-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WYusZVwHhajIVlVJE4KUl4XevGmt5t+e3R6vVCHhOMkPkN5WrI8hYKTOjvLCwFph sGNHs0fkGfcviF67VjuGqA== 0000898430-96-003712.txt : 19960814 0000898430-96-003712.hdr.sgml : 19960814 ACCESSION NUMBER: 0000898430-96-003712 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAXIS INC CENTRAL INDEX KEY: 0000943583 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 943128369 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-25832 FILM NUMBER: 96609337 BUSINESS ADDRESS: STREET 1: 2121 N CALIFORNIA BLVD STREET 2: STE 600 CITY: WALNUT CREEK STATE: CA ZIP: 94596-3572 BUSINESS PHONE: 5102549700 MAIL ADDRESS: STREET 1: TWO THEATRE SQUARE CITY: ORINDA STATE: CA ZIP: 94563 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-25832 ------------------------------------------------------ MAXIS, INC. (Exact name of registrant as specified in its charter) ------------------------------------------------------ DELAWARE 94-3128369 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2121 NORTH CALIFORNIA BLVD., SUITE 600 WALNUT CREEK, CA 94596-3572 (Address of principal executive offices) TELEPHONE NUMBER (510) 933-5630 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- As of July 31, 1996 there were 11,137,822 shares of the Registrant's Common Stock, $.0001 par value, outstanding. ____________ Page 1 MAXIS, INC. TABLE OF CONTENTS
PART I. Financial Information Page ---- Item 1. Condensed Consolidated Financial Statements (unaudited) Condensed Consolidated Balance Sheets At June 30, 1996 and March 31, 1996....................... 3 Condensed Consolidated Statements of Operations Three months ended June 30, 1996 and 1995................. 4 Condensed Consolidated Statements of Cash Flows Three months ended June 30, 1996 and 1995................. 5 Notes to Condensed Consolidated Financial Statements....... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations....................... 8 PART II. Other Information Item 6. Exhibits and Reports on Form 8-K.......................... 12 Signature.......................................................... 13
Page 2 PART I. FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MAXIS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
ASSETS June 30, 1996 March 31, 1996 - ------ ------------- -------------- Current assets: Cash and cash equivalents.................... $13,144 $20,102 Marketable securities........................ 22,718 22,788 Accounts receivable, less allowance for returns and doubtful accounts of $5,320 and $5,607........................... 6,795 6,991 Inventories.................................. 2,033 1,543 Income taxes refundable...................... 1,908 227 Deferred income taxes........................ 2,808 2,808 Other current assets......................... 1,095 872 ------- ------- Total current assets.......................... 50,501 55,331 Furniture and equipment, net.................. 4,035 3,243 Deferred income taxes......................... 2,023 2,023 Long-term marketable securities............... 7,185 6,119 Other assets.................................. 703 584 ------- ------- $64,447 $67,300 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ Current liabilities: Accounts payable............................. $ 1,139 $ 1,607 Payable to affiliate partners................ 605 631 Royalties payable............................ 945 1,373 Accrued compensation......................... 1,498 1,685 Accrued advertising.......................... 1,662 1,538 Other accrued liabilities.................... 1,344 2,585 Accrued rent................................. 614 647 ------- ------- Total current liabilities..................... 7,807 10,066 ------- ------- Commitments Stockholders' equity: Common stock, $.0001 par value; authorized shares, 40,000,000; issued and outstanding, 11,069,322 and 10,989,906................... 51,286 50,514 Notes receivable from stockholders........... (261) (269) Retained earnings............................ 5,712 7,128 Deferred compensation........................ (97) (139) ------- ------- Total stockholders' equity.................... 56,640 57,234 ------- ------- $64,447 $67,300 ======= =======
See accompanying notes. Page 3 MAXIS, INC. =========== CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
Three months ended June 30 ------------------ 1996 1995 ------- ------- Net revenues................................. $ 8,108 $11,332 Cost of revenues........................... 2,980 3,590 ------- ------- Gross profit................................. 5,128 7,742 ------- ------- Operating expenses: Research and development................... 2,785 1,797 Sales and marketing........................ 3,621 2,904 General and administrative................. 1,460 1,440 ------- ------- Total operating expenses..................... 7,866 6,141 ------- ------- Income (loss) from operations................ (2,738) 1,601 Interest income.............................. 434 195 ------- ------- Income (loss) from operations before taxes... (2,304) 1,796 Provision (benefit) for income taxes......... (888) 664 ------- ------- Net income (loss)............................ (1,416) 1,132 ------- ------- Net income (loss) per share.................. $(.13) $.12 ======= ======= Shares used in per share calculations........ 11,031 9,798 ======= =======
