CellPoint Reports Fiscal Year-End Results.Business Editors LONDON--(BUSINESS WIRE)--Oct. 16, 2001 Revenue from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the Increases 390% to $4.1 Million; Liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of Telematics Subsidiary Streamlines Focus on Mobile Location Services See mobile positioning. Industry CellPoint Inc. (Nasdaq:CLPT)(SSE (1) An earlier full-screen editor in OS/2. (2) (Streaming SIMD Extensions) A series of additional instructions built into Pentium CPU chips for improved multimedia performance by performing mathematical operations on multiple sets of data at the :CLP 1. CLP - Cornell List Processor. 2. CLP - Constraint Logic Programming. .T), a global provider of mobile location software technology and platforms, today announced financial results for the fiscal year ended June 30, 2001. The previously announced liquidation of the company's telematics subsidiary, Unwire, requires CellPoint to disclose results of its telematics operations as 'discontinued operations' in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting *. Results from Continuing Operations Revenue for the location services business segment, `continuing operations,' climbed to $4.1 million in the fiscal year compared to $0.83 million in the previous fiscal year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before investment expenses, taxes, depreciation and amortization) from continuing operations was a loss of $10.33 million for the fiscal year, compared to a loss of $5.51 million in the previous fiscal year. 97% of all revenue in the year came from the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. marketplace. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 85.7% from 39.7% in fiscal 2000. CellPoint expects the margins to remain high in the coming years since its focus is on selling software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. for location platforms. Peter Henricsson, CellPoint Chairman and Chief Executive Officer, said, "We are pleased to report revenue growth of 390% from the location services business this past fiscal year despite difficult market conditions and subsequent order delays. This past fiscal year, CellPoint made substantial progress expanding operations to achieve commercialization of its location services technology, developed a new generation of software platforms for location-based services See mobile positioning. and increased marketing activities to create a more global awareness. In addition, we were successful in launching strategies to reduce overall operating costs operating costs npl → gastos mpl operacionales ." Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from continuing operations were $17.78 million, of which $3.93 million was depreciation and amortization. In the previous fiscal year, operating expenses from continued operations were $8.46 million, of which $2.61 million was depreciation and amortization. Selling, general and administrative expenses for continuing operations were $8.27 million; research and development expenses were $4.21 million, totaling $12.48 million for the year compared to $4.32 million in the previous fiscal year. The company incurred a loss from continuing operations of $16.5 million compared to a loss of $8.16 million in the previous year. "In July, we announced a three-pronged strategy to be cash-flow positive by current fiscal year end. The execution of this plan included the buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the convertible notes from Castle Creek Castle Creek may refer to:
As part of the restructuring, the company has improved the balance sheet by writing off all goodwill from the Unwire purchase and is now left with $15.57 million in total goodwill which will improve the results per share going forward. The company has debts of $11.79 million, of which none is short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. . "We are expecting demand to build in the coming quarters secured by mobile operators' needs globally to increase average revenue per user (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ). Our Mobile Location System (MLS See multilevel security. ) platform addresses those needs with a seamless, network-wide location solution enabling operators or application providers to deliver expanded mobile offerings for future generations. CellPoint's MLS works across today's 2G networks (current GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. worldwide), 2.5G (GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. ) and 3G/UMTS. CellPoint is prepared to increase market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" significantly and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the multi-billion dollar mobile location services industry," added Henricsson. Highlights Fiscal Year 2000 - 2001 -- Company begins trading on the Nasdaq National Market -- Signs commercial agreement with EuroTel Praha Ltd. for GSM location services -- Signs agreement with E-Plus to deliver world's first commercial network-based location services for German mobile operator -- Gains secondary listing in Europe and begins trading on the Stockholm OM Exchange, now called Stockholmsborsen -- Launches MLS - world's first network-based location platform enabling location services for every subscriber in any GSM network -- CellPoint joins Location Interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. Forum (LIF 1. (hardware) LIF - Low Insertion Force. 2. (file format) LIF - Logical Interchange Format. ); CellPoint Chairs Mobile Location Protocol group -- AirFlash and CellPoint join forces to offer integrated end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. location-based services Highlights since July 1 -- KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) Group, CellPoint and E-Plus sign Group License Frame Agreement for Mobile Location Systems with terms negotiated for operators within the KPN Group -- SiRF and CellPoint to integrate A-GPS A-GPS Assisted Global Positioning System (used in mobile communications as a positioning system) into CellPoint's MLS platform to provide GSM/3G operators with enhanced Anytime, Anywhere Location Information Platform -- Location Developers' Zone launched, more than 400 developers on line - LDZ LDZ Latvijas Dzelzcels (Latvian Railways) LDZ Local Distribution Zone LDZ Lorenzo de Zavala (National Hispanic Institute program) facilitates third-party development of applications and services targeted to CellPoint's mobile location platforms -- First closings of follow-on funding reach US$6.6 million; convertible notes restructured to $4.00 fixed convertible on remaining $6.1 million principal The Annual Stockholders' Meeting will be held on December 5, 2001 in Stockholm, Sweden. Stockholders of record at the close of business on October 19, 2001 shall be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive full details in the notice of, and to vote at, the annual meeting. The company noted that, as a result of its restructuring efforts, it has postponed its conference call until the end of the first quarter and has prepared a written question and answer session with management which can be viewed on CellPoint's website. The company's full report filed with the SEC on Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. can be viewed at www.freeedgar.com *US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Reporting for Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. The decision made in the fourth quarter of fiscal 2001 to focus on the location services business requires that the Company disclose the results of the telematics operations as 'discontinued operations' according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. U.S. Generally Accepted Accounting Principles (US GAAP) requirements. Accordingly, the results of the telematics business area have been segregated from the results of the Company's ongoing business of location services. The historical financial statements have also been restated to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" this required presentation. Unwire's financial results are reported under Discontinued operations in the Consolidated Statements of Operations and its financial position is presented in the Consolidated Balance Sheets 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. under Net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of discontinued operations. CellPoint Inc. (Nasdaq: CLPT, SSE: CLPT, www.cellpoint.com) is a U.S. company with subsidiary operations in Sweden and Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. delivering mobile location technology platforms and enabling services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in unmodified Adj. 1. unmodified - not changed in form or character unqualified - not limited or restricted; "an unqualified denial" modified - changed in form or character; "their modified stand made the issue more acceptable"; "the performance of the modified aircraft GSM networks and uses standard GSM or WAP phones WAP phone n → teléfono WAP and standard 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 services. Several commercial applications are available for business and personal location services including Resource Manager(TM) for mobile resource management, iMate(TM) for location-sensitive information and Finder(TM), an application for locating friends and family. CellPoint(TM) and CellPoint Systems(TM) are trademarks of CellPoint Inc. 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. in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those described.
CELLPOINT, INC. AND SUBSIDIARIES
Consolidated balance sheets
(amounts in USD)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
June 30, June 30,
2001 2000
ASSETS
Current Assets
Cash and cash equivalents $ 687,151 $ 6,624,392
Accounts receivable, net of
allowance for doubtful accounts of
$Nil and $36,732, respectively 1,366,641 204,923
Unbilled receivables 792,443 -
Prepaid expenses and other current assets 383,578 492,932
Other receivables 402,132 196,241
Current assets of discontinued operations 1,361,148 262,572
--------- ---------
Total current assets 4,993,093 7,781,060
--------- ---------
Long-term assets
Restricted cash $ 184,216 $ -
Acquired technology net of accumulated
amortization of $5,411,604 and $2,445,706
respectively 15,571,001 18,536,899
Investment in affiliated company - 500,000
Other intangible assets, net of accumulated
amortization of $1,312,276 and $717,776
respectively 1,107,201 705,214
Property and equipment, net of accumulated
depreciation of $543,416 and $172,600
respectively 885,780 580,458
Non-current assets of discontinued
operations 521,401 58,602,679
---------- ----------
Total long-term assets 18,269,599 78,925,250
---------- ----------
TOTAL ASSETS $23,262,692 $86,706,310
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CELLPOINT, INC. AND SUBSIDIARIES
Consolidated balance sheets (continued)
(amounts in USD)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
June 30, June 30,
2001 2000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accrued expenses and other current
liabilities $ 2,337,066 $ 1,377,726
