SoftQuad Software Announces Preliminary Second Quarter Results

Apr 10, 2001, 01:00 ET from SoftQuad Software, Ltd.

    TORONTO, April 10 /PRNewswire/ - SoftQuad Software, Ltd. (OTC BB: SXML),
 an internationally recognized developer of XML-enabling technologies and e-
 commerce solutions, today announced that, based on a preliminary analysis of
 its results of operations, it expects to report revenue for the second quarter
 ended March 31, 2001, in the range of US$1.2 million to US$1.4 million. As a
 result, SoftQuad now expects total revenues for its fiscal year ended
 September 30, 2001, to be significantly lower than its previous expectations
 of US$13.5 million.
     "Our sales pipeline remains strong, but we are experiencing a number of
 delays in customer orders, many of which we expected to close prior to our
 quarter end," said Roberto Drassinower, CEO of SoftQuad. "We believe that our
 customers' spending decisions are being postponed due to uncertainties
 surrounding the current economic slowdown in the U.S. Under these conditions,
 the predictability of our financial results going forward has become less
 certain."
     "These statements regarding estimated results are based on preliminary
 information and management assumptions. We expect to announce our actual
 results for our second quarter on May 8, 2001," said David Lewis, CFO of
 SoftQuad.
     In response to the slowdown in customer demand, SoftQuad has initiated a
 plan to cut spending across all major areas. The plan includes a reduction in
 workforce of twelve employees, which represents about fourteen percent of
 SoftQuad's current employee base. "These actions will help to protect our
 financial position and ease our cash burn rate during this economic downturn."
 said Mr. Lewis.
 
     About SoftQuad Software, Ltd.
     SoftQuad Software, Ltd. (OTC BB: SXML) is an internationally recognized
 developer of XML-enabling technologies and commerce solutions for e-business.
 A founding member of the World Wide Web Consortium (W3C), the Organization for
 the Advancement of Structured Information Standards (OASIS) and XML.org,
 SoftQuad has been instrumental in shaping and developing both the standards
 and technologies that are changing the way companies exchange information and
 do business over the Web.
     Headquartered in Toronto, Canada, with U.S. offices in Seattle and San
 Francisco, and European operations based in London, United Kingdom, SoftQuad
 was first to market with an advanced, yet easy-to-use XML content creation
 solution, XMetaL. It has already become the premier enabling technology for
 XML-based content applications in electronic publishing, e-commerce and
 knowledge management. SoftQuad is targeting the growing business-to-business
 (B2B) marketplace with MarketAgility Enterprise and MarketAgility Express,
 supply-side catalog content solutions that allow companies to effectively join
 and compete in B2B e-markets. For more information on SoftQuad, visit the
 company's Web site at: http://www.softquad.com.
     Awards: XMetaL won the XML Journal 2001 Readers' Choice Awards for "Best
 Content Management Tool" and "Best XML Application," the PC Magazine (UK)
 "Technical Innovation Award" for "Best Development Tool" in November 2000; the
 Web Techniques 1999 "Web Authoring Tool of the Year" Award; was an Internet
 Week "Best of the Best," winning the "Most Innovative" category; and is an XML
 Journal "World Class" recommendation for 2000.
 
     SoftQuad and XMetaL are registered trademarks of SoftQuad Software, Ltd.
 All other products or company names mentioned are used for identification
 purposes only, and may be trademarks of their respective owners.
 
     Caution Concerning Forward-Looking Statements
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995. Words such as
 "anticipates", "estimates", "expects", "will", "should", "projects",
 "intends", "plans", "believes" and words and terms of similar substance used
 in connection with any discussion of future operating or financial performance
 identify such forward-looking statements. Those forward-looking statements are
 management's present expectations of future events. As with any projection or
 forecast, they are inherently susceptible to uncertainty and changes in
 circumstances, and SoftQuad is under no obligation to (and expressly disclaims
 any such obligation to) update or alter its forward-looking statements whether
 as a result of such changes, new information, future events or otherwise.
     SoftQuad is an early-stage growth company that operates in a highly
 competitive and rapidly changing environment, and its business results are
 dependent on numerous factors, including demand for its products and services,
 especially its newly introduced MarketAgility product, growth in the market
 for XML products, its ability to manage costs, generate revenues and become
 profitable, the potential impact of any mergers, acquisitions or other
 business combinations, the transition from its past reliance on revenues from
 its HoTMetaL (HTML-based) product to its XML-based products, its ability to
 meet its future capital requirements, technological developments, competition
 from other companies that may have longer operating histories or greater
 financial resources, protection of its intellectual property rights, its
 ability to attract and retain key personnel, the resolution of issues
 concerning commercial activities via the Internet, including security,
 reliability, cost, ease of use and access, government regulation, risks
 related to international sales and potential foreign currency exchange
 fluctuations, political, business and social conditions in the geographic
 areas in which it operates and in which its products are sold, and other risks
 detailed from time to time in periodic reports filed by SoftQuad with the U.S.
 Securities and Exchange Commission and other regulatory authorities.
 SoftQuad's actual results could differ materially from management's
 expectations because of such factors.
 
