AvantGo Posts Record Fourth Quarter and Forecasts Profitability Two Quarters Earlier Than Previously Expected.Business Editors/High-Tech Writers 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)--Jan. 30, 2001 AvantGo Posts 465 Percent Year over Year Revenue Growth; Announces Strategic Relationship with Research In Motion AvantGo, Inc. (Nasdaq:AVGO), the leading provider of mobile infrastructure software and services, today reported financial results for its fourth quarter ended December 31, 2000. Revenues for the quarter were $6.6 million, representing a 526% increase over revenues of $1.0 million for the same quarter last year, and a 42% increase over the third quarter of 2000. Revenues for the twelve months ended December 31, 2000 were $16.3 million, a 465 percent increase from $2.9 million for the same period last year. The Company's 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. declined in the fourth 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 $10.6 million versus $10.9 million in the third 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 $0.35 for the quarter compared with a loss of $0.47 per share in the third quarter of 2000. Gross margins remained at 77% for the second quarter in a row. "We are pleased to announce record fourth quarter revenues, consistent gross margins and improved operating loss," stated David Cooper David Cooper may be:
AvantGo ended the fourth quarter with $73.5 million in cash and investments. The Company has 342 employees and plans to continue building its expertise in research and development and its sales capacity. Fortune 1000 Enterprises Adopt AvantGo Mobile Business Solutions AvantGo's enterprise customer list includes more than 18 Fortune 100 companies. Over 25 major corporations, such as BankOne, Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified pharmaceuticals and health care company. It has over 65,000 employees and operates in 130 countries. The corporate headquarters are in Abbott Park, Illinois, a neighborhood of North Chicago, Illinois. and Chevron, purchased AvantGo mobile business solutions in the fourth quarter to mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. workforce and customer-focused applications. The company also mobilized applications for global organizations, including CLSA CLSA Canon Law Society of America CLSA California Land Surveyors Association CLSA Contact Lens Society of America CLSA Credit Lyonnaise Securities CLSA Canadian Laboratory Suppliers Association CLSA Cornell Law Student Association , the emerging markets arm of Credit Lyonnais, and The World Economic Forum. Following the announcement of its AvantGo Strategic Alliance Partners (ASAP (chat) asap - As soon as possible. ) program in October 2000, the Company 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
leaders, including Business Objects, CompuCom, Deloitte Consulting,
Information Builders (Information Builders, Inc., New York, www.informationbuilders.com) A software company founded in 1975 by Gerald Cohen that specializes in enterprise business intelligence and real time Web reporting. and Brightpod, backed by Ericsson. These
organizations are expected to integrate AvantGo software into their
business applications as well as co-market and resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. AvantGo products, or embed em·bed also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. AvantGo software as an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and solution. AvantGo extended its product leadership in the fourth quarter with the debut of AvantGo Enterprise for 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. , the first mobile enterprise product to seamlessly integrate web-based and Microsoft Exchange solutions. The Company also expanded its professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. organization to provide global consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" and launched comprehensive educational services for mobile workforces, developers and end users. "In the fourth quarter, we expanded our lead in the rapidly growing enterprise mobile and wireless markets. In addition to the 18 Fortune 100 customers deploying enterprise solutions, we now have over 2,500 customers in 50 countries using AvantGo Enterprise for 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. software to mobilize Lotus Notes schedules, contacts and custom database applications in the enterprise," said 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. "This year, we expect to extend our lead in the enterprise 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 infrastructure software market, delivering best-of-breed solutions for Fortune 1000 customers rolling out new wireless platforms and device 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. ." Today, AvantGo and Research In Motion(R) Limited (RIM(R)) (Nasdaq:RIMM (Rambus Inline Memory Module) See RDRAM. See also RIM. ; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :RIM), a world leader in the mobile communication market, announced a strategic alliance focused on delivering wireless Web-based data and corporate applications to Fortune 1000 customers. The companies also announced they will co-market existing and future products and services to enterprise customers and channel partners. AvantGo Mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. Service Surpasses Two Million Users Today, the AvantGo mobile Internet (AMI) service has over two million registered users, which makes it one of the largest networks of mobile content and applications in the world. The hosted network enables hundreds of businesses to deliver their content and applications, including news, movie listings, maps, stock quotes, weather and much more to handheld devices and Internet-enabled phones. In the fourth quarter, the service continued its growth with the launch of localized Translated into the spoken language of the country. See localization. , regional content in the United Kingdom, Sweden and Norway. AvantGo provides content distribution, marketing and promotional services to major media companies, such as USA Today USA Today National U.S. daily general-interest newspaper, the first of its kind. Launched in 1982 by Allen Neuharth, head of the Gannett newspaper chain, it reached a circulation of one million within a year and surpassed two million in the 1990s. and The 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 Times that use the AMI service to expand their distribution beyond print and online media to mobile devices. In addition, AvantGo enables traditional corporations interested in wireless advertising and marketing, such as Intel and Northwest Airlines, to promote their products and services to individuals on the go.
