Source: Geoworks(ALAMEDA, CA), April 28, 1998 Geoworks (NASDAQ National Market System: GWRX), a leading provider of smart phone software solutions, today announced results for the fourth quarter and fiscal year ended March 31, 1998.
For the quarter ended March 31, 1998, Geoworks reported revenues of $3,630,000, compared with revenues of $1,931,000 for the same period a year ago. The company reported a loss of $3,788,000, or $0.24 per share, compared with a loss of $5,823,000, or $0.38 per share, for the fourth quarter of fiscal 1997. Amounts reported represent both the basic and diluted loss per share.
For all of fiscal 1998, Geoworks reported revenues of $12,917,000 versus revenues of $11,096,000 for fiscal 1997. The company reported a loss of $14,869,000, or $0.95 per share, compared with a loss of $13,476,000, or $0.88 per share, in fiscal 1997.
"Our results for the quarter continue to be impacted by the slower than anticipated emergence of the smart phone market and several of our OEM partners experiencing delays in their product development and introduction activities," said David Thatcher, president of Geoworks. "At the same time, our expenses were impacted by several additional costs related to employee severance, relocation activities and contract engineering costs.
"We and our partners remain enthusiastic about the market opportunity and Geoworks continues to maintain its leadership position in the industry," he continued. "However, given the near-term outlook for the smart phone market, we anticipate our revenues in fiscal 1999 will be flat compared with those in fiscal 1998."
Thatcher said the company is revising its strategic plan to address the current market opportunities. This strategy is likely to include a narrower product focus and will incorporate an expense reduction program to lower operating expenses in fiscal 1999 in comparison with fiscal 1998.
"We continued to enhance our relationship with Nokia with the announcement at CeBIT in March that our GEOSâ operating system will be the foundation for the new Nokia 9110 Communicator scheduled for availability this Fall," said Gordon Mayer, chairman and chief executive officer.
"This Nokia device follows the acclaimed Nokia 9000 Communicator, which also utilizes the GEOS operating system. This new, full featured product is smaller, lighter, more powerful and operates with longer battery life," he added.
Mayer also noted that during the quarter, Geoworks demonstrated Java applications running on the GEOS-SC graphical operating system for the first time at the Worldwide JavaOne Developer Conference in San Francisco.
The company has continued to strengthen its management team, Thatcher noted. David Grannan has been named vice president of marketing and business development. He comes to Geoworks with more than eight years of experience in the wireless industry. Most recently, he was vice president of sales and marketing at Sprint PCS. Before that, Grannan was with the Communications Industry Group of Andersen Consulting, providing strategic marketing services to leading wireless carriers.
The company also named Hisao Shima as its new general manager in Japan. Prior to joining Geoworks, he was responsible for establishing Japanese operations for several U.S. and United Kingdom-based companies.
"These two additions are important to our future growth," Thatcher said. "Dave brings expertise in marketing to handset manufacturers, wireless carriers and consumers, while Hisao gives us a strong presence in the highly important Japanese market."
Based in Alameda, Calif., Geoworks Corporation 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 and GEOS-SC operating systems to leading manufacturers, including Mitsubishi, Nokia, Toshiba Corp., Hewlett-Packard Co., 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 Company’s anticipated revenues for fiscal year 1999, the projected emergence and growth of the smart phone market, and the company’s revised strategic plans. Actual results may vary significantly due to various risks and uncertainties. Those include, but are not limited to, the following: 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 annual operating losses at least through the fiscal year ended March 31, 1999. 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, its operating system and wireless content services, contact Geoworks on the World Wide Web at http://www. geoworks. com.