JetForm Returns to Profitability in Second Quarter of Fiscal Year 2001

Pre-Currency Revenue Grows 12 %



Dec 06, 2000, 00:00 ET from JetForm Corporation

    OTTAWA, Dec. 6 /PRNewswire/ - JetForm Corporation (Nasdaq:   FORM; TSE:
 JFM), today announced results for its second quarter of fiscal 2001, which
 ended October 31, 2000. Pre-currency revenue (before recording the impact of
 exchange rate changes) reached $28.0 million, a growth of 12 per cent on a
 year over year basis.
     Post-currency revenues for the second quarter of fiscal year 2001 were
 $26.7 million (CDN), compared to $25.1 million in the second quarter of fiscal
 2000. Operating income for the quarter was $0.4 million compared to an
 operating loss of $1.0 million for the same period last year. Net income for
 the quarter was $0.4 million or $0.02 per share (fully diluted 21.0 million
 shares) compared to net loss of $0.9 million or $0.04 per share (fully diluted
 19.9 million shares) in the second quarter of fiscal 2000.
     On a quarter over quarter basis, worldwide product revenues grew by
 36 per cent to $17.3 million in the second quarter of fiscal 2001 from
 $12.7 million in the first quarter of fiscal year 2001. Growth was lead by
 Asia Pacific at 99 per cent and North America at 52 per cent including North
 American government product revenue growth of 163 per cent. Maintenance and
 support revenue grew to $6.7 million in the second quarter of fiscal year 2001
 from $6.6 million in the first quarter of fiscal 2001. Professional services
 revenue was consistent with first quarter results at $2.8 million.
     On a year over year basis, worldwide product revenue grew 18 per cent to
 $17.3 million in the second quarter of fiscal year 2001 from $14.7 million in
 the second quarter of fiscal 2000. Maintenance and support revenue grew by
 28 per cent year over year lead by Europe at 32 per cent and North America at
 24 per cent. European professional services revenue grew 75 per cent with a
 decline of 68 per cent in North America, consistent with first quarter
 results.
     On a year over year basis, product gross margin grew from 82 per cent to
 88 per cent and Services gross margin grew from 70 per cent to 72 per cent.
     At the end of the second quarter, JetForm achieved its targeted expansion
 of the sales force to 79 quota carrying sales representatives and is on track
 to meet its target 96 in the third quarter and 110 quota carrying sales
 representatives by April 30, 2001.
     JetForm ended the quarter with a cash balance of $49.7 million and
 improved its days sales outstanding (DSO) by 14 days.
     "I am pleased with our results for the second quarter of fiscal year
 2001," said A. Kevin Francis, president and chief executive officer of JetForm
 Corporation. "We delivered on our commitments. We grew our revenue, improved
 our gross margins, managed our expenses, continued our aggressive sales
 expansion and returned the company to profitability. I am proud of our team
 and encouraged by our momentum."
 
     Strategic Partnerships
     JetForm has recently joined the Siebel Alliance Program as a Premier
 Software Partner. Through this alliance, customers in the public sector and
 financial services industries can extend their Siebel eBusiness Applications
 by allowing end-users to complete application processes - including document
 fulfillment - online.
     JetForm will use its e-process technologies to build an integrated
 solution framework to provide end-to-end, customer-centric eBusiness
 solutions. JetForm's XML-based framework allows corporations to operate more
 efficiently and effectively by automating business processes that integrate
 people, processes, and applications. JetForm and Siebel Systems intend to
 offer an integrated solution globally that will enable end-users to complete
 processes entirely online and instantly generate compliant documents.
 
     Customers Endorse JetForm Solutions
     In the second quarter, the U.S. Army awarded the remaining portion of the
 enterprise license for e-Forms technology. This award covers the FormFlow
 filler portion of the Army's enhanced technology-1 blanket purchase agreement
 (BPA) with Comark Federal Systems. This installment of the current BPA order,
 worth US $1.8 million, will mean that FormFlow 2.X, FormFlow 99 and ReachForm
 now support any of the 470,000 plus Army personnel.
     "The Army's long-term relationship with JetForm and its faith in our e-
 Forms technology are a testament to our technology's power and robustness,"
 said Francis. "In particular, it is a testament to its usefulness to the U.S.
 federal government."
     Also this quarter, Dresdner Bank, one of Europe's leading banking groups,
 has chosen to implement JetForm e-Process Framework to automate its mission
 critical core banking processes, beginning with a loan origination process. In
 addition, Dresdner Bank has launched an internal forms portal which has over
 35,000 employees in 1,200 branch offices accessing and using JetForm's e-Forms
 technology.
 