See accompanying notes. Page 4 MAXIS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Three months ended June 30 -------------------- 1996 1995 ---- ---- OPERATING ACTIVITIES - -------------------- Net income (loss)....................................... $ (1,416) $ 1,132 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Provision for returns and doubtful accounts.......... (287) 629 Depreciation......................................... 285 192 Deferred income taxes................................ -- (696) Amortization of deferred compensation................ 42 127 Changes in operating assets and liabilities.......... (4,289) 505 --------- ------- Net cash (used in) provided by operating activities.... (5,665) 1,889 INVESTING ACTIVITIES Purchases of held-to-maturity securities................ (2,066) -- Maturities of held-to-maturity securities............... 1,000 -- Sales of available-for-sale securities................. -- 980 Additions to fixed assets, net.......................... (1,077) (247) Other................................................... 70 46 --------- ------- Net cash (used in) provided by investing activities.... (2,073) 779 --------- ------- FINANCING ACTIVITIES Proceeds from exercise of stock options................. 84 -- Net proceeds from issuance of common stock.............. -- 35,493 Tax benefit from exercise of stock options.............. 696 -- Repayment of notes receivable from stockholders......... -- 18 Repurchase of common stock.............................. -- (3) --------- ------- Net cash provided by financing activities.............. 780 35,508 --------- ------- Net (decrease) increase in cash and cash equivalents... (6,958) 38,176 Cash and cash equivalents at beginning of period........ 20,102 2,610 --------- ------- Cash and cash equivalents at end of period.............. $ 13,144 $40,786 ========= ======= SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES: Accretion of preferred stock........................... $ -- $ 87 ========= ======= Conversion of preferred stock to common stock.......... $ -- $11,450 ========= ======= Forgiveness of note receivable from stockholder........ $ (8) $ -- ========= ======= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Income tax payments.................................... $ 97 $ 329 ========= =======
See accompanying notes. Page 5 MAXIS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation --------------------- The condensed consolidated financial statements for the three months ended June 30, 1996 and 1995 are unaudited and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto in Maxis' Annual Report on Form 10-K for the year ended March 31, 1996. The results of operations for the three months ended June 30, 1996 are not necessarily indicative of the results for the entire year. Per share data Per share data is based on the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. Common shares outstanding includes weighted average common equivalent shares as if all shares of preferred stock were converted into common stock on their respective dates of issuance. Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 83, options to purchase common stock (using the treasury stock method) granted by the Company during the 12 months immediately preceding the initial public offering date have been included in the calculation of weighted average number of common shares outstanding as if the underlying shares were outstanding during the quarter ended June 30, 1995. 2. Issuance of Common Stock ------------------------ On June 1, 1995, the Company consummated an initial public offering of 3,450,000 shares of common stock which raised approximately $35.5 million, net of expenses. Of the 3,450,000 shares of common stock, 2,450,000 shares were sold by the Company and 1,000,000 shares were sold by selling stockholders. Immediately prior to the offering, all outstanding shares of preferred stock were converted into 2,093,750 shares of common stock. 3. Marketable Securities --------------------- At June 30, 1996, the Company's held-to-maturity and available-for-sale debt securities consist of the following (in thousands):
Held-to-maturity securities ------------------------------------------- Gross Gross Estimated unrealized unrealized fair Cost gains losses value ------- ---------- --------- ------- Municipal bonds.................... $22,902 $ 254 $ -- $23,156 ------- ---------- --------- ------- Municipal notes.................... 2,001 23 -- 2,024 ------- ---------- --------- ------- $24,903 $ 277 $ -- $25,180 ======= ========== ========= ======= Available-for-sale securities ------------------------------------------- Gross Gross Estimated unrealized unrealized fair Cost gains losses value ------- ---------- --------- ------- U.S. corporate securities.......... $15,100 $ 8 $ -- $15,108 Money market funds................. 329 -- -- 329 ------- ---------- --------- ------- $15,429 $ 8 $ -- $15,437 ======= ========== ========= ======= Total.............................. $40,332 $ 285 $ -- $40,617 ======= ========== ========= =======
Page 6 MAXIS, INC. ---------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (Unaudited) 3. Marketable Securities - (continued) ----------------------------------- Such debt and equity securities have been recorded as cash and cash equivalents ($10,429,000), short-term marketable securities ($22,718,000), and long-term marketable securities ($7,185,000). The contractual maturities of held-to-maturity and available-for-sale debt securities at June 30, 1996 are all two years or less. Realized gains and losses on sales of available- for-sale securities have not been material. 4. Inventories ----------- Inventories consist primarily of software media, manuals and related packaging materials as follows (in thousands):
June 30 March 31 1996 1996 ------- -------- Raw materials and work in process... $ 686 $ 356 Finished goods...................... 1,347 1,187 ------ ------ $ 2,033 $1,543 ======= ======
