Convera Announces First Quarter Financial Results.Business Editors/Hi-Tech Writers VIENNA, Va.--(BUSINESS WIRE)--May 23, 2001 Convera Corporation Convera was formed in December 2000 by the merger of Intel's Interactive Services division and Excalibur Technologies Corporation. Until 2007, Convera's primary focus was the enterprise search market through its flagship product, RetrievalWare, which is widely used within the secure (Nasdaq:CNVR CNVR Conveyor ), a leading provider of advanced technologies, products and solutions for managing multimedia digital content, today reported financial results for its first fiscal quarter ended April 30, 2001. Total revenue for the first quarter was $6.3 million compared to total revenue of $9.4 million reported for the same quarter last fiscal year. For the quarter, the Company recorded an 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 interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Including interest, taxes, depreciation and amortization, the company recorded a net loss in the first quarter of $58.8 million, or $1.24 per common share, compared to a net loss for the same period last year of $1.7 million or $0.11 per common share. On May 10, 2001, in response to the downturn in the economy and in conjunction with the consolidation of operations following the Excalibur/Intel combination, the Company announced that it is 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). its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . As part of the restructuring, Convera has reduced its total workforce by approximately 15%. The reduction in force affected employees, independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. and temporary workers. Citing a growing trend among its customers to first buy products for internal use in managing their digital content, Convera will accelerate development, marketing and sales of products for the enterprise market. In conjunction with this shift in emphasis, Convera has consolidated all of its product development activities in a single engineering operation and will transition certain capabilities of its outsourced services business, such as distribution management, to its products business. In addition, the Company has combined sales and business development activities under its Worldwide Sales division, has unified its consulting and implementation activities under its Integration Services division and has merged its marketing activities under a newly established Worldwide Marketing division. "The changes we're implementing in our business structure, our strategy and our allocation of resources allocation of resources Apportionment of productive assets among different uses. The issue of resource allocation arises as societies seek to balance limited resources (capital, labour, land) against the various and often unlimited wants of their members. will give us the opportunity to take advantage of the rapidly emerging markets we are in," said Patrick C. Condo, 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. , Convera. "We have the technology, the customers, the management team and the capital to weather the economy and build a substantial company." About Convera Convera, the new company formed when Excalibur Technologies combined with Intel's Interactive Media Services division, is a leading provider of innovative software products that manage multimedia digital content. Convera's advanced technologies, products, services and solutions empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems content owners to extract value from their high-worth digital content-text, images and video-over the Internet, intranets, set top boxes and wireless devices. Convera serves over 700 customers in 29 countries from its offices throughout the U.S. and Europe. Convera customers and partners include ABC News
ABC News is a division of American television and radio network ABC, owned by The Walt Disney Company. Its current president is David Westin. , BG Technology, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , chicagotribune.com, CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, , Digital Island, Discovery Communications, Encyclopedia encyclopedia, compendium of knowledge, either general (attempting to cover all fields) or specialized (aiming to be comprehensive in a particular field). Encyclopedias and Other Reference Books Britannica, Exodus, FOXSPORTS.com, latimes.com, Loudeye, Microsoft, the National Basketball Association National Basketball Association (NBA) U.S. professional basketball league. It was formed in 1949 by the merger of two rival organizations, the National Basketball League (founded 1937) and the Basketball Association of America (1946). , NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony , Parametric Technologies, QXL QXL Quixell (European online auction website) QXL Quark Express Element Library .com, Raytheon, RealNetworks, Reuters, Sony, StorageTek, Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , UCLA UCLA University of California at Los Angeles UCLA University Center for Learning Assistance (Illinois State University) UCLA University of Carrollton, TX and Lower Addison, TX , United Airlines, Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Online and The World Bank. For more information, contact Convera at 800/788-7758, via e-mail at info@convera.com or on the Web at www.convera.com. The following are worldwide trademarks of Convera Corporation or its subsidiary Convera Technologies, Inc.: Convera(TM), RetrievalWare(R), ScreeningRoom(R), WebExpress(TM) and their respective logos. This release contains comments 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, continued success in technological advances, and the risk that the businesses that were merged to create Convera, the Interactive Media Services Division of Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking and Excalibur Technologies, Inc., will not be integrated successfully. 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 and Excalibur's filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov. 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 condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. , consolidated statements of operations for the Company appear below and are presented in accordance with accounting principles generally accepted in 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. . All amounts, except per share amounts, are expressed in thousands of U.S. dollars.
Three Months Ended
April 30,
2001 2000
------ ------
Revenues:
Software $4,256 $7,511
Maintenance 1,719 1,873
-------- --------
License related 5,975 9,384
Services 350 --
-------- --------
Total revenues 6,325 9,384
-------- --------
Cost of Revenues:
License related 4,579 1,530
Services 1,598 --
-------- --------
Total cost of revenues 6,177 1,530
-------- --------
Gross Margin 148 7,854
-------- --------
Operating Expenses:
Sales and marketing 8,830 5,569
Research and product
development 8,698 2,688
General and administrative 2,964 1,331
Amortization of goodwill
& other intangible assets 36,592 29
Amortization of incentive bonus
payments due to employees 6,100 --
-------- --------
Total operating expenses 63,184 9,617
-------- --------
Operating Loss (63,036) (1,763)
Interest Income, net 1,754 95
-------- --------
Net Loss before
income taxes $(61,282) $(1,668)
======== ========
Income tax benefit 2,464 --
-------- --------
Net Loss $(58,818) $(1,668)
======== ========
Net Loss per common
share - basic & diluted $(1.24) $(0.11)
======== ========
Weighted-average number
of common shares outstanding
- basic & diluted 47,569 14,714
Supplemental Information:
Net Loss (58,818) (1,668)
Income tax benefit (2,464) --
Interest income, net (1,754) (95)
Depreciation 556 297
Amortization of goodwill
& acquisition related
intangible assets 36,592 29
Amortization of other
intangible assets 1,639 427
Amortization of incentive
bonus payments due to
employees 6,100 --
-------- --------
EBITDA (Loss) $(18,149) $(1,010)
======== ========
EBITDA (Loss) per common
share - basic & diluted (0.38) (0.07)
======== ========
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,
2001 2001
------------ -----------
Current Assets
Cash and cash equivalents $47,405 $37,061
Short term investments 98,594 119,083
Accounts receivable, net 17,559 17,392
Prepaid expenses and other 5,152 4,394
---------- ----------
Total current assets 168,710 177,930
Other assets, net 4,706 3,071
Goodwill & other
intangible assets 813,824 845,444
---------- ----------
Total Assets $987,240 $1,026,445
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $5,693 $3,480
Accrued expenses 10,171 2,543
Accrued bonus 7,081 714
Deferred revenues 5,691 4,650
Deferred income taxes 1,989 0
---------- ----------
Total current liabilities 30,625 11,387
Shareholders' Equity 956,615 1,015,058
---------- ----------
Total $987,240 $1,026,445
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