     Additional customer highlights in the second quarter include:
     - Cyberware Labs, Inc.- an application software development company
       located in New Jersey, purchased ReachForm this quarter to build a
       web-based application for the legal community. The application
       Teleneos.com, is a comprehensive immigration case management system.
     - Ericsson Business Consulting-Sverige - The Business Consulting team in
       the Swedish office of leading communications supplier Ericsson,
       purchased JetForm's Web Output Pak this quarter. Web Output Pak,
       launched last quarter, is a document presentment solution that enables
       companies to produce personalized documents in real-time over the Web.
     - Carl Link Verlag AG - German publishing house Carl Link Verlag AG
       purchased JetForm ReachForm to create a solution that allows German
       citizens to access thousands of government forms over the Internet.
     - Miami Herald Publishing - turned to JetForm e-Process Framework to
       automate and web-enable their internal processes including employee
       self-serve functions.
     - The National Bank of Greece S.A - the oldest and largest among Greek
       banks, is automating its processes beginning with a deployment of
       JetForm e-Process Framework to over 10,000 users.
     - SPAR AG - European retail chain SPAR AG has deployed JetForm Central
       Pro for Linux at 50 sites to create personalized, customer-facing
       documents.
     - The New York City Department of Sanitation - has chosen to use JetForm
       products to implement a disciplinary management system.
 
     Mobile Strategy Gains Momentum
     JetForm recently announced that it agreed to acquire Joey Technologies,
 Inc., a strategic research and development organization specializing in access
 software for the handheld mobile market.
     "JetForm is a proven leader in e-process technology and our acquisition
 of Joey Technologies enables us to penetrate the exploding mobile market and
 bring JetForm tools to mobile devices," said Francis. "As the corporate world
 embraces e-business models enabled by e-processes, we will provide mobile-
 computing professionals efficient and cost-effective tools to improve
 productivity in the workplace."
     The acquisition integrates Joey Technologies research and development
 expertise into JetForm's e-Forms business group and will accelerate JetForm's
 strategy for deploying its electronic-data capture tools into the rapidly
 expanding mobile market.
     Also, JetForm recently announced that its mobile technology, JetForm
 Pocket Form, has been named a finalist in the Best Handheld Application
 category for the 2001 Codie Awards. Sponsored by the Software and Information
 Industry Association (SIIA), the winners will be announced March 12, 2001
 during the association's Annual Conference in San Diego.
 
     Customer Satisfaction
     Delivering continued value to existing customers is an important part of
 JetForm's going forward strategy. This quarter JetForm released FormFlow 99
 Third Edition, the latest step in evolving organizations to Web-based e-forms
 solutions and also released a new version of JetForm Output Pak for SAP R/3
 which includes increased archiving capabilities.
     This quarter JetForm also held its fourth annual user conference with
 more than 400 of its customers in attendance from 21 countries around the
 world.
     JetForm Corporation intends to adhere to the Securities and Exchange
 Commission's recently enacted Regulation on Fair Disclosure and will attempt
 to provide shareholder and other interested parties with guidance on the
 factors that drive the company's earnings or net loss, expressed as a range or
 using specific numbers. JetForm Corporation does not intend to provide any
 further guidance or updates on its performance during the current quarter
 unless it is done so in a broadly disseminated format.
     The media and financial analyst/shareholder conference call will begin at
 4:30 p.m. EST. Interested parties should call 416-695-5801 at approximately
 4:20 p.m. EST, identifying themselves and asking to be a part of the JetForm
 conference call.
     JetForm's conference call will be available online at
 WWW.STREETFUSION.COM. You will also be able to link to StreetFusion from the
 JetForm website at www.jetform.com/company/investor.html.
     To listen to the live call, please go to the web site at least fifteen
 minutes early to register, download, and install any necessary audio software.
 For those who cannot listen to the live broadcast, a replay will be available
 shortly after the call.
 
