Source: GeoworksGEOWORKS REPORTS FIRST QUARTER RESULTS
ALAMEDA, Calif. (July 28, 1998) - Geoworks Corporation (NASDAQ National Market System: GWRX), a leading provider of smart phone software solutions, today announced results for the first quarter of fiscal 1999.
For the quarter ended June 30, 1998, Geoworks reported revenues of $1,493,000 compared with revenues of $1,898,000 in the same period a year ago. The company reported a net loss of $5,173,000, or $0.32 per share, compared with a loss of $5,784,000, or $0.37 per share, in the first quarter of fiscal 1998. Amounts reported represent both the basic and diluted loss per share.
"As we have indicated previously, our results 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 and chief executive officer of Geoworks.
"We are now in the process of implementing an expense reduction program and the revised strategic plan in view of these developments," he added. "We are also focused on broadening our management team and actively interviewing chief financial officer candidates. In addition, this month we named Sprint PCS executive and wireless industry veteran Bernie Bianchino to our board of directors, and this morning announced that Brian Dougherty, founder and former chairman of Geoworks, has rejoined the board.
During the quarter, the company continued to enhance the capabilities of its GEOS-SC operating system and offerings of wireless content and services. The company announced that it has joined the Wireless Application Protocol (WAP) Forum, a consortium of phone manufacturers and service and application providers. "By working with industry leaders such as Nokia, Ericsson, Motorola and Unwired Planet through WAP, Geoworks will be deeply involved in the creation of standards which can enhance the emergence of the smart phone market," Thatcher said.
During the quarter, Geoworks announced that it has ported its operating system, which includes Sun Microsystems' PersonalJava platform to chips designed by ARM, the preferred microprocessor in the European handset market.
"This relationship provides OEMs an important Java technology-based solution that accelerates time to market and expands the market opportunities for developers of Java applications worldwide," Thatcher said.
Geoworks has also entered into an agreement with United Press International, a leading global news gathering agency, to deliver headlines and news summaries from around the world to wireless devices.
"Not only we will be able to deliver real-time information in a format that consumers can view on a mobile wireless device, but this agreement will enable carriers to leverage UPI's extensive editorial databases and offer content-sensitive search capabilities from mobile devices," Thatcher noted.
Based in Alameda, Calif. with international operations in the United Kingdom and Japan, Geoworks Corporation is a leading provider of end-to-end software solutions for the wireless communications industry. The Company creates operating system software, applications and actionable services for a variety of wireless devices, ranging from enhanced phones to high-end, all-in-one smart communicators. For additional information on Geoworks, contact the Company on the World Wide Web at http://www.geoworks.com.
In keeping with U.S. law, Geoworks notes that this press release includes forward-looking statements, including the projected emergence and growth of the smart phone market, future products, services and standards, and the company's revised strategic and management plans. Actual results may vary significantly due to various risks and uncertainties. These 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.