GraphOn Corp. Reports Third Quarter 2001 Results.Business Editors/High-Tech Writers MORGAN Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. HILL, Calif.--(BUSINESS WIRE)--Oct. 30, 2001 GraphOn(R) Corporation (Nasdaq:GOJO), (http://www.GraphOn.com) today reported results for the third quarter ended September September: see month. 30, 2001. Financial Highlights Revenues were approximately $1.0 million for the third quarter ended September 30, 2001, as compared to approximately $2.7 million recorded in the third quarter of 2000, and revenues of approximately $5.3 million for the nine month period ended September 30, 2001, as compared to approximately $6.4 million for the comparable period in the prior year. The net loss for the current quarter was approximately $4.3 million as compared to the approximate $2.0 million net loss for the third quarter of 2000 and an approximate loss of $8.8 million for the nine month period ended September 30, 2001 as compared to a net loss of approximately $5.4 million for the same period in the previous year. The loss per common share on a basic and 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. basis for the current quarter was $0.25 per share as compared with a loss of $0.14 per share for the same period in the previous year and a loss of $0.57 per share for the nine month period ended September 30, 2001 as compared to a loss of $0.38 per share for the comparable period in the prior year. "Although the quarter was disappointing, we are encouraged by growing customer optimism and an upward trend in general market activity. We expect many of the deals that were halted in Q3 to come to fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. in the current quarter," said GraphOn 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. and president, Walt Keller. "In addition, in order to maintain a healthy cash position and stay focused on our goal of reaching EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become profitability at a $2.5M revenue level GraphOn has taken decisive steps to reduce operating costs operating costs npl → gastos mpl operacionales through staff cuts and other cost cutting procedures throughout the company." Sales and Marketing Highlights -- Announced 5 independent software vendor OEMs -- Expanded Asia opportunities with Sa Sa and Globe-IT -- Approved as Microsoft(R) Certified Partner and Sun Tone(SM) certified (early in Q4) -- Released GO-Global UX for IBM AIX, HP, and Solaris -- Acquired Exclusive Rights to Menta Software's Technology -- Named Thomas Castanzo as Managing Director of European Operations In recent news, GraphOn recently announced GO-Global XP Enterprise Edition. Unlike GO-Global XP, which is licensed to independent software vendors (ISVs) to web enable their applications, this new remote computing computing - computer software product can be sold directly to companies and provides multi-user multi-user Adjective (of a computer) capable of being used by several people at once cross platform access of popular and business-critical Windows applications A program that is written to run under Microsoft's Windows operating system. Such applications typically run under all 32-bit versions of Windows, but earlier applications might also run under the 16-bit versions (Windows 3.x) as well. See Windows. already in place within the enterprise. GraphOn is designing GO-Global XP Enterprise Edition to be easier to install, eliminate training costs and requires less maintenance than other enterprise remote computing software applications on the market. About GraphOn Corporation GraphOn's award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" software allows any display device to run any application over any type of connection, including low-bandwidth low-bandwidth - [communication theory] Used to indicate a talk that, although not content-free, was not terribly informative. "That was a low-bandwidth talk, but what can you expect for an audience of suits!" Compare zero-content, bandwidth, math-out. , dial-up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. , and wireless. GraphOn's products instantly web enable Windows, Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. , and UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). applications without any software modification, offering organizations of all types high performance remote access and a cost effective way to bring their applications to the web world -- TODAY. GraphOn, which markets its solutions through OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and licenses, independent software vendors (ISVs), the enterprise, application service providers (ASPs), value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs) and systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , is headquartered in Silicon Valley and is traded on the Nasdaq under the ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. GOJO (Nasdaq:GOJO). For more information, please visit the company's web site at http://www.GraphOn.com. This press release contains statements that are forward looking as that term is defined by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to GraphOn's most recent periodic and other reports filed with the Securities and Exchange Commission. Note to Editors: GraphOn and GO-Global are a registered trademarks of GraphOn Corp. All other trademarks belong to their respective owners.
GRAPHON CORPORATION
Condensed Balance Sheets
UNAUDITED AUDITED
September 30, December 31,
2001 2000
Cash and available for
sale securities $ 8,946,800 $ 13,767,100
Accounts receivable, net 1,018,200 749,200
Other current assets 267,300 345,800
------------- -------------
Total current assets 10,232,300 14,862,100
Purchased technology 8,104,200 3,053,600
Long term investment
- related party -- 891,900
Other assets 2,448,100 2,232,200
------------- -------------
Total assets $ 20,784,600 $ 21,039,800
------------- -------------
Accounts payable and
accrued liabilities $ 2,574,600 $ 1,834,300
Deferred revenue 407,900 149,000
------------- -------------
Total current liabilities 2,982,500 1,983,300
------------- -------------
Stockholders' equity 17,802,100 19,056,500
------------- -------------
Total liabilities and
stockholders' equity $ 20,784,600 $ 21,039,800
------------- -------------
Condensed Statements of Operations
UNAUDITED UNAUDITED
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Revenue $ 1,018,300 $ 2,382,500 $ 5,274,500 $ 4,226,700
Revenue
- related party -- 350,000 -- 2,150,000
------------ ------------ ------------ ------------
Total Revenue 1,018,300 2,732,500 5,274,500 6,376,700
------------ ------------ ------------ ------------
Cost of revenue 933,700 255,000 1,683,600 604,600
Cost of revenue
- related party -- 21,900 -- 95,800
------------ ------------ ------------ ------------
Total cost of
revenue 933,700 276,900 1,683,600 700,400
------------ ------------ ------------ ------------
Gross Profit 84,600 2,455,600 3,590,900 5,676,300
------------ ------------ ------------ ------------
Selling and
marketing 2,141,700 1,388,100 5,110,200 4,169,600
General and
administrative 1,264,500 1,150,600 4,119,900 3,022,400
Research and
development 1,090,000 1,195,600 3,559,300 2,658,100
------------ ------------ ------------ ------------
Total operating
expenses 4,496,200 3,734,300 12,789,400 9,850,100
------------ ------------ ------------ ------------
Loss from
operations (4,411,600) (1,278,700) (9,198,500) (4,173,800)
Loss on long
term investment
- related party (400) (1,012,800) (41,100) (2,165,600)
Other income
(expense), net 67,900 255,400 397,500 907,000
------------ ------------ ------------ ------------
Loss before
income taxes (4,344,100) (2,036,100) (8,842,100) (5,432,400)
Income taxes -- (17,000) -- 800
------------ ------------ ------------ ------------
Net loss $(4,344,100) $(2,019,100) $(8,842,100) $(5,433,200)
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Basic and diluted
loss per share $ (0.25) $ (0.14) $ (0.57) $ (0.38)
============ ============ ============ ============
Weighted average
shares
outstanding 17,225,996 14,651,037 15,579,701 14,394,263
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