     About JetForm Corporation
     JetForm Corporation (NASDAQ:   FORM, TSE: JFM) makes Web-based software
 solutions that automate business processes and transform them into "e-
 processes." JetForm enables companies and government to operate efficiently
 and effectively, to grow revenues, lower operating costs and reduce cycle
 times. The company's strength is in intelligent XML forms, process automation,
 and customer-focused document output. With operations in 11 countries, and a
 global network of partners, JetForm is uniquely positioned to address the
 needs of international business. For more information on JetForm, please visit
 our web site at WWW.JETFORM.COM.
 
     JetForm is a registered trademark of JetForm Corporation. All other
 trademarks referenced are trademarks of the respective companies named above.
 
     In this announcement, under the provisions of the new "safe harbour"
 section of the Private Securities Litigation Reform Act of 1995, JetForm makes
 forward-looking statements that involve a number of risks and uncertainties.
 Among the factors that could cause actual future results to differ materially
 are variability in quarterly results, competition, rapid technological change,
 management of growth, third party dependence, dependence upon key personnel,
 international operations and geographic concentration, exchange rate risks;
 currency fluctuations, reliance on intellectual property, product defects and
 product liability, volatility of stock and other factors as discussed in the
 Company's prospectus and Form-10K as filed with the Securities and Exchange
 Commission.
 
     The condensed, unaudited, consolidated balance sheets for the Company
 appear below and are in accordance with accounting principles generally
 accepted in the United States. All amounts are expressed in thousands of
 Canadian (CDN) dollars, except share amounts.
 
                                                     OCTOBER 31,     APRIL 30,
                                                        2000           2000
                                                     ----------     ----------
                                    ASSETS
 
     CURRENT ASSETS
     CASH AND CASH EQUIVALENTS ................       $  49,687     $  42,092
     ACCOUNTS RECEIVABLE ......................          27,349        21,416
     TERM ACCOUNTS RECEIVABLE .................           4,862         5,224
     UNBILLED RECEIVABLES .....................           3,748         4,492
     INVENTORY ................................           1,041         1,084
     PREPAID EXPENSES AND DEFERRED CHARGES ....           2,612         2,956
                                                      ----------    ----------
                                                         89,299        77,264
     TERM ACCOUNTS RECEIVABLE .................            -              242
     DEFERRED INCOME TAX ASSET ................           5,604         5,604
     FIXED ASSETS .............................          17,737        16,556
     OTHER ASSETS .............................          20,047        21,670
                                                      ----------    ----------
                                                      $ 132,687     $ 121,336
                                                      ----------    ----------
                                                      ----------    ----------
 
                     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
     ACCOUNTS PAYABLE .........................       $   4,220     $   7,423
     ACCRUED LIABILITIES ......................          10,141        10,685
     TERM LOAN ................................            -           10,000
     UNEARNED REVENUE .........................          14,665        15,588
                                                      ----------   -----------
                                                         29,026        43,696
     TERM LOAN ................................          10,000          -
     ACCRUED LIABILITIES ......................           1,135         1,338
                                                      ----------   -----------
                                                         40,161        45,034
                                                      ----------   -----------
 
     SHAREHOLDERS' EQUITY
     CAPITAL STOCK (ISSUED AND
     OUTSTANDING - 23,633,118
     COMMON SHARES AND 450,448 PREFERENCE
     SHARES AT OCTOBER 31, 2000; 19,592,314
     COMMON SHARES AND 450,448
     PREFERENCE SHARES AT APRIL 30, 2000) ......        269,406       248,210
     CUMULATIVE TRANSLATION ADJUSTMENT .........         (3,557)       (2,670)
     DEFICIT ...................................       (173,323)     (169,238)
                                                      -----------   ----------
                                                         92,526        76,302
                                                      -----------   ----------
                                                      $ 132,687     $ 121,336
                                                      -----------   ----------
                                                      -----------   ----------
 
     The condensed, unaudited, consolidated statements of operations for the
 Company appear below and are in accordance with accounting principles
 generally accepted in the United States. All amounts are expressed in
 thousands of Canadian (CDN) dollars, except share and per share amounts.
 
                                  THREE MONTHS ENDED     SIX MONTHS ENDED
                                      OCTOBER 31,            OCTOBER 31,
                                  ------------------     -------------------
                                    2000        1999        2000      1999
                                  ---------   --------   -------   ---------
 
     REVENUES
     Product                      $17,259     $14,687     $29,913     $26,625
     SERVICE                        9,427      10,386      18,828      21,496
                                  --------    --------    --------    --------
                                   26,686      25,073      48,741      48,121
                                  --------    --------    --------    --------
 
     COSTS AND EXPENSES
     COST OF PRODUCT                2,118       2,661       4,132       4,772
     COST OF SERVICE                2,599       3,101       5,286       6,491
     SALES AND MARKETING           12,714      11,078      25,402      22,542
     GENERAL AND ADMINISTRATIVE     2,258       2,764       4,732       5,334
     RESEARCH AND DEVELOPMENT       4,059       3,926       8,006       7,668
     DEPRECIATION AND AMORTIZATION  2,474       2,562       5,061       5,097
     GAIN ON SALE OF ASSETS           -           -           -        (1,813)
                                  --------    --------    --------    --------
                                   26,222      26,092      52,619      50,091
                                  --------    --------    --------    --------
     OPERATING INCOME (LOSS)          464      (1,019)     (3,878)     (1,970)
     NET INVESTMENT INCOME            418         340         452         836
      (EXPENSE)
                                  --------    --------    --------    --------
     INCOME (LOSS) BEFORE TAXES       882        (679)     (3,426)     (1,134)
     PROVISION FOR INCOME TAXES      (501)       (208)       (659)       (384)
      (NOTE 5)
                                  --------    --------    --------    --------
     NET INCOME (LOSS)            $   381     $  (887)    $(4,085)    $(1,518)
                                  --------    --------    --------    --------
                                  --------    --------    --------    --------
 
     BASIC INCOME (LOSS)
      PER SHARE
     NET INCOME (LOSS) PER        $  0.02     $ (0.04)    $ (0.20)    $ (0.08)
      SHARE
     WEIGHTED AVERAGE NUMBER   20,952,065  19,901,248  20,507,927  19,892,394
      OF SHARES
     FULLY DILUTED INCOME
      (LOSS) PER SHARE
     NET INCOME (LOSS) PER        $  0.02     $ (0.04)    $ (0.20)    $ (0.08)
      SHARE
     WEIGHTED AVERAGE NUMBER   21,045,122  19,901,248  20,507,927  19,892,394
      OF SHARES
 
 

SOURCE JetForm Corporation
    OTTAWA, Dec. 6 /PRNewswire/ - JetForm Corporation (Nasdaq:   FORM; TSE:
 JFM), today announced results for its second quarter of fiscal 2001, which
 ended October 31, 2000. Pre-currency revenue (before recording the impact of
 exchange rate changes) reached $28.0 million, a growth of 12 per cent on a
 year over year basis.
     Post-currency revenues for the second quarter of fiscal year 2001 were
 $26.7 million (CDN), compared to $25.1 million in the second quarter of fiscal
 2000. Operating income for the quarter was $0.4 million compared to an
 operating loss of $1.0 million for the same period last year. Net income for
 the quarter was $0.4 million or $0.02 per share (fully diluted 21.0 million
 shares) compared to net loss of $0.9 million or $0.04 per share (fully diluted
 19.9 million shares) in the second quarter of fiscal 2000.
     On a quarter over quarter basis, worldwide product revenues grew by
 36 per cent to $17.3 million in the second quarter of fiscal 2001 from
 $12.7 million in the first quarter of fiscal year 2001. Growth was lead by
 Asia Pacific at 99 per cent and North America at 52 per cent including North
 American government product revenue growth of 163 per cent. Maintenance and
 support revenue grew to $6.7 million in the second quarter of fiscal year 2001
 from $6.6 million in the first quarter of fiscal 2001. Professional services
 revenue was consistent with first quarter results at $2.8 million.
     On a year over year basis, worldwide product revenue grew 18 per cent to
 $17.3 million in the second quarter of fiscal year 2001 from $14.7 million in
 the second quarter of fiscal 2000. Maintenance and support revenue grew by
 28 per cent year over year lead by Europe at 32 per cent and North America at
 24 per cent. European professional services revenue grew 75 per cent with a
 decline of 68 per cent in North America, consistent with first quarter
 results.
     On a year over year basis, product gross margin grew from 82 per cent to
 88 per cent and Services gross margin grew from 70 per cent to 72 per cent.
     At the end of the second quarter, JetForm achieved its targeted expansion
 of the sales force to 79 quota carrying sales representatives and is on track
 to meet its target 96 in the third quarter and 110 quota carrying sales
 representatives by April 30, 2001.
     JetForm ended the quarter with a cash balance of $49.7 million and
 improved its days sales outstanding (DSO) by 14 days.
     "I am pleased with our results for the second quarter of fiscal year
 2001," said A. Kevin Francis, president and chief executive officer of JetForm
 Corporation. "We delivered on our commitments. We grew our revenue, improved
 our gross margins, managed our expenses, continued our aggressive sales
 expansion and returned the company to profitability. I am proud of our team
 and encouraged by our momentum."
 
