AvantGo Posts Record First Quarter Results; Company Shows Year Over Year Growth of 340% as Operating Loss Declines for Second Straight Quarter.Business Editors SAN MATEO San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , Calif.--(BUSINESS WIRE)--April 24, 2001 AvantGo, Inc. (Nasdaq:AVGO), the leading provider of mobile infrastructure software and services, today reported record revenues for its first quarter ended March 31, 2001. Revenues for the quarter were $7.3 million, representing a 340% increase over revenues of $1.7 million for the same quarter last year, and an 11% increase over the fourth quarter of 2000. Gross margins increased to 80%, up from 77% in the fourth quarter of 2000. Along with record revenues, the Company continued on its path to profitability by narrowing its operating losses 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. for the second straight quarter. The net loss, before 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. , was $9.0 million versus $10.6 million in the fourth quarter of 2000. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss per share before non-cash charges was $0.29 for the quarter compared with a loss of $0.35 per share in the fourth quarter of 2000. "We are pleased to announce that EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. exceeded analysts' estimates for the third consecutive quarter since going public last fall. We continued to improve our operating performance in the first quarter, with higher revenues, stronger gross margins and lower operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratios," said David Cooper David Cooper may be:
In order to further improve its operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , the Company also announced that it is reducing its workforce in April by approximately 50 people, or 15%. In the second quarter ending on June 30, 2001, the Company will incur one-time severance costs of approximately $400,000 and a non-cash restructuring charge 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. of $2.5 million associated with the disposal of excess equipment and office space. New Products and Services Drive Enterprise Adoption Over 25 major organizations, including Northern Trust, Brown-Forman Corporation The Brown-Forman Corporation is one of the largest American-owned companies in the spirits and wine business, and is a diversified producer and marketer of various consumer products. Headquartered in Louisville, Kentucky, Brown-Forman employs 3,350. and The New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , purchased AvantGo mobile business solutions in the first quarter to mobilize workforce and customer-focused applications. The Company also established new third-party developer  It has been suggested that First-party developer, Second-party developer be merged into this article or section. and channel sales relationships with industry
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During the first quarter, the Company debuted AvantGo 4.0, pioneering wireless software, applications and services, which includes significant wireless infrastructure enhancements to AvantGo's core M-Business Server, its Mobile Engines for the Web, Lotus Notes Messaging and groupware software from IBM Lotus that was introduced in 1989 for OS/2 and later expanded to Windows, Mac, Unix, NetWare, AS/400 and S/390. Notes provides e-mail, document sharing, workflow, group discussions and calendaring and scheduling. and Microsoft Exchange Messaging and groupware software for Windows from Microsoft. Exchange Server is an Internet-compliant e-mail system that runs under Windows NT/2000 and Windows Server 2003. It can be accessed by Web browsers, the Exchange client, versions of Outlook and the earlier Windows Inbox. , and its popular AvantGo mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. service. AvantGo 4.0 is a reliable end-to-end software solution that ensures instant, anytime, anywhere access to important information, messaging and applications from any mobile device and wireless service - even outside wireless coverage areas. The solution allows corporations to choose from the wide variety of wireless devices, connectivity options and services available today. AvantGo plans to ship Web-based solutions for RIM Wireless Handhelds and Symbian-based devices, in addition to the Web-based and messaging software it already offers for Microsoft Windows-powered Pocket PCs, Palm OS-based handhelds and Internet-enabled phones. The Company also plans to deliver applications focused on vertical markets, including sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. and supply chain management later this year. "We provide the only end-to-end software solution that enables corporations to seamlessly extend back-office and front-office business applications to mobile workforces - wirelessly, through synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. with a desktop PC or over cellular and paging networks. Our software allows organizations to greatly increase the return on investment they get from their existing technology through enhanced operational efficiency, workforce productivity and effectiveness," stated Richard Owen Sir Richard Owen KCB (July 20 1804–December 