ALAMEDA, Calif., July 25 /PRNewswire/ --
Geoworks Corporation (Nasdaq: GWRX), a pioneer in mobile data communications
services and technologies, today announced that revenues in the first quarter
of fiscal 2001 increased by nearly 150 percent over revenues in the first
quarter of last year. For the first fiscal quarter ended June 30, 2000,
Geoworks reported revenues of $4,030,000 versus revenues of $1,633,000 for the
same period a year ago, representing a 147% increase. The company reported a
net loss of $1,554,000, or $0.08 per share, versus a loss of $1,844,000, or
$0.10 per share, in the first quarter a year ago. This represents a
16% improvement compared with the same period a year ago.
"This represents the sixth consecutive quarter that we have demonstrated
year over year quarterly growth in revenues," noted Dave Grannan, president
and chief executive officer of Geoworks.
"Revenues in the first quarter of fiscal year 2001 increased from the same
quarter last year as a result of a $1,491,000, or 308% increase in license and
other revenues and a $900,000, or 79% increase in Professional Services
revenues," continued Grannan.
Professional Services' gross margins increased to 42% during the quarter,
up from 31% in the same quarter one year ago and up from 37% last quarter.
"Margins have improved as a result of some price increases that have been
implemented and a reduction in the use of consultant labor," noted Stephen
Baker, Geoworks vice president and chief financial officer.
"Operating expenses in the first quarter of fiscal 2001 increased
$2,197,000 from the same period a year ago. These increases occurred across
all functions as we continued to invest in building a professional services
business and the Mobile ASP product and related operations, sales and
marketing infrastructure to support those businesses," continued Baker.
"Operating expenses in the current quarter increased $294,000 from the
previous quarter. Last quarter included a reversal of a restructuring accrual
of $589,000. Excluding this reversal, operating expenses declined by $295,000
from last quarter. This change resulted from a reduction in Sales and
Marketing spending of $483,000, primarily related to a decrease in advertising
programs. This decrease was offset to some extent by increases in
General & Administrative expenses as a result of legal expenses related to the
Phone.com litigation and increased recruiting expenses," he continued.
"While we did use cash, we ended the quarter with a very solid cash
position of $15.1 million, as well as approximately $21 million in long-term
investments, reflecting our holdings in Wink Communications and MyTurn.com,"
he added.
Grannan noted that several key operating events have occurred since the
beginning of fiscal 2001. These included the acquisition of AirBoss Wireless
Systems Division, which provides a suite of mobile communications software
products and consulting services that deliver enhanced wireless access to
corporate data over a wide variety of wireless networks and computing devices.
AirBoss was owned by Telcordia Technologies, Inc., a SAIC company.
"This transaction will add new technology, engineering and marketing
capabilities to our company and represents a major complement to our new
Mobile ASP solution for enterprise clients," he noted.
Grannan also stated that a new messaging service powered by the company's
Mobile ASP solution has been launched by United Airlines in the United
Kingdom. With this new service, United passengers can now receive departure
and arrival status, gate information and flight delay and cancellation notices
all via simple text messages on their WAP and SMS-enabled mobile
communications devices.
To further its presence in the mobile communications area, Geoworks also
launched Mobile Site during the quarter, a complement to the company's current
Mobile ASP solution. Mobile Site enables companies to deploy a mobile service
to their customers in about a week and represents a quick, economical and
technology secure mobile solution based on the customer's existing Web site
content.
Another key event in the technology area, Grannan said, was the company's
new partnership with Cell-Loc Inc. (Toronto: CLQ), a leading wireless
location-based technology and services provider.
In addition, Toshiba announced that they have licensed Geoworks' Premion
Server+ technology for their iValue Creation Company, which will develop
customized consumer-oriented mobile Internet services and applications for
businesses in Japan that seek to offer content and commerce services via the
mobile medium.
"We also continued to expand our WAP patent licensing activities, adding
two new licensees during the quarter. In addition, we announced that we have
implemented new licensing terms in accordance with the WAP Forum's
Intellectual Property Rights (IPR) guidelines which include an extension of
the previous terms through September 1, 2000 to any company that contacts
Geoworks by the end of July."
About Geoworks
Geoworks Corporation is a pioneer in wireless data communications services
and technologies for the business and consumer markets. The company's vision
is to enable mobile internet access in the business to business and business
to consumer markets. Geoworks Mobile ASP solution utilizes a flexible
combination of its proprietary Premion Server+ technology and its mobile media
expertise to enable businesses to reach their mobile customers with relevant
and timely information. By licensing its essential Intellectual Property
Rights for the Wireless Application Protocol (WAP), Geoworks plays a central
role in advancing the worldwide market for mobile devices that enable people
to easily and instantly access and interact with information and services.
Based in Alameda, California, the company has offices in New Jersey, Japan and
the United Kingdom, and can be found on the World Wide Web at
http://www.geoworks.com.
In keeping with U.S. law, Geoworks notes that this press release includes
forward-looking statements, including the emergence of, and Geoworks'
participation in, the mobile communications services market. Actual results
may vary significantly due to various risks and uncertainties. These include,
but are not limited to, the following (i) the mobile communications services
market may not emerge to the degree or timing anticipated; and (ii) new
technologies and new services are inherently subject to developments, timing
and consumer acceptance risks. Additional information is available in the
Risk Factors and Business discussions in the Company's Forms 10-K, 10-Q and
other filings available from the company or from the Securities and Exchange
Commission.
GEOWORKS CORPORATION
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
June 30, March 31,
2000 2000
ASSETS
Current assets
Cash and cash equivalents $1,301 $1, 709
Marketable securities 13,761 15,495
Accounts receivable 755 1,492
Prepaid expenses and other current assets 433 417
Total current assets 16,250 19,113
Property and equipment, net 1,855 1,155
Long-term investments 18,331 21,180
Other assets 55 11
$36,491 $41,459
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $657 $1,173
Accrued liabilities 1,786 2,025
Deferred revenue 1,222 1,629
Total current liabilities 3,665 4,827
Stockholders' equity 32,826 36,632
$36,491 $41,459
GEOWORKS CORPORATION
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30, June 30,
2000 1999
Net revenues:
Professional services $2,055 $1,149
License and other revenue 1,975 484
Total net revenues 4,030 1,633
Operating expenses:
Cost of services 1,189 795
Cost of license revenue 18 66
Sales and marketing 1,473 930
Research and development 1,646 949
General and administrative 1,313 702
Total operating expenses 5,639 3,442
Operating loss (1,609) (1,809)
Other income (expense):
Interest income 228 139
Interest expense -- (9)
Loss before income taxes (1,381) (1,679)
Provision for income taxes 173 165
Net loss $(1,554) $(1,844)
Net loss per share (basic and diluted) $(0.08) $(0.10)
Shares used in per share
Computations 18,551 17,643
SOURCE Geoworks Corporation
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Related links:
http://www.geoworks.com
CONTACT:
Jamie Davis of Geoworks, 510-814-5784, or
jdavis@geoworks.com; or Neal Rosen of Kalt, Rosen and Chase,
415-397-2686, or Rosen@KRC-IR.com, for Geoworks
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