     Strategic Partnerships
     JetForm has recently joined the Siebel Alliance Program as a Premier
 Software Partner. Through this alliance, customers in the public sector and
 financial services industries can extend their Siebel eBusiness Applications
 by allowing end-users to complete application processes - including document
 fulfillment - online.
     JetForm will use its e-process technologies to build an integrated
 solution framework to provide end-to-end, customer-centric eBusiness
 solutions. JetForm's XML-based framework allows corporations to operate more
 efficiently and effectively by automating business processes that integrate
 people, processes, and applications. JetForm and Siebel Systems intend to
 offer an integrated solution globally that will enable end-users to complete
 processes entirely online and instantly generate compliant documents.
 
     Customers Endorse JetForm Solutions
     In the second quarter, the U.S. Army awarded the remaining portion of the
 enterprise license for e-Forms technology. This award covers the FormFlow
 filler portion of the Army's enhanced technology-1 blanket purchase agreement
 (BPA) with Comark Federal Systems. This installment of the current BPA order,
 worth US $1.8 million, will mean that FormFlow 2.X, FormFlow 99 and ReachForm
 now support any of the 470,000 plus Army personnel.
     "The Army's long-term relationship with JetForm and its faith in our e-
 Forms technology are a testament to our technology's power and robustness,"
 said Francis. "In particular, it is a testament to its usefulness to the U.S.
 federal government."
     Also this quarter, Dresdner Bank, one of Europe's leading banking groups,
 has chosen to implement JetForm e-Process Framework to automate its mission
 critical core banking processes, beginning with a loan origination process. In
 addition, Dresdner Bank has launched an internal forms portal which has over
 35,000 employees in 1,200 branch offices accessing and using JetForm's e-Forms
 technology.
 
     Additional customer highlights in the second quarter include:
     - Cyberware Labs, Inc.- an application software development company
       located in New Jersey, purchased ReachForm this quarter to build a
       web-based application for the legal community. The application
       Teleneos.com, is a comprehensive immigration case management system.
     - Ericsson Business Consulting-Sverige - The Business Consulting team in
       the Swedish office of leading communications supplier Ericsson,
       purchased JetForm's Web Output Pak this quarter. Web Output Pak,
       launched last quarter, is a document presentment solution that enables
       companies to produce personalized documents in real-time over the Web.
     - Carl Link Verlag AG - German publishing house Carl Link Verlag AG
       purchased JetForm ReachForm to create a solution that allows German
       citizens to access thousands of government forms over the Internet.
     - Miami Herald Publishing - turned to JetForm e-Process Framework to
       automate and web-enable their internal processes including employee
       self-serve functions.
     - The National Bank of Greece S.A - the oldest and largest among Greek
       banks, is automating its processes beginning with a deployment of
       JetForm e-Process Framework to over 10,000 users.
     - SPAR AG - European retail chain SPAR AG has deployed JetForm Central
       Pro for Linux at 50 sites to create personalized, customer-facing
       documents.
     - The New York City Department of Sanitation - has chosen to use JetForm
       products to implement a disciplinary management system.
 
     Mobile Strategy Gains Momentum
     JetForm recently announced that it agreed to acquire Joey Technologies,
 Inc., a strategic research and development organization specializing in access
 software for the handheld mobile market.
     "JetForm is a proven leader in e-process technology and our acquisition
 of Joey Technologies enables us to penetrate the exploding mobile market and
 bring JetForm tools to mobile devices," said Francis. "As the corporate world
 embraces e-business models enabled by e-processes, we will provide mobile-
 computing professionals efficient and cost-effective tools to improve
 productivity in the workplace."
     The acquisition integrates Joey Technologies research and development
 expertise into JetForm's e-Forms business group and will accelerate JetForm's
 strategy for deploying its electronic-data capture tools into the rapidly
 expanding mobile market.
     Also, JetForm recently announced that its mobile technology, JetForm
 Pocket Form, has been named a finalist in the Best Handheld Application
 category for the 2001 Codie Awards. Sponsored by the Software and Information
 Industry Association (SIIA), the winners will be announced March 12, 2001
 during the association's Annual Conference in San Diego.
 
