ALAMEDA, Calif., April 25 /PRNewswire/ --
Geoworks Corporation, (Nasdaq: GWRX), a pioneer in wireless data
communications services and technologies, today reported results for the
fourth quarter and all of fiscal 2000.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010124/GWRXLOGO )
For the fourth quarter of fiscal year 2000 ended March 31, 2000, Geoworks
reported record revenues of $4,437,000 compared with revenues of $4,042,000 in
the same period a year ago, or a 10% increase. The company reported net income
of $934,000, or $0.05 per diluted share, versus a net loss of $2,576,000, or
$0.15 per share, a 136% improvement compared with the same period a year ago.
The results for the fourth quarter of fiscal year 2000 include income of
$1,740,000 related to the sale of a portion of the company's investment in
Wink Communications and the reversal of a restructuring charge of
$589,000. Excluding the impact of these two items, Geoworks would have
reported a net loss of $1,395,000, or $0.08 per share, an improvement of
46% from the same period a year ago.
For the fiscal year ended March 31, 2000, Geoworks reported revenues of
$12,139,000 compared with revenues of $8,782,000 in fiscal 1999, or a
38% increase. The company reported a net loss of $973,000, or $0.05 per share
for fiscal year 2000, versus a net loss of $15,838,000, or $0.97 per share, an
improvement of 94% compared with fiscal 1999. Included in the fiscal 2000
results is income of $4,049,000, related to the sale of a portion of the
company's investment in Wink Communications and the reversal of a
restructuring charge of $589,000. Without these two items, Geoworks would have
reported a net loss of $5,611,000, or $0.31 per share, an improvement of
65% compared with fiscal 1999.
"We have continued to increase revenues from operations," noted
Dave Grannan, president and chief executive officer of Geoworks. "Our
Professional Services revenues grew by roughly 25 percent over the prior
quarter as we have expanded our relationships with existing customers
including Mitsubishi Electric Corporation, Nokia and Sonera SmartTrust."
"The company's operating results reflect the continued investments we are
making in engineering, sales and marketing programs to support our mission of
enabling mobile information access," noted Steve Baker, Geoworks' vice
president and chief financial officer. "During the quarter, we reversed the
remainder of a restructuring accrual that was established in the fourth
quarter of fiscal year 1999 which is no longer required because we exited one
lease and now plan to fully utilize our primary facility as a result of
growth," he added.
"We continued to strengthen the company's balance sheet, ending the year
with $17.2 million in cash and marketable securities versus $15.5 million at
the end of the third quarter," Baker continued. "In addition, our investments
were valued at $21.2 million at the end of the period, providing with us
additional financial resources to invest in enhancing our technology, sales
and marketing efforts."
Grannan noted that Geoworks' achieved several key milestones this quarter,
including launching an Intellectual Property Rights (IPR) licensing program to
make the intellectual property Geoworks owns in the Wireless Application
Protocol (WAP) specification available to all industry participants. This
quarter, the company also launched its Mobile ASP(TM) product, a mobile
communications solution for enterprise clients which is designed to extend
operations, communications and customer service initiatives to the mobile
medium.
Grannan stated that since announcing the IPR licensing program in
January 2000, Geoworks has signed four licensees, including Toshiba
Corporation. Further, "A number of industry participants have recognized the
validity of our IPR claims and they have entered into licensing discussions
with us," he added.
"We also demonstrated the value of our Premion Server+(TM) technology
through our agreement with Virgin Mobile in which they will use our technology
to support wireless calendar updates to Virgin Mobile subscribers in the
United Kingdom," he continued. Called "Diary Buddy," the new service
integrates Geoworks' proprietary server technology into the Virgin Mobile
architecture to enable Virgin Mobile subscribers to receive personalized
reminders about important events and appointments direct to their mobile
phones.
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(TM) solution utilizes a flexible
combination of its proprietary Premion Server+(TM) 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 Applications 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 Sweden,
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 earnings press release
includes forward-looking statements, including the emergence of, and Geoworks'
participation in, the mobile communication services market. Actual results may
vary significantly due to various risks and uncertainties. Those include, but
are not limited to, the following: i) the mobile communication 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. 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)
March 31, March 31,
2000 1999
ASSETS
Current assets
Cash and cash equivalents $1,709 $1,760
Marketable securities 15,495 11,955
Accounts receivable 1,492 3,102
Prepaid expenses and other current assets 417 371
Total current assets 19,113 17,188
Furniture and equipment, net 1,155 973
Long-term investments 21,180 --
Other assets 11 22
$41,459 $ 18,183
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $1,173 $ 504
Accrued and other current liabilities 2,025 2,807
Deferred revenue 1,629 1,498
Total current liabilities 4,827 4,809
Stockholders' equity 36,632 13,374
$41,459 $18,183
GEOWORKS CORPORATION
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Year Ended
March 31, March 31, March 31,
March 31,
2000 1999 2000 1999
Net revenues:
Professional services $2,496 $ 477 $7,004 $1,228
Research and development fees 72 330 320 3,315
License and other revenue 1,869 3,235 4,815 4,239
Total net revenues 4,437 4,042 12,139 8,782
Operating expenses:
Cost of services 1,564 312 4,584 827
Cost of license revenue 81 3 335 40
Sales and marketing 1,961 993 5,577 4,951
Research and development 1,335 2,604 4,100 13,810
General and administrative 993 996 3,338 3,634
Restructuring charges (589) 1,790 (589) 1,790
Total operating expenses 5,345 6,698 17,345 25,052
Operating loss (908) (2,656) (5,206) (16,270)
Other income (expense):
Other income 1,740 -- 4,049 --
Interest income 199 116 646 612
Interest expense -- (6) (10) (31)
Income (loss) before income taxes 1,031 (2,546) (521) (15,689)
Provision for income taxes 97 30 452 149
Net income (loss) $ 934 $(2,576) $(973) $(15,838)
Net income (loss) per share
- basic $0.05 $(0.15) $(0.05) $(0.97)
Net income per share
- diluted $0.05 $(0.15) $(0.05) $(0.97)
Shares used in per share
computation
Basic 18,248 16,950 17,866 16,260
Diluted 20,714 16,950 17,866 16,260
SOURCE Geoworks Corporation
back to top
