Pumatech, Inc. (Nasdaq:PUMA), a leading provider of enterprise-level software products and services that deliver highly relevant information -- wherever and whenever it's needed, today announced results for its first quarter of fiscal 2002 ended October 31, 2001.
For the first fiscal quarter of 2002, Pumatech Inc. reported revenues of $6,772,000 compared to $9,923,000 reported in the first fiscal quarter of 2001. Pro-forma diluted loss per share excluding amortization of intangible assets and non-cash compensation charges was $(0.11) in the first fiscal quarter of 2002, compared to $(0.08) in the first quarter of fiscal 2001. Reported diluted loss per share for the fiscal first quarter of 2002 was $(0.15), compared to $(0.12) in the year-ago quarter.
Pumatech's revenue is broken down into four segments: enterprise, technology licensing, service and legacy notebook business. Revenue contributions for the first quarter of fiscal 2002 for the four segments were 42% enterprise, 35% technology licensing, 17% service and 6% legacy notebook business.
Quarterly Highlights
Expense Management
``Over the past few quarters, Pumatech has resized its operations to be more in line with our current revenue levels,'' stated Kelly Hicks, Pumatech's vice president of operations and CFO. ``The full effect of these expense control initiatives resulted in quarterly cost savings greater than $3.0 million in the first fiscal quarter of 2002 compared to fiscal Q3 of 2001.'' Hicks continued, ``Our commitment to expense management is aimed at preserving cash as we refocus our efforts on top-line growth and improved financial results moving forward.''
Optimistic for the Future
Brad Rowe, Pumatech's president and CEO, stated, ``Pumatech continues to be faced with difficult challenges primarily as a result of the economic slowdown, which has adversely impacted Pumatech and our industry at large. Despite these obstacles, we continue to believe that synchronization is core to extending essential corporate information wherever and whenever it's needed. This premise has been validated by major industry analysts and by several new relationships with major enterprise accounts, premier device manufacturers and numerous channel partners secured and announced throughout fiscal Q1. The current economy notwithstanding, our pipeline and prospects continue to grow and we remain optimistic about the Company's future and our mission to become the leading provider of solutions that enable the Real-time Enterprise.''
Investor Conference Call
Management will discuss fourth-quarter results and the Company's outlook and hold a question-and-answer session for investors on Nov. 20, 2001, at 5:00 p.m. Eastern /2:00 p.m. Pacific. To participate, call 415-537-1807 a few minutes ahead of time (no passcode required). If you are unable to participate, a replay will be available from 7:00 p.m. Eastern on Nov. 20, 2001 for 48 hours. To access, please dial 1-800-633-8284, or 1-416-626-4100 (international), reservation number 19886212. In addition, the replay will be available for 90 days via the Internet at www.pumatech.com.
About Pumatech
Pumatech, Inc. (Nasdaq:PUMA) provides organizations with a comprehensive suite of enterprise-level software products and services that deliver highly relevant information -- wherever and whenever it's needed. The Company's portfolio makes Pumatech a single resource, providing the infrastructure necessary to expand the boundaries of information. Organizations can choose to use Pumatech's ready-made enterprise offerings, or they can leverage Pumatech's professional services team to create custom solutions built upon Pumatech's core enterprise platform. Pumatech's customer and strategic partner base includes Global 2000 companies such as Siebel, Oracle, Yahoo!, NTT DoCoMo, Boeing, CNET and General Motors. The Company has headquarters in Silicon Valley, Tokyo and London. Pumatech offers more information on its products and services at www.pumatech.com.
