@Road Reports Record Revenues and Profits in the First Quarter; Cash and Short-term Investments Exceed $108 Million.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)--April 22, 2004 @Road(R) (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 record results for the first quarter ended March 31, 2004. Service revenues for the first quarter of 2004 were $14.0 million, up 32 percent from $10.6 million reported for the same period in 2003 and up 2 percent from $13.7 million for the fourth quarter in 2003. Total revenues for the first quarter of 2004 were $17.9 million, up 30 percent from $13.7 million reported for the same period in 2003 and up 4 percent from $17.2 million for the fourth quarter 2003. "We have been managing the competing demands of cash, profitability and growth. With a strong cash position and profitability, we are now focusing on an aggressive growth strategy," 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 recently announced that we plan to acquire MDSI MDSI Multiple (Destination) Digital Speech Interpolation MDSI Mobile Data Solutions Inc. MDSI Mountain Data Systems, Inc (Boise, Idaho) Mobile Data Solutions, Inc. which we believe will help us further accelerate our growth," stated Mr. Panu. "By combining with MDSI, we believe we will be able to: -- cross-sell our solutions between customer bases, -- use the MDSI customer base as a springboard for international expansion in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and Africa, and
-- leverage three major vertical markets penetrated by MDSI -- utilities, cable/broadband and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. . Upon closing the transaction, our revenues should increase by approximately 50 percent," concluded Mr. Panu. Net income for the first quarter of 2004 was $3.1 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 loss of $1.3 million, or a loss of $0.03 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 March 31, 2004 included $108.2 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. Total assets as of March 31, 2004 were $142.4 million. "We believe that by improving profitability, generating cash and maintaining a strong balance sheet, we increase customer confidence that we have the resources to help them with their mobile resource management needs," concluded Mr. Panu. First Quarter 2004 Highlights
-- Financial -- Increased the subscriber base by 4 percent from
December 31, 2003 and by 31 percent from March 31, 2003;
increased cash, cash equivalents and short-term investments by
$2.5 million in the first quarter of 2004 from the fourth
quarter of 2003.
-- Acquisitions -- Signed a definitive agreement providing for
the acquisition of MDSI Mobile Data Solutions, Inc.
(Nasdaq:MDSI) (TSX: MMD), a leading provider of mobile
workforce management software solutions, for a combination of
stock and cash. The transaction is expected to close in the
third quarter 2004.
-- Strategic Customers -- Selected by Waste Management, Inc. to
provide MRM services to approximately 3,500 new GeoManager(SM)
subscribers to help the company improve operations and manage
field activity.
-- New Services -- In partnership with TransDecisions, @Road
developed a waste roll-off routing application specifically
designed for the waste industry. The solution is built on the
LocationSmart(SM) technology platform that currently services
the company's North American subscribers, and is designed to
streamline and improve routing operations for the waste
industry.
Introduced @Road TimeConnect(SM), an automated time tracking
and task management application for Nextel(R) GPS-enabled
mobile phones by Motorola. Mobile workers can choose from a
variety of pre-selected messages to automatically record shift
and job start and stop times; task start and stop times during
a job; and break times during a shift.
Introduced @Road FieldServices(SM), a suite of 18 new reports
specifically designed to help field service organizations
uncover operations inefficiencies and measure actual
productivity against expected goals. Customers can apply their
business rules to capture mobile data that can then be
analyzed to measure field operations productivity.
-- Infrastructure -- Improved and enhanced the existing
infrastructure, resulting in increased capacity, improved
response time, and richer user functions.