 

SOURCE SoftQuad Software, Ltd.
    TORONTO, April 10 /PRNewswire/ - SoftQuad Software, Ltd. (OTC BB: SXML),
 an internationally recognized developer of XML-enabling technologies and e-
 commerce solutions, today announced that, based on a preliminary analysis of
 its results of operations, it expects to report revenue for the second quarter
 ended March 31, 2001, in the range of US$1.2 million to US$1.4 million. As a
 result, SoftQuad now expects total revenues for its fiscal year ended
 September 30, 2001, to be significantly lower than its previous expectations
 of US$13.5 million.
     "Our sales pipeline remains strong, but we are experiencing a number of
 delays in customer orders, many of which we expected to close prior to our
 quarter end," said Roberto Drassinower, CEO of SoftQuad. "We believe that our
 customers' spending decisions are being postponed due to uncertainties
 surrounding the current economic slowdown in the U.S. Under these conditions,
 the predictability of our financial results going forward has become less
 certain."
     "These statements regarding estimated results are based on preliminary
 information and management assumptions. We expect to announce our actual
 results for our second quarter on May 8, 2001," said David Lewis, CFO of
 SoftQuad.
     In response to the slowdown in customer demand, SoftQuad has initiated a
 plan to cut spending across all major areas. The plan includes a reduction in
 workforce of twelve employees, which represents about fourteen percent of
 SoftQuad's current employee base. "These actions will help to protect our
 financial position and ease our cash burn rate during this economic downturn."
 said Mr. Lewis.
 
     About SoftQuad Software, Ltd.
     SoftQuad Software, Ltd. (OTC BB: SXML) is an internationally recognized
 developer of XML-enabling technologies and commerce solutions for e-business.
 A founding member of the World Wide Web Consortium (W3C), the Organization for
 the Advancement of Structured Information Standards (OASIS) and XML.org,
 SoftQuad has been instrumental in shaping and developing both the standards
 and technologies that are changing the way companies exchange information and
 do business over the Web.
     Headquartered in Toronto, Canada, with U.S. offices in Seattle and San
 Francisco, and European operations based in London, United Kingdom, SoftQuad
 was first to market with an advanced, yet easy-to-use XML content creation
 solution, XMetaL. It has already become the premier enabling technology for
 XML-based content applications in electronic publishing, e-commerce and
 knowledge management. SoftQuad is targeting the growing business-to-business
 (B2B) marketplace with MarketAgility Enterprise and MarketAgility Express,
 supply-side catalog content solutions that allow companies to effectively join
 and compete in B2B e-markets. For more information on SoftQuad, visit the
 company's Web site at: http://www.softquad.com.
     Awards: XMetaL won the XML Journal 2001 Readers' Choice Awards for "Best
 Content Management Tool" and "Best XML Application," the PC Magazine (UK)
 "Technical Innovation Award" for "Best Development Tool" in November 2000; the
 Web Techniques 1999 "Web Authoring Tool of the Year" Award; was an Internet
 Week "Best of the Best," winning the "Most Innovative" category; and is an XML
 Journal "World Class" recommendation for 2000.
 
     SoftQuad and XMetaL are registered trademarks of SoftQuad Software, Ltd.
 All other products or company names mentioned are used for identification
 purposes only, and may be trademarks of their respective owners.
 
     Caution Concerning Forward-Looking Statements
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995. Words such as
 "anticipates", "estimates", "expects", "will", "should", "projects",
 "intends", "plans", "believes" and words and terms of similar substance used
 in connection with any discussion of future operating or financial performance
 identify such forward-looking statements. Those forward-looking statements are
 management's present expectations of future events. As with any projection or
 forecast, they are inherently susceptible to uncertainty and changes in
 circumstances, and SoftQuad is under no obligation to (and expressly disclaims
 any such obligation to) update or alter its forward-looking statements whether
 as a result of such changes, new information, future events or otherwise.
     SoftQuad is an early-stage growth company that operates in a highly
 competitive and rapidly changing environment, and its business results are
 dependent on numerous factors, including demand for its products and services,
 especially its newly introduced MarketAgility product, growth in the market
 for XML products, its ability to manage costs, generate revenues and become
 profitable, the potential impact of any mergers, acquisitions or other
 business combinations, the transition from its past reliance on revenues from
 its HoTMetaL (HTML-based) product to its XML-based products, its ability to
 meet its future capital requirements, technological developments, competition
 from other companies that may have longer operating histories or greater
 financial resources, protection of its intellectual property rights, its
 ability to attract and retain key personnel, the resolution of issues
 concerning commercial activities via the Internet, including security,
 reliability, cost, ease of use and access, government regulation, risks
 related to international sales and potential foreign currency exchange
 fluctuations, political, business and social conditions in the geographic
 areas in which it operates and in which its products are sold, and other risks
 detailed from time to time in periodic reports filed by SoftQuad with the U.S.
 Securities and Exchange Commission and other regulatory authorities.
 SoftQuad's actual results could differ materially from management's
 expectations because of such factors.
 
 SOURCE SoftQuad Software, Ltd.