San Jose, CA (2/22/01) - Pumatech, Inc. (NASDAQ/NM: PUMA), the leading provider of software infrastructure for the mobile Internet, today announced results for its second quarter of fiscal 2001 and six months ended January 31, 2001.
Revenue for the second fiscal quarter of 2001 increased 54% to $11,311,000 compared to $7,361,000 reported in the second fiscal quarter of 2000. Revenue from Pumatech's core business, excluding all revenue from the Company's legacy notebook business, increased 73% compared to the same period a year ago. Pumatech reported a 14.0% increase in revenue compared to its fiscal first quarter of 2001. This quarter's reported revenue represents the ninth consecutive quarter of sequential revenue growth as well as a record revenue quarter for Pumatech.
Pro-forma diluted loss per share, which excludes the intangible asset amortization and compensation charges associated with previous acquisitions and below the line charges associated with NetMind's redeemable preferred stock, was $(0.09) in the second fiscal quarter of 2001, compared to a pro-forma diluted loss per share of $(0.08) in the previous fiscal quarter and $(0.03) in the second quarter of fiscal 2000. Reported diluted loss per share for the fiscal second quarter of 2001 was $(0.15), compared to $(0.11) in the year ago quarter.
Revenue for the six-month period ended January 31, 2001 increased 54% to $21,234,000 compared to $13,773,000 reported in the same period last year. Pro-forma diluted loss per share, which excludes the intangible asset amortization, in process research and development and compensation charges associated with previous acquisitions and below the line charges associated with NetMind's redeemable preferred stock, was $(0.17) for the six-month period ended January 31, 2001, compared to a pro-forma diluted loss per share of $(0.03) in the same period last year. Reported diluted loss per share for the first six months of fiscal 2001 was $(0.27), compared to $(0.31) a year ago.
Pumatech's revenue is broken down into four segments: enterprise business, licensing from the Mobile Application Platform (MAP), service and the Company's legacy notebook business. Revenue contributions for the second quarter of 2001 for the four segments were 49% enterprise, 28% MAP, 18% service and 5% legacy notebook business. Brad Rowe, Pumatech's president and CEO, stated, "Among the significant accomplishments during our second fiscal quarter were the production release of our Intellisync.comSM service and our announcement that Yahoo! selected Pumatech's Intellisync product as its default synchronization software. In addition, our second quarter results reflect continued growth in our enterprise business, through both the Company's direct and reseller channels." Rowe continued, "We continue to see strong interest in our industry-leading products and technology from major partners. Pumatech is well positioned to capitalize on what is becoming a large market opportunity driven by the increasing adoption of next generation wireless devices. We are focused and committed to achieving operating profitability before the end of calendar 2001."
CONFERENCE CALL INFORMATION
Pumatech will host an earnings conference call featuring remarks by Brad Rowe, president, CEO and co-founder, Kelly Hicks, vice president of operations and CFO, and Richard Walker, vice president of Online Services. Their remarks will by followed by a live Q&A session.
The conference call will begin at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on Thursday, February 22, 2001. To access the call by telephone, please dial 415-537-1976 approximately 10 minutes before the start of the call. Pumatech's conference call will be broadcasted live over the Internet. To listen to the call live over the Internet, go to the Company's Web site at www.pumatech.com or to Streetevents at www.streetevents.com. If you are unable to attend the live conference call, a replay will be available on Pumatech's Web site for 30 days. If you do not have Internet access, a replay of the call will be available by dialing 1-800-633-8284 and entering access code 17870446.
ABOUT PUMATECH
Pumatech (NASDAQ: PUMA), formerly known as Puma Technology, Inc., is the leading provider of software infrastructure for the mobile world. The Company, which has long been the leader in synchronization with its intellisync technology, is in the process of rolling out recently acquired, leading-edge personalization, notification and Web-browsing services integrated with synchronization. Pumatech now offers a comprehensive application suite, the Mobile Application Platform, for the delivery of highly personalized content to any mobile device. It is the only integrated solution that fully supports all mobile devices and standards, including WAP phones, SMS-capable phones, Palm OSā handhelds, Pocket PCs, Web sites, and desktop applications, such as Outlook. Companies using PumatechTM products can create powerful mobile solutions that give customers and employees anytime, anywhere access to relevant information. Pumatech's mobile solutions are used by a wide range of Fortune 500 companies, mobile device manufacturers, telecommunications carriers, software companies, and individuals. Headquartered in San Jose, CA, 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 expected customer acceptance of our products and technology, the rate of adoption of wireless computing devices and anticipated profitability 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 timely introduction, availability and acceptance of new products and upgrades, the timing of market adoption of wireless computing devices, 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, 2000 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, the Pumatech logo, and Intellisync are trademarks of Pumatech, Inc., that may be registered in certain jurisdictions. Intellisync.com is a servicemark of Pumatech, Inc. Palm OS is a registered trademark of Palm, Inc. All other trademarks are the property of their respective owners.