     Customer Satisfaction
     Delivering continued value to existing customers is an important part of
 JetForm's going forward strategy. This quarter JetForm released FormFlow 99
 Third Edition, the latest step in evolving organizations to Web-based e-forms
 solutions and also released a new version of JetForm Output Pak for SAP R/3
 which includes increased archiving capabilities.
     This quarter JetForm also held its fourth annual user conference with
 more than 400 of its customers in attendance from 21 countries around the
 world.
     JetForm Corporation intends to adhere to the Securities and Exchange
 Commission's recently enacted Regulation on Fair Disclosure and will attempt
 to provide shareholder and other interested parties with guidance on the
 factors that drive the company's earnings or net loss, expressed as a range or
 using specific numbers. JetForm Corporation does not intend to provide any
 further guidance or updates on its performance during the current quarter
 unless it is done so in a broadly disseminated format.
     The media and financial analyst/shareholder conference call will begin at
 4:30 p.m. EST. Interested parties should call 416-695-5801 at approximately
 4:20 p.m. EST, identifying themselves and asking to be a part of the JetForm
 conference call.
     JetForm's conference call will be available online at
 WWW.STREETFUSION.COM. You will also be able to link to StreetFusion from the
 JetForm website at www.jetform.com/company/investor.html.
     To listen to the live call, please go to the web site at least fifteen
 minutes early to register, download, and install any necessary audio software.
 For those who cannot listen to the live broadcast, a replay will be available
 shortly after the call.
 
     About JetForm Corporation
     JetForm Corporation (NASDAQ:   FORM, TSE: JFM) makes Web-based software
 solutions that automate business processes and transform them into "e-
 processes." JetForm enables companies and government to operate efficiently
 and effectively, to grow revenues, lower operating costs and reduce cycle
 times. The company's strength is in intelligent XML forms, process automation,
 and customer-focused document output. With operations in 11 countries, and a
 global network of partners, JetForm is uniquely positioned to address the
 needs of international business. For more information on JetForm, please visit
 our web site at WWW.JETFORM.COM.
 
     JetForm is a registered trademark of JetForm Corporation. All other
 trademarks referenced are trademarks of the respective companies named above.
 
     In this announcement, under the provisions of the new "safe harbour"
 section of the Private Securities Litigation Reform Act of 1995, JetForm makes
 forward-looking statements that involve a number of risks and uncertainties.
 Among the factors that could cause actual future results to differ materially
 are variability in quarterly results, competition, rapid technological change,
 management of growth, third party dependence, dependence upon key personnel,
 international operations and geographic concentration, exchange rate risks;
 currency fluctuations, reliance on intellectual property, product defects and
 product liability, volatility of stock and other factors as discussed in the
 Company's prospectus and Form-10K as filed with the Securities and Exchange
 Commission.
 
     The condensed, unaudited, consolidated balance sheets for the Company
 appear below and are in accordance with accounting principles generally
 accepted in the United States. All amounts are expressed in thousands of
 Canadian (CDN) dollars, except share amounts.
 
                                                     OCTOBER 31,     APRIL 30,
                                                        2000           2000
                                                     ----------     ----------
                                    ASSETS
 
     CURRENT ASSETS
     CASH AND CASH EQUIVALENTS ................       $  49,687     $  42,092
     ACCOUNTS RECEIVABLE ......................          27,349        21,416
     TERM ACCOUNTS RECEIVABLE .................           4,862         5,224
     UNBILLED RECEIVABLES .....................           3,748         4,492
     INVENTORY ................................           1,041         1,084
     PREPAID EXPENSES AND DEFERRED CHARGES ....           2,612         2,956
                                                      ----------    ----------
                                                         89,299        77,264
     TERM ACCOUNTS RECEIVABLE .................            -              242
     DEFERRED INCOME TAX ASSET ................           5,604         5,604
     FIXED ASSETS .............................          17,737        16,556
     OTHER ASSETS .............................          20,047        21,670
                                                      ----------    ----------
                                                      $ 132,687     $ 121,336
                                                      ----------    ----------
                                                      ----------    ----------
 
