CellNet Data Systems Announces Third-Quarter Results.SAN CARLOS San Carlos (săn kär`lōs), residential city (1990 pop. 26,167), San Mateo co., W Calif.; inc. 1925. The chief manufactures are plastic products, hardware, and machine parts. , Calif.--(BUSINESS WIRE)--Nov. 15, 1996--CellNet Data Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CNDS CNDS Center for Networking and Distributed Systems (Johns Hopkins University) CNDS Condensate CNDS Calling Name Delivery Service (Ameritech) CNDS Call Number Delivery System ), the leading provider of wireless Network Meter Reading (NMR NMR: see magnetic resonance. ) services for the utility industry, today reported results for the third quarter ended September September: see month. 30, 1996. Revenues increased to $515,000 for the three months ended September 30, 1996 from $321,000 for the three months ended September 30, 1995. The increase in revenues for the three months ended September 30, 1996 from the comparable period in 1995 was principally due to the increase in network service revenues. Revenues prior to 1996 were attributable primarily to product sales and development and other contract revenues unrelated to the Company's current focus of providing NMR services. For the nine months ended September 30, 1996, revenues decreased to $935,000 from $1.6 million for the nine months ended September 30, 1995. The decline resulted primarily from the transition from product sales to network service revenues. The Company's NMR service revenues grew to $612,000 for the nine months ended September 30, 1996 from $2,000 in the comparable period in 1995. As of September 30, 1996, approximately 2,235,000 meters were under contract and 227,428 were in revenue service. Net loss for the three months ended September 30, 1996 was $20.5 million, or $0.60 per share, compared to a net loss of $11.6 million, or $0.35 per share, for the same period last year. Net loss for the nine months ended September 30, 1996 was $52.8 million, or $1.55 per share, compared to a net loss of $23.7 million, or $0.74 per share, for the nine months ended September 30, 1995. Increased losses for the three and nine months ended September 30, 1996 over the same periods in the year earlier are primarily the result of increased expenses for research and development, network operations, general and administrative purposes and sales and marketing activities. During the first nine months of 1996, CellNet installed more than 300,000 meters in the wireless data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. networks it is currently installing for Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). Power & Light, Union Electric Company, Puget For the explorer of Puget Sound, see Peter Puget. Puget is a commune of the Vaucluse département in southern France. Coordinates: Power and Northern States Power Company Northern States Power Company (formerly NYSE: NSP) was a publicly-traded S&P 500 electric and natural gas utility holding company based in Minneapolis, Minnesota that is now a subsidiary of Xcel Energy (NYSE: XEL). . These wireless networks are the largest commercially deployed for meter reading today. "We had a very successful third quarter," said John M. (Mick) Seidl, CellNet's president and chief executive officer. "We signed a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract with Northern States Power for more than a million electric and gas meters in the Minneapolis/St. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. metropolitan area. We signed an agreement with Puget Power for 15,000 meters. We completed our initial public offering, and three concurrent direct placements of our common stock, receiving approximately $120 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). , and are now a public company. "Additionally, in November November: see month. we announced the signing of a 10-year contract with Pacific Gas and Electric for the installation of a total of 100,000 electric and gas meters in the Delta District in the East Bay area of San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , and we are in discussions with several other utilities that we expect to result in further relationships over the next several months." In October October: see month. , CellNet also signed a letter of intent with Bechtel  This article requires authentication or verification by an expert.Please assist in recruiting an expert or [ improve this article] yourself. See the talk page for details. Enterprises, Inc., of San Francisco, Calif. to form an international joint venture company that would have the exclusive right to deploy and operate CellNet's wireless data communications system 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. . "Bechtel's extensive project management experience, combined with their established presence in numerous international