Company Reports Earnings Per Share of $0.03 on Revenues of $12.0 Million
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NOVATO, Calif., Sept. 13 /PRNewswire-FirstCall/ -- IMSI(R) (BULLETIN BOARD: IMSI) , a leading developer and publisher of precision design, and consumer and business software solutions, today announced its financial results for the three and twelve months ended June 30, 2004. For the twelve months ended June 30, 2004, IMSI reported net income of $646,000, or $0.03 per share on net revenues of $12.0 million. Net income included gains from the sale of discontinued operations of $2.0 million and gains from marketable securities of $2.6 million. Net revenues from continuing operations increased more than fifty percent (50%) as compared to the previous fiscal year reflecting the strength of the precision design business and the acquisitions of Allume Systems, Inc. (formerly Aladdin Systems, Inc.) which was completed in the fourth quarter, and Houseplans, Inc. in November 2003.
Net revenues from continuing operations for the three months ended June 30, 2004 were $5.3 million, an increase of over 150% as compared to the same period from the previous fiscal year. IMSI also reported net income of $96,000, or $0.01 per share, for the three month period ended June 30, 2004 as compared to $11.0 million, or $0.48 per share, from the same period in the prior year, which included a gain on the sale of ArtToday, Inc. of $12.2 million. The June 2004 quarter's results include gains from the sale of discontinued operations of $1.0 million and gains from marketable securities of $627,000.
IMSI's strategy of acquiring growth companies has been successful in generating positive results as demonstrated by the growth in sales for the quarter and fiscal year. Had Allume been a part of IMSI for the entire fiscal year, annual revenues would have been in excess of $19 million. The process of integrating the companies is well under way and we expect to realize significant revenue and cost synergies beginning in our second quarter of fiscal 2005 ending December 31, 2004.
Houseplans, Inc., which focuses on selling stock house plans, also continues to demonstrate positive results. The business now has an inventory in excess of 15,000 stock house plans and is seeing its average sales price and gross revenue continue to improve. With our traffic generation efforts and affiliate programs in place and beginning to take hold, Houseplans, Inc. is expected to continue to contribute positively to the company's consolidated results.
"Our continued progress in the on-line distribution of software and content is evidenced by the successful introduction of the newest version of StuffIt, the strong results from Houseplans, Inc., which reported approximately $607,000 of revenue (a 27% sequential increase) in the current quarter, and the wide acceptance of our newest version of TurboCAD", said Martin Wade, IMSI CEO. "With the completion our acquisition of Allume, in the fourth fiscal quarter, we believe that we have significantly strengthened our utilities business which will help drive our long term financial performance. We continue to believe that these key strategic initiatives will result in long term shareholder value, even though they have come at the cost of current operating profits. With the doubling of our revenue run rate (refer below to our fiscal 2005 projections) and our plan to generate operating profits in the current fiscal year from cost cutting and operational efficiencies realized from the acquisition, we believe that IMSI is well positioned for the future.
"We plan to continue to identify and complete transactions aimed at optimizing operating performance," stated Gordon Landies, IMSI President. "The sale of Keynomics in July, at a gain, allows us to sharpen our focus on the company's core businesses which are the development and publication of software solutions and on-line content to consumers and small businesses. We intend to continue internally developing and acquiring products and services which we believe represent a strategic fit to our existing assets and strategy."
(IMSI CONSOLIDATED STATEMENT OF OPERATIONS, BUSINESS OUTLOOK and FY 05
FORECAST removed from this edited version of the news announcement)
About IMSI
Founded in 1982, IMSI has established a tradition of providing the professional and home user with innovative technology and easy-to-use, high-quality software products at affordable prices. The company maintains two business divisions. The Precision Design division, anchored by IMSI's flagship product, TurboCAD(R) and the DesignCAD(TM) line, also develops and markets other visual content and design software such as FloorPlan(R) 3D and TurboCADCAM. The division also includes several online properties focused on the sale of content and services to the architectural, engineering and construction market thru its stock house plans site at Houseplans.com, its CAD add-on store, Cadalog.com and the online CAD symbol site, CADsymbols.com. The Consumer Software Solutions division, which is anchored by Allume Systems, Inc. (formerly Aladdin Systems, Inc.), provides small businesses and consumers with software solutions through its popular products such as StuffIt(R), Internet Cleanup(R), SpamCatcher(R), TurboProject(R), FormTool(R), FlowCharts&More(TM), HiJaak(R) and
TurboTyping(TM).
