Corio Announces Financial Results for First Quarter 2002.Business Editors/High-Tech Writers SAN CARLOS San Carlos (săn kär`lōs), residential city (1990 pop. 26,167), San Mateo co., W Calif.; inc. 1925. The chief manufactures are plastic products, hardware, and machine parts. , Calif.--(BUSINESS WIRE)--April 23, 2002 Corio Corio may refer to
cRIO Compact Reconfigurable Input Output (National Instruments) ), a leading enterprise application service provider, today announced financial results for its first quarter ended March 31, 2002. Application management services revenue, consisting principally of monthly fees from application maintenance and monitoring, increased 11% to $9.8 million in the first quarter, from the $8.8 million in the same period of the previous year. Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and other revenue, reflecting fees primarily from providing implementation, consulting, training and related services, was $2.8 million in the first quarter, down from $4.7 million in the same quarter of the prior year. Revenues, in total, were $13.1 million. For the first quarter, the company reported a net loss of $8.0 million. Excluding non-cash amortization charges, 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 net interest income, the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first quarter was $7.9 million, or $0.15 per share, compared to an operating loss of $19.3 million, or $0.39 per share for the comparable period last year. The following are financial highlights for the quarter: -- Application management services revenue increased 11 percent from the same period for the prior year while associated costs for providing such services decreased 17 percent. -- Balance of cash, cash equivalents, restricted cash and short-term investments at March 31, 2002 totaled $78.8 million while cash used in operations during the quarter declined 66% to $5.2 million compared with $15.5 million used in operations during the quarter ended March 31, 2001, and decreased 27% compared with $7.1 million used in operations during the quarter ended December 31, 2001. -- Operating loss, excluding non-cash amortization expenses, and net interest income, declined for the third consecutive quarter to $7.9 million in the quarter ended March 31, 2002, down 59% from the $19.3 million loss in the same quarter a year ago, and down 16% from the $9.4 million loss in the quarter ended December 31, 2001. Recent Accounting Pronouncements In November November: see month. 2001, the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). ("FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ") issued guidance that is to be applied for financial reporting periods beginning after December December: see month. 15, 2001 and generally requires that a company recognize as revenue, travel expense and other amounts billed to customers related to project pass through expenses incurred in the performance of a contract. As a result of this adoption, Corio's revenues now include reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. out-of-pocket expenses out-of-pocket expenses n. moneys paid directly for necessary items by a contractor, trustee, executor, administrator or any person responsible to cover expenses not detailed by agreement. . For comparative purposes, reimbursable expenses formerly included as an offset to cost of revenues has been reclassified to revenues for all periods presented. The adoption of the above mentioned EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation Topic D-103 did not affect Corio's basic net loss per share on an actual or pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, and did not impact Corio's financial position, results of operations, or cash flows although reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. did affect the presentation of certain revenue and expense items contained within Corio's financial statements. Corio will discuss its recent results in a telephone conference call today at 2:00 p.m., pacific time. Interested parties may listen to the conference call via live broadcast over the 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 at http://www.corio.com/ir or at 913-981-5559, pass code CORIO. For those unable to participate in the live call, a replay will be available beginning approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one hour after conclusion of the call and continuing until April 30, 2002. The replay number is 888-203-1112, confirmation code 546915. About Corio, Inc. Corio, a leading enterprise application service provider, delivers best-of-breed The best product of its type. Organizations often purchase software from different vendors in order to obtain the best-of-breed for each application area; for example, a human resources package from one vendor and an accounting package from another. enterprise applications over a secure global network for a fixed fee. Corio's experts deploy and manage applications from leading software vendors such as PeopleSoft (PeopleSoft, Inc., Pleasanton, CA, www.peoplesoft.com) A software company that specialized in enterprise-wide applications for client/server environments. Initially specializing in human resources, its package offerings covered the gamut including financial, distribution, manufacturing , Oracle, SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. and Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. . Corio designs and deploys scalable, one-to-many One-to-many in communication is the act of publishing or broadcasting from one sender to many receivers. One-to-many (also known as "to-many") relationships are often used when managing databases. architectures built using world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. infrastructure. Corio SRVCE enables customers to achieve superior speed, reliability, visibility, control and economics for their enterprise applications. Corio is headquartered in San Carlos, California San Carlos is a city in San Mateo County, California, USA on the San Francisco Peninsula, about halfway between San Francisco and San Jose. It is an affluent small residential suburb located between Belmont to the north and Redwood City to the south. . Additional information about Corio is available at http://www.corio.com. Note to Editors: Corio and SRVCE are trademarks of Corio, Inc. All other product and company names mentioned herein may be the trademarks of their respective owners.