18 1892) was an English biologist, comparative anatomist and palaeontologist. He was widely regarded as malicious and dishonest but he was also one of the most brilliant and influential biologists of his time. , chief executive officer of AvantGo. "We have customers that are realizing 500% increases in business efficiencies and greatly improving the quality of decision making through improved access to critical information. Others are saving millions of dollars by reducing their DSOs (days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). ) and shortening delivery times and inventory levels." The Company also released AvantGo 4.0 for the AvantGo mobile Internet service, which today has over 2.5 million registered users, making it one of the largest networks of mobile users in the world. The hosted network enables over 1000 businesses to generate incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue, extend their brand, reduce customer care costs and increase the overall lifetime value of their customer relationships. New customers in the first quarter included Toyota, Lexus, MasterCard, VeriSign and Cathy Pacific, with repeat business coming from Intel and Nortel. The new wireless features made possible by AvantGo 4.0 include market-leading wireless performance, new content channels, including Amazon.com, Yahoo! Mail A free, Web-based e-mail service from Yahoo!. It includes Yahoo! Messenger, which alerts you if you have mail and also provides voice chat. See Yahoo! Messenger. and Consumer Reports, and one-stop Wireless Solutions for individuals to purchase wireless service and hardware directly from the AvantGo website. AvantGo Hosts Investor Call AvantGo's first quarter financial results will be discussed April 24, 2001 at 2:00 PM PDT/5:00 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , and will be available via a live webcast on the Company's website at www.avantgo.com/corp/company, under the navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. "investors," or at www.streetevents.com. A replay also will be available from the Company's website through May 9, 2001. About AvantGo AvantGo, Inc. (Nasdaq:AVGO) is the leading provider of infrastructure software and services that power the mobile economy. AvantGo M-Business software enables businesses to increase the value of their corporate information systems by extending existing enterprise applications and critical information to employees, customers and business partners. The company also provides the AvantGo mobile Internet service, a hosted network that enables hundreds of businesses to deliver their content and applications to more than 2.5 million mobile consumers. AvantGo is a pioneer in delivering real-world solutions for both wireless and off-line use. For more information, please visit www.avantgo.com. Cautionary Statement This news release regarding first quarter financial results includes forward-looking statements, including, but not limited to, statements as to when we expect AvantGo to become profitable and the belief that our current cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. will be adequate to achieve profitability. These forward looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially. Such factors include, but are not limited to, the following: general business and economic conditions, and growth in the adoption of mobile infrastructure technology, software investments and mobile advertising in various geographic regions; quarterly fluctuations in AvantGo's revenues or other operating results; pricing pressures, including the pricing that advertisers are willing to pay us for advertisements and placements in our AMI services; the pricing of our enterprise products and the rates that we are able to charge for our professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. ; AvantGo's failure to meet financial expectations of analysts and investors; errors in forecasting or inability to meet sales goals; inability to control costs; termination of important contracts including those with American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. Travel-Related Services, Ford Motor Company and McKessonHBOC; customer dissatisfaction, failure to close anticipated key enterprise agreements; risks related to market acceptance of AvantGo's products and services, and the products and services of AvantGo's customers and partners which integrate or interoperate with AvantGo technologies; slowdown in the adoption of mobile devices for which the market for AvantGo's software and services is dependent; changes in customer order patterns; the impact of long sales and implementation cycles for AvantGo's enterprise products; unanticipated costs or other adverse effects associated with software bugs; continued success in technological advances, including development and implementation of new products and services that are interoperable with those of its customers and partners; delays in the development or introduction of such products and services; AvantGo's ability to manage growth and successfully integrate and operate any acquired businesses; AvantGo's ability to further its brand awareness and market effectively the functionality of its software; competitive factors, such as the