Concero Reports First Quarter 2002 Financial Results.Business Editors & High-Tech Writers AUSTIN, Texas--(BUSINESS WIRE)--April 18, 2002 Concero Inc. (Nasdaq:CERO), a provider of interactive television solutions, today reported financial results for the first quarter ended March 31, 2002. Revenue for the first quarter was approximately $781,000, down 91% from $8.5 million for the first quarter of 2001. Concero reported a net loss for the first quarter of 2002 of $1.8 million, or $0.17 per share, compared to a net loss of $11.4 million, or $1.13 per share, for the first quarter of 2001. Results for the first quarter of 2002 include costs totaling approximately $680,000 associated with workforce reductions, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. equipment and software, and a revision to the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for excess leased office space. These expenses were partially offset by a reversal of bad debt reserves of $192,000 as a result of strong collections in the first quarter of 2002. Results for the first quarter of 2002 also include an income tax benefit of $605,000 associated with a carry-back made available by recent Federal tax legislation. Collectively, these items reduced net loss for the first quarter of 2002 by approximately $117,000, or $0.01 per share. Results for the first quarter of 2001 included costs totaling approximately $4.9 million associated with workforce reductions, impairment of capitalized equipment, accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for excess leased office space, and additional bad debt reserves. Results for the first quarter of 2001 also included a non-cash income tax charge of $2.3 million to establish a valuation allowance against deferred tax assets for stock options. Collectively, these items increased the net loss for the first quarter of 2001 by approximately $7.2 million, or $0.71 per share. "During the quarter, we continued to invest carefully in the development of the Concero Marquee product suite. We will demonstrate Concero Marquee during the National Cable & Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Association's `Cable 2002' convention in May. We will feature content provided by Starz On Demand(sm), employing a SeaChange video-on-demand server with digital set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. from both Motorola and Scientific-Atlanta. This demonstration will reflect the significant progress made on Concero Marquee during the quarter," said Tim Webb, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Concero. "Scheduled for release in the second half of the year, Concero Marquee will enable on-demand applications, including next-generation entertainment-on-demand user interfaces, interactive advertising and promotional services. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. cable operators have invested heavily to upgrade their networks from analog to digital and are now focused on accelerating digital adoption and usage while enhancing their position against satellite competitors. "We believe Concero Marquee is positioned to play an important role in the emerging on-demand entertainment market, a sector where analysts predict rapid growth and significant capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. ," added Webb. About Concero Concero Inc. (Nasdaq:CERO) is a provider of interactive television solutions. Concero provides systems integration 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" that enable cable operators, content providers and application providers to deliver compelling entertainment-on-demand services and other VOD-enabled applications and intends to provide related software products. Our solutions create engaging and entertaining user experiences and drive profitable, on-demand interactive services. Concero possesses unique delivery capabilities for supporting interactive television solutions. In conjunction with Motorola's Horizon and Scientific-Atlanta's CreativEdge developer programs, Concero operates state-of-the-art integration facilities with head-ends, set-top boxes, VOD See video-on-demand. VoD - video on demand servers, 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. and middleware Software that functions as a conversion or translation layer. It is also a consolidator and integrator. Custom-programmed middleware solutions have been developed for decades to enable one application to communicate with another that either runs on a different platform or comes from a from Motorola, Scientific-Atlanta, SeaChange, Concurrent and other major technology providers. These assets combined with our dedicated and experienced team of interactive television consultants and software engineers offer customers substantial cost savings and rapid time-to-market benefits. Concero Marquee will be demonstrated at the National Cable & Telecommunications Association's "Cable 2002" on May 6, 7 and 8, Ernest N. Morial Convention Center The Ernest N. Morial Convention Center is a collection of buildings in New Orleans, Louisiana. The lower end of building one is located 500 m (1640 feet) upriver from Canal Street on the banks of the Mississippi River. Named after former mayor of New Orleans Ernest N. , New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded -- booth No. 1959. Headquartered in Austin, Texas, more information about Concero is available on the Web at www.concero.com. Conference Call Concero will host a conference call on Thursday, April 18, at 10:00 a.m. (Eastern). The conference call will be broadcast live over the Internet and available for a period of time thereafter through CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network at www.streetevents.com. New StreetEvents service users should log-on at least 10 minutes before the live call to allow time to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. 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. Disclosure "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. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This press release contains forward-looking statements that involve risks and uncertainties, including the Company's ability to continue to market and sell its services to achieve anticipated results or to address the interactive television market and other emerging markets successfully. Forward-looking statements are based on current information and assumptions that by their nature are dynamic and subject to change. Among important factors which could affect Concero's financial results and cause actual results to differ materially from those in forward-looking statements are (i.) our refocused business strategy which emphasizes expansion into new and largely untested areas such as interactive TV software products and broadband services See broadband and broadband service provider. ; (ii.) our transition from an e-business consultancy to a provider of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). solutions; (iii.) our ability to identify emerging technologies that will gain wide-spread acceptance and have long-term viability; (iv.) the ability of our existing emerging company customers to pay our fees; (v.) our ability to manage our cost structure in light of continued near-term weakness in revenue generation; and (vi.) intense competition to attract and retain customers. For further discussion of these and other factors, please refer to our recent filings with the SEC, particularly the 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. filed March 29, 2002.
Concero Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
2002 2001
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(unaudited)
Revenue $ 781 $ 8,485
Operating expenses:
Technical staff 634 6,937
Research and development 754 --
Selling and administrative staff 595 2,687
Other expenses 1,236 8,257
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Total operating expenses 3,219 17,881
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Loss from operations (2,438) (9,396)
Interest income, net 68 242
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Loss before benefit from
income taxes (2,370) (9,154)
-------- --------
Income tax expense (benefit) (605) 2,281
Net loss $ (1,765) $(11,435)
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Basic and diluted loss per share $ (0.17) $ (1.13)
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Shares used in basic and diluted
loss per share calculation 10,225 10,164
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Concero Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2002 2001
-------- --------
(unaudited)
Assets
Current assets:
Cash $ 3,120 $ 4,141
Short-term investments 8,964 8,964
Accounts receivable, net 263 823
Unbilled revenue under
customer contracts -- 557
Income tax receivable 607 11
Prepaid expenses and other
current assets 402 594
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Total current assets 13,356 15,090
Property and equipment, net 1,156 1,554
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Total assets $ 14,512 $ 16,644
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Liabilities and stockholders' equity
Current liabilities:
Trade payables $ 236 $ 66
Accrued expenses and other
current liabilities 4,907 5,445
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Total current liabilities 5,143 5,511
Stockholders' equity 9,369 11,133
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Total liabilities and
stockholders' equity $ 14,512 $ 16,644
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