Houseplans Division Results Feature 50% Sales Growth NOVATO,
Calif., May 15 /PRNewswire-FirstCall/ -- IMSI(R) (OTC:IMSI)
(BULLETIN BOARD: IMSI) , a leading provider of house plans online
and a leading developer and publisher of precision design, and
consumer and business software solutions, today announced its
financial results for the third fiscal quarter ended March 31,
2006. For the three months ended March 31, 2006, IMSI reported net
income of $251,000, or $0.01 per share on net revenues of $4.0
million. Net revenues increased by 50% in the Houseplans(TM)
business and 6% overall, as compared to the previous fiscal year,
reflecting primarily continued growth in the Houseplans(TM)
business. The following are highlights for the three months ended
March 31, 2006: -- Net income of $251,000. -- Growth in
Houseplans(TM) was 50% and 83% for the three and nine months, and
6% and 27% for the three and nine months without the acquisition of
globalHouseplans.com. -- Company gross margins improved to 64.7%
from 64.3% in the prior quarter -- Houseplans(TM) gross margins
improved to 65% from 55% as compared to the previous fiscal year.
-- International net revenue increased 144% driven by
globalHouseplans.com. -- A proxy statement was distributed for the
May 23 Annual Meeting where the shareholders will consider the
proposed merger with AccessMedia Networks, Inc. ("AccessMedia") and
the change of name to Broadcaster, Inc. Non-GAAP Information --
GAAP net income (loss) when adjusted for certain non-cash activity
and taxes to "EBITDA" was a positive $641,000 for the quarter.
"While the company is currently in the final stages of the proposed
merger with AccessMedia, we still see excellent results in the
existing businesses. The Houseplans(TM) business has prospered
during the current building season and we expect it to expand with
innovative products and services. We continue to add stock house
plans to serve the customer and now have over 23,000 for what we
believe is the Web's largest collection of exceptional house
plans," said Martin Wade III, Chief Executive Officer. "We believe
we have the resources on hand to grow our businesses with $9.7
million in cash and cash equivalents," continued Mr. Wade. "We
picked up $776,000 from the escrow from the sale of Allume in March
and have a final payment due in December 2006. The Precision Design
business launched TurboCAD version 12 in March and we expect good
June quarter results from the product renewal cycle. Additionally,
we expect a month or more of results in the June quarter from
AccessMedia. We expect those product offerings to launch and
accelerate the company's growth." Conference call set for May 16,
2006 The quarterly conference call to discuss results of the third
quarter results ended March 31, 2006 and the pending merger with
AccessMedia will take place on Tuesday, May 16, 2006, at 4:00 p.m.
Eastern Time (1:00 p.m. Pacific Time). The public may participate
in this event by calling (877) 704-5386. Individuals are also
invited to listen to the conference call, which will be broadcast
live over the Internet beginning Tuesday, May 16, 2006, at 4:00
p.m. Eastern Time. The webcast will also be distributed over CCBN's
Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through
CCBN's individual investor center at http://www.earnings.com/ or by
visiting any of the investor sites in CCBN's Individual Investor
Network. Institutional investors can access the call via CCBN's
password protected event management site, StreetEvents
(http://www.streetevents.com/). A telephone replay will be made
available for 7 days following the call. To hear a replay, call
888-203-1112 toll free or 719-457-0820 direct and use passcode I.D.
# 3438849. May 23 Annual Meeting to vote on Merger and Name Change
to Broadcaster, Inc. The 2006 Annual Meeting of Shareholders of
International Microcomputer Software, Inc., will be held at the
offices of AccessMedia Networks, Inc., 9201 Oakdale Avenue, Suite
200, Chatsworth, CA 91311, on May 23, 2006 at 10:00 a.m. Pacific
Time. Martin Wade, IMSI's CEO, who will continue to lead the
combined organization, said, "This meeting will be the key step
toward the proposed acquisition of AccessMedia and the proposed
corporate name change to Broadcaster, Inc. I enthusiastically
support the merger and join IMSI's Board of Directors in
recommending that you consider and vote for the proposals submitted
to the stockholders. The shareholders will also consider
authorizing a reverse (1:2) stock split." In addition to disclosing
results determined in accordance with generally accepted accounting
principles (GAAP), IMSI also discloses non-GAAP results of
operations that exclude certain items. By disclosing this non-GAAP
information, management intends to provide investors with
additional information to further analyze the company's
performance, core results and underlying trends. Management
utilizes a measure of net income on a non-GAAP basis that excludes
certain charges to better assess operating performance. Non-GAAP
information is not GAAP. Therefore, the information is not
necessarily comparable to other companies and should not be used to
compare the company's performance over different periods. Non-GAAP
information should not be viewed as a substitute for, or superior
to, net income or other data prepared in accordance with GAAP as
measures of our profitability or liquidity. Users of this financial
information should consider the types of events and transactions
for which adjustments have been made. See the following table for a
reconciliation of this non-GAAP information to amounts reported
under GAAP. EBITDA Analysis (In thousands) FY 2005 FY 2006 Q1 Q2 Q3
Q1 Q2 Q3 Net (Loss) Income - the GAAP measure ($275) $129 ($1,246)
($1,952) $122 $249 Interest paid 70 55 64 123 21 ($26) Taxes 5 3 2
-- 39 $21 Depreciation & Amortization 262 303 302 356 422 $396
EBITDA - Non-GAAP $62 $490 ($878) ($1,473) $604 $640 Notes on
components of Net (Loss) Income related to transactions Income from
the sale of Discontinued Operations 285 159 (449) 0 0 0 Gain from
the sale of Discontinued Operations 53 0 0 (843) 369 776
INTERNATIONAL MICROCOMPUTER SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share
amounts) March 31, 2006 June 30, 2005 Unaudited ASSETS Current
assets: Cash and cash equivalents $9,723 $4,347 Trading securities
0 714 Receivables, less allowances for doubtful accounts, discounts
and returns of $493 as of March 31, 2006 and $626 as of June 30,
2005. 989 773 Inventories, net 910 758 Receivables, other (related
to discontinued operations) 0 2,000 Receivables, other 0 30 Other
current assets 1,479 530 Assets related to discontinued operations
0 12,231 Total current assets 13,101 21,383 Fixed assets, net 302
377 Intangible assets Capitalized software, net 231 494 Domain
names and brands, net 1,818 1,574 Distribution rights and
proprietary plans, net 753 170 Capitalized customer lists,
agreements and relationships, net 1,227 326 Goodwill 3,852 2,090
Trademarks, net 18 1 Total intangible assets 7,899 4,655 Total
assets $21,302 $26,415 LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Short-term debt 93 2,764 Trade accounts payable 1,315
2,245 Accrued and other liabilities 1,598 1,871 Deferred revenues
26 38 Liabilities related to discontinued operations 0 1,037 Total
current liabilities 3,032 7,955 Long-term debt and other
obligations 176 230 Total liabilities 3,208 8,185 Shareholders'
equity Common stock, no par value; 300,000,000 authorized;
30,144,160 issued and outstanding as of March 31, 2006 and
28,796,886 issued and outstanding as of June 30, 2005 44,854 43,663
Accumulated deficit (26,911) (25,331) Accumulated other
comprehensive income (loss) 151 (102) Total shareholders' equity
18,094 18,230 Total liabilities and shareholders' equity $21,302
$26,415 INTERNATIONAL MICROCOMPUTER SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE
INCOME/(LOSS) (In thousands, except per share amounts) (Unaudited)
Three months ended Nine months ended March 31, March 31, 2006 2005
2006 2005 Net revenues $4,029 $3,799 $11,714 $10,412 Product costs
1,424 1,272 4,207 3,415 Gross margin 2,605 2,527 7,507 6,997 Costs
and expenses Sales and marketing 1,669 1,635 4,859 4,523 General
and administrative 1,047 932 3,801 2,773 Research and development
486 418 1,474 1,255 Total operating expenses 3,202 2,985 10,134
8,551 Operating loss (597) (458) (2,627) (1,554) Other income
(expense) Interest and other, net 93 (61) 40 (22)
Realized/unrealized gain on securities -- (276) 765 145 Loss before
income tax (504) (795) (1,822) (1,431) Income tax provision 21 (2)
60 (9) Loss from continuing operations (525) (797) (1,882) (1,440)
Income from discontinued operations, net of income tax -- 411 --
856 Gain (loss) from the sale of discontinued operations, net of
income tax 776 -- 302 52 Net income (loss) $251 ($386) ($1,580)
($532) Other comprehensive income (loss) Foreign currency
translation adjustments 62 (5) 253 (38) Comprehensive income (loss)
$313 ($391) ($1,327) ($570) Basic earnings (loss) per share: Loss
from continuing operations ($0.01) ($0.01) ($0.06) ($0.01) Income
from discontinued operations, net of Income tax $0.00 $0.00 $0.00
$0.00 Gain (loss) from the sale of discontinued operations, net of
