Source: GeoworksALAMEDA, Calif. -(BUSINESS WIRE)- Jan. 27, 1998 - Geoworks (NASDAQ/NMS:GWRX - news), a leading provider of smart phone software solutions, today announced results for the third quarter and first nine months of fiscal 1998.
For the quarter ended Dec. 31, 1997, Geoworks reported revenues of $4,023,000 compared with revenues of $3,672,000 for the same period a year ago. The company reported a loss of $2,583,000, or $0.16 per share, compared with a loss of $2,406,000, or $0.16 per share, for the third quarter of fiscal 1997.
For the first nine months of fiscal 1998, Geoworks reported revenues of $9,286,000 versus revenues of $9,165,000 for the first nine months of fiscal 1997. The company reported a loss of $11,082,000, or $0.71 per share, compared with a loss of $7,653,000, or $0.51 per share, for the same period a year ago.
"The company experienced modest growth in license and royalty revenues," said David Thatcher, president and chief financial officer. "At the same time, our non-recurring engineering (NRE) revenues were impacted by certain partners experiencing delays in their respective overall product development schedules," he added.
"We continued to achieve important milestones during the quarter, including the release of our GEOS(R)-SC(tm) operating system and the licensing of that platform to Mitsubishi, our newest OEM partner and a leading consumer products manufacturer," said Gordon Mayer, chairman and chief executive officer.
"In addition, the Nokia 9000i Communicator, which features the GEOS operating system, began shipping in North America through Omnipoint Communications, Pacific Bell Mobile Services, Powertel, Inc. and Bell South in the United States and Microcell Solutions Inc., in Canada," he continued.
GEOS-SC is the world's first graphical operating system designed exclusively to meet the needs of the emerging smart phone market and offers innovative advantages in portability, scalability and flexibility. It provides digital cellular handset manufacturers with the most complete set of functionally available for their phone designs, ranging from enhanced phones to smart communicators.
"Mitsubishi will be integrating GEOS-SC into its new line of affordable mobile communications devices that combine voice and data services for the Japanese domestic market, the world's fastest growing digital cellular market," Mayer noted.
"Having a strong presence in Japan's wireless market is important to Geoworks. According to Japan's Ministry of Post and Telecommunications, more than 27 percent of the country's 125 million people subscribe to a wireless service," he added.
Mayer said the company achieved several other significant milestones in the mobile communications arena during the quarter. He said these included an expansion of the relationship with Sun Microsystems in which Geoworks will utilize Sun's Java(tm) programming language to create Java solutions suitable for mobile communications devices.
The company also announced that its Wireless Data Backup service is now available to customers of Telecom Finland, Ltd., Finland's leading telecommunications company.
"We also announced an alliance with Access Co. Ltd., an embedded Internet software supplier in Japan," Mayer said. "We intend to develop solutions that combine Access' NetFront(tm), which integrates Internet access, electronic mail and network interface, with our operating system technology."
During the quarter, the company also announced that it has joined the Smart Card Forum to begin working on utilizing smart card technology for electronic commerce solutions for wireless devices, including smart phones.
In addition, Geoworks has teamed up with Zagat Survey, the publisher of the country's best-selling review guidebooks, to deliver reviews and rating of restaurants, hotels and spas to users of mobile communications devices. Under this agreement, Geoworks intends to create a wireless data service featuring Zagat Survey information that can be licensed to operators for sale to their customers.
"These types of agreements extend and enhance the offerings available to users of wireless devices, making them more attractive to consumers and expanding opportunities for cellular service providers," Mayer noted.
Based in Alameda, Calif., Geoworks Corp. is a leading software provider for the cellular industry and manufacturers of mobile communication devices, including smart phones.
The company has licensed its GEOS operating system to leading manufacturers such as Nokia, Mitsubishi, Ericsson, NEC, Toshiba Corp., Hewlett-Packard Co. [NYSE:HWP - news], Brother International Corp. and Canon Business Machines. In addition, the company is working 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 intention of the company's customers to build GEOS-SC-based devices; the company's intention to develop content and services offerings as well as software solutions relating to its operating system; and the projected emergence and growth of the smart phone market. Actual results may vary significantly due to various risks and uncertainties. Those include, but are not limited to, the following: i) the smart phone and wireless markets may not emerge to the degree or in the timing anticipated; ii) new technologies and new services are inherently subject to development, timing and customer acceptance risks; and iii) the company is dependent upon the actions of its customers concerning the development and release of their products, and there can be no assurance that the company's licensees will commercialize such products or that the company will derive revenues therefrom. 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 and GEOS-SC operating systems and the company's 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 Nine Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Net revenues $ 4,023 $ 3,672 $ 9,286 $ 9,165 ========== ========== ========== ========== Net loss $ (2,583) $ (2,406) $ (11,082) $ (7,653) ========== ========== ========== ========== Net loss per share $ (0.16) $ (0.16) $ (0.71) $ (0.51) ========== ========== ========== ========== Shares used in per share computation 15,760 15,237 15,638 15,176 ========== ========== ========== ==========