General Magic, Inc. Reports 1995 Third Quarter Results
SUNNYVALE, Calif. — November 7, 1995 — General Magic, Inc. (Nasdaq: GMGC) today announced its operating results for the third quarter of fiscal year 1995. Revenues in the quarter ended September 30, 1995 were $3.2 million. Revenues during the same quarter last year were $2.5 million. The Company's net loss increased 28% to $5.1 million or $.20 per share for the third quarter of 1995, from a net loss of $4.0 million or $.25 per share in the prior year period.
For the nine months ended September 30, 1995, revenues were $9.3 million. Revenues during the nine months ended September 30, 1994 were $2.5 million. The Company's net loss increased 6% to $15.2 million or $.63 per share for the nine months ended September 30, 1995, from a net loss of $14.3 million or $.90 per share in the prior year period.
Licensing revenue, consisting primarily of a nonrefundable, nonrecoupable license fee for Telescript(TM) technologies, was $2.6 million. Other revenue 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 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, 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.
NOTE: Magic Cap and Telescript are trademarks of General Magic, Inc.
GENERAL MAGIC, INC.
(A Development Stage Enterprise)
CONDENSED BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 108,120 $ 40,747
Receivables and prepaid expenses 3,799 488
Total current assets 111,919 41,235
Property and equipment, net 5,632 3,751
Other assets 443 905
$ 117,994 $ 45,891
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued expenses
and current portion of capital
lease obligations $ 5,865 $ 4,581
Deferred revenue 3,413 3,242
Total current liabilities 9,278 7,823
Capital lease obligations, net of current
portion, and other long-term liabilities 2,487 2,539
Deferred revenue, noncurrent 12,600 10,600
Total liabilities 24,365 20,962
Preferred stock, common stock and
additional paid-in capital 161,846 78,009
Unrealized gain on investments 38 —
Deficit accumulated during
development stage (68,255) (53,080)
Total stockholders' equity 93,629 24,929
$ 117,994 $ 45,891
GENERAL MAGIC, INC.
(A Development Stage Enterprise)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three-Month Periods Nine-Month Periods
Ended Ended
September 30, September 30,
1995 1994 1995 1994
(Unaudited) (Unaudited)
Revenue 3,227 2,500 9,292 2,500
Cost of revenue and operating
expenses:
Cost of revenue 357 — 1,391 —
Research and development 4,754 3,469 13,847 9,581
Sales, general, and
administrative 4,675 2,727 13,058 7,162
Total cost of revenue and
operating expenses 9,786 6,196 28,296 16,743
Loss from operations (6,559) (3,696) (19,004) (14,243)
Net interest and other
income 1,591 151 4,485 407
Loss before income taxes (4,968) (3,545) (14,519) (13,836)
Income taxes 100 425 656 425
Net loss $ (5,068) $ (3,970) [15,175) [14,261)
Net loss per share $ (0.20) $ (0.25) $ (0.63) $ (0.90)
Shares and share equivalents
used in computing
per share amounts 25,310 15,695 24,044 15,818
CONTACT:
Michael Stern, Vice President Business Affairs and Acting Chief Financial Officer of General Magic, 408-774-4235, or Michael(underscore)[email protected]