@Road Reports Record Third Quarter Revenues; Sequential Revenue Increases 21%; Company Raises Fourth Quarter Guidance.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 global 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 ) and intelligent field service automation solutions, today announced its results for the quarter and nine months ended September September: see month. 30, 2005. Total revenues for the third quarter of 2005 were $25.0 million, a 31% increase compared to $19.1 million for the third quarter of 2004. Hosted revenues for the third quarter of 2005 were $19.0 million, and licensed revenues for the third quarter of 2005 were $6.0 million. Net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stockholders for the third quarter of 2005 was $33.4 million, or $0.54 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 to net income of $2.9 million, or $0.05 per diluted share, for the third quarter of 2004. Included in the results for the third quarter 2005 were $34.2 million in a benefit from income taxes, $1.0 million in intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. amortization associated with the Vidus(TM) Limited acquisition and $0.7 million in depreciation. For the nine months ended September 30, 2005, total revenues were $65.6 million, a 19% increase compared to the $55.3 million for the same period last year. Hosted revenues for the first nine months were $58.1 million, and licensed revenues for the first nine months were $7.4 million. Net income attributable to common stockholders for the first nine months of 2005 was $24.9 million, or $0.41 per diluted share, compared to net income of $7.1 million, or $0.12 per diluted share, for the first nine months of 2004. Included in the results for the first nine months of 2005 were the operations of Vidus from the February February: see month. 18, 2005 closing date, as well as a $5.6 million charge for in-process research and development costs, a benefit from income taxes of $37.4 million, $2.5 million in intangibles amortization associated with the Vidus acquisition and $1.8 million in depreciation. "We are pleased to report that some of the increased RFP (Request For Proposal) A document that invites a vendor to submit a bid for hardware, software and/or services. It may provide a general or very detailed specification of the system. 1. (business) RFP - Request for Proposal. 2. activity we've we've Contraction of we have. we've have seen in the marketplace earlier this year has begun to turn into customer wins," 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 to the previously announced customer wins with several of our specific vertical industry offerings, we've also signed several medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized customer deals. We believe that market momentum continues to build, and we are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. customer demand for both our hosted solutions and licensed software to continue to grow," commented Mr. Panu. 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, 2005 included $95.6 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. "Due to the nature of our business model, large customer deployments can require upfront cash outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. . In recent quarters we have purchased significant amounts of inventory in support of both the 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. deployment and the CDPD (Cellular Digital Packet Data) A low-speed, digital, wireless data network that is an enhancement to an existing analog cellular network. Based on IBM's CelluPlan II, CDPD provides a packet overlay onto the AMPS network and moves data at 19. migration. Cash collections from customers should increase in the fourth quarter as customers pay us for hardware and service from deployments in the third quarter. We anticipate that the Company's cash, cash equivalents and short-term investments balances will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million by the end of the year," stated Mr. Panu. The Company's business outlook for the fourth quarter calls for revenue in the range of between $28 million and $29 million. This is in line with the Company's previous guidance. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis is expected to be approximately $0.02 per share. This is an increase from the fourth quarter guidance provided last quarter, which called for fully diluted earnings per share on a GAAP basis to be approximately $0.01 per share. The Company further announced that its Board of Directors has approved the accelerated vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of all unvested and "out-of-the-money out-of-the-money Used to describe a call option with a strike price above the price of the underlying asset or a put option with a strike price below the price of the underlying asset. " stock options previously granted to employees and officers under the Company's 2000 Stock Option Plan with per share exercise prices equal to or greater than $6.40, effective today. Options held by non-employee directors are excluded from the vesting acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. . Unvested stock options to purchase a total of 811,110 shares were accelerated, representing approximately 8 percent of the total of all outstanding @Road stock options. The accelerated stock options have per share exercise prices ranging from $6.40 to $14.58. Under the recently revised Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-based Payments," @Road will be required to recognize an expense associated with its outstanding unvested stock options beginning in 2006. As a result of the acceleration, the Company expects that its stock option expense would be reduced by approximately $4.5 million over the original option vesting period.
Year to Date Highlights
-- New Customers
-- Announced six recent customer wins in the transportation
and distribution industry.
-- Announced new customer wins as a result of the @Road
alliance with the Chemical Distribution Network (CDN), a
distributor-owned organization made up of 21 leading
chemical distribution companies.
-- Announced 28 customer wins in the waste services vertical
market during the first five months of 2005.
-- Acquisitions
-- On February 18, 2005, @Road completed its acquisition of
Vidus Limited, a leading provider of dynamic field service
automation solutions located in Ipswich, United Kingdom.
-- New Services
-- Introduced taskforce MSP(SM), a subscription-based Managed
Services Provider (MSP) delivery model for on-demand
automated field service delivery. This new delivery
offering of taskforce includes the same innovative
features and functionality of the licensed version, but
with the additional benefit of being an on-demand MSP
solution with a simple "pay as you go" monthly
subscription model.
