@Road Announces Record Fourth Quarter and Annual Revenues; Quarterly Service Revenues Up 15 Percent Sequentially.Business Editors/High-Tech Writers FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--Feb. 7, 2002 @Road(SM) (Nasdaq:ARDI ARDI Association Rwandaise pour la Promotion du Développement Intégré (French) ARDI Accounts Receivable Dollar Inventory ARDI Action Rwandaise pour le Developpement Integre ARDI Annually Renewable Disability Income ), a leading provider of location-enhanced wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solutions for mobile resource management (MRM MRM Marketing Resource Management MRM Mobile Resource Management MRM Metabolic Response Modifiers MRM Multiple Reaction Monitoring (mass spectrometry) MRM Mormonism Research Ministry MRM Mechanically Recovered Meat ), today announced record results for the fourth quarter and year ended December December: see month. 31, 2001. Service revenues for the fourth quarter of 2001 were $6.4 million, up from $3.0 million reported for the same period in 2000 and up 15 percent from the $5.6 million for the third quarter 2001. Total revenues for the fourth quarter of 2001 were $8.6 million, up from $4.2 million reported for the same period in 2000 and up 14 percent from the $7.5 million for the third quarter 2001. "We are very pleased by the 15 percent growth in our service revenues in the fourth quarter compared to the third quarter of 2001 in light of the challenging economic climate in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," said Krish Panu, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of @Road. "We were able to increase revenues while decreasing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Service revenues, total revenues and gross profits were up, while net loss and cash burn were down," stated Mr. Panu. "We believe that we have a scalable business that can lead us to profitability." "We are also pleased with the potential we saw in the fourth quarter in our large-customer sales organization, which we feel will be one of the engines for our future growth. We believe that our customers -- large, medium and small -- continue to recognize the substantial return on investment offered by their implementation of the @Road solution," added Mr. Panu. Net loss for the fourth quarter of 2001 was $7.1 million, or a loss of $0.16 per share, compared with a net loss of $12.5 million, or a loss of $0.29 per share, for the same period in 2000. Excluding stock compensation, restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and amortization for both periods, the net loss for the fourth quarter of 2001 was $6.2 million, or a loss of $0.14 per share, compared with a net loss of $10.2 million, or a loss of $0.24 per share, for the same period in 2000. For the year ended December 31, 2001, total revenues increased to $27.5 million from $10.6 million for the same period a year ago. Service revenues grew to $20.2 million for the year ended December 31, 2001 from $7.9 million for the same period a year earlier. Net loss for 2001 was $38.6 million, or a loss of $0.88 per share, compared with a net loss of $48.8 million, or a loss of $1.41 per share, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for 2000. Excluding stock compensation, restructuring charges and amortization for both years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time net loss for 2001 was $33.7 million, or a loss of $0.77 per share, compared with a net loss of $35.9 million, or a loss of $1.04 per share, on a pro forma basis for 2000. The per-share amounts for 2000 are on a pro forma basis, which assumes the conversion of all convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". into common stock as if such conversion occurred at the date of original issuance. The company completed its initial public offering of common stock on September September: see month. 28, 2000. The company's balance sheet at December 31, 2001 includes $42.4 million of cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. Total assets as of December 31, 2001 were $78.5 million. "Our balance sheet remains strong and our capital base allows us to continue building our company," stated Mr. Panu. 2001 Highlights -- Financial -- Increased subscriber base by 87 percent over the prior year; increased annual service revenue by 155 percent over prior year; achieved 50 percent service gross margin, excluding amortization of intangibles and stock compensation, for the fourth quarter of 2001, versus 17 percent for the same period a year ago; decreased quarterly cash burn to $5.4 million in the fourth quarter of 2001 from $10.5 million in the fourth quarter of 2000. -- New services -- Launched MobileForms, a combination of two-way messaging and integrated data collection applications using a handheld device from Symbol Technologies; launched Voice Solutions, a voice portal technology that enables subscribers to use any phone -- wired or wireless -- to access @Road services; announced a homeland security initiative to help meet the security needs of public and private entities. -- Distribution channels -- Added a large-customer sales group and strategic marketing partners to the existing @Road sales distribution network of direct field sales, independent sales agents, carrier partners, licensing and value-added reseller channels. -- Infrastructure -- Completed implementation of a new processing platform using a Solaris and Oracle database; reached transaction volumes of approximately 3.6 million transactions per day in the fourth quarter of 2001 from one million in the fourth quarter of 2000. -- Partners -- Added TELUS Mobility and ALLTEL to the existing list of @Road wireless partners, including AT&T Wireless, Cingular Wireless, Nextel Communications, Nextel Partners and Verizon Wireless. -- Intellectual Property -- By the end of 2001, filed a total of 29 U.S. and international patent applications, adding to its portfolio of four issued patents. -- Accolades -- Named number one of the five "Rising Stars" in Deloitte & Touche's 2001 Silicon Valley Technology Fast 50 program; named by the Silicon Valley/San Jose Business Journal as one of Silicon Valley's 50 fastest-growing public companies for the year 2001. "We believe that we are pioneers in creating and defining a new category: Mobile Resource Management," continued Mr. Panu. "With more than 50 million mobile workers in this country alone, we believe @Road is in the early stages of a huge opportunity. It is an exciting place to be." Conference Call and Webcast Details @Road will host a teleconference Thursday Thursday: see week. , February February: see month. 7th, commencing at 2:00 p.m. PST PST Paroxysmal supraventricular tachycardia, see there , to discuss fourth quarter financial results. Participating in the call will be @Road President and CEO Krish Panu and CFO See Chief Financial Officer. Tom Hoster. All interested parties may listen by dialing 800-946-0708 or 719-457-2639, or by tuning into the Webcast at www.atroad.com. About @Road Based in Fremont, CA, @Road is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. that provides location-enhanced wireless Internet solutions for mobile resource management. Its patented LocationSmart(TM) technology platform combines wireless, positioning and XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. technologies with the Internet into a fully integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. that supports the delivery of location-enhanced wireless Internet services for businesses and mobile professionals. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, @Road historical and future losses and operating results, limited operating history, ability of @Road to successfully market and sell its products to large customers, ability of @Road to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its plan and adapt to a rapidly changing economic environment, and general economic and political conditions. Further information regarding these and other risks is included in the @Road Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. dated March 30, 2001 and in its other filings with the Securities and Exchange Commission. @Road, the @Road logo and LocationSmart are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. service marks of At Road, Inc.
At Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December December
31, 31,
2001 2000(1)
ASSETS -------- --------
Current assets:
Cash, cash equivalents, and short-term
investments $ 42,380 $ 76,613
Accounts receivable 4,781 4,252
Inventories 8,396 6,976
Deferred product costs and other
current assets 9,081 7,410
-------- --------
Total current assets 64,638 95,251
Property and equipment, net 4,900 7,108
Deferred product costs and other assets 8,936 9,083
-------- --------
Total assets $ 78,474 $ 111,442
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 7,215 $ 9,167
Deferred revenue 6,124 3,912
-------- --------
Total current liabilities 13,339 13,079
Deferred revenue 4,426 3,217
Other long term liabilities 299 380
-------- --------
Total liabilities 18,064 16,676
Stockholders' equity:
Common stock 169,148 171,208
Deferred stock compensation (2,343) (8,123)
Notes receivable from stockholders (2,748) (3,309)
Accumulated other comprehensive loss -- (10)
Accumulated deficit (103,647) (65,000)
-------- --------
Total stockholders' equity 60,410 94,766
-------- --------
Total liabilities and stockholders' equity $ 78,474 $ 111,442
======== ========
(1) Derived from the audited December 31, 2000 financial statements
At Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
December September December December December
31, 30, 31, 31, 31,
2001 2001 2000 2001 2000
-------- -------- -------- -------- --------
Revenues:
Service $ 6,370 $ 5,550 $ 3,042 $ 20,188 $ 7,919
Product 2,242 1,980 1,169 7,262 2,704
-------- -------- -------- -------- --------
Total revenues 8,612 7,530 4,211 27,450 10,623
-------- -------- -------- -------- --------
Costs and
expenses:
Cost of service
revenue 3,187 3,375 2,527 12,690 6,414
Cost of product
revenue 4,062 3,933 2,598 13,523 7,865
Research and
development 1,593 1,575 2,262 7,608 8,893
Sales, general
and
administrative 6,200 6,893 8,237 30,000 26,399
Restructuring
charges -- (30) -- 218 --
Intangibles
amortization 414 414 414 1,656 1,239
Stock
compensation 578 880 1,850 3,041 11,664
-------- -------- -------- -------- --------
Total costs
and expenses 16,034 17,040 17,888 68,736 62,474
-------- -------- -------- -------- --------
Loss from
operations (7,422) (9,510) (13,677) (41,286) (51,851)
Other income, net 276 517 1,188 2,639 3,028
-------- -------- -------- -------- --------
Net loss $ (7,146) $ (8,993) $(12,489) $(38,647) $(48,823)
======== ======== ======== ======== ========
Basic and diluted
net loss
per share $ (0.16) $ (0.20) $ (0.29) $ (0.88) $ (3.48)
======== ======== ======== ======== ========
Shares used in
calculating
basic and diluted
net loss
per share 44,668 44,213 42,598 43,892 14,026
Pro forma basic ======== ======== ======== ======== ========
and diluted net loss
per share $ (1.41)
========
Shares used in
calculating
pro forma basic
and diluted net
loss per share 34,582
========
Supplemental information:
Net loss, as
reported $ (7,146) $ (8,993) $(12,489) $(38,647) $(48,823)
Stock compensation 578 880 1,850 3,041 11,664
Restructuring
charges -- (30) -- 218 --
Intangibles
amortization 414 414 414 1,656 1,239
Net loss before -------- -------- -------- -------- --------
stock
compensation,
restructuring
charges and
amortization $ (6,154) $ (7,729) $(10,225) $(33,732) $(35,920)
======== ======== ======== ======== ========
Pro forma basic
and diluted net
loss per share
before stock
compensation,
restructuring
charges and
amortization $ (0.14) $ (0.17) $ (0.24) $ (0.77) $ (1.04)
======== ======== ======== ======== ========
Net loss before
stock
compensation,
restructuring
charges
and amortization $ (6,154) $ (7,729) $(10,225) $(33,732) $(35,920)
Depreciation and
amortization 760 745 681 2,971 2,035
-------- -------- -------- -------- --------
EBITDA (2) $ (5,394) $ (6,984) $ (9,544) $(30,761) $(33,885)
======== ======== ======== ======== ========
EBITDA (2) pro
forma basic and
diluted net
loss per share $ (0.12) $ (0.16) $ (0.22) $ (0.70) $ (0.98)
======== ======== ======== ======== ========
(2) Excludes amortization of intangibles, depreciation, restructuring
charges and stock compensation
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