Corio Exceeds Profitability Goals on Record Revenue; Application Management Revenue Increases 66% Over First Quarter Last Year.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 22, 2003 Corio, Inc. (Nasdaq:CRIO CRIO COMSEC Regional Issuing Officer cRIO Compact Reconfigurable Input Output (National Instruments) ), a leading enterprise application service provider, today reported results for the first quarter ended March 31, 2003. Revenue for the first quarter of 2003 was $19.0 million, a 45 percent increase over the $13.1 million reported for the same period in 2002. Application management services revenue for the first quarter of 2003 was $16.6 million, a 66 percent increase over the $10.0 million reported for the same period in 2002. Net loss for the first quarter of 2003 was $2.8 million, or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to the net loss of $8.0 million, or $0.16 per diluted share, reported for the same period in 2002. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
As of March 31, 2003, the total of cash, cash equivalents, restricted cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments was $49.2 million, compared to $51.7 million at December 31, 2002. Cash generated by operations during the first quarter was $723,000, compared to cash generated by operations of $2.0 million during the quarter ended December 31, 2002. "The first quarter's results reflect several significant achievements by Corio -- we are very pleased to have reached EBITDA profitability during the quarter ahead of schedule, to have exceeded our revenue goals, and to have generated cash in operations for the second consecutive quarter," said George Kadifa, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. at Corio. During the first quarter 2003, Corio succeeded in signing significant customer contracts including: -- A Fortune 100 financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company. -- CBIZ CBIZ Century Business Services Inc. (Nasdaq:CBIZ), a provider of outsourced business services to small and medium-sized companies throughout the United States. -- Fleetwood Retail Corp., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Fleetwood Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange :FLE FLE Français Langue Étrangère FLE Family Life Educator FLE Functional Literacy Exam FLE Foreign Legal Entity FLE Future Logistics Enterprise FLE Forward Logistics Element FLE Fatigue Life Expended FLE Firefly Lantern Extract ), a Fortune 1000 company and leading provider of recreational vehicles and manufactured homes. -- Kintana, an enterprise software company. -- A large municipal Port Authority. -- The Neil Jones Neil Jones (born February 16, 1982) is a New Zealand soccer player who plays as a striker. He currently is assistant coach at the UC Santa Barbara Gauchos. Jones is a member of the New Zealand national team, known as the All Whites. He collected 2 caps (1 goal) in 2004. Food Companies(TM) a packer packer /pack·er/ (pak´er) an instrument for introducing a dressing into a cavity or a wound. pack·er n. 1. An instrument for tamponing. 2. See plugger. and producer of premium California tomato products, custom formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. sauces, and Pacific Northwest fruit and concentrates for US and export customers. -- Theravance, a pharmaceutical company pioneering the discovery and development of small molecule drugs using proprietary technology based on multivalency Noun 1. multivalency - (chemistry) the state of having a valence greater than two multivalence, polyvalence, polyvalency state - the way something is with respect to its main attributes; "the current state of knowledge"; "his state of health"; "in a weak . -- A large government agency. During the quarter the company launched the Corio Applications on Demand(TM) platform, a flexible, 'pay-as-you-go,' utility service to reduce the capital costs, skill and time required to implement and manage enterprise applications. Also during the first quarter, the Certified See certification. Corio Applications on Demand(TM) Partner program was launched. Partner firms who have recently joined the Certified Corio Applications on Demand(TM) Partner program include Akibia Consulting, Buck Buck after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild] See : Dogs Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] See : Resourcefulness Harbor Technologies, Extraquest, Parker Management Consultants, Sierra Atlantic Sierra Atlantic, Inc. is an IT services company operating in the offshoring enterprise applications and outsourced product development space. With operations spread across 20 countries, Sierra Atlantic is headquartered in Fremont, California, and has offshore development centers and Solix Systems. "I want to thank the Corio employees, customers, and partners that contributed to the record first quarter results," said Brett White Brett White (born April 8 1982 in Cooma, New South Wales) is an Australian professional rugby league footballer. He plays for the Melbourne Storm in the National Rugby League. , Chief Financial Officer. "The first quarter results reflect the successful integration and rationalization rationalization, in psychology: see defense mechanism. of the customer relationships acquired from Qwest and, as a result, include costs and revenue that will not recur in future quarters." Quarterly Conference Call Management will host a conference call beginning at 2:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT today to discuss the first quarter results and the business outlook. Interested parties may listen to the conference call via live broadcast over the Internet at http://www.corio.com/ir or over the