-- Launched @Road Portico XP(SM) which features the
integration of patented @Road LocationSmart(SM) technology
with "Toughbook" ruggedized notebook computers from
Panasonic Computer Solutions Company. When integrated with
@Road Portico XP, Panasonic Toughbook computers can enable
the field service technician to securely perform real-time
remote tasks such as opening and updating work orders,
logging in job times, viewing customer records, messaging,
getting driving directions, placing orders or reviewing
upcoming assignments and routes.
-- Announced the global launch of taskforce(TM) 7, the latest
release of its automated and intelligent field service
delivery mobile enterprise application. taskforce 7 also
introduces a common Microsoft .NET application
architecture which can be used for mobile field service
functions, customer service functions and in the
operations and planning functions.
-- Completed testing for the @Road iLM(R) 3100-W, which
incorporates an embedded EDGE wireless communication
module, for use on the EDGE high-speed data network.
-- Infrastructure
-- Appointed a Vice President, Asia Pacific, to lead @Road
expansion efforts in the Asia Pacific region.
-- Announced the expansion of the Company's operations and
facilities in Chennai, India.
-- Intellectual Property
-- Announced the issuance of recently awarded patents by the
U.S. Patent and Trademark Office, bringing the Company's
patent portfolio to seventeen issued patents. @Road has
additional patents and patents pending in jurisdictions
throughout the world.
-- Alliances
-- Announced the formation of a new @Road global alliance and
business development initiative established to form new
strategic relationships for international business and
long-term revenue growth.
-- @Road and Cingular Wireless announced that they will
jointly offer MRM solutions that improve asset and fleet
management for companies with both private and for-hire
fleets in such industries as transportation, consumer
packaged goods and telecommunications.
-- Capgemini Deutschland and Vidus announced an alliance for
the German speaking market and the integration of
taskforce into SAP for Utilities and SAP Mobile Asset for
Utilities (MAU). The solution combines consulting,
software and expertise from the companies to provide
utility organizations with an integrated, intelligent and
real-time solution that can help increase service levels
to meet customer expectations while reducing operational
costs.
-- Awards
-- Received the prestigious Frost & Sullivan 2005 Utility
Mobile Solution of the Year Award. Frost & Sullivan
recognized @Road with the award in the Utilities Vertical
for the @Road Telco, Cable and Utilities Suite MRM
solution.
-- For the fourth consecutive year, @Road earned a place on
the Deloitte Technology Fast 500 list. In addition to
ranking on Deloitte's Technology Fast 500, @Road ranked 27
on the Silicon Valley Technology Fast 50, which is a
ranking of the 50 fastest growing technology companies in
Silicon Valley.
Conference Call and Webcast Details @Road will host a teleconference Thursday Thursday: see week. , October October: see month. 27, commencing at 2:00 p.m. Pacific Time, to discuss the third quarter financial results. Participating in the call will be @Road President and CEO Krish Panu and CFO See Chief Financial Officer. Mike Martini. All interested parties may listen by dialing 800-659-2056 or 617-614-2714, pass code 34725765, or by tuning into the webcast at www.road.com. About @Road @Road, Inc. is a leading global provider of solutions designed to automate To turn a set of manual steps into an operation that goes by itself. See automation. the management of mobile resources and to optimize optimize - optimisation the service delivery process for customers across a variety of industries. @Road delivers MRM solutions in three key areas: Field Force Management, Field Service Management and Field Asset Management. By providing real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Mobile Resource Management infrastructure 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-based technologies, 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 , @Road solutions are designed to provide a secure, scalable, upgradeable, enterprise-class platform, and are offered in on-demand software See SaaS. delivery, on-premise or hybrid environments that seamlessly connect mobile workers in the field to real-time corporate data. @Road provides Mobile Resource Management solutions to approximately 150,000 subscribers on a hosted basis and to approximately 30,000 end users on a licensed basis around the world. The Company is headquartered in Fremont, Calif., and has a global presence with offices 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. , 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). and Asia. For more information on @Road
solutions, visit 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 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, @Road historical and future operating results and profitability; the ability of @Road to integrate Vidus operations successfully; the ability of @Road to increase its cash, cash equivalents and short-term investments balances; the ability of @Road to gain customer wins; the implementation by @Road of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R); the ability of @Road to accelerate or continue to grow as a result of its investment initiatives; the ability of @Road and its alliances to market, sell and support @Road solutions; the timing of purchasing and implementation decisions by prospects and customers; competition; 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. The Company cautions the reader that the planned appearances of @Road personnel, time 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. manner of the live teleconference, webcast and replays may change for administrative or other reasons outside the company's control. 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 15, 2005, the @Road Report on Form 10-Q Form 10-Q See 10-Q. dated August 9, 2005 and in its other filings with the Securities and Exchange Commission. @Road and iLM are registered trademarks of @Road, Inc. The @Road logo, LocationSmart and @Road Portico portico (pôr`tĭkō), roofed space using columns or posts, generally included between a wall and a row of columns or between two rows of columns. are trademarks or service marks of @Road, Inc. Vidus, taskforce This article is about organizations known as taskforces. For other uses, see Taskforce (disambiguation). A task force is a special committee, usually of experts, formed expressly for the purpose of studying a particular problem. and taskforce MSP (1) (Management Service Provider or Managed Service Provider) An organization that manages a customer's computer systems and networks which are either located on the customer's premises or at a third-party datacenter. are trademarks or service marks of Vidus Limited, an @Road company. All other product names and services are the property of their respective owners.
@Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September December
30, 2005 31, 2004 (1)
------------ ------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 95,580 $ 117,716
Accounts receivable, net 16,178 7,960
Inventories 5,568 3,593
Deferred tax assets 1,309 -
Deferred product costs and other current
assets 21,988 12,646
------------ ------------
Total current assets 140,623 141,915
Property and equipment, net 5,901 3,668
Deferred product costs and other assets 13,609 6,627
Deferred tax assets 39,955 -
Intangible assets, net 30,613 -
Goodwill 21,062 -
------------ ------------
Total assets $ 251,763 $ 152,210
============ ============
LIABILITIES, REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 16,656 $ 11,195
Deferred revenue and customer deposits 17,500 11,347
------------ ------------
Total current liabilities 34,156 22,542
Deferred revenue 12,776 4,830
Deferred tax liabilities 683 -
Other long term liabilities 487 2
------------ ------------
Total liabilities 48,102 27,374
Redeemable preferred stock 8,053 -
Stockholders' equity:
Common stock 277,474 232,016
Notes receivable from stockholders (8) -
Accumulated other comprehensive loss (65) (179)
Accumulated deficit (81,793) (107,001)
------------ ------------
Total stockholders' equity 195,608 124,836
------------ ------------
Total liabilities, redeemable
preferred stock and stockholders'
equity $ 251,763 $ 152,210
============ ============
(1) Derived from the audited December 31, 2004 consolidated financial
statements
@Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
-------------------------- -----------------
Sep 30, June 30, Sep 30, Sep 30, Sep 30,
2005 2005 2004 2005 2004
-------- -------- -------- -------- --------
Revenues:
Hosted $18,965 $19,685 $19,102 $58,140 $55,325
Licensed 6,004 941 - 7,447 -
-------- -------- -------- -------- --------
Total revenues 24,969 20,626 19,102 65,587 55,325
-------- -------- -------- -------- --------
Costs and expenses:
Cost of hosted revenue
(excluding intangible
amortization included
below) 10,238 9,227 8,582 28,989 25,619
Cost of licensed
revenue (excluding
intangible
amortization included
below) 1,481 1,473 - 3,654 -
Intangibles
amortization 1,010 1,010 7 2,477 28
Sales and marketing 5,496 5,832 2,929 15,975 9,122
Research and
development 3,487 3,849 1,695 9,911 4,493
General and
administrative 4,724 3,942 3,240 13,113 7,793
In-process research and
development - - - 5,640 -
Terminated acquisition
costs - - 139 - 2,156
Stock compensation - - - - 4
-------- -------- -------- -------- --------
Total costs and
expenses 26,436 25,333 16,592 79,759 49,215
-------- -------- -------- -------- --------
(Loss) income from
operations (1,467) (4,707) 2,510 (14,172) 6,110
Other income, net 798 575 420 1,993 996
-------- -------- -------- -------- --------
Net (loss) income
before tax (669) (4,132) 2,930 (12,179) 7,106
Benefit from income
taxes 34,192 3,195 - 37,387 -
-------- -------- -------- -------- --------
Net income (loss) 33,523 (937) 2,930 25,208 7,106
Preferred stock
dividends (124) (124) - (305) -
-------- -------- -------- -------- --------
Net income (loss)
attributable to common
stockholders $33,399 $(1,061) $ 2,930 $24,903 $ 7,106
======== ======== ======== ======== ========
Net income (loss) per
share:
Basic $ 0.55 $ (0.02) $ 0.05 $ 0.42 $ 0.13
======== ======== ======== ======== ========
Diluted $ 0.54 $ (0.02) $ 0.05 $ 0.41 $ 0.12
======== ======== ======== ======== ========
Shares used in
calculating net income
(loss) per share:
Basic 60,740 60,551 54,498 59,571 54,156
======== ======== ======== ======== ========
Diluted 62,133 60,551 56,199 60,994 57,424
======== ======== ======== ======== ========
Stock compensation:
Cost of hosted revenue $ - $ - $ - $ - $ -
Cost of licensed
revenue - - - - -
Sales and marketing - - - - 1
Research and
development - - - - 1
General and
administrative - - - - 2
-------- -------- -------- -------- --------
Total stock
compensation $ - $ - $ - $ - $ 4
-------- -------- -------- -------- --------
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