Page 7 MAXIS, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following information should be read in conjunction with the consolidated financial statements and the notes thereto and in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1996. The operating results for any quarter are not necessarily indicative of results for any future period. Overview Maxis was founded in 1987 to develop software for the consumer entertainment market. In North America, Maxis currently sells its software products, including affiliate partner products, through software distributors, major computer and software retailing organizations, consumer electronics stores, discount warehouse stores and mail order companies. Internationally, the Company sells its products through a combination of distribution, direct retail and licensing arrangements. Maxis' products are available for multiple platforms, including Windows, Windows 95, DOS and Macintosh. The Company has also adapted certain of its products for new platforms, including the Sega Saturn and Sony PlayStation. The following table sets forth, as a percentage of net revenues, consolidated statement of operations data for the periods indicated:
Three months ended June 30 ------------------ 1996 1995 ---- ---- Net revenues................................ 100.0% 100.0% Cost of revenues........................ 36.8 31.7 ------ ----- Gross profit................................ 63.2 68.3 ------ ----- Operating expenses: Research and development................ 34.3 15.8 Sales and marketing..................... 44.7 25.6 General and administrative.............. 18.0 12.7 ------ ----- Total operating expenses.................... 97.0 54.1 ------ ----- Income (loss) from operations............... (33.8) 14.2 Interest income............................. 5.4 1.7 ------ ----- Income (loss) from operations before taxes.. (28.4) 15.9 Provision (benefit) for income taxes........ (10.9) 5.9 ------ ----- Income (loss) from continuing operations.... (17.5)% 10.0% ====== =====
Page 8 MAXIS, INC. Net Revenues The Company's net revenues were $8,108,000 in the first quarter of fiscal 1997, a decrease of 28.5% from net revenues of $11,332,000 in the first quarter of fiscal 1996. The lower revenues in fiscal 1997 were due to several factors. The Company experienced lower revenues from SimCity 2000 on the PC format, a product originally released for DOS in October 1993. The declining sales of SimCity 2000 for PCs was partially, but not completely, offset by sales of SimCity 2000 for game consoles, specifically the Sega Saturn and the Sony Playstation. During the first quarter of fiscal 1997, the Company's product introductions included SimCity 2000 for the Sony Playstation, SimCity 2000 Network Edition and SimIsle for Windows and Macintosh. These products shipped late in the quarter and, therefore, the Company received no reorders during the period. Furthermore, in April 1995, the Company released SimTower for Windows which was the Company's best-selling new release during the first quarter of fiscal 1996. This contributed to higher revenues in the first quarter of fiscal 1996 as compared to the same period in fiscal 1997. CD-ROM (vs. floppy disk) products in first quarter of fiscal 1997 accounted for 76% of the Company's revenues, compared with 72% in the same quarter last year. Cost of Revenues Cost of revenues includes all costs of media, manuals, duplication, packaging materials, assembly and freight. In addition, royalties are included in cost of revenues. Gross profit as a percentage of net revenues was 63.2% in the first quarter of fiscal 1997, a decrease from 68.3% in the first quarter of fiscal 1996. The decrease in gross profit is due primarily to a higher percentage of net revenues from affiliate partners during the first quarter of fiscal 1997. Sales of affiliate products represented 16% of net revenues in the first quarter of fiscal 1997 as compared to 5% in the same quarter last year. Gross profit for affiliate products is lower than gross profit for Maxis-published products because the Company's services for its affiliate partners are generally limited to sales and distribution and, in some cases, a manufacturing function. Also, cost of goods sold for game console products is generally higher than for PC-based Maxis products. Due primarily to the introduction of SimCity 2000 for the Sony Playstation, the percentage of revenues from game consoles was 15% during the first quarter of fiscal 1997. There were no revenues from products for game consoles in the same quarter last year. The Company expects that the gross profit percentage will continue to fluctuate on a quarterly basis. Research and Development Research and development expenses consist primarily of personnel and equipment costs required to conduct the Company's development efforts and to fund third- party software development costs. Third-party software development costs may include advance product development payments, which are expensed as paid. The Company increased research and development expenses 55.0% from $1,797,000 in the first quarter of fiscal 1996 to $2,785,000 in the first quarter of fiscal 1997. As a percentage of net revenues, research and development increased from 15.8% for the first quarter of fiscal 1996 to 34.3% for the first quarter of fiscal 1997. The increase in research and development expenses was due primarily to hiring additional employees and the associated salaries, benefits and facilities costs. In addition, ongoing development costs related to Cinematronics were included in the Company's results of operations for