The forward-looking statements above in this news release, including statements related to expense management, improved financial results, the belief that synchronization is a core software solution, new business partnerships and growth in sales are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially include uncertainties related to the effect of continued weakness of general economic factors on the overall demand for our products and services, the timing of market adoption of wireless computing devices, the timely introduction, availability and acceptance of new products and upgrades, the impact of competitive products and pricing, consummation of binding agreements with prospective business partners, as well as additional risk factors, as discussed in the ``Risk Factors'' section of Pumatech's Annual Report on Form 10-K for the year ended July 31, 2001 and Pumatech's quarterly reports filed from time to time with the U.S. Securities and Exchange Commission. Pumatech disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
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PUMATECH, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding Amortization of Intangibles and Non-Cash Stock Compensation
(In thousands, except per-share data)
(Unaudited, Fiscal year ends July 31)
THREE MONTHS ENDED
OCTOBER 31,
--------------------
2001 2000
------- -------
Revenue $ 6,772 $ 9,923
Cost of revenues and operating expenses:
Cost of revenue 2,216 1,559
Research and development 3,894 5,999
Sales and marketing 4,673 5,373
General and administrative 1,178 1,323
------- -------
Total operating expenses 11,961 14,254
======= =======
Operating loss (5,189) (4,331)
Interest and other income, net 441 1,088
------- -------
Loss before income taxes (4,748) (3,243)
Provision for income taxes (111) (136)
------- -------
Net loss $(4,859) $(3,379)
======= =======
Net loss per share:
Basic $ (0.11) $ (0.08)
Diluted $ (0.11) $ (0.08)
Shares used in per share calculation:
Basic 44,629 42,666
Diluted 44,629 42,666
The above pro forma condensed consolidated statements of operations
include operational depreciation of $848 and $545 and exclude the
following items:
Amortization of intangibles $ 1,460 $ 1,382
Non-cash stock compensation 364 221
------- -------
$ 1,824 $ 1,603
======= =======
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share data)
(Unaudited, Fiscal year ends July 31)
THREE MONTHS ENDED
OCTOBER 31,
--------------------
2001 2000
------- -------
Revenue $ 6,772 $ 9,923
Cost of revenues and operating expenses:
Cost of revenue 2,216 1,559
Research and development 3,894 5,999
Sales and marketing 4,673 5,373
General and administrative 1,178 1,323
Amortization of intangibles 1,460 1,382
Non-cash stock compensation 364 221
------- -------
Total operating expenses 13,785 15,857
======= =======
Operating loss (7,013) (5,934)
Interest and other income, net 441 1,088
------- -------
Loss before income taxes (6,572) (4,846)
Provision for income taxes (111) (136)
------- -------
Net loss $(6,683) $(4,982)
======= =======
Net loss per share:
Basic $ (0.15) $ (0.12)
Diluted $ (0.15) $ (0.12)
Shares used in per share calculation:
Basic 44,629 42,666
Diluted 44,629 42,666
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
OCTOBER 31, JULY 31,
2001 2001
------- -------
ASSETS
Current assets:
Cash and cash equivalents $14,896 $18,837
Short-term investments 31,584 30,071
Accounts receivable, net 3,962 4,120
Inventories, net 189 233
Other current assets 1,932 1,970
------- -------
Total current assets 52,563 55,231
Property and equipment, net(a) 6,325 6,974
Intangible assets, net 11,357 12,818
Restricted cash 686 686
Other assets 3,214 3,225
------- -------
TOTAL ASSETS $74,145 $78,934
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,652 $ 2,541
Accrued liabilities 4,242 4,639
Notes payable 2,000 302
Deferred revenue 2,817 3,260
------- -------
Total current liabilities 11,711 10,742
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value;
2,000 shares authorized and no shares
issued and outstanding at October 31,
2001 and July 31, 2001 - -
Common stock, $0.001 par value; 80,000
shares authorized; 44,923 shares
issued and outstanding at October 31,
2001 and 44,555 shares issued and
outstanding at July 31, 2001 45 45
Additional paid-in capital 149,390 148,479
Receivable from stockholders (330) (330)
Deferred stock compensation (827) (706)
Accumulated deficit (86,090) (79,407)
Other comprehensive income 246 111
Total stockholders' equity 62,434 68,192
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $74,145 $78,934
======= =======
(a) Capital expenditures were $199 for the three months ended October
31, 2001.