Aether Systems Corrects Financial Tables in Release Issued February 9.Business Editors/High Tech Writers CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by Aether aether: see ether, in physics and astronomy. Aether god of whole atmosphere. [Gk. Myth.: Jobes, 42] See : Air Systems In BW1718-2/09, (MD-AETHER-SYSTEMS) Aether Systems Reports 4th Quarter and Year-End year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. Revenue Growth released February February: see month. 9, the financial tables contained incorrect Incorrect means to not be correct and may also refer to:
( BW)(MD-AETHER-SYSTEMS)(AETH) Aether Systems Reports 4Th Quarter and Year-End Revenue Growth Business Editors/High Tech Writers OWINGS MILLS, Md.--(BUSINESS WIRE)--Feb. 10, 2000 Aether Systems, Inc. (Nasdaq:AETH), a leading provider of wireless data services, reported an increase in fourth-quarter revenue to $4.0 million, compared with $359,000 in the 1998 period. The results include revenue from subscriptions of wireless financial data services, which grew to $2.7 million from $240,000 during the same period last year. Engineering services revenue rose to $1.3 million from $119,000 in the same period of 1998. The company reported a fourth quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , adjusted for the impact of certain non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , of $0.18 a share compared with $0.07 a share operating loss in the year ago period. The per share net loss including certain non-cash charges was $0.94 compared to $0.07 in the same period a year ago. &uot;We executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. several initiatives during the fourth quarter with respect to Aether's various brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. house customers as well as having begun to grow the business beyond this specific vertical,&uot; Chairman and Chief Executive Officer David Oros said. For the year ended December December: see month. 31, 1999, Aether reported an increase in revenue to $6.3 million from $1.5 million a year earlier. Subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. revenue increased to $3.7 million from $549,000 a year ago, while engineering service revenue rose to $2.6 million from $963,000 in 1998. The company reported an operating loss, adjusted for the impact of certain non-cash charges, of $0.43 a share for the year ended December 31, 1999, compared with an operating loss of $0.29 a share in 1998. The per share net loss including certain non-cash charges was $1.45 compared to $0.29 in 1998. &uot;Aether made significant progress on a number of fronts including joining Phone.com's Alliance Program for WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. (wireless application protocol) development and the adaptation adaptation, in biology, has several meanings. It can mean the adjustment of living matter to environmental conditions and to other living things either in an organism's lifetime (physiological adaptation) or in a population over many many generations (evolutionary of AIM 2.0 to work with the Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. Operating System operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. ,&uot; Oros said &uot;The recent events with LocusOne, Cyberbills, MetroCall, and Reuters Reuters British cooperative news agency. Founded in 1851 by Paul Julius Reuter, it was initially concerned with commercial news but began to serve a growing newspaper clientele after the London Morning Advertiser subscribed in 1858. are part of our business plan of entering into new verticals and expanding our ability to provide solutions for wireless and mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings .&uot;
RECENT DEVELOPMENTS
- Letter of intent to form a joint venture with Reuters that is
intended to design, develop and operate wireless services in
Europe for clients in a variety of industries, initially focusing
on financial markets.
- Invested in Metrocall, a leading wireless data and messaging
company serving more than six million subscribers. As part of the
agreement, Aether will join with Metrocall, PSINet, and Hicks
Muse, as participants in a new business-to-business joint venture
to offer a suite of technology services to small office/home
office and middle-market customers.
- Acquired LocusOne Communications, which provides supply chain
fulfillment solutions, allowing more efficient tracking, tracing
and reporting of inventories. Acquisition gives Aether Systems
access to a new vertical industry - mobile supply chain
management.
- Launched electronic payments division, which will develop
products that allow consumers and businesses to make or receive
payments using handheld devices. Rod Stambaugh named to head new
division, which is partnering with CyberBills to develop a
wireless electronic bill presentment and payment service for
CyberBills' consumer distribution network.
FOURTH QUARTER HIGHLIGHTS
- Joined Phone.com alliance program to provide Web-based wireless
data services to corporate customers. Aether is developing
WAP-enabled services that we expect will be available in
February.
- Expanded network operation centers, which enhanced our ability to
serve corporate customers who use Aether to bring their data to
multiple wireless data devices and networks.
- Aether Intelligent Messaging (AIM) Version 2.0 software became
first wireless data solution to support Linux operating system.
- Increased stake to 33% from 26% in OmniSky, which is developing
wireless Internet and email services for wireless delivery to
multiple handheld devices over multiple wireless data networks.
- Unveiled WAP Enterprise Center, which is developing systems that
will allow corporate enterprises and content providers to adopt
Web-based wireless phones as another option for extending
Internet, intranet and in-house data to wireless devices.
