Convera Announces First Quarter Financial Results; Revenues up 11%; Expenses down 20%.Business Editors/High-Tech Writers VIENNA Vienna, city and province, Austria Vienna (vēĕn`ə), Ger. Wien, city and province (1991 pop. 1,539,848), 160 sq mi (414 sq km), capital and largest city of Austria and administrative seat of Lower Austria, NE Austria, on , Va.--(BUSINESS WIRE)--May 21, 2003 Convera (Nasdaq:CNVR CNVR Conveyor ), a leading provider of mission-critical search and categorization solutions for government and commercial entities, today reported financial results for its first fiscal quarter ended April 30, 2003. Total revenues for the first quarter were $7.0 million, an increase of 11% over total revenues of $6.3 million reported for the same quarter last fiscal year. For the quarter, the Company recorded a net loss of $5.9 million, or $0.20 per common share, compared to a net loss of $9.6 million, or $0.34 per common share in the first fiscal quarter last year. The Company's total expenses for the first quarter were $12.9 million, compared to $16.1 million for the same period last year, a reduction of 20%. Included in the Company's total expenses for the first quarter is a $0.3 million 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. related to the reduction of 15 employees during the quarter. During the quarter, the Company's Federal business grew by 146% over the same period last year. The quarter was highlighted by the closing of three deals, each in excess of $1 million, with three different agencies of the Federal Government. About Convera Convera is a leading provider of mission-critical enterprise search and categorization solutions. Convera's RetrievalWare(R) solutions maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. return on investment in vast stores of unstructured information by providing highly scalable, fast, accurate and secure search across more than 200 forms of text, video, image and audio information, in more than 45 languages. More than 800 customers in 33 countries rely on Convera's search solutions to power a broad range of mission-critical applications including enterprise portals See corporate portal. , knowledge management, intelligence gathering, profiling, corporate policy compliance, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance, customer service and more. For more information, contact Convera at 800-788-7758, via e-mail at info@convera.com or on the Web at www.convera.com. This release, including any statements from Convera personnel, contains statements about Convera's future expectations, performance, plans, and prospects, as well as assumptions about future events. The reader is cautioned not to put undue reliance on these 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. , as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions and trends; continued success in technological advances; possible disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. and security arrangements; reduced customer demand relative to expectations; competitive factors; and other risk factors listed from time to time in the company's SEC reports. Actual results may differ materially from our expectations as the result of these and other important factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Convera's business and product development efforts, which are further described in Convera's filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Any forward-looking statements are based on information available to Convera on the date of this release, and Convera assumes no obligation to update such statements. The Convera design logo and the following are worldwide trademarks of Convera: Convera(TM), RetrievalWare(R), and Screening Room(R). The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
The condensed, consolidated statements of operations for the
Company appear below and are presented in accordance with accounting
principles generally accepted in the United States. All amounts,
except per share amounts, are expressed in thousands of U.S. dollars.
Three Months Ended
April 30,
2003 2002
---------- ----------
(unaudited)
Revenues:
License $4,231 $3,610
Services 1,199 963
Maintenance 1,530 1,720
---------- ----------
Total revenues 6,960 6,293
---------- ----------
Cost of Revenues:
License 363 754
Services 1,417 1,816
Maintenance 463 503
---------- ----------
Total cost of revenues 2,243 3,073
---------- ----------
Gross Margin 4,717 3,220
---------- ----------
Operating Expenses:
Sales and marketing 4,700 6,384
Research and product development 3,282 3,261
General and administrative 2,291 2,537
Restructuring charge 325 847
Amortization of goodwill & other intangible
assets 67 40
Incentive bonus payments due to employees - (138)
Acquired in-process research & development - 126
----------- ----------
Total operating expenses 10,665 13,057
---------- ----------
Operating Loss (5,948) (9,837)
Other Income, net 51 227
---------- ----------
Net Loss $(5,897) $(9,610)
========== ==========
Net Loss per common share - basic &
diluted $ (0.20) $ (0.34)
========== ==========
Weighted-average number of common
shares outstanding - basic & diluted 29,033 28,526
The condensed, consolidated balance sheets for the Company appear
below and are presented in accordance with accounting principles
generally accepted in the United States. All amounts are expressed in
thousands of U.S. dollars.
ASSETS April 30, January 31,
2003 2003
----------- -----------
(unaudited)
Current Assets
Cash and cash equivalents $14,029 $10,318
Short term investments 10,303 20,148
Accounts receivable, net 7,969 6,732
Prepaid expenses and other 2,951 2,509
----------- -----------
Total current assets 35,252 39,707
Other assets, net 5,527 6,060
Goodwill & other intangible assets 3,305 3,372
----------- -----------
Total Assets $44,084 $49,139
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $3,435 $3,069
Accrued expenses 7,244 7,220
Accrued bonus 1,385 919
Deferred revenues 2,874 2,739
Restructuring reserve 1,106 1,326
----------- -----------
Total current liabilities 16,044 15,273
Restructuring reserve, net of current portion 1,381 1,494
----------- -----------
Total Liabilities 17,425 16,767
Shareholders' Equity 26,659 32,372
----------- -----------
Total $44,084 $49,139
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