Convera Reports Third Quarter 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 ended October October: see month. 31, 2004. Revenues for the third quarter of fiscal 2005 totaled $6.1 million, a $2.6 million decrease from the $8.7 million as reported for the comparable period of the prior year. This variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $3.4 million federal enterprise license transaction recorded during the year-ago period and the absence of a like-sized deal for the third quarter of fiscal 2005. Gross profit for the three-month period ended October 31, 2004 totaled $4.1 million, resulting in a gross margin of 67%. The gross profit and gross margin for the comparable period of the prior year were $6.8 million and 79% respectively. The net loss for the three-month period ended October 31, 2004 was $4.5 million (inclusive of inclusive of prep. Taking into consideration or account; including. a $518,000 restructuring charge 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. related to Convera's August 2004 actions effected to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. software operations), or $0.13 per share, compared to a net loss of $3.3 million, or $0.10 per share, for the comparable year-ago quarter. Cash and investments as of October 31, 2004 totaled $22.7 million, inclusive of $10.3 million in proceeds from the completion of the September September: see month. 2004 private placement as previously announced. This cash balance compares to $30.6 million as of January January: see month. 31, 2004. Commenting on the quarter, Patrick C. Condo, President and Chief Executive Officer, Convera stated, "The quarter reflected partial benefits of our August 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. and expense actions, a more targeted effort towards the evolving government sector and continued progress surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the development of our Web initiative. These activities will be our primary focus over the coming quarters as we seek to further advance our technology offerings by providing the marketplace with cohesive cohesive, n the capability to cohere or stick together to form a mass. search platforms for both internal and Web-based content." As the Company has previously announced, it has embarked on an advanced development effort focused on applying portions of the Company's existing technology to assist customers in locating contextually relevant information from the World Wide Web. This development effort has since progressed to a software prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. aimed at fully indexing the Web. To date, the Company has met all internal development milestones regarding this initiative. The Company will comment on a timeframe for commercial availability if and when appropriate. Further, as previously announced, in concert with this effort the Company has executed an enterprise hosting service agreement with AT&T to host this proposed future product offering. Capital outlays capital outlay See capital expenditure. to date, in connection with this proposed product offering, have been limited to equipment, personnel and general operating costs operating costs npl → gastos mpl operacionales , which are expected to increase as progress continues. The Company is also assessing 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 initiative and may elect to seek funding sources over the coming quarters. The attached financial information compares the results of operations for the three-month and nine-month periods ended October 31, 2004 to the same periods in 2003 and the balance sheet as of October 31, 2004 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 Nine Months Ended
October 31, October 31,
2004 2003 2004 2003
----------- -------- ----------- ---------
(unaudited) (unaudited)
Revenues:
License $3,043 $6,279 $11,096 $15,097
Services 1,274 741 2,898 3,407
Maintenance 1,813 1,677 5,373 4,766
----------- -------- ----------- ---------
Total revenues 6,130 8,697 19,367 23,270
----------- -------- ----------- ---------
Cost of Revenues:
License 516 368 1,643 1,320
Services 1,074 963 2,591 3,755
Maintenance 428 534 1,387 1,500
----------- -------- ----------- ---------
Total cost of revenues 2,018 1,865 5,621 6,575
----------- -------- ----------- ---------
Gross Margin 4,112 6,832 13,746 16,695
----------- -------- ----------- ---------
Operating Expenses:
Sales and marketing 2,931 4,375 12,246 13,708
Research and product
development 3,039 2,894 10,311 9,395
General and
administrative 2,187 2,908 7,109 7,432
Restructuring charge 518 - 518 620
----------- -------- ----------- ---------
Total operating
expenses 8,675 10,177 30,184 31,155
----------- -------- ----------- ---------
Operating Loss (4,563) (3,345) (16,438) (14,460)
Interest Income, net 45 44 112 145
----------- -------- ----------- ---------
Net Loss $(4,518) $(3,301) $(16,326) $(14,315)
=========== ======== =========== =========
Net loss per common share -
basic & diluted $(0.13) $(0.10) $(0.47) $(0.47)
=========== ======== =========== =========
Weighted-average number of
common shares outstanding
- basic & diluted 35,824 33,800 34,605 30,699
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 October 31, January 31,
2004 2004
------------- -----------
(unaudited)
Current Assets
Cash and cash equivalents $22,662 $30,530
Short term investments 71 71
Accounts receivable, net 6,714 5,464
Prepaid expenses and other 2,274 2,536
------------- -----------
Total current assets 31,721 38,601
Other assets, net 3,920 3,984
Goodwill 2,275 2,275
Other intangible assets 633 835
------------- -----------
Total Assets $38,549 $45,695
============= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $2,802 $2,615
Accrued expenses 3,331 4,093
Accrued bonuses 300 745
Deferred revenues 3,869 3,720
Restructuring reserve 793 620
------------- -----------
11,095 11,793
Restructuring reserve, net of current
portion 265 887
Other long-term liabilities 485 1,647
------------- -----------
Total long-term liabilities 750 2,534
------------- -----------
Total Liabilities 11,845 14,327
------------- -----------
Shareholders' Equity 26,704 31,368
Total Liabilities & Shareholders'
Equity $38,549 $45,695
============= ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion