Insignia Solutions Announces Third Quarter 2000 Financial Results.Business Editors FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--Nov. 6, 2000 Insignia in·sig·ni·a also in·sig·ne n. pl. insignia or in·sig·ni·as 1. A badge of office, rank, membership, or nationality; an emblem. 2. A distinguishing sign. 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 $2.9 million for its third quarter ended September 30, 2000, compared to $3.05 million in the second quarter 2000. The company's accelerated Jeode platform accounted for 99.3% of revenue, generating $2.88 million in the third quarter essentially in line with the previous quarter's results. The company expects to see revenue growth in the fourth quarter. Net loss was $2.3 million, or $0.16 per share, compared to $0.6 million, or $0.04 per share, in the second quarter 2000. Without the benefit of a one-time tax credit, net loss in the second quarter was $0.09 per share. Third quarter gross margins were affected by the completion of an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. , one-time sales opportunity that had a low margin and also by costs associated with Insignia's legacy business. Margins in the third quarter are not indicative of a trend, and the company expects to see improved gross margins in future quarters as it derives a greater portion of revenue from its expanding channel. Customer relationships that contributed to revenue during the quarter included Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. , Fujitsu PC, Gemstar/TV Guide, Intel, Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony , Quantum Corporation, Phoenix Technologies, RAVISENT Technologies 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 . 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. "During the quarter, we continued to see solid growth in the adoption of our Jeode platform and I am pleased to announce that, while the third quarter has historically proven to be challenging from a sales perspective, we met our internal revenue expectations for the period," said Richard Noling, president and chief executive officer of Insignia Solutions. "Due to the completion of a one-time sales opportunity that had a low margin, as well as the costs associated with our legacy business, we saw a decline in gross margins, which impacted our bottom line performance. Without these two events, margins were in line with the second quarter. We expect to see improved margins going forward as we transition to an expanded channel model. "One of our most significant milestones in the third quarter was the selection of the Jeode platform by Compaq and Fujitsu for their Internet appliances. As a result of Compaq's iPAQ Home Internet Appliance and Fujitsu's PenCentra 200 products, we are excited to announce that our Jeode technology has found its way into currently shipping products. With the launch of iPAQ Home Internet Appliance, Jeode technology is now shipping to the mass consumer market in not just one, but two Compaq products. We also signed additional major customers and an important technology and an important technology and marketing relationship with Informix. Furthermore, we introduced a new version of our accelerated Jeode platform. Subsequent to the close of the quarter, we have announced additional customer wins with eMachines, RAVISENT Technologies and Echelon Corporation Echelon Corporation (NASDAQ: ELON) designs control networks to connect machines and other electronic devices, for the purposes of sensing, monitoring and control. ; a strategic partnership with RTOS (1) (RealTime Operating System) An operating system designed for use in a real time computer system. See real time system, embedded system, process control and OS-9. provider Accelerated Technology; as well as our plans to support ARM's new Jazelle technology."
Highlights from the Third Quarter:
-- Entered into a technology relationship with Informix Corporation
whereby Insignia and Informix will seek opportunities to co-market
and jointly sell their combined solutions.
-- Signed a licensing agreement with Victor Data System (VDS) to add
Java application support to its middleware software featuring
built-in browser and GUI windowing systems.
-- Selected by Fujitsu PC Corporation to Java-enable their PenCentra
200 pen tablets with Jeode technology.
-- Announced the selection of Jeode technology to provide the Java
functionality for Compaq's iPAQ Home Internet Appliance.
-- Released Jeode platform, version 1.7, raising the Java application
and applet performance bar for virtual machine technology.
-- Entered into a licensing agreement with Wyse Technology, the most
recognized name in thin-client hardware, to provide
Java-compatible virtual machine technology for its Winterm
Windows-based terminals.
-- Reelected to serve on the J2ME Executive Committee of the Java
Community Process.
Insignia Solutions Insignia Solutions is the leading provider of accelerated Java software solutions that dynamically optimize optimize - optimisation 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. . Insignia's patent-pending virtual machine technology is licensed by such leading companies as Compaq Computer Corporation (NYSE NYSE See: New York Stock Exchange :CPQ CPQ Compaq CPQ Conseil du Patronat du Québec (Canada) CPQ Configure-Price-Quote CPQ Conseil de Presse du Québec (Québec Press Council, Canada) CPQ Companion Parrot Quarterly ), Echelon Corporation (Nasdaq:ELON), eMachines, Inc. (Nasdaq:EEEE EEEE End-user Electrical and Electronic Equipment ), Fujtisu PC, Gemstar/TV Guide (Nasdaq:GMST GMST Greenwich Mean Sidereal Time GMST General Military Subjects Test GMST Genov Modified Stroop Test ), Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking (Nasdaq:INTC INTC Intel (NASDAQ symbol) INTC Intercept INTC Interrupt Controller ), Olivetti Lexikon, Phoenix Technologies (Nasdaq: PTEC PTEC Pinellas Technical Education Centers (Clearwater, FL) PTEC Pharmacy Technician Educators Council PTEC Psychiatric Technician PTEC Plastics Technical Evaluation Center PTEC Page Table Edit Control ), Quantum Corporation (NYSE:DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S , HDD (Hard Disk Drive) See hard disk and HDD caddy. HDD - hard disk drive ), RAVISENT Technologies (Nasdaq:RVST RVST Raad Van State (Belgian supreme administrative court) RVST Relative Value Scale in Teaching ), Victor Data Systems (a subsidiary of JVC) and Wyse Technologies. 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 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. , +44 (0)1628 539 500 in Europe, +81 3 5404 3440 in Japan or visit the company's website at http://www.insignia.com. Note to Editors: Insignia and Insignia Solutions are registered trademarks and Jeode, Embedded Virtual Machine and 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 are trademarks of Insignia Solutions, Inc. Sun, Java, EmbeddedJava, and PersonalJava are trademarks 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. , Inc. All other trademarks are the property of their respective holders. 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 the Jeode 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.
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands)
(unaudited)
September 30, December 31,
2000 1999
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $ 723 $ 4,677
Restricted cash 120 120
Cash and cash equivalents held in escrow -- 1,000
Accounts receivable, net of allowances
of $42 and $131, respectively 2,938 189
Prepaid and other current assets 927 1,038
-------- --------
Total current assets 4,708 7,024
Property and equipment, net 520 625
Cash and cash equivalents held in escrow 4,975 5,060
Restricted cash 250 250
Other noncurrent assets -- 325
-------- --------
$ 10,453 $ 13,284
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 609 $ 707
Accrued liabilities 1,724 1,674
Accrued royalties 2,618 2,327
Income taxes payable 769 188
Deferred revenue 830 1,349
Convertible debt 1,000 1,000
Line of credit - related party 2,063 --
-------- --------
Total current liabilities 9,613 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 4,719 4,304
Additional paid-in capital 38,181 35,106
Accumulated deficit (43,039) (36,969)
Cumulative currency translation adjustment (461) (461)
-------- --------
Total shareholders' equity (600) 1,980
-------- --------
$ 10,453 $ 13,284
======== ========
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
Net revenues:
License $ 2,349 $ 1,672 $ 6,166 $ 5,270
Service 541 82 1,286 299
-------- -------- -------- --------
Total net revenues 2,890 1,754 7,452 5,569
-------- -------- -------- --------
Cost of net revenues:
License 1,245 658 2,470 2,573
Service 83 116 352 424
-------- -------- -------- --------
Total cost of net revenues 1,328 774 2,822 2,997
-------- -------- -------- --------
Gross margin 1,562 980 4,630 2,572
-------- -------- -------- --------
Operating expenses:
Sales and marketing 1,379 1,292 3,839 4,352
Research and development 1,495 1,459 4,503 4,477
General and administrative 891 822 2,760 2,325
-------- -------- -------- --------
Total operating expenses 3,765 3,573 11,102 11,154
-------- -------- -------- --------
Operating loss (2,203) (2,593) (6,472) (8,582)
Interest income (expense), net 20 101 (86) 357
Other income (expense), net 20 (3) 44 (53)
-------- -------- -------- --------
Loss before income taxes (2,163) (2,495) (6,514) (8,278)
Provision (benefit)
for income taxes 147 (465) (444) (421)
-------- -------- -------- --------
Net loss $(2,310) $(2,030) $(6,070) $(7,857)
======== ======== ======== ========
Net loss per share:
Basic $ (0.16) $ (0.16) $ (0.43) $ (0.62)
======== ======== ======== ========
Diluted $ (0.16) $ (0.16) $ (0.43) $ (0.62)
======== ======== ======== ========
Weighted average
equivalent shares:
Basic 14,251 12,853 14,180 12,775
-------- -------- -------- --------
Diluted 14,251 12,853 14,180 12,775
-------- -------- -------- --------
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