Insignia Solutions Reports Third Quarter 2002 Financial Results.Business Editors/High-Tech Writers 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. 5, 2002 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:INSG INSG International Nickel Study Group ), a leading provider of Java(TM) technology-based software for the mobile market, today reported financial results for the third quarter ended September September: see month. 30, 2002. Revenues for the quarter were $1.0 million, which compares to $2.4 million reported for the third quarter of the previous year. Net loss for the third quarter of 2002 was $2.9 million, or a loss of $0.14 per share, which compares to a net loss of $2.8 million, or a loss of $0.14 per share, in the third quarter of 2001. At the end of the third quarter, the Company had cash, cash equivalents and restricted cash of $3.6 million, as compared to $7.1 million at the end of the immediately preceding quarter. The decrease in cash reflects an early receipt of $1.2 million in the second quarter of 2002 and a delayed final payment of $600,000 to a supplier. If the cash flows for both quarters were adjusted for these timing issues, the cash burn in the second and third quarters would have been $1.5 million and $1.7 million, respectively. "Our third quarter financial performance continued to be impacted by delays in technology spending by our customers, who have shelved prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. royalty agreements in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. more back-ended per unit
royalties with all of their technology partners," stated Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000.Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Noling, chief executive officer. "However, we continue to focus on tightly managing our expenses, conserving con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: our cash and focusing our resources on efforts that will strengthen our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. position in the smart mobile devices market. The recent announcements of our relationships with market leaders such as Palm and QUALCOMM further confirm Insignia's position as a leading provider of Java technology-based software for the mobile market. As smartphones and other mobile devices containing Insignia's Mobile Foundation software come to market early next year, these outstanding wins are expected to begin to generate recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues." For the nine-month period ended September 30, 2002, Insignia reported revenues of $6.4 million, a 10% decrease from $7.1 million reported in the first nine months of 2001. Net loss for the first nine months of 2002 was $5.3 million, or a loss of $0.27 per share (including a tax benefit of $2.0 million, or $0.10 per share), versus a net loss of $8.9 million, or a loss of $0.46 per share, in the comparable period of 2001. Insignia Solutions will host a live webcast to discuss third quarter 2002 results today at 2:00 p.m. Pacific, 5:00 p.m. Eastern time. An archive of the webcast will be available for two weeks on the investor relations Investor relations The process by which the corporation communicates with its investors. portion of the company's website at http://www.insignia.com/content/investor/financial.shtml. Insignia Solutions Insignia Solutions is a 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 Jeode virtual machine technologies are licensed by such leading companies as BSQUARE, Compaq, Echelon, Fujitsu PC, Gemstar/TV Guide, Hand Held Products, Humax, Lineo, Motorola, NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , 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 , Olivetti, Philips Semiconductor, Phoenix Technologies, Quantum, Samsung, Sharp, Siemens AG Siemens AG German electrical-equipment manufacturer. The first Siemens company, Siemens & Halske, was founded in Berlin in 1847 to build telegraph installations. , Toshiba, 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 ), ViewSonic and Wind River Systems. 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. (c) Insignia, Insignia Solutions, the Insignia Solutions logo and the Jeode logo are registered trademarks and Jeode, 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 and DAC See D/A converter and discretionary access control. DAC - Digital to Analog Converter are trademarks of Insignia Solutions, Inc. 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. , Sun, Java, EmbeddedJava, PersonalJava, and J2ME (Java 2 Platform, Micro Edition) A version of Java 2 for cellphones, PDAs and consumer appliances. J2ME uses the K Virtual Machine (KVM), a specialized Java interpreter for devices with limited memory. are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. 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. This news release includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, the impact of conclusion or postponement of prospective licensing transactions; the impact of weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak en·er n. economic conditions or perceived
conditions on the level of spending by customers and prospective
customers on Insignia Solutions' software and services; financial
and other impacts of cost control measures; quarterly fluctuations in
Insignia Solutions' revenues or other operating results; failure by
Insignia Solutions to meet financial expectations of analysts and
investors, including failure resulting from significant reductions in
demand from earlier anticipated levels; risks that cash generated from
operations and financing activities will be insufficient to satisfy
Insignia Solutions' liquidity requirements; risk as related to
market acceptance of Insignia Solutions' products; impact of long
and lengthening lengthening (lengkˑ·the·ning),n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. sales and implementation cycles for Insignia Solutions' products; satisfaction levels of customers regarding the implementation and performance of Insignia Solutions' products; reliance by Insignia Solutions on a limited number of customers for a majority of revenue; Insignia Solutions' need to maintain and enhance business relationships with 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. , licensors and other parties; Insignia Solutions ability to attract and maintain qualified executives and other personnel and motivate employees; Insignia Solutions' use in its products of third-party software; activities by Insignia Solutions and others regarding protection of intellectual property; and release of competitive products and other actions by competitors. Further details on these risks are set forth in Insignia Solutions' filings with the Securities and Exchange Commission, including its most recent filings on Forms 10-K and 10-Q. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Forward-looking statements in this release are generally identified by words such as "expect," "anticipate," "will," "intend," "believe," "hope," "assume," "estimate," "plan," and other similar words and expressions. Insignia Solutions does not undertake an obligation to update forward-looking or other statements in this release.
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
Three months Nine months
ended ended
September 30, September 30,
----------------- -----------------
2002 2001 2002 2001
-------- -------- -------- --------
Net revenues:
License $ 736 $ 1,883 $ 5,271 $ 5,648
Service 277 485 1,178 1,494
-------- -------- -------- --------
Total net revenues 1,013 2,368 6,449 7,142
-------- -------- -------- --------
Cost of net revenues:
License 124 818 1,852 2,792
Service 100 80 549 349
-------- -------- -------- --------
Total cost of net revenues 224 898 2,401 3,141
-------- -------- -------- --------
Gross margin 789 1,470 4,048 4,001
-------- -------- -------- --------
Operating expenses:
Sales and marketing 1,262 1,791 4,475 5,337
Research and development 1,677 1,568 4,258 4,751
General and administrative 666 1,009 2,571 3,208
Restructuring 213 -- 213 --
-------- -------- -------- --------
Total operating expenses 3,818 4,368 11,517 13,296
-------- -------- -------- --------
Operating loss (3,029) (2,898) (7,469) (9,295)
Interest income, net 17 80 65 419
Other income, net 2 23 103 49
-------- -------- -------- --------
Loss before income taxes (3,010) (2,795) (7,301) (8,827)
Provision (benefit) for income
taxes (132) 3 (1,964) 63
-------- -------- -------- --------
Net loss $(2,878) $(2,798) $(5,337) $(8,890)
======== ======== ======== ========
Basic and diluted net loss per
share: $ (0.14) $ (0.14) $ (0.27) $ (0.46)
======== ======== ======== ========
Weighted average equivalent shares:
Basic and diluted 20,062 19,476 19,887 19,163
-------- -------- -------- --------
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands)
(unaudited)
September December
30, 31,
2002 2001
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 3,362 $ 8,643
Restricted cash 250 --
Accounts receivable, net of allowances
of $350 and $488, respectively 981 6,015
Tax receivable 546 --
Prepaid royalties 2,454 1,139
Prepaid and other current assets 1,006 1,269
--------- ---------
Total current assets 8,599 17,066
Property and equipment, net 259 352
Restricted cash -- 250
Other noncurrent assets 100 100
--------- ---------
$ 8,958 $ 17,768
========= =========
LIABILITIES,
MANDATORILY REDEEMABLE WARRANTS
AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 528 $ 1,011
Accrued liabilities 1,038 1,179
Deferred revenue 553 4,054
Accrued royalties -- --
Income taxes payable 187 189
--------- ---------
Total current liabilities 2,306 6,433
--------- ---------
Mandatorily redeemable warrants 1,440 1,440
--------- ---------
Shareholders' equity:
Ordinary shares 6,444 6,278
Additional paid-in capital 59,357 58,869
Accumulated deficit (60,128) (54,791)
Other accumulated comprehensive loss (461) (461)
--------- ---------
Total shareholders' equity 5,212 9,895
--------- ---------
$ 8,958 $ 17,768
========= =========
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