General Magic, Inc. Reports 1995 Second Quarter Results
SUNNYVALE, Calif. — August 7, 1995 — General Magic, Inc. (Nasdaq: GMGC) today announced its operating results for the second quarter of fiscal year 1995. Revenues in the quarter ended June 30, 1995 were $1,882,000. The Company had no revenues during the same quarter last year. The Company's net loss increased 25% to $6.5 million or $.26 per share for the second quarter of 1995, compared to a net loss of $5.2 million or $.33 per share in the prior year period.
For the six months ended June 30, 1995, revenues were $6,065,000. The Company had no revenues during the six months ended June 30, 1994. The Company's net loss decreased 2% to $ 10.1 million or $.43 per share for the six months ended June 30, 1995, compared to a net loss of $10.3 million or $.65 per share in the prior year period.
Licensing revenue, consisting primarily of a one-time license fee for Telescript(TM) technologies, was $1,075,000. The remainder of revenues includes 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 create personal intelligent communication products and services by developing and licensing technology to equipment manufacturers, network and information service providers, and software and entertainment companies. To date, General Magic has generated minimal revenues from the sale of products and services based upon its technologies, does not expect to generate any significant revenues in 1995 and expects to incur substantial losses at least through the year ending December 31, 1996.
GENERAL MAGIC, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $113,404 $ 40,747
Receivables and prepaid expenses 1,249 488
Total current assets 114,653 41,235
Property and equipment, net 5,504 3,751
Other assets 210 905
$120,367 $ 45,891
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued expenses
and current portion
of capital lease obligations $ 6,855 $ 4,581
Deferred revenue 2,952 3,242
Total current liabilities 9,807 7,823
Capital lease obligations, net of current
portion, and other long-term liabilities 2,520 2,539
Deferred revenue, noncurrent 11,600 10,600
Total liabilities 23,927 20,962
Preferred stock, common stock and
additional paid-in capital 159,530 78,009
Unrealized gain on investments 97 –
Deficit accumulated during development stage (63,187) (53,080)
Total stockholders' equity 96,440 24,929
$120,367 $ 45,891
GENERAL MAGIC, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three-Month Periods Six-Month Periods
Ended Ended
June 30, June 30,
1995 1994 1995 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue 1,882 – 6,065 –
Cost of revenue and
operating expenses:
Cost of revenue 496 – 1,034 –
Research and development 4,862 3,099 9,093 6,112
Sales, general, and
administrative 4,597 2,222 8,383 4,435
Total cost of revenue
and operating expenses 9,955 5,321 18,510 10,547
Loss from operations (8,073) (5,321) (12,445) (10,547)
Net interest and
other income 1,819 142 2,894 256
Loss before income taxes (6,254) (5,179) (9,551) (10,291)
Income taxes 206 – 556 –
Net loss [6,460) [5,179) [10,107) [10,291)
Net loss per share $ (0.26) $ (0.33) $ (0.43) $ (0.65)
Shares and share equivalents
used in computing
per share amounts 25,034 15,643 23,409 15,721
CONTACT:
Michael Stern, Vice President Business Affairs, Acting Chief Financial Officer, of General Magic, 408-774-4235, or [email protected]