Geoworks Reports Second Quarter Results.
ALAMEDA, Calif. — October 27, 1998 — Geoworks Corporation (Nasdaq: GWRX), a leading provider of smart phone software solutions, today announced results for the second quarter and first six months of fiscal 1999.
For the quarter ended September 30, 1998, Geoworks reported revenues of $1,293,000, net of a one-time charge to revenue of $740,000, or $0.05 per share, compared with revenues of $3,364,000 for the same period a year ago. The company reported a net loss of $4,601,000, or $0.29 per share, compared with a net loss of $2,716,000, or $0.17 per share, for the second quarter of fiscal 1998. The one-time charge to revenue is related to the settlement of a contract dispute.
For the first six months of fiscal 1999, Geoworks reported revenues of $2,786,000, net of the one-time charge to revenue, compared with revenues of $5,263,000 for the same period a year ago. The company reported a net loss of $9,774,000, or $0.61 per share, versus a net loss of $8,499,00, or $0.55 per share, for the first six months of fiscal 1998. The per share amounts for both periods reflect both basic and diluted per share results.
"The company's revenues continue to reflect the shift in our strategic focus from developing operating systems for the high-end smart phone market to a focus on the middle-market enhanced phone sector," noted David Thatcher, president and chief executive officer of Geoworks.
"At the same time, we have been successful in our expense reduction programs," he added. "Operating expenses for the quarter were approximately $350,000 lower than the same quarter a year ago and approximately $1.6 million lower for the first six months of fiscal 1999 versus the first six months of fiscal 1998. As a result, we remain confident that we are on track to achieve our long-term expense reduction plan."
"Subsequent to the end of the quarter, we announced the appointment of Stephen T. Baker as the company's new chief financial officer," Thatcher noted. "His extensive experience with publicly traded communications and technology companies will be of great value as we implement our strategic repositioning and move towards improved financial results."
Thatcher also noted that during the quarter the company launched a pilot version of its Premion(TM) Information Services with Fujitsu Software Corporation's ByeDesk(TM).
"Premion Information Services is Geoworks first information service that offers general news, weather, stock quotes, driving directions and dining information to users of ByeDesk, a server software application for owners of wireless devices," he said. "Premion Information Services demonstrates the added value of our partnerships with providers such as United Press International, Data Broadcasting Corp., Zagat Survey and ETAK Inc. Consumer interest during the first ten weeks of this pilot program has been very positive," he added.
Based in Alameda, California, 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, its operating system and wireless content services, contact Geoworks 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 ending 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 Form 10-K, 10-Q and other filings available from the company or from the Securities and Exchange Commission.
GEOWORKS
Condensed Consolidated Financial Summary
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
1998 1997 1998 1997
Net revenues 1,293 3,364 2,786 5,263
Net loss [4,601) [2,716) [9,774) [8,499)
Net loss per share
(basic and diluted) [0.29) [0.17) [0.61) [0.55)
Shares used in per
share computation 16,048 15,640 15,989 15,576
SOURCE: Geoworks Corporation
CONTACT:
Keith Mills of Geoworks Corporation, 510-814-5851;
or
Neal Rosen of Kalt, Rosen & Associates, 415-397-2686