San Jose, CA May 29, 2001 - Pumatech, Inc. (NASDAQ NM: PUMA), the leading provider of software infrastructure for the mobile Internet, today announced results for its third quarter of fiscal 2001 and nine months ended April 30, 2001.
Revenue for the third fiscal quarter of 2001 increased 29% to $10,345,000 compared to $8,014,000 reported in the third fiscal quarter of 2000. Revenue from Pumatech's core business, excluding all revenue from the Company's legacy notebook business, increased 46% compared to the same period a year ago.
Pro-forma diluted loss per share excluding severance and facilities costs and write-off of direct investments this fiscal quarter, and which also excludes in-process research and development, intangible asset amortization and non-cash compensation charges associated with previous acquisitions, was $(0.11) in the third fiscal quarter of 2001, compared to $(0.06) in the third quarter of fiscal 2000. Adjusted pro-forma loss per share was ($0.15) and includes ($0.04) of severance and facilities costs and write-off of direct investments. Reported diluted loss per share for the fiscal third quarter of 2001 was $(0.21), compared to $(0.26) in the year ago quarter.
Revenue for the nine-month period ended April 30, 2001 increased 45% to $31,579,000 compared to $21,787,000 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 $(0.33) for the nine-month period ended April 30, 2001, compared to a pro-forma diluted loss per share of $(0.10) in the same period last year. Reported diluted loss per share for the first nine months of fiscal 2001 was $(0.48), compared to $(0.62) 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 third quarter of fiscal 2001 for the four segments were 43% enterprise, 32% MAP, 21% service and 4% legacy notebook business. Brad Rowe, Pumatech's president and CEO, stated, "Pumatech has faced many challenges this quarter as a result of the economic slowdown and the reduction in IT capital spending. However, the Company had some significant accomplishments this quarter, which demonstrates our dedication to achieving our goal as a synchronization leader. During the quarter we delivered Sync-it, which delivers the ability to perform multi-point, Web-based synchronization of calendar, e-mail, contacts and tasks. We also introduced Mind-it 4.3, which provides the ability to be instantly notified of any changes to web content in a time-efficient and secure manner with Windows NT support, priority change detection, advanced keyword minding and password encryption features. We also are proud to have received our fourteenth patent, the most of any synchronization company."
Company Implements Cost Reduction Plan
As announced in April 2001, Pumatech implemented a plan that resulted in a 20% reduction of the Company's workforce. These reductions, which were primarily in engineering and support for engineering related projects, encompassed 65 full-time equivalent positions including 20 contractors and 45 permanent employees.
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 Stephen Nicol, executive vice president of sales and co-founder. Their remarks will be 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 Tuesday, May 29, 2001. To access the call by telephone, please dial 415-537-1991 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.
If you are unable to attend the live conference call, a replay will be available on Pumatech's Web site for 90 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 18789745.
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 OS 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. 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
Excluding In-Process Research and Development, Amortization of
Intangibles, Non-Cash Stock Compensation, Merger-Related Charges,
Severance and Facilities Costs, and Write-off of Investments.
(In thousands, except per share data)
(Unaudited, Fiscal Year Ends July 31)
THREE MONTHS ENDED NINE MONTHS ENDED
APRIL 30, APRIL 30,
2001 2000 2001 2000
Revenue $ 10,345 $ 8,014 $ 31,579 $ 21,787
Cost of revenues
and operating
expenses
Cost of revenue 2,873 882 7,332 2,524
Research
and development 6,029 4,792 18,541 11,385
Sales and
marketing 5,517 4,647 16,013 11,10
General and
administrative 1,674 1,245 4,491 3,257
-------- -------- -------- --------
Total operating
expenses 16,093 11,566 46,377 28,273
Operating loss (5,748) (3,552) (14,798) (6,486)
Interest and
other income,
net 766 1,309 2,617 3,549
Loss before
income taxes (4,982) (2,243) (12,181) (2,937)
Provision for
income taxes (80) (159) (298) (517)
-------- -------- -------- --------
Net loss $ (5,062) $ (2,402) $ (12,479) (3,454)
Net loss per share:
Basic $ (0.11) $ (0.06) $ (0.29) $ (0.10)
Diluted $ (0.11) $ (0.06) $ (0.29) $ (0.10)
Shares used in
per share
calculation:
Basic 44,220 39,995 43,510 33,678
Diluted 44,220 39,995 43,510 33,678
The above unaudited pro forma condensed consolidated statements of
operations exclude the following items:
In-process
research and
development $ -- $ -- $ -- $ 4,218
Amortization of
intangibles 2,157 824 5,853 1,733
Non-cash stock
compensation 292 465 733 1,326
Merger costs -- 6,322 -- 6,322
Severance and
facilities costs 583 -- 583 --
Write-off of
direct
investments 1,180 -- 1,180 --
Accretion of
mandatorily
redeemable
convertible
preferred stock -- 577 -- 3,877
-------- -------- -------- --------
$ 4,212 $ 8,188 $ 8,349 $17,476
PUMATECH, INC.
