Geoworks Reports Second Quarter Results Showing 18% Revenue Increase Compared
To Prior Year
ALAMEDA, Calif., Oct. 24 /PRNewswire/ -- Geoworks Corporation
(Nasdaq: GWRX), a leading innovator in mobile data communications services and
technologies, today reported results for the second quarter and first six
months of fiscal 2001, showing revenue increases of 18% and 64%, respectively,
over the same periods last year.
For the quarter ended September 30, 2000, the company reported revenues of
$3,478,000, an 18% increase over revenues of $2,940,000 in the same period a
year ago. The company reported a loss of $6,159,000, or $0.29 per share, as
compared to a loss of $994,000, or $0.06 per share, in the same quarter a year
ago. Included in the loss for the second quarter of 2001 were non-cash
charges totaling approximately $2.7 million, or $0.13 per share, related to
the amortization of goodwill and the write off of purchased in-process
research and development. Both of these non-cash charges resulted from
Geoworks' acquisition of AirBoss(TM) Wireless Systems Division in July 2000.
Excluding these non-cash charges, the loss for the quarter was $3,428,000 or
$0.16 per share.
For the first six months of fiscal 2001, Geoworks reported revenues of
$7,508,000, a 64% increase over revenues of $4,573,000 in the first six months
of fiscal 2000. The company reported a loss of $7,713,000, or $0.39 per
share, versus a loss of $2,838,000, or $0.16 per share, in the same period a
year ago. Excluding the non-cash acquisition charges, the loss for the six
months ended September 30, 2000 was $4,982,000 or $0.25 per share.
"For the seventh consecutive quarter, we have demonstrated year over year
revenue increases as we transition to a new wireless services business model,"
said Dave Grannan, Chief Executive Officer of Geoworks. "We expect 25% to 30%
year over year growth in revenues in the third quarter and then forecast
additional sequential growth of 25% to 30% in the fourth quarter."
Timothy Toppin, Vice President and Chief Financial Officer, added that,
"The higher operating expenses in the quarter reflect our expanded sales and
marketing efforts, the AirBoss operating and integration costs, and legal
expenses related to our patent litigation. We will continue to invest in our
technology and our sales and marketing initiatives, so we anticipate that
operating expenses will continue to increase. Our current forecast is that
operating expenses will increase 15-25% in each of the next two quarters as
compared to this past quarter.
"We ended the quarter with approximately $16.7 million in cash and
marketable securities," Toppin continued. "This includes the $5 million
equity investment we received from Integral Capital Partners during the
quarter. Based on our outlook for increased revenues from AirBoss and our
other activities, we remain confident that our cash position will support our
ongoing growth strategies."
Grannan added that there were a number of operational highlights in the
quarter, including, "completing our acquisition of AirBoss Wireless Systems
and beginning the integration of their technologies and employees. This
transaction is already paying dividends with respect to both enhanced product
development activities and revenue growth.
"We promoted Steve Baker to President and Chief Operating Officer and
appointed Tim Toppin as Vice President and Chief Financial Officer, as part of
our plan to aggressively serve the dramatic worldwide mobile growth and
effectively integrate new acquisition and partnership opportunities," he said.
Grannan also noted that Ericsson and Geoworks entered into a
cross-licensing agreement that includes the Geoworks Flex UI Patent(TM).
"This is a strong affirmation of our patent position," he said.
The Company also noted that the U.S. International Trade Commission (ITC)
announced it has initiated an investigation into whether several companies,
including Phone.com, Sanyo Electric Co., Ltd. of Japan, and Sanyo North
America Corporation, are violating Geoworks Flex UI Patent(TM). "We believe a
favorable ruling from the ITC will provide the earliest possible protection
for us and our licensees from the unfair competition represented by the
activities of other companies," Grannan said.
During the quarter the Company also signed a letter of intent with Abbey
National plc, one of the United Kingdom's leading banking organizations.
Under Geoworks' proposed agreement, Geoworks will provide Abbey National's
field staff with a service powered by Mobile ASP that will enable them to send
time-sensitive data, including new mortgage offerings and interest rate
changes to its field staff on mobile phones.
