SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 30, 2001--Pumatech, Inc. (Nasdaq:PUMA - news), 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 fourth quarter of fiscal 2001 and fiscal year ended July 31, 2001.
For the fourth fiscal quarter of 2001, Pumatech Inc. reported revenues of $7.1 million, compared to $9.0 million reported in the fourth fiscal quarter of 2000. Pro-forma diluted loss per share excluding non-recurring charges, intangible asset amortization and non-cash compensation charges was $(0.16) in the fourth fiscal quarter of 2001, compared to $(0.08) in the fourth quarter of fiscal 2000. Reported diluted loss per share for the fiscal fourth quarter of 2001 was $(0.47), compared to $(0.12) in the year-ago quarter.
Revenue for the fiscal year ended July 31, 2001 increased 25.6% to $38.7 million, compared to $30.8 million reported in the same period last year. Pro-forma diluted loss per share, which excludes non-recurring charges, in-process research and development, intangible asset amortization, non-cash compensation charges, write-offs of direct investments and below the line charges associated with NetMind's redeemable preferred stock, was $(0.45), compared to a pro-forma diluted loss per share of $(0.20) for the 2000 fiscal year. Reported diluted loss per share for fiscal 2001 was $(0.96), compared to $(0.74) 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 fourth quarter of fiscal 2001 for the four segments were 44% enterprise, 37% MAP, 12% service and 7% legacy notebook business.
Quarterly Highlights
Brad Rowe, Pumatech's president and CEO, stated, ``The Company has faced difficult challenges the past several quarters primarily as a result of the economic slowdown and the reduction in IT capital spending. However, we have taken proactive steps to dramatically reduce spending and stay the course through this turbulent market. We made significant accomplishments this quarter while reaffirming our dedication to deliver the key elements that make the concept of 'The Real-time Enterprise' a reality. Because the Company's technology is designed to leverage the significant investments corporate enterprises have already made in critical business applications such as CRM, ERP, supply chain, and intranets, it can be plugged into the existing business processes and rules of any company to help transform it into a real-time decision-making entity.''
Expense Management
Throughout the fourth quarter, Pumatech implemented a plan that resulted in an approximate 20% reduction of the Company's workforce. The workforce reduction follows an approximate 20% headcount reduction last fiscal quarter and brings the Company's worldwide workforce to approximately 215 full-time employees. Additionally, the Company consolidated its business facilities located in California and suspended its efforts on the release of its Intellisync.comSM online service offering. These and other expense actions will result in quarterly cost savings greater than $1,000,000, the full effect of which will be realized in the first quarter of fiscal 2002.
``Pumatech has resized its operations during this time of economic uncertainty to be more in line with the current levels of revenue,'' stated Kelly Hicks, Pumatech's vice president of operations and CFO. ``Our commitment to prudent and proactive expense management continues to keep Pumatech in a stable financial position, poised for an economic turnaround.''
Investor Conference Call
Management will discuss fourth-quarter results and the Company's outlook and hold a question-and-answer session for investors on Aug. 30, 2001, at 5:00 p.m. Eastern /2:00 p.m. Pacific. To participate, call 415-537-1883 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 Aug. 30, 2001 for 48 hours. To access, please dial 1-800-633-8284, or 1-858-812-6440 (international), reservation number 19407580. 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 related to operating savings expected to be realized as a result of the implementation of cost-savings measures, closure of facilities and related charges, the timing and likelihood of anticipated return to profitability and leveraging technology investments 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, 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, Intellisync, Enterprise Intellisync and Browse-it are trademarks of Pumatech, Inc., that may be registered in certain jurisdictions. Intellisync.com is a servicemark of Pumatech, Inc. Mind-it is a registered trademark of NetMind Technologies, a wholly owned subsidiary of Pumatech, Inc. All other product and company names may be trademarks 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,
Non-Recurring Charges, and Write-off of Investments.
(In thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JULY 31, JULY 31,
------------------ ------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenue $ 7,114 $ 9,026 $ 38,693 $ 30,813
Cost of revenues
and operating expenses:
Cost of revenue 2,896 1,256 10,228 3,780
Research and development 4,963 5,755 23,503 17,140
Sales and marketing 5,561 5,307 21,575 16,414
General and administrative 1,395 1,640 5,886 4,897
-------- -------- -------- --------
Total operating expenses 14,815 13,958 61,192 42,231
-------- -------- -------- --------
Operating loss (7,701) (4,932) (22,499) (11,418)
Interest and
other income, net 727 1,474 3,344 5,023
-------- -------- -------- --------
Loss before income taxes (6,974) (3,458) (19,155) (6,395)
Provision for income taxes (139) (115) (437) (632)
-------- -------- -------- --------
Net loss $ (7,113) $ (3,573) $(19,592) $ (7,027)
======== ======== ======== ========
Net loss per share:
Basic $ (0.16) $ (0.08) $ (0.45) $ (0.20)
Diluted $ (0.16) $ (0.08) $ (0.45) $ (0.20)
Shares used in
per share calculation:
Basic 44,376 42,049 43,729 35,319