release of competitive products and services; marketing programs and other actions by competitors; technical difficulties with networks or operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. on which we rely to deliver some of our services; AvantGo's need to maintain and enhance business relationships with leading hardware and software manufacturers, important partners, content providers and other parties; the ability of AvantGo partners and customers to timely develop and deliver to market viable products and services; AvantGo's ability to attract new employees, particularly in the sales and engineering groups; retention of key personnel; AvantGo's activities and those of others regarding protection of intellectual property; the California energy crisis and its impact on operating costs operating costs npl → gastos mpl operacionales and our ability to operate our business and provide the AMI services; other factors which increase operating costs; rapid inflation; general economic downturns; the possible emergence of a credit crisis affecting cash balances invested in money market funds and other investment instruments; and, the impact of events outside 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. such as the business impact of fluctuating currency rates or unrest or political instability in a locale (programming) locale - A geopolitical place or area, especially in the context of configuring an operating system or application program with its character sets, date and time formats, currency formats etc. Locales are significant for internationalisation and localisation. . These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after March. 31, 2001. Further details on these risks are set forth in our filings with the Securities and Exchange Commission, including our Form S-1 which was declared effective by the SEC on September 27, 2000, our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2000 and our annual 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. for the year ended December 31, 2000. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Forward-looking statements in this release are generally identified by words such as "forecast," "project," "expect," "anticipate,"' "intend," "believe," "assume," "estimate," "goal," "plan" and other similar words and expressions. AvantGo does not undertake an obligation to update forward-looking statements. Note to Editors: AvantGo, AvantGo Enterprise and the AvantGo logo are trademarks of AvantGo, Inc. All other trademarks are the property of their respective owners.
AvantGo, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Quarter Ended
March 31,
2001 2000
-------- --------
(unaudited)
Revenues:
License fees $ 4,063 $ 753
Services 3,244 908
-------- --------
Total revenues 7,307 1,661
Costs and expenses:
Cost of license fees 25 27
Cost of services 1,419 547
Product development 3,994 1,145
Sales and marketing 8,305 3,246
General and administrative 3,372 1,120
Amortization of goodwill,
other intangible assets and
deferred stock compensation 3,774 3,224
-------- --------
Total costs and expenses 20,889 9,309
-------- --------
Loss from operations (13,582) (7,648)
Interest and other income, net 774 217
-------- --------
Net loss $(12,808) $ (7,431)
======== ========
Net loss per share data:
Basic and diluted $ (0.41) $ (1.30)
======== ========
Pro forma basic and diluted $ (0.41) $ (0.41)
======== ========
Shares used in calculation
of net loss per share:
Basic and diluted 31,339 5,704
Pro forma basic and diluted(1) 31,339 18,044
Supplemental data:
Adjusted loss applicable to common
shareholders excluding amortization
of goodwill, other intangible assets
and deferred stock compensation (9,034) (4,207)
Adjusted pro forma basic and
diluted net loss per share $ (0.29) $ (0.23)
Shares used in per share computation -
pro forma basic and diluted(1) 31,339 18,044
(1) Pro forma results assumes the conversion of preferred stock into
an equivalent number of common stock at time of issuance
AvantGo, Inc.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2001 2000
---------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 66,463 $ 57,034
Short-term investments -- 16,432
Accounts receivable, net of allowance 5,414 4,724
Prepaid expenses and other assets 1,619 1,186
-------- --------
Total current assets 73,496 79,376
Restricted cash 3,438 3,438
Property and equipment, net 8,963 7,998
Goodwill and other assets 12,360 13,496
-------- --------
Total assets $ 98,257 $ 104,308
======== ========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 4,427 $ 4,754
Accrued compensation
and related benefits 2,797 2,238
Current portion of long-term debt -- 40
Deferred revenue 6,182 2,442
-------- --------
Total current liabilities 13,406 9,474
Deferred revenue -- 83
Stockholders' Equity:
Common stock 169,499 170,841
Notes receivable from stockholders (502) (706)
Deferred stock compensation (8,625) (12,350)
Revenue offset relating
to warrant agreements (972) (1,099)
Accumulated deficit (74,755) (61,947)
Accumulated other comprehensive income 206 12
-------- --------
Total stockholders' equity 84,851 94,751
-------- --------
Total liabilities and
stockholders' equity $ 98,257 $ 104,308
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