@Road Reports Record Quarterly Revenues; Cash and Short-term Investments Exceed $114 Million.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. -- @Road(R), Inc. (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 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 ) services, today announced results for the third quarter ended September September: see month. 30, 2004. Total revenues for the third quarter of 2004 were $19.1 million, up approximately 15 percent from $16.6 million reported for the same period in 2003 and up approximately 4 percent from $18.3 million for the second quarter of 2004. Service revenue for the third quarter of 2004 was $14.9 million, up approximately 14 percent from $13.1 million reported for the same period in 2003 and up approximately 4 percent from $14.4 million for the second quarter of 2004. "Despite the difficult environment for technology companies, we are pleased that we recently secured two new significant customers. We were also profitable and increased cash in the third quarter of 2004," 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. "In addition, we continue to undertake several investment initiatives designed to generate additional growth for @Road in the future," concluded Mr. Panu. Net income for the third quarter of 2004 was $2.9 million, or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net income of $1.1 million, or $0.02 per diluted share, for the same period in 2003. For the nine months ended September 30, 2004, total revenues increased to $55.3 million from $46.1 million for the same period a year ago. Service revenues grew to $43.3 million for the nine months ended September 30, 2004 from $35.9 million for the same period in 2003. Net income for the first nine months of 2004 was $7.1 million, or $0.12 per diluted share, compared with a net loss of $435,000, or a loss of $0.01 per diluted share, for the same period in 2003. The company's condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at September 30, 2004 included $114.8 million of cash, cash equivalents 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. "We believe that by maintaining a strong balance sheet we increase customer confidence that we have the resources to provide them with their mobile resource management needs," concluded Mr. Panu. Highlights --New Customers -- Selected by SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Services Inc. to provide mobile resource management solutions for up to 35,000 SBC field service technicians. --Selected by a large government agency customer to provide mobile resource management solutions to about 4,000 seasonal subscribers. This customer was acquired through one of our wireless carrier partners. --New Services -- Introduced @Road Mobile HotSpot (1) The geographic boundary covered by a Wi-Fi (802.11) wireless access point. Typically set up for Internet access, anyone entering the hotspot with a Wi-Fi-based laptop can connect to the Internet, providing the access point is configured to advertise its presence and , a Wi-Fi (WIreless-FIdelity) A logo from the Wi-Fi Alliance that certifies network devices comply with the IEEE 802.11 wireless Ethernet standards. In the early 2000s, Wi-Fi/802.11 became widely used (initially 802.11b, then 802. device that can transform any vehicle into a mobile hot spot, allowing field service personnel to access their corporate networks, run applications, send and receive work orders and job status information, retrieve To call up data that has been stored in a computer system. When a user queries a database, the data are retrieved into the computer first and then transmitted to the screen. (language) Retrieve schematics, or access e-mail -- anywhere, anytime. --Alliances -- In conjunction with Nextel Communications Nextel Communications, styled NEXTEL, (Former NASDAQ: NXTL) which is now known as the Sprint Nextel Corporation was a telecommunications firm based in the United States. Known for providing a nation-wide mobile communications system. , announced the addition of @Road Pathway(SM) iLM(R). The two companies plan to bring to market the new in-vehicle solution designed for small and mid-sized field service, delivery and transportation companies that want an entry-level en·try-lev·el adj. Appropriate for or accessible to one who is inexperienced in a field or new to a market: an entry-level job in advertising; an entry-level computer. mobile resource management solution. --Intellectual Property -- Entered into multi-year intellectual property cross-licensing In patent law, a cross-licensing agreement is an agreement according to which two parties grant a license to each other for the exploitation of the subject-matter claimed in patents. agreements with LandSonar, Inc., a San Francisco-based predictive traffic analytics and services company. @Road has thirteen issued patents, with an additional 36 patents pending in jurisdictions worldwide. This is the first patent @Road has licensed. --Financial -- Increased cash, cash equivalents and short-term investments by $3.1 million from June June: see month. 30, 2004 to September 30, 2004. Conference Call and Webcast Details @Road will host a teleconference Thursday Thursday: see week. , October October: see month. 28, commencing at 2:00 p.m. Pacific Time, to discuss third quarter financial results. Participating in the call will be @Road President and CEO Krish Panu and CFO See Chief Financial Officer. Mike Johnson. All interested parties may listen by dialing 800-459-3332 or 706-679-0569, or by tuning into the webcast at www.road.com. About @Road @Road, Inc. (Nasdaq:ARDI) is a leading provider of mobile resource management (MRM) services, a rapidly growing category of productivity solutions integrating wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , location technologies, hosted software applications, transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and the 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 to help companies better manage mobile workers. Any size organization, in any industry or public sector, in which improving the productivity of mobile workers has an impact on revenue, expenses, customer service, and competitive advantage, will benefit from @Road MRM services. Because @Road offers MRM services on a hosted basis, customers avoid expensive and complex software and IT infrastructure investments. Since @Road delivers services on a subscription basis, customers can experience a rapid and measurable return-on-investment. @Road delivers its MRM services to approximately 131,000 mobile workers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. every day. The company has headquarters in Fremont, CA and secure networked data centers on both U.S. coasts. For more information, visit the @Road web site at www.road.com. Except for the historical information contained herein, the matters discussed in this news 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. Numerous important factors, risks and uncertainties affect the company's operating results and could cause the company's actual results to differ materially from forecasts and estimates or from any other forward-looking statements made by, or on behalf of, @Road, and there can be no assurance that future results will meet expectations, estimates or projections. These factors, risks and uncertainties include, but are not limited to, the timing of purchasing and implementation decisions by SBC Services Inc., other large customers and prospects; the ability of @Road to accelerate or continue to grow as a result of its investment initiatives; the ability of @Road and its partners, such as Nextel Communications, to market, sell and support the @Road Pathway iLM and @Road Mobile HotSpot services discussed herein; the dependence on a wireless carrier partner to support and bill the government agency customer and remit To transmit or send. To relinquish or surrender, such as in the case of a fine, punishment, or sentence. An individual, for example, might remit money to pay bills. TO REMIT. To annul a fine or forfeiture. 2. fees relating thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. to @Road; competitive and pricing pressures; the dependence of @Road on mobile data systems technology, wireless networks, network infrastructure and positioning systems owned and controlled by others; and general economic and political conditions. Further information regarding these and other risks is included in the @Road Report on Form 10-Q Form 10-Q See 10-Q. dated August 9, 2004, 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 12, 2004 and in its other filings with the Securities and Exchange Commission. @Road undertakes no obligation to update the forward-looking statements contained in this news release. @Road and iLM are registered trademarks of @Road, Inc. The @Road logo is a trademark of @Road, Inc. @Road Pathway is a service mark of @Road, Inc. All other product names and services are the property of their respective owners.
@Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, December 31,
2004 2003 (a)
------------- ------------
ASSETS
Current assets:
Cash, cash equivalents, and short-term
investments $114,780 $105,669
Accounts receivable, net 6,536 7,109
Inventories 3,274 2,425
Deferred product costs and other current
assets 12,553 13,190
------------- ------------
Total current assets 137,143 128,393
Property and equipment, net 2,266 2,298
Deferred product costs and other assets 7,023 8,325
------------- ------------
Total assets $146,432 $139,016
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $9,032 $10,522
Deferred revenue and customer deposits 10,234 9,751
------------- ------------
Total current liabilities 19,266 20,273
Deferred revenue 5,534 6,582
Other long term liabilities 6 33
------------- ------------
Total liabilities 24,806 26,888
Stockholders' equity:
Common stock 230,898 228,441
Deferred stock compensation - (4)
Notes receivable from stockholders - (87)
Accumulated other comprehensive loss (156) -
Accumulated deficit (109,116) (116,222)
------------- ------------
Total stockholders' equity 121,626 112,128
------------- ------------
Total liabilities and
stockholders' equity $146,432 $139,016
============= ============
(a) Derived from the audited December 31, 2003 consolidated financial
statements
@Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
---------------------------- -------------------
September June September September September
30, 2004 30, 2004 30, 2003 30, 2004 30, 2003
--------- -------- --------- --------- ---------
Revenues:
Service $14,920 $14,385 $13,113 $43,332 $35,851
Product 4,182 3,946 3,503 11,993 10,275
--------- -------- --------- --------- ---------
Total revenues 19,102 18,331 16,616 55,325 46,126
--------- -------- --------- --------- ---------
Costs and expenses:
Cost of service
revenue (excluding
intangibles
amortization
included below) 4,206 4,278 3,782 12,447 11,840
Cost of product
revenue 4,376 4,391 5,249 13,172 15,078
Intangibles
amortization 7 11 11 28 445
Sales and marketing 2,929 3,082 2,907 9,122 8,344
Research and
development 1,695 1,431 1,386 4,493 4,019
General and
administrative 3,240 2,371 2,189 7,793 6,847
Terminated
acquisition costs 139 2,017 - 2,156 -
Stock compensation - - 154 4 441
--------- -------- --------- --------- ---------
Total costs and
expenses 16,592 17,581 15,678 49,215 47,014
--------- -------- --------- --------- ---------
Income (loss) from
operations 2,510 750 938 6,110 (888)
Other income, net 420 316 157 996 453
--------- -------- --------- --------- ---------
Net income (loss) $2,930 $1,066 $1,095 $7,106 $(435)
========= ======== ========= ========= =========
Net income (loss) per
share:
Basic $0.05 $0.02 $0.02 $0.13 $(0.01)
========= ======== ========= ========= =========
Diluted $0.05 $0.02 $0.02 $0.12 $(0.01)
========= ======== ========= ========= =========
Shares used in
calculating net
income (loss) per
share:
Basic 54,498 54,185 50,689 54,156 48,821
========= ======== ========= ========= =========
Diluted 56,199 57,414 55,813 57,424 48,821
========= ======== ========= ========= =========
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