Accounts payable 2,082,257 $ 711,457
Due to affiliate - 55,517
Current liabilities of discontinued
operations 2,982,549 331,520
--------- ---------
Total current liabilities 7,401,872 2,476,220
Long-term debt, net of current maturities 11,785,510 4,000,000
Non-current liabilities of discontinued
operations - 130,014
---------- ---------
Total liabilities 19,187,382 6,606,234
---------- ---------
Minority interest 48,464 -
Commitments and contingencies
Stockholders' equity
Preferred shares ($0.001 par value;
authorized 3,000,000 shares, nil issued
and outstanding - -
Common shares ($0.001 par value;
authorized 22,000,000 shares, 10,824,503
shares and 10,465,000 shares issued and
outstanding 10,824 10,465
Additional paid in capital 99,692,254 95,434,348
Cumulative foreign currency translation
adjustment 597,478 292,866
Accumulated deficit (95,273,710) (15,637,603)
---------- ----------
Total stockholders' equity 4,026,846 80,100,076
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $23,262,692 $86,706,310
========== ==========
CELLPOINT, INC. AND SUBSIDIARIES
Consolidated statements of operations
(amounts in USD)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Year ended Year Ended
June 30, June 30,
2001 2000
Revenues $ 4,111,804 $ 839,003
Cost of revenues (587,281) (506,254)
--------- ---------
Gross profit 3,524,523 332,749
Selling, general and administrative
expenses (8,265,733) (1,899,124)
Research and development expenses (4,211,711) (2,431,275)
Professional fees (1,374,892) (1,526,806)
Depreciation and amortization (3,931,215) (2,612,230)
---------- ---------
Total operating expenses (17,783,551) (8,459,435)
---------- ---------
Loss from operations (14,259,028) (8,126,686)
Investment expenses:
Loss on sale of investment (342,285) -
Financial terms, net (1,900,052) (37,931)
---------- ---------
Loss from continuing operations (16,501,365) (8,164,617)
Discontinued operations
Loss from discontinued operations (10,876,197) (3,666,643)
Loss on disposal of discontinued
operations (52,258,545) -
---------- ---------
Loss from discontinued operations (63,134,742) (3,666,643)
---------- ---------
Loss before income tax (79,636,107) (11,831,260)
Income tax - -
Net loss $(79,636,107) $(11,831,260)
========== ==========
Weighted average number of shares
outstanding, basic and diluted 10,532,913 8,743,630
========== =========
Net loss per common share basic and
diluted
Continuing operations $ (1.57) $ (0.93)
Discontinued operations $ (5.99) $ (0.42)
Net loss per share $ (7.56) $ (1.35)
CELLPOINT, INC. AND SUBSIDIARIES
Consolidated statements of cash flows
(amounts in USD)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Year ended Year Ended
June 30, June 30,
2001 2000
Cash flows from operating activities
Net loss $(79,636,107) $(11,831,260)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Loss from discontinued operations 10,876,197 3,666,643
Loss from disposal of discontinued
operations 52,258,545 -
Depreciation and amortization 3,931,215 2,612,230
Provision for allowance on accounts
receivables - 36,732
Non-cash financing costs 893,452 660,000
Loss on disposal of investment in
affiliated company 342,285 -
Minority interest in net income of
subsidiary 48,464 -
Changes in operating assets and liabilities
Increase in restricted cash (184,216) -
Increase in accounts receivable (1,161,718) (241,655)
Increase in unbilled receivables (792,443) -
Decrease/(increase) in prepaid expenses 109,354 (457,345)
Increase in other receivables (205,891) (41,708)
Increase in accrued expenses and other
current liabilities 959,340 435,403
Increase in accounts payable 1,370,800 671,939
Decrease in due to affiliate (55,517) (68,282)
---------- ----------
Net cash used in operating activities
from continuing operations: (11,246,240) (4,557,303)
Net cash used in operating activities
from discontinued operations: (3,044,374) (1,703,016)
---------- ---------
Net cash used in operating activities: (14,290,614) (6,260,319)
---------- ---------
CELLPOINT, INC. AND SUBSIDIARIES
Consolidated statements of cash flows (continued)
(amounts in USD)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Year ended Year Ended
June 30, June 30,
2001 2000
Cash flows from investing activities
Capital expenditure $ (1,784,274) (595,160)
Proceeds from disposal of investments
in affiliated companies 157,715 -
Other 64 -
--------- ---------
Net cash used in investing activities
from continued operations (1,626,495) (595,160)
Net cash used in investing activities
from discontinued operations (597,146) (86,074)
--------- ---------
Net cash used in investing activities (2,223,641) (681,234)
--------- ---------
Cash flows from financing activities:
Repayment of stockholders' loans - (150,000)
Proceeds from bridge loan - 2,000,000
- (800,000)
Proceeds from notes payable 10,000,000 -
Proceeds from issuance of shares 150,323 7,800,000
Advances of bank loans - 4,000,000
---------- ----------
Net cash provided by financing activities
from continuing operations: 10,150,323 12,850,000
Net cash provided by financing activities
from discontinued operations: 51,849 197,257
---------- ----------
Net cash provided by financing activities: 10,202,172 13,047,257
---------- ----------
Effects of exchange rates on cash 416,196 308,497
Effects of exchange rates on cash from
discontinued operations (41,354) 30,118
---------- ----------
(Decrease)/increase in cash and cash
equivalents (5,937,241) 6,444,319
Cash and cash equivalents at beginning of
period 6,624,392 180,073
--------- ---------
Cash and cash equivalents at end of period $ 687,151 $6,624,392
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