Convera Reports Fourth Quarter and Full-Year Results; Company Completes Private Placement; Cash Position Increases to $70 Million.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. -- 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 technologies to commercial enterprises and government agencies, today announced financial results for the three-month period and fiscal year (fiscal year 2006) ended January January: see month. 31, 2006. Revenue for the fourth quarter of fiscal 2006 totaled $3.6 million, a 43% decrease from the comparable period of fiscal 2005, while full-year revenue totaled $21.0 million versus $25.7 million for the prior fiscal year period. Expenses for the period ended January 31, 2006 totaled $13.1 million, which compares to $9.9 million for the year-ago quarter, while full-year expenses totaled $35.9 million representing a 21% decrease from the $45.7 million as reported for the prior fiscal year period. The net loss for the quarter ended January 31, 2006 was $9.3 million (inclusive of inclusive of prep. Taking into consideration or account; including. approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 million of amortization 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. software development costs attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's Excalibur Excalibur (ĕkskăl`ĭbər), in Arthurian legend, sword given to King Arthur by the Lady of the Lake. At Arthur's death Sir Bedivere threw Excalibur into the lake; a hand rose from the water, caught the sword, and disappeared. offering) or $0.20 per share, compared to a net loss of $3.5 million, or $0.09 per share, for the comparable quarter of fiscal 2005. The net loss for the fiscal year ended January 31, 2006 was $14.3 million, or $0.33 per share, compared to a net loss of $19.8 million, or $0.56 per share for the fiscal year ended January 31, 2005. These results are indicative indicative: see mood. of the Company's continuing transition from a pure enterprise search software concern to a more diverse search provider offering a professional grade Web-based search technology through its Excalibur solution. Cash and investments as of January 31, 2006 totaled $37.8 million, this compares to $17.8 million as of January 31, 2005. As of March 1, 2006, cash and investments totaled approximately $70 million, reflecting net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $36.7 million from the Company's recently completed private placement to a group of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and the subsequent retirement of the Silicon Valley Bank Term facility. "This past year continued to demonstrate our efforts to transform Convera," stated Patrick C. Condo, Convera's President and Chief Executive Officer. "Following the launch of our Excalibur Web search offering, much of our management efforts, as well as our sales and marketing resources were primarily focused on expanding the Excalibur sales and distribution channels. While this realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. resulted in acquiring our first commercial customers for Excalibur (HighBeam Research, Vivisimo and CNET (body) CNET - Centre national d'Etudes des Telecommunications. The French national telecommunications research centre at Lannion. ), the performance of our software products group during the fourth quarter felt the effects of this shift in focus. Going-forward, we will continue to concentrate our efforts on marketing the dynamic search capabilities of our Excalibur solution, while also seeking to improve bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance. With the recent private placement now complete, our balance sheet is well-positioned, furthering our ability to transform Convera into a leading player within today's growing Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the search market," Condo concluded. The attached financial information compares the results of operations for the three-month and twelve-month periods ended January 31, 2006 to the same periods in 2005 and the balance sheet as of January 31, 2006 to the balance sheet as of January 31, 2005. About Convera Convera is a leading provider of search technologies to commercial enterprises and government agencies. Through its two offerings, Excalibur(TM), a newly developed Web search solution and RetrievalWare(R), its enterprise search product, Convera offers unique search technology capable of providing an integrated results page derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from both intranet and Internet content. Convera's technologies manage vast stores of structured and unstructured information that exist within internal repositories While acknowledging services such as [ROAR: [1]] and [OpenDOAR: [2]] it is perhaps necessary to provide a list of individual repositories described in more detail within wikipedia here. and on the Web by providing highly scalable, fast, accurate and secure search capabilities across text, video, image and audio information, in multiple languages. More than 900 customers in 40 countries rely on Convera search solutions to power a broad range of mission-critical applications. For more information, contact Convera at 800-755-7005, 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 and development including the Excalibur Web offering; 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 Twelve Months Ended
January 31, January 31,
2006 2005 2006 2005
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited)
Revenues:
License $ 1,242 $ 3,263 $ 10,573 $ 14,360
Services 453 849 2,399 3,746
Maintenance 1,918 2,219 8,036 7,592
----------------------- -----------------------
Total
revenues 3,613 6,331 21,008 25,698
----------------------- -----------------------
Expenses:
Cost or revenues:
License 421 14 1,383 1,658
Services 2,375 741 4,903 3,332
Maintenance 218 332 981 1,718
Sales and
marketing 1,783 2,230 8,190 14,476
Research and
development 4,023 3,490 8,346 13,801
General and
administrative 3,317 2,655 11,113 9,764
Amortization of
capitalized R&D
costs 1,012 - 1,012 -
Restructuring
charge - 426 (57) 944
----------------------- -----------------------
Total
expenses 13,149 9,888 35,871 45,693
----------------------- -----------------------
Operating Loss (9,536) (3,557) (14,863) (19,995)
Other Income, net 260 63 602 175
----------------------- -----------------------
Net Loss $ (9,276) $ (3,494) $(14,261) $(19,820)
======================= =======================
Net loss per common
share - basic &
diluted $ (0.20) $ (0.09) $ (0.33) $ (0.56)
======================= =======================
Weighted-average
number of common
shares outstanding -
basic & diluted 46,876 37,899 43,089 35,433
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 January 31, 2006 January 31, 2005
---------------- ----------------
(unaudited)
Current Assets
Cash and cash equivalents $ 37,741 $ 17,766
Short term investments 71 71
Accounts receivable, net 4,364 6,530
Prepaid expenses and other 2,396 2,390
----------------------------------
Total current assets 44,572 26,757
Other assets, net 9,971 6,696
Capitalized software development
costs, net 7,102 -
Goodwill 2,275 2,275
Other intangible assets 297 566
----------------------------------
Total Assets $ 64,217 $ 36,294
==================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts payable $ 1,367 $ 1,967
Accrued expenses 2,301 3,529
Accrued bonuses 379 526
Deferred revenues 3,931 4,288
Restructuring reserve - 835
----------------------------------
7,978 11,145
Other long-term liabilities 5,398 -
Total Liabilities 13,376 11,145
----------------------------------
Shareholders' Equity 50,841 25,149
Total Liabilities &
Shareholders' Equity $ 64,217 $ 36,294
==================================
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