@Road Reports Record Third Quarter Results, Positive Cash Flow; Quarterly Service Revenues Up 9 Percent Sequentially.Business Editors 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)--Oct. 24, 2002 @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 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 and positive cash flow for the third quarter ended September September: see month. 30, 2002. Service revenues for the third quarter of 2002 were $8.7 million, up from $5.6 million reported for the same period in 2001 and up 9 percent from $8.0 million for the second quarter 2002. Total revenues for the third quarter of 2002 were $11.3 million, up from $7.5 million reported for the same period in 2001 and up 8 percent from $10.5 million for the second quarter 2002. "We are very pleased by the 9 percent growth in our service revenues in the third quarter compared to the second quarter of 2002 in light of the challenging business 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 service revenues, total revenues, and gross profits, while net loss was down," stated Mr. Panu. "We continue to demonstrate with our quarterly performance that we have a scalable business that can lead us to profitability." "In addition, we have achieved a major milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. - that of turning cash flow positive during the third quarter. This is an accomplishment that we have worked hard to achieve, and I am pleased that we hit this critical target ahead of schedule," added Mr. Panu. "Our employees have worked very hard to achieve this highly desired corporate goal." Net loss for the third quarter of 2002 was $2.8 million, or a loss of $0.06 per share, compared with a net loss of $9.0 million, or a loss of $0.20 per share, for the same period in 2001. Excluding stock compensation, amortization, and 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. , the net loss for the third quarter of 2002 was $2.0 million, or a loss of $0.04 per share, compared with a net loss of $7.7 million, or a loss of $0.17 per share, for the same period in 2001. For the nine months ended September 30, 2002, total revenues increased to $31.5 million from $18.8 million for the same period a year ago. Service revenues grew to $23.9 million for the nine months ended September 30, 2002 from $13.8 million for the same period a year earlier. Net loss for the first nine months of 2002 was $12.2 million, or a loss of $0.27 per share, compared with a net loss of $31.5 million, or a loss of $0.72 per share, for the same period in 2001. Excluding stock compensation, amortization, and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and investment impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges, the net loss for the first nine months of 2002 was $9.1 million, or a loss of $0.20 per share, compared with a net loss of $27.6 million, or a loss of $0.63 per share, for the same period in 2001. The company's balance sheet at September 30, 2002 includes $37.4 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 September 30, 2002 were $70.3 million. "Our balance sheet remains strong and our capital base allows us to continue building our company. We continue to manage the company's cash, growth and path to profitability," stated Mr. Panu. Third Quarter 2002 Highlights -- Financial - Increased service revenue by 9 percent over the preceding quarter; increased service revenue by 56 percent over the third quarter 2001; achieved positive net cash flow in the third quarter of 2002 compared to a cash burn of $8.4 million in the third quarter of 2001 and a cash burn of $2.1 million in the second quarter 2002. -- Strategic Customers - Selected by Waste Management as its preferred supplier partner for the deployment of an enterprise-wide mobile resource management solution. Under the deployment plan, Waste Management districts across the country are authorized to purchase @Road MRM services. -- New services - Launched @Road services using the Southern LINC wireless network. By using a specially designed iLM(R)2711 (Internet Location Manager), @Road is able to offer its services and options to new subscribers within Southern LINC's 127,000 square-mile packet data network. -- Infrastructure - Expanded service capacity as part of ongoing efforts to accommodate additional customer demand. This capacity increase was accommodated through central processing unit and memory additions to the @Road data center. -- Acquisitions - Acquired substantially all the assets of New Jersey-based ConnectBusiness, a provider of wireless timekeeping and project management solutions. The acquisition expands the scope of potential @Road services and meets an emerging requirement among subscribers - particularly those in construction and other field-service industries - to connect, communicate and coordinate with mobile workers wherever they are. -- Accolades - Named by the Silicon Valley/San Jose Business Journal as one of Silicon Valley's 50 fastest-growing public companies for the second consecutive year; ranked sixth by the San Francisco Business Times among the Bay Area's 150 fastest-growing public companies by percentage of revenue growth from 1999 to 2001. "We are pioneers in creating and defining a new category: Mobile Resource Management," continued Mr. Panu. "We believe that these capabilities are changing the way that mobile services organizations enhance their customer service and improve their bottom line." Conference Call and Webcast Details @Road will host a teleconference Thursday Thursday: see week. , October October: see month. 24th, commencing at 2:00 p.m. PST PST Paroxysmal supraventricular tachycardia, see there , to discuss third 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 800-500-0177 or 719-457-2679, 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 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 and services, ability of @Road to sell and deploy its products and services 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 28, 2002 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 and iLM are registered trademarks of At Road, Inc. The @Road logo, LocationSmart and ConnectBusiness 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.
At Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
Sept. 30, Dec. 31,
2002 2001 (a)
--------- --------
ASSETS
Current assets:
Cash, cash equivalents, and
short-term investments $ 37,426 $ 42,380
Accounts receivable, net 6,444 4,781
Inventories 6,400 8,396
Deferred product costs and
other current assets 9,552 9,081
--------- ---------
Total current assets 59,822 64,638
Property and equipment, net 3,038 4,900
Deferred product costs and
other assets 7,474 8,936
--------- ---------
Total assets $ 70,334 $ 78,474
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 7,211 $ 7,214
Deferred revenue 7,248 6,124
--------- ---------
Total current liabilities 14,459 13,338
Deferred revenue 4,926 4,426
Other long term liabilities 219 299
--------- ---------
Total liabilities 19,604 18,063
Stockholders' equity:
Common stock 169,412 169,148
Deferred stock compensation (747) (2,342)
Notes receivable from stockholders (2,068) (2,748)
Accumulated deficit (115,867) (103,647)
--------- ---------
Total stockholders' equity 50,730 60,411
--------- ---------
Total liabilities and
stockholders' equity $ 70,334 $ 78,474
========= =========
(a) Derived from the audited December 31, 2001 consolidated
financial statements
At Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months Nine months
ended ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2002 2002 2001 2002 2001
---------- -------- ---------- ---------- ---------
Revenues:
Service $8,657 $7,957 $5,550 $23,865 $13,818
Product 2,659 2,501 1,980 7,609 5,020
-------- -------- -------- --------- -----------
Total revenues 11,316 10,458 7,530 31,474 18,838
-------- -------- -------- --------- -----------
Costs and expenses:
Cost of service
revenue 3,440 3,325 3,375 9,974 9,503
Cost of product
revenue 4,264 3,796 3,933 12,015 9,461
Research and
development 1,476 1,476 1,575 4,538 6,015
Sales, general
and administrative 4,308 4,483 6,893 14,625 23,800
Restructuring
charges - - (30) - 218
Intangibles
amortization 418 414 414 1,246 1,242
Stock
compensation 380 376 880 817 2,463
-------- -------- -------- --------- -----------
Total costs
and expenses 14,286 13,870 17,040 43,215 52,702
-------- -------- -------- --------- -----------
Loss from
operations (2,970) (3,412) (9,510) (11,741) (33,864)
Investment
impairment charge - (1,035) - (1,035) -
Other income
(expense), net 208 200 517 556 2,363
-------- -------- -------- --------- -----------
Net loss $(2,762) $(4,247) $(8,993) $(12,220) $(31,501)
======== ======== ======== ========= ===========
Basic and diluted
net loss per
share $(0.06) $(0.09) $(0.20) $(0.27) $(0.72)
======== ======== ======== ========= ===========
Shares used in
calculating basic
and diluted net
loss per share 46,355 45,904 44,213 45,849 43,634
======== ======== ======== ========= ===========
Supplemental
information:
Net loss, as
reported above $(2,762) $(4,247) $(8,993) $(12,220) $(31,501)
Stock compensation 380 376 880 817 2,463
Restructuring
charge - - (30) - 218
Investment
impairment charge - 1,035 - 1,035 -
Intangibles
amortization 418 414 414 1,246 1,242
-------- -------- -------- --------- -----------
Net loss before
stock compensation,
amortization,
restructuring and
investment impairment
charges $(1,964) $(2,422) $(7,729) $(9,122) $(27,578)
======== ======== ======== ========= ===========
Pro forma basic
and diluted net
loss per share
before stock
compensation,
amortization,
restructuring and
investment
impairment
charges $(0.04) $(0.05) $(0.17) $(0.20) $(0.63)
======== ======== ======== ========= ===========
Net loss before
stock compensation,
amortization,
restructuring and
investment impairment
charges $(1,964) $(2,422) $(7,729) $(9,122) $(27,578)
Depreciation and
amortization 755 768 745 2,287 2,210
-------- -------- -------- --------- -----------
EBITDA (b) $(1,209) $(1,654) $(6,984) $(6,835) $(25,368)
======== ======== ======== ========= ===========
EBITDA (b) pro
forma basic and
diluted net loss
per share $(0.03) $(0.04) $(0.16) $(0.15) $(0.58)
======== ======== ======== ========= ===========
(b) Excludes amortization of intangibles, depreciation, stock
compensation, restructuring and investment impairment charges
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