Source: GeoworksALAMEDA, CA, (July 22, 1997) Geoworks (NASDAQ National Market System: GWRX), a leading developer of operating system software for the emerging mobile computing device market, today announced results for the first quarter of fiscal 1998 (ending June 30, 1997).
For the quarter ended June 30, 1997, Geoworks reported revenues of $1,898,000, compared with revenues of $2,733,000 for the same period a year ago. The company reported a loss of $5,784,000, or $.37 per share, compared with a loss of $2,532,000, or $.17 per share, for the first quarter of fiscal 1997. The results for the first quarter of fiscal 1997 have been restated to reflect a pooling of interests accounting for Geoworks' acquisition of the Eden Group, Ltd. in the fourth quarter of fiscal 1997.
The results for the first quarter of fiscal 1998 include approximately $700,000 in non-recurring charges related to the purchases of software licenses and reorganization costs. Such expenses are expected to be lower in future quarters. Revenues for the first quarter of fiscal 1997 included recognition of approximately $1.6 million from the termination of an OEM contract.
"The company achieved several important milestones during the quarter which have enhanced its position as a leading provider of operating system, content and services software for the emerging smart phone market," said Gordon Mayer, chairman and chief executive officer. "The company continues to focus on creating strategic alliances to deliver compelling solutions that take advantage of its position in this emerging market."
The first of these milestones included an agreement with Telecom Finland, Ltd. to provide smart phone users with a new service that provides a secure system for backing up important data on their handheld communicating devices to network servers.
"This agreement is a major accomplishment for two reasons," Mayer noted. "First, we have aligned ourselves with a major European cellular operator and anticipate additional opportunities to provide joint products and services to Telecom Finland's mobile customers. Second, as smart phones become more pervasive, we will be able to provide cellular operators with an additional aftermarket opportunity."
Geoworks also announced a cooperative effort with Financial Times Information, an affiliate of the U.K.-based Financial Times newspaper, to provide worldwide cellular operators with business, economic and political news and information services. Under the agreement, Financial Times Information intends to utilize Geoworks' software technology to provide geographically targeted headlines and news story summaries for the cellular operators' smart phone customers.
"These agreements complement our ongoing strategy of providing smart phone users with a varied and growing range of customized information and services, including secure backup capabilities, news, financial data, travel, electronic commerce and directory services," Mayer noted.
During the quarter, Geoworks also announced that it had licensed Java technology from JavaSoft, a business unit of Sun Microsystems. Java will be ported to the company's GEOS platform to enable developers to create applications for GEOS-based smart phones.
Based in Alameda, California, Geoworks is a leading software provider for the cellular industry and manufacturers of mobile communicating devices, including smart phones. The company has licensed its GEOS operating system to leading manufacturers such as Nokia, Ericsson, NEC, Toshiba Corporation, Hewlett-Packard Company, Brother International Corp. and Canon Business Machines. In addition, the company intends to work with content and services providers and international cellular operators.
In keeping with U.S. law, Geoworks notes that this press release includes forward looking statements, including the company's future revenues and expenses, anticipated software development, expectations concerning market growth, the establishment of key partnerships and the timing and availability of new product and service offerings. Actual results may vary significantly due to various risks and uncertainties. The smart communicator market and services aftermarket may not emerge to the degree or in the timing anticipated, and new technologies are inherently subject to development, timing and consumer acceptance risks. To date, the company has incurred significant losses, has had substantial negative cash flows and has realized limited revenues. The company expects to continue to incur substantial operating losses at least through the fiscal year ended March 31, 1998. Future results depend upon the emergence of the smart communicator market, establishment of licensing relationships with leading market participants, introduction of successful products and services, and achievement and maintenance of a competitive advantage. 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.
For additional information on Geoworks and the GEOS operating system, contact Geoworks on the World Wide Web at http://www.geoworks.com.