the entire first quarter of fiscal 1997. There were no such costs in the same period last year because the Company acquired Cinematronics in March 1996. The Company believes that significant investment in research and development is required to remain competitive and intends to continue to increase its investment in this area. Therefore, the Company expects research and development expenses to increase in absolute dollars. Page 9 MAXIS, INC. Sales and Marketing The Company increased its sales and marketing expenses, which include customer support services, from $2,904,000 in the first quarter of fiscal 1996 to $3,621,000 in the first quarter of fiscal 1997. As a percentage of net revenues, sales and marketing expenses increased from 25.6% in the first quarter of fiscal 1996 to 44.7% in the first quarter of fiscal 1997. The increase in sales and marketing expenses is due to expansion of the Company's sales and marketing organizations, both in the United States and Europe. Also, during the first quarter of fiscal 1997, the Company opened a sales, marketing and development office in Tokyo, Japan. There were no comparable costs during the same quarter last year. In addition, the Company increased expenditures for advertising, trade shows and marketing programs with customers. The Company believes that competition for retail shelf space has significantly increased over the prior year, due in part to an overall increase in the number of new products. The Company expects to continue aggressive marketing and sales programs in order to continue to distinguish Maxis and its products in the marketplace. Therefore, the Company expects marketing and sales expenses to increase in absolute dollars. General and Administrative General and administrative expenses, in absolute dollars, remained relatively constant from the first quarter of fiscal 1997 compared to the same period last year. Due to lower revenues in the first quarter of fiscal 1997, general and administrative expenses as a percentage of revenues increased from 12.7% in the first quarter of fiscal 1996 to 18.0% in the first quarter of fiscal 1997. Interest income Interest income as a percentage of net revenues increased to 5.4% for the first quarter of fiscal 1997 from 1.7% for same quarter last year due to higher invested cash balances resulting from the proceeds of the Company's issuance of Common Stock in its initial public offering in June 1995 and due to lower revenues in the first quarter of fiscal 1997 as compared to the first quarter of fiscal 1996. Liquidity and Capital Resources As of June 30, 1996, the Company's principal sources of liquidity included cash and short-term investments of approximately $35.9 million and an available bank line of credit in the amount of $1,000,000, which the Company has not used to date. The line of credit expires on August 30, 1996. The Company also has longer-term investments totaling approximately $7.2 million. The Company's cash, short-term investments and unused bank line of credit are available to meet seasonal working capital requirements. The Company uses its working capital to finance ongoing operations, fund the development and introduction of new products and acquire capital equipment. The Company's operating activities used cash of $5,665,000 and provided cash of $1,889,000 in the first quarters of fiscal 1997 and 1996, respectively. From time to time, the Company evaluates acquisitions of businesses, products or technologies that complement the business of Maxis. The Company has no present understandings, commitments or agreements with respect to any material acquisitions of other businesses, products or technologies. Any such transactions, if consummated, may use a portion of the Company's working capital or require the issuance of equity. Page 10 MAXIS, INC. Liquidity and Capital Resources (Cont.) The Company believes that existing working capital and cash from operations will satisfy the Company's liquidity and capital requirements for at least the next year. Risk Factors Affecting Future Earnings and Stock Price Sections of this Report, particularly the third and fourth paragraphs on page 9, the second paragraph on page 10 and the statements under Liquidity and Capital Resources contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of many factors, including the risk factors set forth below and elsewhere in this Report. The Company has experienced, and expects to continue to experience, significant fluctuations in operating results due to a variety of factors, including the size and rate of growth of the consumer software market, market acceptance of the Company's products and those of its competitors, development and promotional expenses relating to the introduction of new products or new versions of existing products, seasonality, projected and actual changes in computing platforms, the timing and success of product introductions, product returns, changes in pricing policies by the Company or its competitors, the accuracy of retailers' forecasts of consumer demand, the timing of orders from major customers and order cancellations. The Company's operating results may also fluctuate significantly due to changes in product plans or delays in completing and shipping products. For example, in April 1996, the Company decided to reevaluate The Mindwarp, an action game it had planned to ship during fiscal 1997. In July 1996, the Company completed its re-evaluation and decided to discontinue the development of The Mindwarp. In connection with this decision, the Company decided to close its Utah development office. Such risks apply to all of the Company's products under development. The consumer software business is highly seasonal. Net revenues are typically significantly higher during the third fiscal quarter, due primarily to the increased demand for consumer software during the calendar year-end holiday buying season. Net revenues in other quarters are generally lower and vary significantly as a result of new product introductions and other factors. The Company expects its net revenues and operating results to continue to reflect significant seasonality and further expects the second quarter of fiscal 1997 to result in losses due to increased operating expenses, weakness in the retail market for consumer entertainment software products, seasonality, and the cancellation of The Mindwarp. There can be no assurance that the Company will achieve consistent profitability on a quarterly or annual basis. In response to competitive pressures, the Company may take certain pricing or marketing actions that could materially adversely affect the Company's business, operating results and financial condition. The Company may be required to pay fees in advance or to guarantee royalties, which may be substantial, to obtain licenses to intellectual properties from third parties before products incorporating such properties have been introduced or achieved market acceptance. Products are generally shipped as orders are received, and accordingly the Company operates with little backlog. The Company's expense levels are based, in part, on its expectations regarding future sales and, as a result, operating results would be disproportionately adversely affected by a decrease in sales or a failure to meet the Company's sales expectations. Defective products may result in higher customer support costs and product returns. Page 11 MAXIS, INC. Risk Factors Affecting Future Earnings and Stock Price (Cont.) The Company's gross profit is affected by the mix of sales among products that are developed or licensed by Maxis and affiliate partner products that are developed by third parties and distributed by the Company. Gross profit and operating expenses are significantly lower on affiliate partner products because the Company's services are generally limited to sales, distribution and related functions. Effective April 1, 1996, the Company changed the offered terms of its affiliate partner program granting, among other things, a greater share of receipts on affiliate sales to affiliate partners. There can be no assurance that the Company's current share of receipts on affiliate sales for distribution services or the current mix of affiliate partner sales will be sustained. The market price of the Company's Common Stock could be subject to significant fluctuations in response to variations in quarterly operating results and other factors, such as announcements of new products by the Company or its competitors and changes in financial estimates by securities analysts or other events. The stock market and many technology companies have recently been trading at or near historic highs and reflect price/earning ratios above historic norms. Moreover, the stock market has experienced extreme volatility that has particularly affected the market prices of equity securities of many high technology companies and that has often been disproportionate to the operating performance of such companies. Broad market fluctuations, as well as economic conditions generally and in the software industry specifically, may adversely affect the market price of the Company's Common Stock. There can be no assurance that the Company's stock price will remain at or near its current level. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 11.1 Statement of Computation of Earnings per Share 27.1 Financial Data Schedule (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter ended June 30, 1996. Page 12 MAXIS, INC. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned. MAXIS, INC. (Registrant) Date: August 13, 1996 By: /s/ Fred M. Gerson ------------------ Vice President, Chief Financial Officer Page 13 MAXIS, INC. INDEX TO EXHIBITS EXHIBIT SEQUENTIALLY NUMBER DESCRIPTION OF EXHIBIT NUMBERED PAGE ------ ---------------------- ------------- 11.1 Statement of Computation of Earnings per Share 15 27.1 Financial Data Schedule 16 Page 14 EX-11.1 2 COMPUTATION OF EARNINGS PER SHARE EXHIBIT 11.1 MAXIS, INC. STATEMENT OF COMPUTATION OF EARNINGS PER SHARE (In thousands, except per share data)
Three Months Ended June 30, ------------------- 1996 1995 --------- ------- Net income (loss)........................................ $(1,416) $1,132 Computations of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding........... 11,031 6,681 Common equivalent shares from stock options issued during the twelve-month period prior to the Com- pany's initial public offering..................... -- 993 Common equivalent shares attributable to: Redeemable preferred stock (if-converted method)..... -- 2,094 Stock options (treasury stock method)................ -- 30 ------- ------ Shares used in computing net income (loss) per share..... 11,031 9,798 ======= ====== Net income (loss) per share.............................. $ (.13) $ .12 ======= ======
Page 15 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED BALANCE SHEETS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS, AND NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS MAR-31-1997 APR-01-1996 JUN-30-1996 13,144 22,718 12,115 5,320 2,033 50,501 6,604 2,569 64,447 7,807 0 0 0 51,286 5,354 64,447 6,491 8,108 2,565 2,980 7,866 972 0 (2,304) (888) (1,416) 0 0 0 (1,416) ($0.13) ($0.13)
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