2001 FINANCIAL OUTLOOK
Income Statement
(Dollars in millions, except per share data)
Q1 2001 FY 2001
Q4 2000 FY 2000 Outlook Outlook
Revenue
Enterprise $ 4.7 $12.2 $ 5.3 $26.0
AMI 1.9 4.1 2.0 9.0
--- --- --- ---
Total $ 6.6 $16.3 $ 7.3 $35.0
As a % of revenue
Cost of Goods Sold 23% 25% 20% - 25% 20% - 25%
Gross Margin 77% 75% 80% - 75% 80% - 75%
Operating Expenses
(including other
income) 239% 275% 216% - 226% 191% - 201%
Earnings before
Amortization of
goodwill, deferred
compensation and
other non-cash
charges. (162%) (200%) (136%)-(151%) (111%)-(126%)
Amortization of
goodwill, deferred
compensation and
other non-cash
charges. 69% 105% 52% - 57% 37% - 42%
Net Income (231%) (305%) (188%)-(208%) (148%)-(168%)
EPS before
Amortization of
goodwill, deferred
compensation and
other non-cash
charges. ($0.35) ($1.40) ($0.32)-($0.36)($1.23)-($1.39)
Share count
(in millions) 30.3 23.4 30.7 31.6
AvantGo Hosts Investor Call AvantGo's fourth quarter financial results will be discussed January 30, 2001 at 2:00 PM PST/5:00 PM EST EST electroshock therapy. EST abbr. electroshock therapy , 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 February 15, 2001. About AvantGo AvantGo, Inc. (Nasdaq:AVGO) is the leading provider of infrastructure software and services that power the mobile economy. AvantGo Enterprise 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 two 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 fourth quarter and year-end financial results 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. , including, but not limited to, statements as to when we expect AvantGo to become profitable, 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, and the estimates provided in the 2001 Financial Outlook table. 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: business and economic conditions and growth in the mobile infrastructure, software and advertising industries 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; 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; failure to close anticipated key enterprise agreements; longer sales cycles for our enterprise products; 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 See interoperable. with AvantGo technologies; slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. 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 A problem that causes a program to produce invalid output or to crash (lock up). The problem is either insufficient logic or erroneous logic. For example, a program can crash if there are not enough validity checks performed on the input or on the calculations themselves, and the computer ; continued success in technological advances, including development and implementation of new products and services that are interoperable The ability for one system to communicate or work with another. See interoperability. 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 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 personnel in a tight hiring market; 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 fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. 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 Dec. 31, 2000. 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, and our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 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 Year Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
(unaudited)
Revenues:
License fees $ 3,914 $ 529 $ 9,087 $ 1,443
Services 2,651 519 7,231 1,446
---------------------- --------------------
Total revenues 6,565 1,048 16,318 2,889
Costs and expenses:
Cost of license fees 44 26 161 60
Cost of services 1,464 477 3,916 1,312
Product development 3,848 914 10,055 2,745
Sales and marketing 10,155 2,043 29,382 4,291
General and
administrative 3,090 647 8,042 1,404
Purchased in-process
research and
development -- -- 600 --
Amortization of
goodwill, intangible
assets and deferred
compensation, and
other acquisition-
related costs 4,552 1,244 16,582 2,605
---------------------- --------------------
Total costs
and expenses 23,153 5,351 68,738 12,417
---------------------- --------------------
Loss from operations (16,588) (4,303) (52,420) (9,528)
Interest and other
income, net 1,413 130 2,582 313
---------------------- --------------------
Net loss $(15,175) $ (4,173) $(49,838) $ (9,215)
====================== ====================
Net loss per share data:
Basic and diluted $ (0.50) $ (0.82) $ (4.13) $ (2.11)
====================== ====================
Pro forma basic
and diluted $ (0.50) $ (0.25) $ (2.13) $ (0.65)
====================== ====================
Shares used in
calculation of
net loss per share:
Basic and diluted 30,107 5,084 12,077 4,377
Pro forma basic
and diluted (1) 30,293 16,556 23,390 14,272
Supplemental data:
Adjusted loss
applicable to common
shareholders excluding
in-process research
and development and
amortization of
goodwill, intangible
assets and deferred
compensation, and
other acquisition-
related costs (10,623) (2,929) (32,656) (6,610)
Adjusted pro forma
basic and diluted
net loss per share $ (0.35) $ (0.18) $ (1.40) $ (0.46)
Shares used in per
share computation -
pro forma basic
and diluted (1) 30,293 16,556 23,390 14,272
(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)
December 31, December 31,
2000 1999
----- ----
ASSETS
Current assets:
Cash and cash equivalents $ 57,034 $ 5,835
Short-term investments 16,432 3,975
Accounts receivable,
net of allowance 4,724 1,478
Prepaid expenses and
other assets 1,186 255
--------- ---------
Total current assets 79,376 11,543
Restricted cash 3,438 --
Property and equipment, net 7,998 893
Goodwill and other assets 13,496 63
--------- ---------
Total assets $104,308 $ 12,499
========= =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 4,754 $ 1,173
Accrued compensation and
related benefits 2,238 239
Current portion of capital
lease obligations -- 4
Current portion of
long-term debt 40 71
Deferred revenue 2,442 247
--------- ---------
Total current liabilities 9,474 1,734
Deferred revenue 83 --
Borrowings under bank line
of credit agreement,
net of current portion -- 41
Stockholders' Equity:
Convertible preferred stock -- 19,480
Common stock 170,841 10,928
Notes receivable from
stockholders (706) (100)
Deferred stock compensation (12,350) (7,475)
Revenue offset relating to
warrant agreements (1,099) --
Accumulated deficit (61,947) (12,109)
Accumulated other
comprehensive loss 12 --
--------- ---------
Total stockholders' equity 94,751 10,724
--------- ---------
Total liabilities and
stockholders' equity $104,308 $ 12,499
========= =========
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