Corio Announces Financial Results for Second Quarter 2002.Business Editors and 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)--July 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 second quarter ended June June: see month. 30, 2002. Application management services revenue, consisting principally of monthly fees from application maintenance and monitoring, increased 8% to $8.7 million in the second quarter, from the $8.1 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 $2.6 million in the second quarter, down from $3.4 million in the same quarter of the prior year. Revenues, in total, were $11.9 million. For the second quarter, the company reported a net loss of $7.7 million. Excluding non-cash amortization charges and net interest income, and quarter ended June 30, 2001 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. , 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 second quarter was $7.2 million, or $0.14 per share, compared to an operating loss of $16.8 million, or $0.34 per share for the comparable period last year. The following are financial highlights for the quarter: -- Application management services revenue increased 8 percent from the same period for the prior year while associated costs for providing such services decreased 21 percent. -- Corio was selected for various services by a number of new and existing enterprise customers, namely: Hastings Entertainment, KeyCorp, Carlson Companies, Quadrem Group, Terra Lycos, The Twin Towers Fund, XO Management, and Visa International. -- Balance of cash, cash equivalents, restricted cash and short-term investments at June 30, 2002 totaled $72.0 million while cash used in operations during the quarter declined 51% to $5.5 million compared with $11.2 million used in operations during the quarter ended June 30, 2001. -- Operating loss, excluding non-cash amortization charges and net interest income, declined to $7.2 million in the quarter ended June 30, 2002, down 57% from the $16.8 million loss in the same quarter a year ago, and down 9% from the $7.9 million loss in the quarter ended March 31, 2002. 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 EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation Topic D-103 providing 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 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 913/981-5572, pass code CORIO. For those unable to participate in the live call, a replay will be available beginning at 5:00 p.m. pacific time after conclusion of the call and continuing through July July: see month. 30, 2002. The replay number is 888/203-1112, confirmation code 119184. 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. Corio is a registered trademark of Corio, Inc. 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)
June 30, Dec. 31,
2002 2001
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 37,297 $ 36,317
Short-term investments 26,830 41,831
Restricted cash 7,849 7,849
Accounts receivable 3,971 3,818
Prepaid expenses and other assets 1,218 1,875
-------- --------
Total current assets 77,165 91,690
Property and equipment and other assets 15,950 21,600
-------- --------
Total assets $ 93,115 $113,290
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 14,626 $ 16,617
Deferred revenue 1,553 1,969
Other current liabilities 6,950 7,506
-------- --------
Total current liabilities 23,129 26,092
Long-term liabilities 2,778 5,859
-------- --------
Total liabilities 25,907 31,951
Stockholders' equity 67,208 81,339
-------- --------
Total liabilities and
stockholders' equity $ 93,115 $113,290
======== ========
CORIO, INC.
PRO FORMA STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
Revenues:
Application management
services $8,718 $8,073 $18,533 $16,916
Professional services
and other 2,597 3,393 5,375 8,119
-------- -------- -------- --------
11,315 11,466 23,908 25,035
Reimbursable expenses 587 417 1,085 834
-------- -------- -------- --------
Total revenues 11,902 11,883 24,993 25,869
Costs and Expenses:
Application management
services 8,006 10,155 16,836 20,795
Professional services
and other 2,839 3,411 6,273 9,663
Reimbursable expenses 587 417 1,085 834
Research and development 1,736 2,553 3,777 5,246
Sales and marketing 2,948 6,588 6,113 13,468
General and administrative 2,951 5,601 5,981 12,006
-------- -------- -------- --------
Total operating expenses 19,067 28,725 40,065 62,012
-------- -------- -------- --------
Loss from operations $ (7,165) $(16,842) $(15,072) $(36,143)
======== ======== ======== ========
Basic and diluted net
loss per share $ (0.14) $ (0.34) $ (0.29) $ (0.72)
======== ======== ======== ========
Shares used in
computation-basic
and diluted 52,608 50,204 51,991 50,059
======== ======== ======== ========
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 $240,000 and
$506,000 telecommunication expense reimbursements and $177,000 and
$328,000 travel and related expense reimbursements as revenue for the
three months and six months ended June 30, 2001, respectively. Fiscal
2002 results include $274,000 and $484,000 telecommunication expense
reimbursements and $313,000 and $601,000 travel and related expense
reimbursements as revenue for the three months and six months ended
June 30, 2002, respectively.
CORIO, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Six Months
Ended June 30 Ended June 30,
2002 2001 2002 2001
Revenues:
Application management
services $8,718 $8,073 $18,533 $16,916
Professional services
and other 2,597 3,393 5,375 8,119
-------- -------- -------- --------
11,315 11,466 23,908 25,035
Reimbursable expenses 587 417 1,085 834
------- -------- -------- --------
Total revenues 11,902 11,883 24,993 25,869
Costs and Expenses:
Application management
services 8,006 10,155 16,836 20,795
Professional services
and other 2,839 3,411 6,273 9,663
Reimbursable expenses 587 417 1,085 834
Research and development 1,736 2,553 3,777 5,246
Sales and marketing 2,948 6,588 6,113 13,468
General and administrative 2,951 5,601 5,981 12,006
Restructuring charges -- 1,413 -- 1,413
Amortization expenses 860 980 1,233 2,114
-------- -------- -------- --------
Total operating expenses 19,927 31,118 41,298 65,539
-------- -------- -------- --------
Loss from operations $ (8,025) $(19,235) $(16,305) $(39,670)
-------- -------- -------- --------
Interest and other income 295 1,114 565 2,006
-------- -------- -------- --------
Net Loss $ (7,730) $(18,121) $(15,740) $(37,664)
======== ======== ======== ========
Basic and diluted net
loss per share $ (0.15) $ (0.36) $ (0.30) $ (0.75)
======= ======== ======== ========
Shares used in
computation-basic
and diluted 52,608 50,204 51,991 50,059
======== ======== ======== ========
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 $240,000 and
$506,000 telecommunication expense reimbursements and $177,000 and
$328,000 travel and related expense reimbursements as revenue for the
three months and six months ended June30, 2001, respectively. Fiscal
2002 results include $274,000 and $484,000 telecommunication expense
reimbursements and $313,000 and $601,000 travel and related expense
reimbursements as revenue for the three months and six months ended
June 30, 2002, respectively.
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