Source: Geoworks Home Page(ALAMEDA, CA), July 17, 1996--Geoworks (Nasdaq NMS Symbol: GWRX), a leading developer of operating systems for the emerging consumer computing device (CCD) market, today reported results for the first quarter ended June 30, 1996.
Revenues for the first quarter of fiscal 1997 were $2,429,000 versus revenues of $385,000 for the first quarter of fiscal 1996. Geoworks reported a net loss of $1,931,000, or $0.14 per share, compared with a net loss of $2,840,000, or $0.25 per share, for the same period a year ago. During the quarter, the Company restructured a desktop software distribution agreement in the educational market. As a result, previously deferred revenue was recognized, making a material contribution to the current quarter's results.
"Geoworks continued to enhance its position in the smart phone market during the quarter, announcing alliances with NEC and NTT DoCoMo to deliver GEOS(R)- based smart phones and information services to the Japanese market. In addition, Pacific Bell Mobile Services said it will offer advanced data services over its PCS-1900 communications network via GEOS-based cellular handsets," noted Gordon Mayer, president and chief executive officer of Geoworks.
Geoworks will work with NEC, the leading provider of digital handsets in Japan, to jointly develop and deliver a family of smart phones for the Japanese market. The initial family of these devices is scheduled for introduction by March, 1997.
In collaboration with NTT DoCoMo, Japan's leading cellular service provider, Geoworks will assist in determining how information services are delivered to Japanese consumers via smart phones. This includes both targeted information services and innovative ways mobile users can access new information and services anytime and anywhere. The market for digital cellular telephones and services in Japan is expected to exceed $1.7 billion by the end of the decade, according to Dataquest.
"We believe our involvement with these market leaders will advance digital cellular communications in one of the world's major markets. They also validate our vision of GEOS as a global operating system standard for smart phones," Mayer said.
Mayer noted that the Pacific Bell Mobile Services PCS-1900 network will support features such as voice and data transmission, fax, e-mail and text messaging and that device manufacturers Nokia and Ericsson are currently working with Geoworks to develop products that will operate with the PCS-1900 network.
Mayer also noted that Geoworks has recently enhanced its presence in the Internet arena. During the quarter, the company announced it has joined the World Wide Web Consortium to ensure that standards set by the Consortium address the needs of consumers using mobile devices such as smart phones for internet access.
In addition, Geoworks announced on July 1 that it will work with HotWired, Inc., a premier developer of Internet programming, to explore the delivery of Web-based content to GEOS-based smart phones. As part of this agreement, smart phone users will receive a unique version of HotWired's weekly "HotFlash," a service which provides updated news briefs about content available on the HotWired Network.
Based in Alameda, California, Geoworks develops and markets the GEOS operating system and application software for the emerging CCD market. The company is focused on enabling the development of smart phones and electronic organizers and has licensed GEOS to leading manufacturers such as NEC, Nokia, Ericsson, Toshiba Corporation, Hewlett-Packard Company, Brother International Corp. and Canon Business Machines.
In keeping with U.S. law, Geoworks notes that this press release includes forward-looking statements, including the Company's intention to participate in the development and delivery of smart cellular phones and information services to the Japanese and U.S. markets; the Company's intention to collaborate in such efforts with Pacific Bell, NEC, NTT, and HotWired; the estimate of the timing, market size and penetration of such products and services; the emergence of such products and services as standards, and the development of future industry standard protocols; and forecasts by Dataquest concerning the digital cellular market in Japan. Actual results may vary significantly, due to various risks and uncertainties. In particular, the risks include, but are not limited to the following: (i) the Company's business is critically dependent upon the emergence of a new market and on the activities of a limited number of device manufacturers, and the Company has no direct control over those activities; (ii) the Company's success depends upon acceptance of its technology by existing and new CCD market participants; (iii) scheduling and delivery risks inherent in the development of complex technology have in the past caused product delays and may in the future affect the Company's ability to develop and deliver new products on a timely basis; (iv) the Company anticipates the emergence and potential impact of competitive products and services; (v) the Company may need to consummate definitive agreements with NEC, NTT, Pacific Bell and HotWired and (vi) this quarter's revenues are not indicative of revenues to be reported in future periods. 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 the Securities and Exchange Commission.
For additional information on Geoworks and the GEOS operating system, contact Geoworks on the World Wide Web at http://www.geoworks.com.