Diluted 44,376 42,049 43,729 35,319
The above pro forma condensed consolidated statements of operations
exclude the following items:
In-process research
and development $ - $ - $ - $ 4,218
Amortization of intangibles 2,104 897 7,957 2,630
Non-cash stock compensation 325 676 1,058 2,002
Merger costs - - - 6,322
Severance costs 400 - 581 -
Facilities costs and
assets held for disposal 1,147 - 1,549 -
Impairment of Intangibles 9,901 - 9,901 -
Write-off of
direct investments - - 1,180 -
Accretion of mandatorily
redeemable convertible
preferred stock - - - 3,877
-------- -------- -------- --------
$ 13,877 $ 1,573 $ 22,226 $ 19,049
======== ======== ======== ========
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)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JULY 31, JULY 31,
2001 2000 2001 2000
-------- -------- -------- --------
Revenue $ 7,114 $ 9,026 $ 38,693 $ 30,813
Cost of revenues
and operating expenses:
Cost of revenue 2,896 1,256 10,228 3,780
Research and development 4,963 5,755 23,503 17,140
Sales and marketing 5,561 5,307 21,575 16,414
General and administrative 1,395 1,640 5,886 4,897
Severance costs 400 - 581 -
Facilities costs and
assets held for disposal 1,147 - 1,549 -
Impairment of intangibles 9,901 - 9,901 -
-------- -------- -------- --------
Total operating expenses 26,263 13,958 73,223 42,231
-------- -------- -------- --------
Operating loss (19,149) (4,932) (34,530) (11,418)
Interest and
other income, net 727 1,474 3,344 5,023
Write-off of
direct investments - - (1,180) -
-------- -------- -------- --------
Loss before income taxes (18,422) (3,458) (32,366) (6,395)
Provision for income taxes (139) (115) (437) (632)
-------- -------- -------- --------
Net loss $(18,561) $ (3,573) $(32,803) (7,027)
======== ======== ======== ========
Net loss per share:
Basic $ (0.42) $ (0.08) $ (0.75) $ (0.20)
Diluted $ (0.42) $ (0.08) $ (0.75) $ (0.20)
Shares used in
per share calculation:
Basic 44,376 42,049 43,729 35,319
Diluted 44,376 42,049 43,729 35,319
The above adjusted pro forma condensed consolidated statements of
operations exclude the following items:
In-process research
and development $ - $ - $ - $ 4,218
Amortization of intangibles 2,104 897 7,957 2,630
Non-cash stock compensation 325 676 1,058 2,002
Merger costs - - - 6,322
Accretion of mandatorily
redeemable convertible
preferred stock - - - 3,877
-------- -------- -------- --------
$ 2,429 $ 1,573 $ 9,015 $ 19,049
======== ======== ======== ========
PUMATECH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JULY 31, JULY 31,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenue $ 7,114 $ 9,026 $ 38,693 $ 30,813
Cost of revenues and
operating expenses:
Cost of revenue 2,896 1,256 10,228 3,780
Research and development 4,963 5,755 23,503 17,140
Sales and marketing 5,561 5,307 21,575 16,414
General and administrative 1,395 1,640 5,886 4,897
In-process research
and development - - - 4,218
Amortization of intangibles 2,104 897 7,957 2,630
Non-cash stock compensation 325 676 1,058 2,002
Merger costs - - - 6,322
Severance costs 400 - 581 -
Facilities costs and assets
held for disposal 1,147 - 1,549 -
Impairment of intangibles 9,901 - 9,901 -
-------- -------- -------- --------
Total operating expenses 28,692 15,531 82,238 57,403
-------- -------- -------- --------
Operating loss (21,578) (6,505) (43,545) (26,590)
Interest and other
income, net 727 1,474 3,344 5,023
Write-off of direct
investments - - (1,180) -
-------- -------- -------- --------
Loss before income taxes (20,851) (5,031) (41,381) (21,567)
Provision for income taxes (139) (115) (437) (632)
-------- -------- -------- --------
Net loss (20,990) (5,146) (41,818) (22,199)
Accretion of mandatorily
redeemable convertible
preferred stock to
redemption value - - - (3,877)
-------- -------- -------- --------
Net loss attributable to
common stockholders $(20,990) $ (5,146) $(41,818) $(26,076)
-------- -------- -------- --------
Net loss per share:
Basic $ (0.47) $ (0.12) $ (0.96) $ (0.74)
Diluted $ (0.47) $ (0.12) $ (0.96) $ (0.74)
Shares used in
per share calculation:
Basic 44,376 42,049 43,729 35,319
Diluted 44,376 42,049 43,729 35,319
PUMATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
JULY 31, JULY 31,
2001 2000
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 18,837 $ 54,492
Short-term investments 30,071 30,768
Accounts receivable, net 4,120 6,358
Inventories, net 233 235
Other current assets 1,735 1,732
---------- ----------
Total current assets 54,996 93,585
Property and equipment, net(1) 6,974 4,828
Intangible assets, net 12,818 17,109
Other assets 4,146 3,133
TOTAL ASSETS $ 78,934 $ 118,655
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,541 $ 2,601
Accrued liabilities 4,639 4,036
Notes payable 302 259
Deferred revenue 3,260 6,372
---------- ----------
Total current liabilities 10,742 13,268
Notes payable long-term - 310
---------- ----------
Total liabilities 10,742 13,578
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value;
2,000 shares authorized and no
shares issued and outstanding
at July 31, 2001 and July 31, 2000 - -
Common stock, $0.001 par value;
80,000 shares authorized and
44,555 shares issued and outstanding
at July 31, 2001; 60,000 shares
authorized and 42,307 shares issued
and outstanding at July 31, 2000 45 42
Additional paid-in capital 148,479 146,051
Receivable from stockholders (330) (330)
Deferred stock compensation (706) (3,114)
Accumulated deficit (79,407) (37,589)
Other comprehensive income 111 17
---------- ----------
Total stockholders' equity 68,192 105,077
---------- ----------
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 78,934 $ 118,655
========== ==========
(1) Capital expenditures were $532, $881, $1,686, and $1,757 for the
three months ended July 31, 2001, April 30, 2001, January 31,
2001, and October 31, 2000, respectively.