CORIO, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
March 31, December 31,
2002 2001
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 30,161 $ 36,317
Short-term investments 40,813 41,831
Restricted cash 7,849 7,849
Accounts receivable 3,645 3,818
Prepaid expenses and other assets 1,760 1,875
-------- --------
Total current assets 84,228 91,690
Property and equipment and other assets 19,101 21,600
-------- --------
Total assets $103,329 $113,290
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 16,140 $ 16,617
Deferred revenue 1,647 1,969
Other current liabilities 7,307 7,506
-------- --------
Total current liabilities 25,094 26,092
Long-term liabilities 4,257 5,859
-------- --------
Total liabilities 29,351 31,951
Stockholders' equity 73,978 81,339
-------- --------
Total liabilities and stockholders' equity $103,329 $113,290
======== ========
CORIO, INC.
PRO FORMA STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
2002 2001
-------- --------
Revenues:
Application management services $ 9,815 $ 8,843
Professional services and other 2,778 4,726
-------- --------
12,593 13,569
Reimbursable expenses 498 417
-------- --------
Total revenues 13,091 13,986
Costs and Expenses:
Application management services 8,830 10,640
Professional services and other 3,434 6,252
Reimbursable expenses 498 417
Research and development 2,041 2,693
Sales and marketing 3,165 6,880
General and administrative 3,030 6,405
-------- --------
Total operating expenses 20,998 33,287
-------- --------
Loss from operations $ (7,907) $(19,301)
======== ========
Basic and diluted net loss per share $ (0.15) $ (0.39)
======== ========
Shares used in computation-basic and diluted 51,367 49,650
======== ========
Effective January 2002, in accordance with Financial Accounting
Standards Board Topic No. D-103, reimbursable expenses will be
included in both revenue and expenses. The above fiscal year 2001
results have been revised to reflect reclassification of $266,000
telecommunication expense reimbursements and $151,000 travel and
related expense reimbursements as revenue. Fiscal 2002 results include
$210,000 telecommunication expense reimbursements and $288,000 travel
and related expense reimbursements as revenue.
CORIO, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
2002 2001
-------- --------
Revenues:
Application management services $ 9,815 $ 8,843
Professional services and other 2,778 4,726
-------- --------
12,593 13,569
Reimbursable expenses 498 417
-------- --------
Total revenues 13,091 13,986
Costs and Expenses:
Application management services 8,830 10,640
Professional services and other 3,434 6,252
Reimbursable expenses 498 417
Research and development 2,041 2,693
Sales and marketing 3,165 6,880
General and administrative 3,030 6,405
Amortization expenses 373 1,134
-------- --------
Total operating expenses 21,371 34,421
-------- --------
Loss from operations $ (8,280) $(20,435)
Interest and other income 270 892
-------- --------
Net loss $ (8,010) $(19,543)
======== ========
Basic and diluted net loss per share $ (0.16) $ (0.39)
======== ========
Shares used in computation-basic and diluted $ 51,367 $ 49,650
======== ========
Effective January 2002, in accordance with Financial Accounting
Standards Board Topic No. D-103, reimbursable expenses will be
included in both revenue and expenses. The above fiscal year 2001
results have been revised to reflect reclassification of $266,000
telecommunication expense reimbursements and $151,000 travel and
related expense reimbursements as revenue. Fiscal 2002 results include
$210,000 telecommunication expense reimbursements and $288,000 travel
and related expense reimbursements as revenue.
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