PUMATECH, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited, Fiscal Year Ends July 31)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
2001 2000 2001 2000
Revenue $ 11,311 $ 7,361 $ 21,234 $ 13,773
Cost of revenues
and operating
expenses:
Cost of revenue 2,900 1,037 4,459 1,642
Research and
development 6,512 3,757 12,511 6,593
Sales and
marketing 5,124 3,289 10,497 6,460
General and
administrative 1,494 1,052 2,817 1,998
Total operating
expenses 16,030 9,135 30,284 16,693
Operating loss (4,719) (1,774) (9,050) (2,920)
Interest and other
income, net 763 974 1,851 2,240
Loss before
income taxes (3,956) (800) (7,199) (680)
Provision for
income taxes (82) (166) (218) (358)
Net loss $ (4,038) $ (966) $ (7,417) $ (1,038)
Net loss per share:
Basic $ (0.09) $ (0.03) $ (0.17) $ (0.03)
Diluted $ (0.09) $ (0.03) $ (0.17) $ (0.03)
Shares used in per
share calculation:
Basic 43,627 36,114 43,147 33,896
Diluted 43,627 36,114 43,147 33,896
The format presented above is not in accordance with generally
accepted accounting principles.
Note: The above unaudited pro forma condensed consolidated statements
of operations exclude the effects of the following:
-- During the quarter ended January 31, 2001, $2,314,000 of
amortization of intangibles was incurred in connection with
the acquisitions of SwiftTouch, Windward, Dry Creek, ProxiNet
and SoftMagic.
-- During the quarter ended January 31, 2000, $835,000 of
amortization of intangibles was incurred in connection with
the acquisition of ProxiNet and SoftMagic.
-- During the quarter ended January 31, 2001, $220,000 of non
cash stock compensation expense was incurred in connection
with the merger of NetMind Technologies, Inc.
-- During the quarter ended January 31, 2000, $484,000 of non
cash stock compensation expense was incurred in connection
with the merger of NetMind Technologies, Inc.
-- During the six months ended January 31, 2000, $4,218,000 of
in-process research and development was incurred in connection
with the acquisition of ProxiNet.
-- During the six months ended January 31, 2001, $3,696,000 of
amortization of intangibles was incurred in connection with
the acquisitions of SwiftTouch, Windward, Dry Creek, ProxiNet
and SoftMagic.
-- During the six months ended January 31, 2000, $909,000 of
amortization of intangibles was incurred in connection with
the acquisition of ProxiNet and SoftMagic.
-- During the six months ended January 31, 2001, $441,000 of non
cash stock compensation expense was incurred in connection
with the merger of NetMind Technologies, Inc.
-- During the six months ended January 31, 2000, $875,000 of non
cash stock compensation expense was incurred in connection
with the merger of NetMind Technologies, Inc. and IPO of
Pumatech, Inc.
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited, Fiscal Year Ends July 31)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
2001 2000 2001 2000
Revenue $ 11,311 $ 7,361 $ 21,234 $ 13,773
Cost of revenues
and operating
expenses:
Cost of revenue 2,900 1,037 4,459 1,642
Research and
development 6,512 3,757 12,511 6,593
Sales and
marketing 5,124 3,289 10,497 6,460
General and
administrative 1,494 1,052 2,817 1,998
In-process research
and development -- -- -- 4,218
Amortization of
intangibles 2,314 835 3,696 909
Non cash stock
compensation 220 484 441 875
Total operating
expenses 18,564 10,454 34,421 22,695
Operating loss (7,253) (3,093) (13,187) (8,922)
Interest and
other income, net 763 974 1,851 2,240
Loss before
income taxes (6,490) (2,119) (11,336) (6,682)
Provision for income
taxes (82) (166) (218) (358)
Net loss (6,572) (2,285) (11,554) (7,040)
Accretion of
mandatorily redeemable
convertible preferred
stock to redemption value -- (1,765) -- (3,300)
Net loss attributable
to common shareholders $ (6,572) $ (4,050) $(11,554) $(10,340)
Net loss
per share:
Basic $ (0.15) $ (0.11) $ (0.27) $ (0.31)
Diluted $ (0.15) $ (0.11) $ (0.27) $ (0.31)
Shares used
in per share
calculation:
Basic 43,627 36,114 43,147 33,896
Diluted 43,627 36,114 43,147 33,896
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
JANUARY 31, JULY 31,
2001 2000
ASSETS
Current assets:
Cash and cash
equivalents $ 30,782 $ 54,492
Short-term
investments 27,509 30,768
Accounts receivable,
net 8,054 6,358
Inventories 282 235
Other current assets 2,779 1,732
Total current assets 69,406 93,585
Property and equipment,
net 7,562 4,828
Other assets 31,835 20,242
TOTAL ASSETS $ 108,803 $ 118,655
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,277 $ 2,601
Accrued liabilities 3,655 4,036
Notes payable 259 259
Deferred revenue 5,744 6,372
Total current liabilities 11,935 13,268
Notes payable long term 194 310
Total liabilities 12,129 13,578
Redeemable, convertible
preferred stock - -
Commitments and
contingencies
Stockholders' equity:
Common stock, $0.001 par value;
80,000 shares authorized, 44,225
shares issued and outstanding at
January 31, 2001 and 60,000 shares
authorized, 42,307 shares issued
and outstanding at July 31, 2000 44 42
Additional paid-in
capital 147,721 146,051
Receivable from
stockholders (330) (330)
Deferred stock compensation (1,732) (3,114)
Accumulated deficit (49,143) (37,589)
Other comprehensive
income (loss) 114 17
Total stockholders'
equity 96,674 105,077
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 108,803 $ 118,655