Insignia Solutions Announces Second Quarter Financial Results; Company Reports 102% Sequential Revenue; Accelerated Jeode Platform Revenue Nearly Doubles.Business Editors/High-Tech Writers FREMONT, Calif.--(BUSINESS WIRE)--July 18, 2000 Insignia Solutions(R) (Nasdaq:INSGY), the leading provider of accelerated Java(TM) solutions for Internet appliances Also called "information appliance," "smart appliance," and "Web appliance," it is a device specialized for accessing the Web and/or e-mail. Designed for ease of use, it plugs into a telephone jack or LAN connection for Internet hookup. and embedded Inserted into. See embedded system. devices, today reported revenue of $3.05 million for its second quarter ended June 30, 2000, compared to $1.51 million in the first quarter 2000, an increase of 102%. The company's accelerated Jeode(TM) platform accounted for 96% of revenue, generating $2.93 million in the second quarter compared with $1.47 million in the first quarter. 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. was $1.33 million or $0.09 per share, compared to $2.94 million or $0.22 in the first quarter 2000. Net loss after one-time tax rebates tax rebate n → devolución f de impuestos; reembolso fiscal tax rebate n → ristourne f d'impôt tax rebate was $0.60 million or $0.04 per share, compared to $3.16 million or $0.22 a quarter ago. Because Insignia exited its historical business through the sale of its SoftWindows product line in October 1999, the company's operating results for the year-ago period are not meaningful for comparative purposes. The company had unrestricted cash and cash equivalents of approximately $1.0 million at the end of the second quarter, as well as an additional $4.0 million available under a line of credit attained during the first quarter of 2000. "Our second quarter results reflect the strong momentum of our Jeode platform and validate our continued progress in transitioning the business to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the fast-growing Internet appliance and embedded device market opportunities," said Richard Noling, president and chief executive officer of Insignia Solutions. "This quarter, we had 16 revenue-generating customers, an increase from 11 during the previous quarter. We announced strategic distribution agreements with Phoenix Technologies in 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. and Victor Data Systems, a subsidiary of JVC JVC Victor Company of Japan (or Japan's Victor Company) JVC Jewelers Vigilance Committee JVC Jesuit Volunteer Corps JVC Jet Vane Control (directs VLS-launched missiles) JVC Jonker-Volgenant-Castanon , in Japan, as well as the selection of the Jeode platform by Gemstar for use in their future two-way interactive television platforms and Fujitsu for use in their new PC PenCentra 200 pen tablets A digitizer tablet that is specialized for handwriting and hand marking. LCD-based tablets emulate the flow of ink as the tip touches the surface and pressure is applied. Non-display tablets display the handwriting on a separate computer screen. See digitizer tablet and tablet computer. . These design wins -- as well as the customer and distribution announcements we've made in previous quarters -- clearly validate our reputation as the technology leader in deploying accelerated Java solutions to the fast-growing Internet appliance and wireless device markets. Our industry stature is further demonstrated by the selection of our chief technology officer, Jon Hoskin, to participate in the Java 2 Micro Edition Executive Committee of the Java Community Process Sun's system for allowing third parties to submit requests for new features to Java. JCP is a formal process that must be adhered to, and fees are involved. In 1999, Sun submitted Java to the ECMA standards body, but withdrew its J2SE specification later in the year. -- a governing body Noun 1. governing body - the persons (or committees or departments etc.) who make up a body for the purpose of administering something; "he claims that the present administration is corrupt"; "the governance of an association is responsible to its members"; "he in which we are by far the smallest organization." "For the past two quarters, we have been pleased to report that Jeode platform revenues have nearly doubled compared to the previous quarter," Noling continued. "For the upcoming third quarter, we expect to see continued acceleration in the adoption of the Jeode platform. Due to revenue recognition factors not all this growth will necessarily translate into revenue during the quarter. Consequently, third quarter revenues are currently difficult to precisely predict." Insignia Solutions Insignia Solutions is the leading provider of accelerated Java solutions that dynamically optimize the use of available system resources (1) In a computer system, system resources are the components that provide its inherent capabilities and contribute to its overall performance. System memory, cache memory, hard disk space, IRQs and DMA channels are examples. . The Jeode platform is Insignia's accelerated implementation of Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. (TM) (Nasdaq:SUNW SUNW Sun Microsystems, Inc (former stock symbol; now JAVA) SUNW Stanford University Network Workstation (Sun Microsystems, Inc) ) PersonalJava(TM) and EmbeddedJava(TM) specifications tailored for Internet appliances and embedded devices. At the core of the Jeode product is the Sun Authorized Virtual Machine(TM), the Jeode Embedded Virtual Machine(TM) (EVM EVM Earned Value Management EVM Evaluation Module EVM Error Vector Magnitude EVM Electronic Voting Machine EVM Expert Group on Vitamins and Minerals EVM Economic Value Management EVM Extraneous Vegetable Matter EVM Extra-Value Meal EVM Electronic Voltmeter (TM)), an accelerated runtime engine Software that certain applications depend on to run in the computer. The runtime engine must be running in the computer in order for the application to execute. It provides common routines and functions that the applications require, and it typically converts the program, which is in an that delivers an optimal balance of performance and robustness in a smaller memory footprint Memory footprint refers to the amount of main memory that a program uses or references while running. This includes all sorts of active memory regions like code, static data sections (both initialized and uninitialized), heap, as well as all the stacks, plus memory required to hold . Using a proprietary technique called adaptive dynamic compilation Dynamic compilation is a