Please note that this press release will be followed by a conference call
beginning at 8 a.m. Pacific Daylight Time that is open to all participants.
Interested parties can call 888-214-7561 to access the teleconference; no
password is necessary.
The call will also be available via an Internet simulcast at
http://www.geoworks.com or http://www.streetfusion.com. Web listeners will be able to hear
the call in its entirety, but will not be able to participate in the Q&A
session.
A webcast replay of the teleconference will be available at
http://www.geoworks.com. A conference call replay will be available starting one
hour after its conclusion and can be accessed by calling 800-633-8284. The
access code is 16601797. Both the webcast and call replays are available
through 5 p.m. Pacific Standard Time, Tuesday, November 7th.
About Geoworks
Geoworks Corporation is a leading innovator in wireless data communication
services and technologies for the business-to-business and
business-to-consumer markets. Geoworks Mobile ASP(TM) solution utilizes a
flexible combination of its proprietary Mobile server technology and its
mobile media expertise to enable businesses to reach their mobile customers
with relevant and timely information. Geoworks AirBoss(TM) client/server
mobile data solutions provide carrier-grade customizable systems ranging from
field service applications to telematics solutions. 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, pertaining to the emergence of, and Geoworks'
participation in, the mobile data and technology licensing and services
markets, as well as Flex UI patent litigation. Actual results may vary
significantly due to various risk and uncertainties. Those include, but are
not limited to, the following: (i) the mobile data and technology services
market may not emerge to the degree or timing anticipated; and (ii) new
technologies and new services are inherently subject to development, timing
and consumer acceptance risks. Moreover, the outcome and cost of litigation
is difficult to assess. Additional information is available in the Risk
Factors and Business discussions in the Company's Form 10-K, 10-Q and other
filings available from the Company or from the Securities and Exchange
Commission.
GEOWORKS CORPORATION
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30, Sept. 30,
Sept. 30,
2000 1999 2000 1999
Net revenues:
Professional services $2,352 $1,384 $4,407 $2,533
License and other revenue 1,126 1,556 3,101 2,040
Total net revenues 3,478 2,940 7,508 4,573
Operating expenses:
Cost of services 1,355 934 2,544 1,729
Cost of license revenue 20 115 38 181
Sales and marketing 2,008 1,109 3,481 2,039
Research and development 2,317 977 3,963 1,926
General and administrative 1,669 814 2,982 1,516
Amortization of goodwill
& other intangibles 1,353 -- 1,353 --
Purchased in-process research
& development 1,378 -- 1,378 --
Total operating expenses 10,100 3,949 15,739 7,391
Operating loss (6,622) (1,009) (8,231) (2,818)
Other income (expense):
Other income 265 -- 265 --
Interest income 227 146 455 285
Interest expense -- -- -- (9)
Income (loss)
before income taxes (6,130) (863) (7,511) (2,542)
Provision for income taxes 29 131 202 296
Net (loss) $(6,159) $(994) $(7,713) $(2,838)
Net (loss) per share
- basic / diluted $(0.29) $(0.06) $(0.39) $(0.16)
Shares used in per share computation
Basic / diluted 20,964 17,723 19,758 17,683
GEOWORKS CORPORATION
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
September 30, 2000 March 31, 2000
ASSETS
Current assets
Cash and cash equivalents $1,571 $1,70
Marketable securities 15,078 15,495
Accounts receivable 3,279 1,492
Prepaid expenses
and other current assets 559 417
Total current assets 20,487 19,113
Property and equipment, net 2,205 1,155
Long-term investments 6,458 21,180
Goodwill & other intangibles, net 36,966 --
Other assets -- 11
$ 66,116 $41,459
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 883 $1,173
Accrued liabilities 2,013 2,025
Deferred revenue 3,192 1,629
Total current liabilities 6,088 4,827
Stockholders' equity 60,028 36,632
$66,116 $41,459
SOURCE Geoworks Corporation
 back to top
Related links:
http://www.geoworks.com
CONTACT:
Jamie Davis of Geoworks Corp., 510-814-5784,
or jdavis@geoworks.com; or Neal Rosen of Kalt Rosen Chase,
415-397-2686, or Rosen@KRC-IR.com, for Geoworks Corp.
|
