Convera Reports Fourth Quarter and Full-Year Results.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 and categorization software for enterprises and government agencies, today announced financial results for the three-month period and fiscal year (fiscal year 2005) ended January January: see month. 31, 2005. Revenue for the fourth quarter of fiscal 2005 totaled $6.3 million, a 6% increase from the comparable period of fiscal 2004, while full-year revenue totaled $25.7 million versus $29.3 million for the prior fiscal year period. Gross profit for the three-month and twelve-month periods ended January 31, 2005 totaled $5.2 million and $19.0 million, respectively, compared to $4.0 million and $20.7 million for the three and twelve-month periods, respectively, ended January 31, 2004. Consequently, gross margins for the three-month and twelve-month periods ended January 31, 2005 were 83% and 74%, respectively, while gross margins for the comparable periods of the prior fiscal year were 67% and 71%, respectively. The net loss for the quarter ended January 31, 2005 was $3.5 million (inclusive of inclusive of prep. Taking into consideration or account; including. $426,000 in net 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. incurred in December December: see month. 2004) or $0.09 per share, compared to a net loss of $3.7 million, or $0.11 per share, for the comparable quarter of fiscal 2004. The net loss for the fiscal year ended January 31, 2005 was $19.8 million (inclusive of $944,000 in net restructuring charges incurred in the latter half of the fiscal year), or $0.56 per share, compared to a net loss of $18.1 million, (inclusive of $621,000 in restructuring charges) or $0.57 per share for the fiscal year ended January 31, 2004. Cash and investments as of January 31, 2005 totaled $17.8 million. Commenting on the Company's results, Patrick C. Condo, President and Chief Executive Officer, Convera stated, "This past year was one of transition for Convera. We embarked upon a development initiative aimed at extending our technology to the World Wide Web, effected a 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. of our core software operations (including the elimination of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $22 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. expenses), and redirected our primary selling efforts towards the emerging government sector. Entering fiscal 2006, we believe we are well positioned to deliver improved 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, in concert with continued technology advancements from our Web indexing Web indexing (or "Internet indexing") includes back-of-book-style indexes to individual websites or an intranet, and the creation of keyword metadata to provide a more useful vocabulary for Internet or onsite search engines. initiative, as well as RetreivalWare(R), our core software offering." On February February: see month. 2, 2005 the Company announced that its advanced development effort focused on applying portions of the Company's existing technology to searching and indexing contextually relevant information from the World Wide Web attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. a development milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. by indexing more than 1 billion documents. The Company further announced that it expects to launch a service offering during the next two quarters. Capital outlays capital outlay See capital expenditure. to date, in connection with this proposed service offering, remain limited to equipment, personnel and general operating costs operating costs npl → gastos mpl operacionales , which are expected to increase as the indexing initiative progresses. The Company continues to assess future capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for this Web indexing initiative and may elect to seek additional funding sources over the coming quarters. The attached financial information compares the results of operations for the three-month and twelve-month periods ended January 31, 2005 to the same periods in 2004 and the balance sheet as of January 31, 2005 to the balance sheet as of January 31, 2004. About Convera Convera is a leading provider of mission-critical enterprise search and categorization solutions. Convera's RetrievalWare solutions maximize 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 900 customers in 33 countries rely on Convera's search solutions to power a broad range of 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 and development including the Web initiative; 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,
2005 2004 2005 2004
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited)
Revenues:
License $ 3,263 $ 3,225 $ 14,360 $ 18,322
Services 849 932 3,746 4,338
Maintenance 2,219 1,824 7,592 6,591
----------------------- -----------------------
Total revenues 6,331 5,981 25,698 29,251
----------------------- -----------------------
Cost of Revenues:
License 14 501 1,658 1,822
Services 741 961 3,332 4,715
Maintenance 332 533 1,718 2,033
----------------------- -----------------------
Total cost of
revenues 1,087 1,995 6,708 8,570
----------------------- -----------------------
Gross Margin 5,244 3,986 18,990 20,681
----------------------- -----------------------
Operating Expenses:
Sales and marketing 2,230 4,416 14,476 18,124
Research and product
development 3,490 2,586 13,801 11,981
General and
administrative 2,655 3,133 9,764 10,564
Restructuring charge 426 - 944 621
----------------------- -----------------------
Total operating
expenses 8,801 10,135 38,985 41,290
----------------------- -----------------------
Operating Loss (3,557) (6,149) (19,995) (20,609)
Other Income, net 63 2,405 175 2,550
----------------------- -----------------------
Net Loss $ (3,494) $ (3,744) $ (19,820) $ (18,059)
======================= =======================
Net loss per common
share - basic &
diluted $ (0.09) $ (0.11) $ (0.56) $ (0.57)
======================= =======================
Weighted-average
number of common
shares outstanding -
basic & diluted 37,899 33,821 35,433 31,486
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, January 31,
2005 2004
----------- -----------
(unaudited)
Current Assets
Cash and cash equivalents $ 17,766 $ 30,530
Short term investments 71 71
Accounts receivable, net 6,530 5,464
Prepaid expenses and other 2,390 2,536
-----------------------
Total current assets 26,757 38,601
Other assets, net 6,696 3,984
Goodwill 2,275 2,275
Other intangible assets 566 835
-----------------------
Total Assets $ 36,294 $ 45,695
=======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 1,967 $ 2,615
Accrued expenses 3,529 4,093
Accrued bonuses 526 745
Deferred revenues 4,288 3,720
Restructuring reserve 835 620
-----------------------
11,145 11,793
Restructuring reserve, net of
current portion - 887
Other long-term liabilities - 1,647
-----------------------
Total long-term liabilities - 2,534
-----------------------
Total Liabilities 11,145 14,327
-----------------------
Shareholders' Equity 25,149 31,368
Total Liabilities &
Shareholders' Equity $ 36,294 $ 45,695
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