Convera Announces Second Quarter Financial Results.Business Editors 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)--Aug. 20, 2002 Convera (Nasdaq:CNVR CNVR Conveyor ), a leading provider of multimedia, cross-lingual search, retrieval retrieval /re·triev·al/ (-tre´v'l) in psychology, the process of obtaining memory information from wherever it has been stored. re·triev·al n. and categorization software for enterprises and government agencies, today reported financial results for its second fiscal quarter and six months ended July July: see month. 31, 2002. Total revenues for the second quarter were $5.0 million, compared to total revenues of $10.3 million reported for the same quarter last fiscal year. For the quarter, the Company recorded a net loss of $9.0 million, or $0.31 per common share, compared to a net loss of $50.9 million, or $1.07 per common share in the second fiscal quarter last year. Excluding restructuring charges 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. and amortization of acquisition related intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , the net loss in the second quarter was $7.9 million, or $0.27 per common share, compared to $10.9 million, or $0.23 per common share, for the same period last year. As of July 31, 2002, the Company's cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments balance was in excess of $41 million. For the six months ended July 31, 2002, total revenues were $11.3 million, compared to total revenues of $16.6 million reported for the same period last fiscal year. The Company recorded a net loss of $18.6 million, or $0.65 per common share, for the first half of this fiscal year, compared to a net loss of $109.7 million, or $2.31 per common share over the same period last year. Excluding restructuring charges and amortization of acquisition related intangible assets, the net loss for the first half of this year was $16.6 million, or $0.58 per common share, compared to $27.0 million, or $0.57 per common share for the same period last year. For a third consecutive quarter, the Company's Federal business experienced growth compared to the same period last year. License revenues generated from the Federal Government increased 42% compared to the second quarter of last year, and over the past nine months Federal revenues have grown by 56% compared to the same period a year earlier. During the second quarter, the Company also saw several of its recently forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. relationships, including its partnerships with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) WebSphere A family of Java development and Web application server products from IBM that run in an open, Eclipse-technology based environment on OS/390, OS/400, NT/2000, Linux and various Unix platforms. , Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 HP and Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. , have positive impacts on the Company's results, both domestically and in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
About Convera Convera is a leading provider of mission-critical enterprise search, retrieval 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 750 customers in over 29 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 Six Months Ended
July 31, July 31,
2002 2001 2002 2001
---- ---- ---- ----
(unaudited) (unaudited)
Revenues:
Software $3,358 $8,773 $7,930 $13,379
Maintenance 1,678 1,540 3,398 3,259
---------------------- ----------------------
Total revenues 5,036 10,313 11,328 16,638
---------------------- ----------------------
Cost of Revenues:
Software 2,090 5,565 4,660 11,277
Maintenance 444 454 947 919
---------------------- ----------------------
Total cost of
revenues 2,534 6,019 5,607 12,196
---------------------- ----------------------
Gross Margin 2,502 4,294 5,721 4,442
---------------------- ----------------------
Operating
Expenses:
Sales and
marketing 5,162 8,858 11,547 17,904
Research and
product
development 3,003 5,712 6,263 14,194
General and
administrative 2,381 2,245 4,918 5,209
Restructuring
Charge 1,043 2,933 1,890 2,933
Amortization of
goodwill &
other intangible
assets
67 36,600 107 73,192
Incentive bonus
payments due to
employees -- 464 (138) 6,564
Acquired
in-process
research &
development -- -- 126 --
---------------------- ----------------------
Total operating
expenses 11,656 56,812 24,713 119,996
---------------------- ----------------------
Operating Loss (9,154) (52,518) (18,992) (115,554)
Other Income, net 159 863 387 2,617
---------------------- ----------------------
Net Loss before
income taxes $(8,995) $(51,655) $(18,605) $(112,937)
====================== ======================
Income tax
benefit -- 755 -- 3,219
---------------------- ----------------------
Net loss $(8,995) $(50,900) $(18,605) $(109,718)
====================== ======================
Net loss per
common share -
basic & diluted $(0.31) $(1.07) $(0.65) $(2.31)
====================== ======================
Weighted-average
number of common
Shares
outstanding -
basic &
diluted 28,913 47,621 28,723 47,595
Supplemental
Information:
Net Loss (8,995) ($50,900) (18,644) ($109,718)
Restructuring
charge 1,043 2,933 1,890 2,933
Amortization of
goodwill &
other
intangible
assets
67 36,600 107 73,192
Incentive bonus
payments
due to
employees -- 464 (138) 6,564
Acquired
in-process
research
& development -- -- 126 --
---------------------- ----------------------
Adjusted net loss $(7,885) $(10,903) $(16,620) $(27,029)
====================== ======================
Adjusted net loss
per common share $(0.27) $(0.23) $(0.58) $(0.57)
====================== ======================
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 July 31, Jan. 31,
2002 2002
------- -------
(unaudited)
Current Assets
Cash and cash equivalents $21,262 $17,628
Short term investments 20,399 40,087
Accounts receivable, net 6,617 9,468
Prepaid expenses and other 1,974 2,715
-----------------
Total current assets 50,252 69,898
Other assets, net 7,416 8,179
Goodwill & other intangible
assets 3,507 29
-----------------
Total Assets $61,175 $78,106
=================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $2,915 $3,054
Accrued expenses 7,368 7,553
Accrued bonus
1,750 2,144
Restructuring reserve 1,486 1,621
Deferred revenues 3,032 3,729
-----------------
Total current liabilities 16,551 18,101
Restructuring reserve, net of
current portion 1,789 2,129
Total Liabilities 18,340 20,230
Shareholders' Equity
42,835 57,876
-----------------
Total $61,175 $78,106
=================
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