                     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
     ACCOUNTS PAYABLE .........................       $   4,220     $   7,423
     ACCRUED LIABILITIES ......................          10,141        10,685
     TERM LOAN ................................            -           10,000
     UNEARNED REVENUE .........................          14,665        15,588
                                                      ----------   -----------
                                                         29,026        43,696
     TERM LOAN ................................          10,000          -
     ACCRUED LIABILITIES ......................           1,135         1,338
                                                      ----------   -----------
                                                         40,161        45,034
                                                      ----------   -----------
 
     SHAREHOLDERS' EQUITY
     CAPITAL STOCK (ISSUED AND
     OUTSTANDING - 23,633,118
     COMMON SHARES AND 450,448 PREFERENCE
     SHARES AT OCTOBER 31, 2000; 19,592,314
     COMMON SHARES AND 450,448
     PREFERENCE SHARES AT APRIL 30, 2000) ......        269,406       248,210
     CUMULATIVE TRANSLATION ADJUSTMENT .........         (3,557)       (2,670)
     DEFICIT ...................................       (173,323)     (169,238)
                                                      -----------   ----------
                                                         92,526        76,302
                                                      -----------   ----------
                                                      $ 132,687     $ 121,336
                                                      -----------   ----------
                                                      -----------   ----------
 
     The condensed, unaudited, consolidated statements of operations for the
 Company appear below and are in accordance with accounting principles
 generally accepted in the United States. All amounts are expressed in
 thousands of Canadian (CDN) dollars, except share and per share amounts.
 
                                  THREE MONTHS ENDED     SIX MONTHS ENDED
                                      OCTOBER 31,            OCTOBER 31,
                                  ------------------     -------------------
                                    2000        1999        2000      1999
                                  ---------   --------   -------   ---------
 
     REVENUES
     Product                      $17,259     $14,687     $29,913     $26,625
     SERVICE                        9,427      10,386      18,828      21,496
                                  --------    --------    --------    --------
                                   26,686      25,073      48,741      48,121
                                  --------    --------    --------    --------
 
     COSTS AND EXPENSES
     COST OF PRODUCT                2,118       2,661       4,132       4,772
     COST OF SERVICE                2,599       3,101       5,286       6,491
     SALES AND MARKETING           12,714      11,078      25,402      22,542
     GENERAL AND ADMINISTRATIVE     2,258       2,764       4,732       5,334
     RESEARCH AND DEVELOPMENT       4,059       3,926       8,006       7,668
     DEPRECIATION AND AMORTIZATION  2,474       2,562       5,061       5,097
     GAIN ON SALE OF ASSETS           -           -           -        (1,813)
                                  --------    --------    --------    --------
                                   26,222      26,092      52,619      50,091
                                  --------    --------    --------    --------
     OPERATING INCOME (LOSS)          464      (1,019)     (3,878)     (1,970)
     NET INVESTMENT INCOME            418         340         452         836
      (EXPENSE)
                                  --------    --------    --------    --------
     INCOME (LOSS) BEFORE TAXES       882        (679)     (3,426)     (1,134)
     PROVISION FOR INCOME TAXES      (501)       (208)       (659)       (384)
      (NOTE 5)
                                  --------    --------    --------    --------
     NET INCOME (LOSS)            $   381     $  (887)    $(4,085)    $(1,518)
                                  --------    --------    --------    --------
                                  --------    --------    --------    --------
 
     BASIC INCOME (LOSS)
      PER SHARE
     NET INCOME (LOSS) PER        $  0.02     $ (0.04)    $ (0.20)    $ (0.08)
      SHARE
     WEIGHTED AVERAGE NUMBER   20,952,065  19,901,248  20,507,927  19,892,394
      OF SHARES
     FULLY DILUTED INCOME
      (LOSS) PER SHARE
     NET INCOME (LOSS) PER        $  0.02     $ (0.04)    $ (0.20)    $ (0.08)
      SHARE
     WEIGHTED AVERAGE NUMBER   21,045,122  19,901,248  20,507,927  19,892,394
      OF SHARES
 
 SOURCE JetForm Corporation