Conference Call and Webcast Details @Road will host a teleconference Thursday Thursday: see week. , April 22, commencing at 2:00 p.m. Pacific Time, to discuss first 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 800-314-7867 or 719-867-0640, or by tuning into the Webcast at www.road.com. About @Road @Road (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 130,000 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 press release, including the proposed acquisition by @Road of MDSI, 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, fluctuations in @Road operating results and profitability; scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it of the @Road business model; ability of @Road to successfully develop, market and sell its products and services, including the waste roll-off routing application, @Road TimeConnect, @Road FieldServices and @Road Pathway; ability of @Road to sell and deploy its products and services to large customers, including Waste Management; availability and reliability of the @Road infrastructure; dependence on wireless networks owned and controlled by others; ability of @Road to execute its plan and adapt to a rapidly changing economic and business environment; and general economic and political conditions. In addition, potential risks and uncertainties of the proposed acquisition by @Road of MDSI include, but are not limited to, the possibility that the transaction will not close; that the closing may be delayed; the reaction of @Road and MDSI customers to the transaction; and the ability of @Road to integrate MDSI's operations and employees. 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 12, 2004, Report on Form 10-Q Form 10-Q See 10-Q. dated November November: see month. 14, 2003 and in its other filings with the Securities and Exchange Commission. @Road undertakes no obligation to update the forward-looking statements contained in this press release. @Road is a registered trademark of At Road, Inc. The @Road logo, @Road Pathway, GeoManager, @Road TimeConnect, LocationSmart and @Road FieldServices 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. All other trademarks and service marks are the property of their respective owners. Additional Information Regarding the Proposed Acquisition of MDSI Mobile Data Solutions, Inc. and Where to Find It MDSI Mobile Data Solutions, Inc. plans to distribute a management proxy circular to its shareholders containing information about the proposed acquisition of MDSI by @Road. Investors and security holders are urged to read the circular carefully when it is available. The circular will contain important information about @Road, MDSI, the combination, the persons soliciting proxies relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the combination, their interests in the combination, and related matters. The circular will be available to the public on the System for Electronic Document Analysis and Retrieval The System for Electronic Document Analysis and Retrieval (SEDAR) is a mandatory document filing and retrieval system for Canadian public companies. Similar to EDGAR, SEDAR is operated by the Canadian Securities Administrators, a coordinating body comprising the 13 Canadian maintained by the Canadian Securities Administrators Canadian Securities Administrators(CSA) is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets. at www.sedar.com. @Road files annual, quarterly and special reports, proxy statements Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and other information with the SEC. MDSI files annual and quarterly financial statements, annual reports, annual information forms, management proxy circulars and other documents and information with the Canadian Securities Administrators in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and annual and special reports with the SEC. You may read and copy any reports, statements or other information filed with the SEC by @Road or MDSI at the SEC Public Reference Rooms at 450 Fifth Street NW, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC 20549 or at any of the SEC's other public reference rooms in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. @Road filings with the SEC are also available to the public from commercial document-retrieval services and at the web site maintained by the SEC at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . MDSI's filings with the Canadian Securities Administrators are available to the public on the System for Electronic Document Analysis and Retrieval maintained by the Canadian Securities Administrators at www.sedar.com.
At Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, Dec. 31, (a)
2004 2003
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents, and
short-term investments $ 108,238 $ 105,669
Accounts receivable, net 6,105 7,109
Inventories 4,019 2,425
Deferred product costs and other
current assets 13,149 13,190
----------- -----------
Total current assets 131,511 128,393
Property and equipment, net 2,300 2,298
Deferred product costs and other assets 8,630 8,325
----------- -----------
Total assets $ 142,441 $ 139,016
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 10,368 $ 10,522
Deferred revenue and customer
deposits 9,859 9,751
----------- -----------
Total current liabilities 20,227 20,273
Deferred revenue 6,391 6,582
Other long-term liabilities 17 33
----------- -----------
Total liabilities 26,635 26,888
Stockholders' equity:
Common stock 228,956 228,441
Deferred stock compensation - (4)
Notes receivable from stockholders (37) (87)
Accumulated other comprehensive loss (1) -
Accumulated deficit (113,112) (116,222)
----------- -----------
Total stockholders' equity 115,806 112,128
----------- -----------
Total liabilities and
stockholders' equity $ 142,441 $ 139,016
=========== ===========
(a) Derived from the audited December 31, 2003 financial statements
At Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended
-------------------------------------
March 31, Dec. 31, March 31,
2004 2003 2003
----------- ----------- -----------
Revenues:
Service $ 14,027 $ 13,710 $ 10,603
Product 3,865 3,527 3,138
----------- ----------- -----------
Total revenues 17,892 17,237 13,741
----------- ----------- -----------
Costs and expenses:
Cost of service revenue
(excluding intangibles
amortization included
below) 3,963 3,871 3,792
Cost of product revenue 4,405 4,692 4,637
Intangibles amortization 10 10 424
Sales and marketing 3,111 3,064 2,597
Research and development 1,367 1,360 1,336
General and administrative 2,182 2,355 2,218
Stock compensation 4 26 192
----------- ----------- -----------
Total costs and expenses 15,042 15,378 15,196
----------- ----------- -----------
Income (loss) from operations 2,850 1,859 (1,455)
Other income, net 260 238 152
----------- ----------- -----------
Net income (loss) $ 3,110 $ 2,097 $ (1,303)
=========== =========== ===========
Net income (loss) per share:
Basic $ 0.06 $ 0.04 $ (0.03)
=========== =========== ===========
Diluted $ 0.05 $ 0.04 $ (0.03)
=========== =========== ===========
Shares used in calculating
net income (loss) per share:
Basic 53,771 53,450 47,577
=========== =========== ===========
Diluted 58,298 58,209 47,577
=========== =========== ===========
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