ADJUSTED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Excluding In-Process Research and Development, Amortization of
Intangibles, Non-Cash Stock Compensation, and Merger-Related Charges
(In thousands, except per share data)
(Unaudited, Fiscal Year Ends July 31)
THREE MONTHS ENDED NINE MONTHS ENDED
APRIL 30, APRIL 30,
2001 2000 2001 2000
Revenue $ 10,345 $ 8,014 $ 31,579 $ 21,787
Cost of revenues
and operating expenses:
Cost of revenue 2,873 882 7,332 2,524
Research and
development 6,029 4,792 18,541 11,385
Sales and marketing 5,517 4,647 16,013 11,107
General and
administrative 1,674 1,245 4,491 3,257
Severance and
facilities costs 583 -- 583 --
-------- -------- -------- --------
Total operating
expenses 16,676 11,566 46,960 28,273
Operating loss (6,331) (3,552) (15,381) (6,486)
Interest and
other income, net 766 1,309 2,617 3,549
Write-off of
direct investments (1,180) -- (1,180) --
Loss before
income taxes (6,745) (2,243) (13,944) (2,937)
Provision for
income taxes (80) (159) (298) (517)
-------- -------- -------- --------
Net loss $ (6,825) $ (2,402) $(14,242) (3,454)
Net loss per share:
Basic $ (0.15) $ (0.06) $ (0.33) $ (0.10)
Diluted $ (0.15) $ (0.06) $ (0.33) $ (0.10)
Shares used in
per share calculation:
Basic 44,220 39,995 43,510 33,678
Diluted 44,220 39,995 43,510 33,678
The above unaudited pro forma condensed consolidated statements of
operations exclude the following items:
In-process
research and
development $ -- $ -- $ -- $ 4,218
Amortization
of intangibles 2,157 824 5,853 1,733
Non-cash stock
compensation 292 465 733 1,326
Merger costs -- 6,322 -- 6,322
Accretion of mandatorily
redeemable convertible
preferred stock -- 577 -- 3,877
-------- -------- -------- --------
$ 2,449 $ 8,188 $ 6,586 $ 17,476
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited, Fiscal Year Ends July 31)
THREE MONTHS ENDED NINE MONTHS ENDED
APRIL 30, APRIL 30,
2001 2000 2001 2000
Revenue $ 10,345 $ 8,014 $ 31,579 $ 21,787
Cost of revenues
and operating expenses:
Cost of revenue 2,873 882 7,332 2,524
Research and
development 6,029 4,792 18,541 11,385
Sales and marketing 5,517 4,647 16,013 11,107
General and
administrative 1,674 1,245 4,491 3,257
In-process research
and development -- -- -- 4,218
Amortization
of intangibles 2,157 824 5,853 1,733
Non-cash stock
compensation 292 465 733 1,326
Merger costs -- 6,322 -- 6,322
Severance and
facilities costs 583 -- 583 --
-------- -------- -------- --------
Total operating
expenses 19,125 19,177 53,546 41,872
Operating loss (8,780) (11,163) (21,967) (20,085)
Interest and
other income, net 766 1,309 2,617 3,549
Write-off of direct
investments (1,180) -- (1,180) --
Loss before income taxes
(9,194) (9,854) (20,530) (16,536)
Provision for
income taxes (80) (159) (298) (517)
-------- -------- -------- --------
Net loss (9,274) (10,013) (20,828) (17,053)
Accretion of mandatorily
redeemable convertible
preferred stock
to redemption value -- (577) -- (3,877)
Net loss
attributable to common
stockholders $ (9,274) $(10,590) $(20,828) $(20,930)
Net loss per share:
Basic $ (0.21) $ (0.26) $ (0.48) $ (0.62)
Diluted $ (0.21) $ (0.26) $ (0.48) $ (0.62)
Shares used in per
share calculation:
Basic 44,220 39,995 43,510 33,678
Diluted 44,220 39,995 43,510 33,678
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
APRIL 30, JULY 31,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 28,388 $ 54,492
Short-term investments 24,644 30,768
Accounts receivable, net 6,350 6,358
Inventories, net 228 235
Other current assets 2,208 1,732
Total current assets 61,818 93,585
Property and equipment, net(a) 7,665 4,828
Intangible assets, net 24,894 17,109
Other assets 4,102 3,133
TOTAL ASSETS $ 98,479 $ 118,655
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,882 $ 2,601
Accrued liabilities 3,525 4,036
Notes payable 259 259
Deferred revenue 3,850 6,372
Total current liabilities 9,516 13,268
Notes payable long-term 108 310
Total liabilities 9,624 13,578
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value;
2,000 shares authorized and no
shares issued and outstanding
at April 30, 2001 and July 31, 2000 -- --
Common stock, $0.001 par value;
80,000 shares authorized and
44,477 shares issued and
outstanding at April 30,2001;
60,000 shares authorized and
42,307 shares issued and
outstanding at July 31, 2000 42 44
Additional paid-in capital 148,426 146,051
Receivable from stockholders (330) (330)
Deferred stock compensation (1,029) (3,114)
Accumulated deficit (58,417) (37,589)
Other comprehensive income 161 17
Total stockholders' equity 88,855 105,077
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 98,479 $ 118,655
========= =========
(a) Capital expenditures were $881, $1,686, and $1,757 for the three
months ended April 30, 2001, January 31, 2001, and October 31,
2000, respectively.