EX-99 3 a4484724ex991.txt MEDIA 100 INC. PRESS RELEASE 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