Feb. 27, 2002--Pumatech, Inc. 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 second fiscal quarter ended January 31, 2002. The Company reported revenues of $6,265,000 this quarter as compared to $6,772,000 reported last fiscal quarter and $11,311,000 reported in the second fiscal quarter of 2001. Revenue for the six-month period ended January 31, 2002 was $13,037,000 compared to $21,234,000 reported in the same period last year.
Reported diluted loss per share for this quarter was $(0.14), compared to $(0.15) reported last fiscal quarter and in fiscal Q2 of 2001. Reported diluted loss per share for the first six months of fiscal 2002 was $(0.29), compared to $(0.27) for the comparable period a year ago.
Pro-forma diluted loss per share, excluding amortization of intangible assets and non-cash compensation charges, was $(0.10) in the second fiscal quarter of 2002, compared to $(0.11) reported last quarter and $(0.09) reported in the comparable quarter of fiscal 2001. Pro-forma diluted loss per share was $(0.21) for the six-month period ended January 31, 2002, compared to a pro-forma diluted loss per share of $(0.17) in the same period last year.
For the second quarter of fiscal 2002, revenue contribution from the Company's two core revenue segments was approximately 56% enterprise and 44% technology licensing. Enterprise revenue includes channel and direct sales of the Company's IntellisyncŪ and Satellite FormsŪ 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.
Quarterly Highlights
Pumatech launched three product upgrades/extensions during the second fiscal quarter:
In addition, Pumatech made the following announcements during its second fiscal quarter:
Expense Management
``Over the past several quarters, Pumatech has resized and streamlined its operations in an effort to generate a pro-forma profit and become cash-flow positive by the end of our second fiscal quarter of 2003,'' stated Kelly Hicks, Pumatech's vice president of operations and CFO. ``The most recent round of expense control initiatives, announced yesterday, is expected to result in ongoing quarterly operational savings in excess of $2 million beginning in our fourth fiscal quarter.'' 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, ``The mobile and wireless sector continues to be faced with many challenges, and Pumatech has not been immune. During this time, we have continued to forge new alliances, secure new customers and develop and deliver new and innovative products to better serve our customers' needs. Additionally, we have prudently managed our expenses to preserve our cash and maintain our financial strength. We continue to believe that our synchronization products are essential to extending corporate information wherever and whenever it's needed, and are committed to maintaining our position as a leading provider of solutions that enable the Real-time Enterprise.''
Investor Conference Call
Management will discuss second-quarter results and the company's outlook and hold a question-and-answer session for investors on February 27, 2002, at 5:00 p.m. Eastern / 2:00 p.m. Pacific. To participate, call 212/896-6065 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 Feb. 27, 2001 for 48 hours. To access, please dial 800/633-8284, or 858/812-6440 (international), reservation number 20216527. In addition, the replay will be available for 90 days via the Internet at www.pumatech.com.
About Pumatech
Pumatech, Inc. (Nasdaq:PUMA - news) 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 the amount of operating savings resulting from the recent consolidation and the timing and likelihood of anticipated return to 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 effect 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 and 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.
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 SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
------------------ -----------------
2002 2001 2002 2001
-------- -------- ------- --------
Revenue
License $ 5,199 $ 9,254 $ 10,792 $ 18,044
Services 1,066 2,057 2,245 3,190
-------- -------- ------- --------
Total revenue 6,265 11,311 13,037 21,234
Cost of revenues and
operating expenses:
Cost of revenue 2,015 2,900 4,231 4,459
Research and development 3,623 6,512 7,517 12,511
Sales and marketing 4,455 5,124 9,128 10,497
General and administrative 1,029 1,494 2,207 2,817
-------- -------- ------- --------
Total operating expenses 11,122 16,030 23,083 30,284
-------- -------- ------- --------
Operating loss (4,857) (4,719) (10,046) (9,050)
Interest and other income,
net 257 763 698 1,851
-------- -------- ------- --------
Loss before income taxes (4,600) (3,956) (9,348) (7,199)
Provision for income taxes (96) (82) (207) (218)
-------- -------- ------- --------
Net loss $ (4,696)$ (4,038) $ (9,555) $ (7,417)
======== ======== ======= ========
Net loss per share:
Basic $ (0.10)$ (0.09) $ (0.21) $ (0.17)
Diluted $ (0.10)$ (0.09) $ (0.21) $ (0.17)
Shares used in per
share calculation:
Basic 44,821 43,658 44,731 43,166
Diluted 44,821 43,658 44,731 43,166
The above pro forma condensed
consolidated statements of
operations include operational
depreciation of $850, $590,
$1,698 and $1,135 and exclude
the following items:
Amortization of intangibles $ 1,366 $ 2,314 $ 2,826 $ 3,696
Non-cash stock compensation 76 220 440 441
-------- -------- ------- --------
$ 1,442 $ 2,534 $ 3,266 $ 4,137
======== ======== ======= ========
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited, Fiscal year ends July 31)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
------------------ -----------------
2002 2001 2002 2001
-------- -------- ------- --------
Revenue
License $ 5,199 $ 9,254 $ 10,792 $ 18,044
Services 1,066 2,057 2,245 3,190
-------- -------- ------- --------
Total revenue 6,265 11,311 13,037 21,234
Cost of revenues and
operating expenses:
Cost of revenue 2,015 2,900 4,231 4,459
Research and development 3,623 6,512 7,517 12,511
Sales and marketing 4,455 5,124 9,128 10,497
General and administrative 1,029 1,494 2,207 2,817
Amortization of intangibles 1,366 2,314 2,826 3,696
Non-cash stock compensation 76 220 440 441
-------- -------- ------- --------
Total operating expenses 12,564 18,564 26,349 34,421
-------- -------- ------- --------
Operating loss (6,299) (7,253) (13,312) (13,187)
Interest and other income,
net 257 763 698 1,851
-------- -------- ------- --------
Loss before income taxes (6,042) (6,490) (12,614) (11,336)
Provision for income taxes (96) (82) (207) (218)
-------- -------- ------- --------
Net loss $ (6,138) $ (6,572) $(12,821) $(11,554)
======== ======== ======= ========
Net loss per share:
Basic $ (0.14) $ (0.15) $ (0.29) $ (0.27)
Diluted $ (0.14) $ (0.15) $ (0.29) $ (0.27)
Shares used in per share
calculation:
Basic 44,821 43,658 44,731 43,166
Diluted 44,821 43,658 44,731 43,166
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
JANUARY 31, JULY 31,
2002 2001
----------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 13,093 $ 18,837
Short-term investments 29,264 30,071
Accounts receivable, net 3,866 4,120
Inventories, net 129 233
Other current assets 2,092 1,970
---------- ---------
Total current assets 48,444 55,231
Property and equipment, net (1) 5,546 6,974
Intangible assets, net 9,992 12,818
Restricted cash 407 686
Other assets 3,214 3,225
---------- ----------
TOTAL ASSETS $ 67,603 $ 78,934
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,105 $ 2,541
Accrued liabilities 4,335 4,639
Notes payable 2,000 302
Deferred revenue 2,871 3,260
---------- ----------
Total current liabilities 11,311 10,742
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value;
2,000 shares authorized and no
shares issued and outstanding
at January 31, 2002 and
July 31, 2001 -- --
Common stock, $0.001 par value;
80,000 shares authorized; 44,959
shares issued and outstanding at
January 31, 2002 and 44,555 shares
issued and outstanding at
July 31, 2001 45 45
Additional paid-in capital 149,203 148,479
Receivable from stockholders (330) (330)
Deferred stock compensation (511) (706)
Accumulated deficit (92,228) (79,407)
Other comprehensive income 113 111
---------- ----------
Total stockholders' equity 56,292 68,192
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 67,603 $ 78,934
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