the progress we continued to make in the third quarter,"
said Gregory Slayton, President and CEO of MySoftware. "As we promised
our shareholders when the new management team took over at the beginning
of this year, the first and second quarters would demonstrate expense
reductions that allowed us as a Company to return to profitability.
The third and fourth quarters would focus on increasing revenues while
maintaining strict cost controls to help produce rapid EPS growth. I
am very excited about the fourth quarter, for it is expected to mark
the Company's serious entry into the high growth Internet services sector.
In December, shareholders should look for the debut of the Internet's
first new customer prospecting service with real time access to hundreds
of millions of consumer and business records. The alpha version is up
now at www.MyProspects.com.
In 1999, we expect to see continued expansion in the Internet and annuity
services areas as MySoftware continues its transformation from being
primarily a retail software company to being primarily a successful
Internet and annuity services company."
Forward-looking
Statements
To the extent that any of the statements contained herein relating
to the Company are forward-looking, such statements are based on current
expectations that involve a number of uncertainties and risks.
Such uncertainties and risks include, but are not limited to, the development
of new products, the enhancement of existing products, the dependence
on principal customers, competitive pricing pressures, product volume
and mix, timing of orders received, and the introduction of competitive
products having technological and/or pricing advantages. As a
result, the Company's operating results may fluctuate, especially when
measured on a quarterly basis. For further information, refer
to the risk factors included in the Company's Annual Report 10-KSB for
the year ended December 31, 1997 as filed with the Securities and Exchange
Commission.
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