Spatial Technology Reports Sharp Increase in First Quarter
26 April 1999
Spatial Technology Reports Sharp Increase in First Quarter Top- and Bottom-Line Results
BOULDER, Colo.--April 26, 1999--Fuel 78% Increase in License Fees
Spatial Technology Inc.(AMEX:STY), the world's leading developer of open, component 3D modeling technology, today reported a sharp increase in revenue and profitability for the Company's first quarter ended March 31, 1999.
Revenue for the quarter was $4,051,000, up 40% from revenue of $2,892,000 in the first period last year. The growth was attributed in part to a 78% increase in license fees, which totaled $1,670,000 compared with license fees of $936,000 in the first quarter a year ago. The Company also reported a 27% increase in royalty revenue and a 16% improvement in maintenance revenue.
Net income was $60,000, or 1 cent per share, representing a positive swing of $252,000 when compared with a net loss of $192,000, or 2 cents per share, in the first quarter a year ago.
Bruce Morgan, president and chief executive officer, said, "In addition to our strong top- and bottom-line improvements, the first quarter was significant because of the steps we took to position Spatial for continued growth. We have had very positive results from our milestone release of ACIS(R) 5.0 in January, and have experienced strong licensing activity for our advanced Deformable Modeling technology. Demand for this proprietary product played a key role in winning several high-profile new accounts during the first quarter."
During the quarter, Spatial's sales within the Japanese market were noteworthy, more than doubling when compared to last year's first quarter. The Company signed new licensing agreements with major Japanese companies ranging from Honda R&D to Futaba to Photron.
"We continue to receive high praise from customers and industry analysts for the technical strength of our rapidly evolving product lines," Morgan said. "Our success with ACIS 5.0 and related components have helped expand our lead over our competitors and have solidified Spatial's position as the world's dominant provider of open, component 3D modeling technology."
Morgan said that while Spatial reported a significant positive swing in its bottom-line results, the Company continues to make considerable investments in research and development. "Allocations toward R&D increased 46% versus the first quarter last year. We believe this investment has been key to Spatial's rapid growth and will play an important role in our long-term profitability and continued expansion."
During the first quarter, Spatial expanded its family of 3D model interoperability solutions with the release of the ACIS STEP Translator Husk and version 5.0 of the ACIS 3D Open Viewer. The 5.0 Viewer features advancements for model visualization, new hidden line viewing, highly flexible display options, and an improved user interface.
Subsequent to the close of its first quarter, Spatial announced the shipment of ACIS 5.1, the latest release of the Company's 3D modeling kernel. Version 5.1 of the ACIS 3D Toolkit(TM) features a highly optimized extension for architectural, engineering and construction (AEC) applications. Spatial's management said this latest release demonstrates that the Company continues to set the standard for the velocity at which new 3D modeling technology is introduced to the market.
INCOME STATEMENT RECAP
Three Months Ended
March 31,
1999 1998
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Revenue:
License fees $1,670,000 $936,000
Royalties 1,277,000 1,002,000
Maintenance and other 1,104,000 954,000
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Total revenue 4,051,000 2,892,000
Cost of sales 224,000 156,000
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Gross profit 3,827,000 2,736,000
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Total operating expense 3,674,000 2,885,000
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Earnings (loss) from operations 153,000 (149,000)
Other, net (93,000) (43,000)
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Net earnings (loss) $60,000 $(192,000)
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Earnings (loss) per share $.01 $(.02)
Weighted average shares outstanding
Basic 9,274,000 9,163,000
Diluted 9,654,000 9,163,000
BALANCE SHEET DATA
March 31, December 31,
1999 1998
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Working capital $5,409,000 $5,349,000
Total assets $11,918,000 $11,589,000
Stockholders' equity $7,946,000 $7,802,000
Spatial Technology Inc. is the world leader in the development of open, component 3D modeling technology. Spatial's ACIS 3D Toolkit is universally recognized as the de facto 3D modeling standard for the MCAD, CAM, CAE, and AEC industries. ACIS is the undisputed market leader, with 495 licensees and more than 1.4 million end users of the over 180 ACIS-enabled applications in the market.
The ability of the 180+ ACIS-enabled applications to share SAT models is referred to as the ACIS Geometry Bus, which provides true model interoperability in a multi-vendor environment. Industry-leading ACIS-enabled applications include AutoCAD and Mechanical Desktop by Autodesk, Inc. , Bravo by Applicon, Inc., CADKEY by Baystate Technologies, Inc., Grade/CUBE II by Hitachi Zosen Information Systems, GSCAD by Intergraph Corporation , IronCAD by Visionary Design Systems, Inc., MegaCAD by Megatech Software GmbH, TurboCAD Solid Modeler by IMSI , and Vellum Solids by Ashlar Inc.
Headquartered in Boulder, Colorado, Spatial has subsidiaries in Europe and Asia. Shares of Spatial Technology stock are traded on the Nasdaq-AMEX under the symbol "STY." For more information, visit Spatial's web site at http:\\www.spatial.com, or call 303-544-2900.
Statements made in this news release that are not historical facts may be forward looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Spatial Technology Inc. and its industry, and other factors which could affect the Company's financial results, are included in the Company's Securities and Exchange Commission filings, including but not limited to the Company's annual report on Form 10-KSB for the year ended December 31, 1998.
Spatial Technology Inc., ACIS 3D Toolkit and SAT are trademarks. ACIS is a registered trademark of Spatial Technology Inc. All other products are trademarks of their respective owners.