process used by some programming language implementations to gain performance during program execution. The best-known language that uses this technique is Java. Dynamic compiling originated in Self. , the Jeode EVM can execute Java applications on average six times faster than interpretive VMs. The Jeode platform is designed to run with a wide range of operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. and target processors. It currently supports operating systems such as Windows CE (Windows Consumer Electronics) Microsoft's version of Windows for handheld devices and embedded systems that use x86, ARM, MIPS and SHx CPUs. Windows CE .NET superseded Windows CE 3.0. , Windows Embedded NT, Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , VxWorks, ITRON ITRON International Tidal Wetland Rice Observational Nursery ITRON Industrial The Real-time Operation Nucleus and Linux, and processors such as MIPS (Million Instructions Per Second) The execution speed of a computer. For example, .5 MIPS is 500,000 instructions per second; 100 MIPS is a hundred million instructions per second. , ARM, Intel x86, PowerPC and Hitachi SH. Insignia Solutions is publicly-held with headquarters in Fremont, California For the unincorporated community in Yolo County, California, see . Fremont (IPA: /ˈfriːmɒnt/) is a city in California that was incorporated on January 23, 1956, from the merger of five smaller communities: , and its main R&D facilities in High Wycombe High Wycombe (wĭk`əm), city (1991 pop. 69,575), Buckinghamshire, S England. The city is well known for its furniture industry and also has paper mills, sawmills, and engineering works. , England. Sales and marketing departments are located in Fremont and High Wycombe. For additional information on Insignia and its products, call 800/848-7677 in the United States, +44 (0)1628 539 500 in Europe, +81 3 5404 3440 in Japan or visit the company's website at http://www.insignia.com. 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. The statements in this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters that are not historical are forward-looking statements that involve risks and uncertainties. These forward-looking statements include the anticipated timing of product releases, the expected customer demand for existing and new products, the expected revenue from product sales, the growth of the market for the Company's products, and the market demand for the Jeode platform. Actual results could differ materially from those anticipated. There can be no assurance that the Company will be able to market and support an EVM product or that such product will be accepted by customers. The Company's business is subject to a variety of other risks and uncertainties that include, but are not limited to, rapid technological changes in the industry, increased competition, and timely introduction and customer acceptance of the Company's products. These and other risks and uncertainties are further described in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 and will be described from time to time in the Company's other filings with the Securities and Exchange Commission. Note to Editors: Insignia and Insignia Solutions are registered trademarks and Jeode, Embedded Virtual Machine and EVM are trademarks of Insignia Solutions, Inc. Sun, Java, EmbeddedJava, and PersonalJava are trademarks of Sun Microsystems, Inc. Windows is a registered trademark of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, . All other trademarks are property of their respective holders.
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30 June 30
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Net revenues:
License $ 2,574 $ 1,418 $ 3,817 $ 3,598
Service 477 89 745 217
-------- -------- -------- --------
Total net revenues 3,051 1,507 4,562 3,815
-------- -------- -------- --------
Cost of net revenues:
License 655 822 1,225 1,915
Service 78 130 269 308
-------- -------- -------- --------
Total cost of
net revenues 733 952 1,494 2,223
-------- -------- -------- --------
Gross margin 2,318 555 3,068 1,592
-------- -------- -------- --------
Operating expenses:
Sales and marketing 1,168 1,432 2,460 3,060
Research and
development 1,554 1,403 3,008 3,018
General and
administrative 924 525 1,869 1,503
-------- -------- -------- --------
Total operating
expenses 3,646 3,360 7,337 7,581
-------- -------- -------- --------
Operating loss (1,328) (2,805) (4,269) (5,989)
Interest income
(expense), net 114 101 (106) 256
Other income
(expense), net 16 (3) 24 (50)
-------- -------- -------- --------
Loss before
income taxes (1,198) (2,707) (4,351) (5,783)
Provision (benefit)
for income taxes (596) 4 (591) 44
-------- -------- -------- --------
Net loss $ (602) $ (2,711) $ (3,760) $ (5,827)
======== ======== ======== ========
Net loss per share:
Basic $ (0.04) $ (0.21) $ (0.27) $ (0.46)
======== ======== ======== ========
Diluted $ (0.04) $ (0.21) $ (0.27) $ (0.46)
======== ======== ======== ========
Weighted average
equivalent shares:
Basic 14,201 12,781 14,145 12,736
-------- -------- -------- --------
Diluted 14,201 12,781 14,145 12,736
-------- -------- -------- --------
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands)
(unaudited)
June 30, December 31,
2000 1999
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 930 $ 4,677
Restricted cash 120 120
Cash and cash equivalents held in escrow - 1,000
Accounts receivable, net of allowances 2,378 189
of $48 and $91, respectively
Prepaid and other current assets 937 1,038
------- -------
Total current assets 4,365 7,024
Property and equipment, net 548 625
Cash and cash equivalents held in escrow 5,200 5,060
Restricted cash 250 250
Other noncurrent assets 325 325
------- -------
$10,688 $13,284
======= =======
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 776 $ 707
Accrued liabilities 1,542 1,661
Accrued royalties 1,878 2,327
Income taxes payable 769 188
Deferred revenue 678 1,349
Convertible debt 1,054 1,013
Convertible loan 1,016 -
------- -------
Total current liabilities 7,713 7,245
------- -------
Mandatorily redeemable capital - 2,619
Mandatorily redeemable warrants 1,440 1,440
------- -------
Total mandatorily redeemable 1,440 4,059
------- -------
Shareholders' equity:
Preferred shares - -
Ordinary shares 4,703 4,304
Additional paid-in capital 38,022 35,106
Accumulated deficit (40,729) (36,969)
Cumulative currency
translation adjustment (461) (461)
------- -------
Total shareholders' equity 1,535 1,980
------- -------
$10,688 $13,284
======= =======
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