telephone by dialing 719/457-2728 with passcode "Corio". For those unable to participate in the live call, a replay will be available beginning at 5:00 p.m. PDT after conclusion of the call and continuing through April 29, 2003. The replay number is 719/457-0820, with confirmation code 583104. A replay of the conference call will also be available for 30 days on the Company's Web site. About Corio, Inc. Corio, Inc. (Nasdaq:CRIO) is a leading enterprise application service provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ). Corio Applications on Demand(TM) delivers enterprise applications from leading independent software vendors for a fixed monthly fee. Corio provides infrastructure, applications management, consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , and Corio iSRVCE technology resource management (TRM) software. Additional information about Corio is available at http://www.corio.com. Note to Editors: Corio is a registered trademark of Corio, Inc. Applications on Demand, iSRVCE and SRVCE are trademarks of Corio, Inc. All other product and company names mentioned herein may be the trademarks of their respective owners 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. : Matters discussed in this release involving expectations, beliefs, plans, projections, intentions, future events or strategies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, and are made under their safe-harbor provisions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements herein include statements regarding Corio's future financial and operating performance, any implication that future financial and operating performance is predictable based on the results in the first quarter, statements regarding future efficiencies in our business, services to be performed for certain customers, and the benefits to Corio and its customers of Corio Applications on Demand and the Certified Corio Applications on Demand Partner Program. Some of the specific factors that may cause actual results to differ include, among others: the fact that Corio operates in a new industry with a rapidly-evolving business model, the fact that visibility into future financial and operating performance in the current environment is poor, the fact that the structure of relationships may change and relationships may terminate, the fact that certain customers terminated or are terminating their relationships with Corio during the first and second quarters and this will have an adverse effect on Corio's financial results going forward, the fact that Corio may change its strategy regarding Corio Applications on Demand and the Certified Corio Applications on Demand Partner Program and the fact that these programs are new and untested, and the fact that customers may not pay Corio as expected. Additional risks that could cause actual results to differ materially from those projected are discussed in our public filings with the Securities and Exchange Commission which are available at the Securities and Exchange Commission's website (http://www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Corio undertakes no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events.
CORIO, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31
---------------------------
2003 2002
------- -------
Revenues:
Application management services $16,629 $10,025
Professional services and other 2,374 3,066
------- -------
Total revenues 19,003 13,091
Costs and Expenses:
Application management services 13,213 9,041
Professional services and other 2,013 3,723
Research and development 1,350 2,040
Sales and marketing 2,127 3,164
General and administrative 2,386 3,030
Amortization expenses 807 374
------- -------
Total operating expenses 21,896 21,372
------- -------
Loss from operations $(2,893) $(8,281)
Interest and other income 73 270
------- -------
Net Loss $(2,820) $(8,011)
======= =======
Basic and diluted net loss per share $ (0.05) $ (0.16)
======= =======
Shares used in computation-basic and diluted 54,995 51,367
======= =======
Three Months Ended March 31
---------------------------
EBITDA (1): 2003 2002
------- -------
Net loss $(2,820) $(8,011)
Amortization expenses 807 374
Interest and other income (73) (270)
Depreciation 3,210 2,839
------- -------
EBITDA $ 1,124 $(5,068)
======= =======
(1) In order to fully assess the Company's financial operating
results, management believes that EBITDA (Earnings before Interest,
Taxes, Depreciation and Amortization), is an appropriate measure of
the operating performance of the Company. However, this supplementary
financial data should be considered in addition to, not as a
substitute for or superior to, operating income, cash flows, or other
measures of financial performance prepared in accordance with
generally accepted accounting principles.
CORIO, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
March 31, December 31,
2003 2002
------- ----------
ASSETS
Current assets:
Cash and cash equivalents $17,146 $26,908
Short-term investments 24,298 17,031
Accounts receivable 4,086 6,109
Prepaid expenses and other assets 3,276 3,421
------- --------
Total current assets 48,806 53,469
Restricted cash 7,717 7,717
Property and equipment and other assets 16,361 19,106
------- --------
Total assets $72,884 $80,292
======= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $16,038 $19,484
Deferred revenue 2,865 2,636
Other current liabilities 2,986 4,732
------- --------
Total current liabilities 21,889 26,852
Long-term liabilities 3,792 4,025
------- --------
Total liabilities 25,681 30,877
Stockholders' equity 47,203 49,415
------- --------
Total liabilities and stockholders' equity $72,884 $80,292
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