General Magic, Inc. Reports 1995 Fourth Quarter And Year End Results
SUNNYVALE, Calif. — February 20, 1996 — General Magic, Inc. (Nasdaq: GMGC) today announced its operating results for the 1995 fourth quarter and year end. Revenues in the quarter ended December 31, 1995 were $4.9 million. There were no revenues during the same quarter last year. The Company's net loss decreased 25% to $5.4 million or $.21 per share for the fourth quarter of 1995, compared to a net loss of $7.3 million or $.46 per share in the prior year period.
For the year ended December 31, 1995, revenues were $14.2 million as compared to $2.5 million for the year ended December 31, 1994. The Company's net loss decreased 4% to $20.6 million or $.84 per share for the year ended December 31, 1995, compared to a net loss of $21.5 million or $1.36 per share in the prior year period.
Revenue for the fourth quarter of 1995 consisted primarily of a $2.5 million nonrecoupable, nonrefundable license fee for MagicCap(TM) technologies, a $1.4 million fee for a customer engineering agreement, and the remainder included support services fees from the Company's licensees.
General Magic, Inc. was founded in May 1990 and is headquartered in Sunnyvale, California. Its mission is to participate in the electronic marketplace by developing and licensing software to leading providers of communication products, network services and network applications. The General Magic Founding Partners Council includes AT&T, Cable & Wireless, France Telecom, Fujitsu, Matsushita, Mitsubishi Corporation, Mitsubishi Electric, Motorola, Nortel, NTT, Oki, Philips, Sanyo, Sony, and Toshiba. To date, General Magic has generated minimal revenues from the sale of products and services based upon its technologies, and expects to incur substantial losses at least through the year of 1997.
NOTE: Magic Cap and Telescript are trademarks of General Magic, Inc.
GENERAL MAGIC, INC.
(A Development Stage Enterprise)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three-Month
Period Ended Year Ended
December 3l, December 31,
1995 1994 1995 1994
(Unaudited)
Revenue 4,873 — 14,165 2,500
Cost of revenue and
operating expenses:
Cost of revenue 722 — 2,113 —
Research and development 5,450 3,845 19,297 13,426
Sales, general, and
administrative 5,034 3,232 18,092 10,394
Total cost of revenue and
operating expenses 11,206 7,077 39,502 23,820
Loss from operations (6,333) (7,077) (25,337) (21,320)
Net interest and other
income (expense) 1,447 (93) 5,932 314
Loss before income taxes (4,886) (7,170) (19,405) (21,006)
Income taxes 558 100 1,214 525
Net loss [5,444) [7,270) [20,619) [21,531)
Net loss per share $ (0.21) $ (0.46) $ (0.84) $ (1.36)
Shares and share equivalents
used in computing per share
amounts 25,668 15,757 24,451 15,803
CONTACT:
Analysts and Press, Dennis Raney, Vice President of Finance & Administration, Chief Financial Officer of General Magic, 408-774-4291