income tax $0.02 $0.01 $0.01 $0.03 Net income (loss) $0.01 ($0.01)
($0.05) ($0.02) Diluted earnings (loss) per share: Loss from
continuing operations ($0.01) ($0.01) ($0.06) ($0.01) Income from
discontinued operations, net of income tax $0.00 $0.00 $0.00 $0.00
Gain (loss) from the sale of discontinued operations, net of income
tax $0.02 $0.01 $0.01 $0.03 Net income (loss) $0.01 ($0.01) ($0.05)
($0.02) Shares used in computing basic earnings (loss) per share
30,043 28,051 29,850 27,623 Shares used in computing diluted
earnings (loss) per share 30,043 28,051 29,850 27,623 INTERNATIONAL
MICROCOMPUTER SOFTWARE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Nine months ended
March 31, 2006 (In thousands, except share amounts) (Unaudited)
Common Stock Accumulated other Accumulated comprehensive Shares
Amount deficit income (loss) Total Balance at July 1, 2005
28,796,886 $43,663 ($25,331) ($102) $18,230 Issuance of common
stock related to: Stock options exercised 99,291 80 -- Warrants
exercised and other 428,673 -- 80 Acquisitions 826,583 1,021 1,021
Finder's fee related to acquisition 20,000 25 25 Issuance of stock
options related to: Consulting services rendered 21 21 Issuance of
warrants related to: Acquisitions 6 6 Procurement of short-term
debt 68 68 Stock buy back (27,273) (30) (30) Issuance of stock
options 2 2 Variable accounting adjustment (2) (2) Net loss (1,580)
(1,580) Foreign currency translation adjustment 253 253 Balance at
March 31, 2006 30,144,160 $44,854 ($26,911) $151 $18,094
INTERNATIONAL MICROCOMPUTER SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited) Nine months ended March 31, 2006 2005 Cash flows from
operating activities: Net cash provided by (used in) operating
activities ($948) $237 Cash flows from investing activities:
Proceeds from sale of discontinued operations 10,242 608 Proceeds
from sale of product line -- 258 Acquisition of subsidiaries
(1,807) (1,356) Acquisition of software development, domain names
and trademarks -- (602) Purchases of equipment and software (31)
(213) Transfer cash to escrow for Jupitermedia -- (499) Proceeds
from the sale of marketable securities 1,524 1,780 Other (8) 371
Cash provided by discontinued operations in investing activities --
470 Net cash provided by investing activities 9,920 817 Cash flows
from financing activities: Proceeds from borrowings 850 400
Repayments of notes (4,579) (2,368) Proceeds from warrants and
options exercised 80 152 Cash provided by discontinued operations
in financing activities -- (20) Net cash used in financing
activities (3,649) (1,836) Effect of exchange rate change on cash
and cash equivalents 53 (39) Net increase (decrease) in cash and
cash equivalents 5,376 (821) Cash and cash equivalents at beginning
of period 4,347 3,212 Cash and cash equivalents at end of the
period $9,723 $2,391 Nine months ended March 31, 2006 2005
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid 2
189 Income tax paid 66 2 SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES Capital stock issued in
conjunction with acquisitions 1,046 1,602 Warrants issued in
conjunction with acquisitions 6 -- Notes payable incurred in
conjunction with acquisitions 1,000 480 Warrants issued in
conjunction with short-term debt 68 -- About IMSI International
Microcomputer Software, Inc. is in the process of becoming a
technology-based media company, having historically operated as a
software company. Media and content will be offered over the
Internet through Broadcaster's virtual set top box, following the
merger with AccessMedia. Proxy statement available for May 23
meeting to vote on merger IMSI has filed a proxy statement for the
stockholder meeting with the Securities and Exchange Commission.
Investors and security holders are advised to read the proxy
statement because it contains important information about the
proposed merger. Investors and security holders may obtain a free
copy of the proxy statement and other documents filed by IMSI with
the Securities and Exchange Commission at the Securities and
Exchange Commission's web site at http://www.sec.gov/. Free copies
of the proxy statement) and other documents filed by IMSI with the
Securities and Exchange Commission may also be obtained from IMSI
by directing a request to Investor Relations at IMSI (telephone
(415-878-4000). IMSI and its directors and its executive officers
may be deemed, under SEC rules, to be soliciting proxies from
IMSI's stockholders in favor of the proposed merger. Information
regarding the identity of these persons, and their interests in the
solicitation, is set forth in a Schedule 14A filed with the SEC,
and is available free of charge at the SEC website and public
reference rooms, and from IMSI. Safe Harbor Statement This
announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual results
could differ materially from those projected in the forward-looking
statements as a result of various factors including the ability of
the company to successfully commercialize its new technologies as
well as risk factors set forth from time to time in the Form 10-KSB
for the period ended June 30, 2005 and other company's reports
filed with the Securities and Exchange Commission. The company
undertakes no obligation to publicly release the result of any
revisions to these forward- looking statements, which may be made
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. DATASOURCE:
International Microcomputer Software, Inc. CONTACT: Robert
O'Callahan, Chief Financial Officer of International Microcomputer
Software, Inc., +1-415-878-4020, or Web site:
http://www.imsisoft.com/
Copyright