Aether Systems Inc. is a leading provider of wireless data services and systems that enable the use of wireless handheld handheld: see personal digital assistant. devices for real-time data Real-time data denotes information that is delivered immediately after collection. There is no delay in the timeliness of the information provided. Some uses of this term confuse it with the term dynamic data. communications and transactions. Aether offers a broad range of wireless data services, including 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. stock quotes and financial data, stock trading, Internet access See how to access the Internet. and e-mail. Headquartered in Owings Mills, Md., Aether also has offices 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 , 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. and Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and . Visit Aether's web site at http://www.aethersystems.com. This press release includes 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. based on our current expectations and projections about future events. These forward-looking statements are subject to a number of risks, uncertainties and assumptions about Aether 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, Aether's limited operating history with subscriber based services, Aether's historical losses and potential larger future losses, the infancy infancy, stage of human development lasting from birth to approximately two years of age. The hallmarks of infancy are physical growth, motor development, vocal development, and cognitive and social development. of the wireless data industry where there is no established market for our products and services, Aether's ability to adapt to rapid technological change, Aether's dependence on wireless networks owned and controlled by others and Aether's reliance on a small number of customers. These risks and other risk factors are described in Aether's Form prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. under the caption, &uot;Risk Factors&uot; filed pursuant to Rule 424(b) with the Securities and Exchange Commission. Aether undertakes no obligation to update the forward looking statements contained in this press release. FINANCIAL TABLES FOLLOW
AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
Three months ended Year ended
December 31, December 31,
------------------ ----------------
1999 1998 1999 1998
---- ---- ---- ----
in thousands except per share data
Subscriber revenue $ 2,722 $ 240 $ 3,732 $ 549
Engineering services revenue 1,326 119 2,594 963
------- ------ ------- ------
Total revenue 4,048 359 6,326 1,512
Cost of subscriber revenue 1,222 386 2,110 797
Cost of engineering
services revenue 820 45 1,366 304
------- ------ ------- ------
Total cost of revenue 2,042 431 3,476 1,101
------- ------ ------- ------
Gross profit 2,006 (72) 2,850 411
------- ------ ------- ------
Operating expenses:
Research and development 1,198 356 2,614 1,267
General and administrative 3,085 801 5,892 2,773
Selling and marketing 1,157 214 2,095 840
Depreciation and amortization 781 74 1,089 265
Option and warrant expense 17,000 8 19,198 33
------- ------ ------- ------
23,221 1,453 30,888 5,178
------- ------ ------- ------
Operating loss (21,215) (1,525) (28,038) (4,767)
Other income (expense):
Interest income
(expense), net (322) 99 (229) 74
Equity in losses
of investment (1,985) - (2,425) -
------- ------ ------- ------
Net loss $(23,522) $ (1,426) $(30,692) $(4,693)
------- ------ ------- ------
Other comprehensive
loss-unrealized holding
gain/(loss) on investments
available for sale 47 (58) (12) (58)
------- ------ ------- ------
Comprehensive loss $(23,475) $ (1,484) $(30,704) $(4,751)
======= ====== ======= ======
Pro forma statement of operations data
(unaudited):
Loss before income taxes,
as reported $(23,522) $ (1,426) $(30,692) $(4,693)
Pro forma income tax
provision (benefit) - - - -
------- ------ ------- ------
Pro forma net loss $(23,522) $ (1,426) $(30,692) $(4,693)
======= ====== ======= ======
Pro forma net loss per
share-basic and diluted $ (0.94) $ (0.07) $ (1.45) $ (0.29)
======= ====== ======= ======
Pro forma weighted average
shares outstanding-basic
and diluted 25,076 19,090 21,207 15,916
======= ====== ======= ======
Reconciliation to net operating loss:
Net loss $(23,522) $ (1,426) $(30,692) $(4,693)
Add back non-cash charges:
Option and warrant expense 17,000 8 19,198 33
Proportionate share of
losses in investee 1,985 - 2,425 -
------- ------ ------- ------
Net operating loss $ (4,537) $ (1,418) $ (9,069) $(4,660)
======= ====== ======= ======
Pro forma net operating
loss per share - basic
and diluted $ (0.18) $ (0.07) $ (0.43) $ (0.29)
======= ====== ======= ======
1) Includes revenues from foreign exchange products and other
products from the acquisition of Mobeo, Inc. totaling $2,353 in
the three months ended December 31, 1999 and $2,408 in the year
ended December 31, 1999. Mobeo, Inc. was acquired on September
28, 1999.
(2) Prior to the closing of the Company's initial public offering,
each member of Aether Systems, LLC (the &uot;LLC&uot;) contributed its
membership units in the LLC to Aether Systems, Inc. in exchange
for 2.5 shares of common stock of Aether Systems, Inc. Following
such contribution, the LLC merged with and into Aether Systems,
Inc., as a result of which all assets and liabilities of the LLC
were transferred to Aether Systems, Inc.
AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, December 31,
1999 1998
in thousands except share data
Current assets:
Cash and cash equivalents $ 78,542 $ 1,755
Short-term investments 2,092 6,191
Trade accounts receivable, - -
net of allowance for doubtful - -
accounts of $56 and $157 at - -
December 31, 1999 and - -
December 31, 1998, respectively 1,003 118
Inventory, net of allowance for - -
obsolescence of, $115 and $170 - -
at December 31, 1999 and December - -
31, 1998 (unaudited), respectively 688 144
Prepaid expenses and other
current assets 4,995 46
------------ ------------
Total current assets 87,320 8,254
Furniture, computers, and equipment, net 2,796 511
Intangibles and other assets 12,418 -
------------ ------------
$ 102,534 $ 8,765
============ ============
LIABILITIES, MEMBERS' CAPITAL AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,425 $ 196
Accrued expenses 1,620 288
Accrued employee compensation and benefits 971 251
Deferred revenue 175 -
------------ ------------
Total current liabilities 4,191 735
Stockholders' equity 98,343 8,030
Commitments and contingencies $ 102,534 $ 8,765
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion