CAMBRIDGE, MA -- Bitstream Inc. today reported that revenue decreased by $1,368,000 or 22% to $5,001,000 for the three months ended March 31, 2009 as compared to total revenue of $6,369,000 for the three months ended March 31, 2008. The Company's cash and cash equivalents at March 31, 2009 totaled $17,057,000, an increase of $895,000 from a Balance of $16,162,000 at December 31, 2008.

"We are pleased to report that we increased our cash and cash equivalents during the quarter by $895,000 and that we achieved a non-GAAP net profit of $41,000 for the quarter.  However, as our revenue is typically driven more by consumer-based spending in our first quarter than other quarters, we did experience a decrease in our first quarter revenue due to lower consumer spending, as well as, longer corporate sales cycles," said Anna M. Chagnon, President and Chief Executive Officer.  "We remain optimistic about our ability to drive future revenue growth given the growing pipeline for many of our products and given the opportunities we see to generate additional revenue by licensing our new Bolt Browser."

GAAP Results

Our loss from operations was $(166,000) for the three months ended March 31, 2009, a decrease of $766,000 as compared to net income of $600,000 for the three months ended March 31, 2008.  Our net loss for the three months ended March 31, 2009 was $(153,000) or $(0.02) per diluted share, a decrease of  $812,000 as compared to net income of $659,000 or $0.06 per diluted share for the three months ended March 31, 2008.

Non-GAAP Results

Our income from operations, not including the effect of stock-based compensation expense, decreased $727,000 or 96% to $28,000 for the three months ended March 31, 2009 as compared to $755,000 for the three months ended March 31, 2008. Net income, not including the effect of stock-based compensation expense, decreased $773,000 or 95% to $41,000 or $0.00 per diluted share for the three months ended March 31, 2009 as compared to $814,000 or $0.08 per diluted share for the three months ended March 31, 2008.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.