Source: GeoworksALAMEDA, Calif. - (BUSINESS WIRE) - Oct. 28, 1997 - Geoworks (NASDAQ National Market System: GWRX), a leading provider of operating system software solutions for resource-constrained devices including smart phones, today announced results for the second quarter and first six months of fiscal 1998.
For the quarter ended September 30, 1997, Geoworks reported revenues of $3,364,000 compared with revenues of $2,760,000 for the same period a year ago. The company reported a loss of $2,716,000, or $0.17 per share, compared with a loss of $2,715,000, or $0.18 per share, for the second quarter of fiscal 1997.
For the first six months of fiscal 1998, Geoworks reported revenues of $5,263,000 compared with revenues of $5,493,000 for the same period a year ago. The company reported a loss of $8,499,000, or $0.55 per share, compared with a loss of $5,247,000, or $0.35 per share, in the first six months of fiscal 1997. The results for both periods of 1997 have been restated to reflect a pooling of interest accounting for Geoworks' acquisition of the Eden Group, Ltd., in the fourth quarter of fiscal 1997.
"The company's results for the quarter demonstrate management's continued focus on generating strategic, royalty-based product revenues and managing expenses as we pursue our goal of achieving the break-even threshold in our fiscal Q4," said David Thatcher, chief financial officer.
"The highlight this quarter was the U.S. introduction of the Nokia 9000i Communicator in North America in which our GEOS operating system serves as the operating platform. The Nokia 9000i Communicator, which has already received favorable reception in more than 30 countries around the world since its introduction last year, is the first integrated mobile communications device that seamlessly combines voice and data functionality," said Gordon Mayer, chairman and chief executive officer. "GEOS devices are now available in every major geography - Europe, Japan and now the U.S."
Mayer noted that during the quarter, Geoworks and Nokia announced an extension of their existing collaboration and will begin development of new software, operating system solutions and intelligent mobile devices.
He added that another major milestone was that Toshiba Corporations' new Genio PCV 100 Pocket Communicator, which includes Geoworks' operating system software, shipped during the quarter in the Japanese market. "Digital cellular technology is becoming increasingly pervasive in Japan and initial response to the Genio device has been very positive," Mayer said.
"We continue to pursue new strategic alliances with other key participants in our business - specifically with leading handset manufacturers, cellular operators, and technology providers - that capitalize on Geoworks leadership position in the smart phone market," he commented.
On October 1, 1997, the company announced an expansion of the relationship with Sun Microsystems in which Geoworks will utilize Sun's Java programming language to create a Java solution suitable for mobile communications devices. "The ability to leverage the power and functionality of Java in smart phones will be a key catalyst in the growth of this market," Mayer said.
Mayer said the company continues to enhance its Wireless Content and Services (WCS) offerings. During the quarter, the company announced the availability of a Wireless Data Backup service that will enable end-users to wirelessly backup and store data securely. Telecom Finland, Ltd., Finland's leading telecommunications company, recently announced that it will be providing this service to its customers.
The company also launched Wireless Web Access, which enables cellular operators to facilitate the appropriate display of content from the World Wide Web on smart phones. Wireless Web Access filters out non-essential items from Web pages before they are downloaded, improving response time and ensuring a format suitable for smart phone devices.
"Both of these products represent important value-added services for cellular operators and their customers by enhancing the functionality and capabilities of smart phone devices and the services cellular operators can provide," Mayer said.
Based in Alameda, California, Geoworks is a leading software provider for manufacturers of mobile communicating devices, including smart phones, as well as the cellular industry. 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 alliances 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, the GEOS operating system, and Wireless Content and Services, contact Geoworks on the World Wide Web at http://www.geoworks.com.
GEOWORKS Condensed Consolidated Financial Summary (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 1997 1996 1997 1996 Net revenues $ 3,364 $ 2,760 $ 5,263 $ 5,493 Net loss $(2,716) $ (2,715) $(8,499) $(5,247) Net loss per share (0.17) (0.18) (0.55) (0.35) Shares used in per share computation 15,640 15,237 15,576 15,128