SAN JOSE, CA (11/21/02) - Pumatech, Inc. (NASDAQ: PUMA), the leading provider of synchronization software and services, today announced results for its first quarter of fiscal 2003, which ended October 31, 2002. For the first fiscal quarter of 2003, Pumatech reported revenues of $5,010,000 compared to $4,404,000 reported last fiscal quarter and $6,651,000 reported in the first fiscal quarter of 2002. Pumatech's 14% quarter-to-quarter revenue increase is the Company's first revenue increase in the past seven fiscal quarters.
Reported diluted loss per share in the first fiscal quarter of 2003 was $.03, compared to a loss of $.27 last fiscal quarter and a loss of $.15 in the first fiscal quarter of 2002.
Pro-forma diluted loss per share, excluding amortization of intangible assets, non-cash compensation charges, severance, facilities costs, other than temporary impairment of investments, and other non-recurring charges, was $.03 in the first fiscal quarter of 2003 compared to a loss of $.06 last fiscal quarter and a loss of $.11 in the first fiscal quarter of 2002.
For the first fiscal quarter of 2003, 60% of revenue came from Pumatech's enterprise software, while 40% was attributed to Pumatech's technology licensing offerings. Enterprise revenue includes channel and direct sales of the Company's Intellisync®, Enterprise Intellisync®, Enterprise Intellisync Server and Satellite Forms® products licensed to corporations for internal use. Technology licensing revenue includes platform licensing and related professional services for corporations choosing to integrate or embed the Company's various technologies.
The Company ended the first fiscal quarter with cash and short-term investments of approximately $31.4 million, with no debt obligations.
"The revenue increase in our first fiscal quarter can be attributed primarily to sales growth in our enterprise channels and in Japan," said Keith Kitchen, Pumatech's vice-president of finance. "Our new server-based product offerings were a key factor behind our quarter-to-quarter revenue growth. In addition, our bottom line benefited from the Company's refined product focus, enabling us to apply maximum resources to the most strategic areas of our business."
Woodson (Woody) Hobbs, president and CEO of Pumatech, stated, "Our quarter-to-quarter revenue increase is a significant accomplishment. Combined with our recent cost-reduction measures and re-focused development efforts, last quarter's positive revenue performance is a big step toward our goal of reaching profitability. I'd like to thank Pumatech's employees for working diligently to turn the tide and boost our quarter-to-quarter revenue, despite difficult market conditions."
First Quarter Highlights
Investor Conference Call
Pumatech management will discuss fiscal first quarter 2003 results and hold a question-and-answer session for investors on November 21, 2002, at 5 p.m. Eastern Time (2 p.m. Pacific Time). To participate, call 1-706-643-0341 a few minutes ahead of time (no passcode required). If you are unable to participate, a replay will be available from 8 p.m. Eastern Time on November 21, 2002 for 48 hours. To access, please dial 1-800-642-1687, or 1-706-645-9291 (international), reservation number 6528063. 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 software products and services that synchronizes and distributes critical information throughout an enterprise. 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, Eastman Kodak, Sony, JPMorgan Chase, Boeing and General Motors. The Company has headquarters in Silicon Valley and offices in Munich, 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 and the benefits of such expense management including improved financial results, the timing of improved financial results, sales growth in enterprise channels and in Japan, the Company's ability to build on its quarterly results, and the benefits of new business partnerships and products 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, 2002 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.
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)
THREE MONTHS ENDED
OCTOBER 31,
----------------------
2002 2001
-------- --------
Revenue
License $ 4,063 $ 5,472
Services 947 1,179
-------- --------
Total revenue 5,010 6,651
Cost of revenues and operating expenses:
Cost of revenue 824 2,216
Research and development 1,752 3,894
Sales and marketing 2,634 4,552
General and administrative 1,088 1,178
-------- --------
Total operating expenses 6,298 11,840
-------- --------
Operating loss (1,288) (5,189)
Interest and other income, net 211 441
-------- --------
Loss before income taxes (1,077) (4,748)
Provision for income taxes (88) (111)
-------- --------
Net loss $ (1,165) $ (4,859)
======== ========
Net loss per share:
Basic and diluted $ (0.03) $ (0.11)
Shares used in per share calculation:
Basic and diluted 45,383 44,629
The above pro forma condensed consolidated statements of operations
include operational depreciation of $382 and $848 and exclude the
following items:
Amortization of intangibles $ 149 $ 1,460
Non-cash stock compensation 62 364
-------- --------
$ 211 $ 1,824
======== ========
Certain prior period balances have been reclassified to conform to
current period presentation.
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
OCTOBER 31,
----------------------
2002 2001
-------- --------
Revenue
License $ 4,063 $ 5,472
Services 947 1,179
-------- --------
Total revenue 5,010 6,651
Cost of revenues and operating expenses:
Cost of revenue 824 2,216
Research and development 1,752 3,894
Sales and marketing 2,634 4,552
General and administrative 1,088 1,178
Amortization of intangibles 149 1,460
Noncash stock compensation 62 364
-------- --------
Total operating expenses 6,509 13,664
-------- --------
Operating loss (1,499) (7,013)
Interest and other income, net 211 441
-------- --------
Loss before income taxes (1,288) (6,572)
Provision for income taxes (88) (111)
-------- --------
Net loss $ (1,376) $ (6,683)
======== ========
Net loss per share:
Basic and diluted $ (0.03) $ (0.15)
Shares used in per share calculation:
Basic and diluted 45,383 44,629
Certain prior period balances have been reclassified to conform to
current period presentation.
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per common share data)
(Unaudited)
OCTOBER 31, JULY 31,
2002 2002(2)
-----------------------
ASSETS
Current assets:
Cash and cash equivalents $ 6,083 $ 4,331
Short-term investments 25,287 30,100
Accounts receivable, net 2,937 3,009
Inventories, net 75 76
Other current assets 1,056 1,020
-------- --------
Total current assets 35,438 38,536
Property and equipment, net(1) 1,703 2,037
Goodwill, net 2,731 2,731
Intangible assets, net 416 565
Notes receivable 310 310
Restricted cash 352 352
Other assets 2,781 2,781
-------- --------
TOTAL ASSETS $ 43,731 $ 47,312
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 835 $ 995
Accrued liabilities 4,491 4,764
Current portion of borrowings -- 2,000
Deferred revenue 2,716 2,678
-------- --------
Total current liabilities 8,042 10,437
Other liabilities 1,718 1,991
-------- --------
Total liabilities 9,760 12,428
Stockholders' equity:
Preferred stock, $0.001 par value; 2,000
shares authorized and no shares issued
and outstanding at October 31, 2002 and
July 31, 2002 -- --
Common stock, $0.001 par value; 80,000
shares authorized; 46,134 and 45,851
shares issued and outstanding at October
31, 2002 and July 31, 2002 46 46
Additional paid-in capital 149,281 149,193
Receivable from stockholders -- (330)
Deferred stock compensation (159) (226)
Accumulated deficit (115,301) (113,925)
Other comprehensive income 104 126
-------- --------
Total stockholders' equity 33,971 34,884
======== ========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 43,731 $ 47,312
======== ========
(1) Capital expenditures were $48 for the three months ended October
31, 2002.
(2) Certain prior period balances have been reclassified to conform to
current period presentation.