Convera Announces Third Quarter Financial Results; Revenues Grow by 39% Year-Over-Year and 14% Sequentially.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)--Dec. 10, 2003 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CNVR CNVR Conveyor ), a leading provider of search and categorization software for enterprises and government agencies, today reported financial results for its third fiscal quarter ended October October: see month. 31, 2003. Total revenues for the third quarter were $8.7 million, an increase of 39% over total revenues of $6.3 million reported for the same quarter last fiscal year. The third quarter revenues also represent a sequential One after the other in some consecutive order such as by name or number. increase of 14% over total revenues for the second quarter of this year. The company's total expenses for the third quarter were $12.0 million, down 4% from $12.5 million in the third fiscal quarter last year. For the third quarter, the company reduced its net loss for the period by 46% with a loss of $3.3 million or $0.10 per common share, compared to a net loss of $6.1 million or $0.21 per common share in the third fiscal quarter last year. Federal license revenues were up 384% compared to the same quarter last year. Large contracts with the Department of Defense and several intelligence agencies fueled Convera's continued growth in the government market. For the nine months ended October 31, 2003, total revenues were $23.3 million compared to total revenues of $17.6 million reported for the same period last year, an increase of 32%. The Company recorded a net loss of $14.3 million, or $0.47 per common share, compared to a net loss of $24.7 million, or $0.86 per common share, for the same period last year, a reduction of 42%. About Convera Convera is a leading provider of mission-critical enterprise search and categorization solutions. Convera's RetrievalWare 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 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 con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of operations for the Company appear below and are presented 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 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 Nine Months Ended
October 31, October 31,
2003 2002 2003 2002
-------- -------- -------- --------
(unaudited) (unaudited)
Revenues:
License $6,279 $3,555 $15,097 $9,541
Services 741 1,172 3,407 3,117
Maintenance 1,677 1,523 4,766 4,921
------------------ ------------------
Total revenues 8,697 6,250 23,270 17,579
------------------ ------------------
Cost of Revenues:
License 301 806 1,118 2,257
Services 963 1,365 3,755 4,574
Maintenance 534 454 1,500 1,401
------------------ ------------------
Total cost of revenues 1,798 2,625 6,373 8,232
------------------ ------------------
Gross Margin 6,899 3,625 16,897 9,347
------------------ ------------------
Operating Expenses:
Sales and marketing 4,375 4,823 13,708 16,369
Research and product
development 2,894 3,035 9,395 9,298
General and administrative 2,908 1,970 7,432 6,888
Restructuring charges - - 620 1,890
Amortization of intangible
assets 67 67 202 174
Incentive bonus payments due to
employees - - - (138)
Acquired in-process research &
development - - - 126
------------------ ------------------
Total operating expenses 10,244 9,895 31,357 34,607
------------------ ------------------
Operating Loss (3,345) (6,270) (14,460) (25,260)
Other Income, net 44 140 145 526
------------------ ------------------
Net Loss $(3,301) $(6,130) $(14,315)$(24,734)
================== ==================
Net loss per common share - basic
& diluted $(0.10) $(0.21) $(0.47) $(0.86)
================== ==================
Weighted-average number of common
shares outstanding - basic &
diluted 33,800 28,964 30,699 28,804
The condensed, 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. 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 October 31, January 31,
2003 2003
----------- -----------
(unaudited)
Current Assets
Cash and cash equivalents $35,012 $10,318
Short term investments 133 20,148
Accounts receivable, net 6,926 6,732
Prepaid expenses and other 2,386 2,509
-----------------------
Total current assets 44,457 39,707
Other assets, net 4,724 6,060
Goodwill & other intangible assets 3,178 3,372
-----------------------
Total Assets $52,359 $49,139
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $2,933 $3,069
Accrued expenses 7,653 7,220
Accrued bonuses 1,130 919
Deferred revenues 4,190 2,739
Restructuring reserve 628 1,326
-----------------------
Total current liabilities 16,534 15,273
Restructuring reserve, net of current portion 1,040 1,494
-----------------------
Total Liabilities 17,574 16,767
-----------------------
Shareholders' Equity 34,785 32,372
Total Liabilities & Shareholders'
Equity $52,359 $49,139
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