markets, makes this an exciting global opportunity for our complementary lines of business," Seidl added. In September, the Company announced a joint marketing agreement with ConnexT, an independent energy services company of which Puget Power holds a majority stake, to provide integrated energy information and application services See ASP and Web services. to utilities. CellNet is currently installing its proprietary NMR system for Kansas City Power & Light (Kansas City, Mo.), Union Electric Company (St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , Mo.), Puget Power (Seattle, Wa.) and Northern States Power Company (Minneapolis & St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn.). In December, the Company will begin installing such a system for Pacific Gas and Electric (San Francisco, Calif.). Together these projects will connect more than 2 million customers' meters to CellNet wireless networks. This news release contains 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. that are subject to risks and uncertainties, including those described in the Company's current Report in Form 10-Q Form 10-Q See 10-Q. and in other materials filed with the Securities and Exchange Commission. There can be no assurance that the Company's actual future performance will meet the Company's current expectations. CellNet Data Systems, Inc., with headquarters in San Carlos, Calif., provides Network Meter Reading and other network information services See NIS. to the utility industry. CellNet's wireless network collects timely sales and usage data and delivers information to utilities, allowing them to create a strategic competitive advantage. The network can also be used for other commercial wireless data applications such as home security and remote status monitoring of vending machines vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. and office equipment. CellNet employs approximately 500 people worldwide. Statements of operations and balance sheets follow. -0-
CELLNET DATA SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Product sales $ 122 $ 131 $248 $1,069
Network service revenues 368 2 612 2
Other revenues 25 188 75 541
Total revenues 515 321 935 1,612
Costs and expenses:
Cost of product sales 110 106 219 704
Cost of network operations 3,285 1,041 6,659 2,374
Research and development 7,583 5,722 20,592 12,457
Marketing and sales 1,500 1,041 4,424 2,987
General and administrative 3,611 1,796 9,023 4,670
Total costs and expenses 16,089 9,706 40,917 23,192
Loss from operations (15,574) (9,385) (39,982) (21,580)
Other income (expense):
Interest income 1,300 1,838 4,758 2,700
Interest expense (6,238) (4,088) (17,502) (4,842)
Other - net 58 71 (39) 39
Total other income (expense) (4,880) (2,179) (12,783) (2,103)
Net loss before
income taxes (20,454) (11,564) (52,765) (23,683)
Provision for income taxes 1 2 2
Net loss $(20,454) $(11,565) $(52,767) $(23,685)
Pro forma net loss
per share $(0.60) $(0.35) $(1.55) $(0.74)
Shares used in
computing pro forma net
loss per share amounts 34,345 33,102 33,952 32,202
CELLNET DATA SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
September 30, December 31,
1996 1995
ASSETS
Current assets:
Cash and cash equivalents $ 50,026 $48,018
Short-term investments 30,197 95,779
Accounts receivable 1,620 2,118
Prepaid expenses and other 1,301 940
Total current assets 83,144 146,855
Network components and inventory 10,614 11,664
Networks in progress 40,494 12,602
Property - net 10,371 7,539
Debt issuance and other costs - net 5,498 5,646
Total assets $150,121 $184,306
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 6,828 $ 7,241
Accrued compensation and related
benefits 2,067 1,353
Accrued liabilities 1,012 981
Current portion of capital lease
obligations 305 280
Total current liabilities 10,212 9,855
Senior discount notes - 13% 200,671 182,528
Capital lease obligations - net 422 540
Series CC redeemable convertible preferred
stock - $.001 par value; 3,215,768 shares
designated and outstanding; aggregate
liquidation value of $31,000,000 29,486 29,486
Stockholders' equity (deficiency):
Convertible preferred stock - $.001 par
value; 15,000,000 shares authorized;
outstanding, 1996: 9,141,534;
aggregate liquidation value of
$27,812,000; 1995: 9,136,675 27,218 27,195
Common stock - $.001 par value;
100,000,000 shares authorized; shares
outstanding: 1996: 5,851,592;
1995: 5,034,262 27,768 27,608
Notes receivable from sale of common stock (851) (866)
Warrants 2,984 2,984
Accumulated deficit (147,788) (95,021)
Net unrealized loss on short-term
investments (1) (3)
Total stockholders' equity (deficiency) (90,670) (38,103)
Total liabilities and stockholders'
equity (deficiency) $150,121 $184,306
CONTACT: CellNet Data Systems Paul Manca, 415/508-6000 Catherine Derr, 415/508-6141 |
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