SpeechWorks International Announces Revenues of $11.4 Million for First Quarter 2001; 124% Increase Over First Quarter 2000.Business Editors BOSTON--(BUSINESS WIRE)--April 24, 2001 SpeechWorks
SpeechWorks was a company founded in the late 1990s in Boston that developed and supported speech-related computer software. International, Inc. (Nasdaq: SPWX SPWX Speechworks (stock symbol) ), a leader in the speech technology industry, today reported total revenues, excluding non-cash stock compensation charges, of $11.4 million for the three months ended March 31, 2001, representing a 124% increase over revenues of $5.1 million in the same period in 2000. Product license revenues for the first quarter 2001 increased 134% from the same period last year to $6.1 million, while professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues increased 102% from the first quarter of last year to $4.4 million. For the three months ended March 31, 2001, the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss, excluding non-cash stock compensation charges and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , was $6.1 million, or $0.19 per share on a pro forma basis, compared to $5.7 million, or $0.29 per share on a pro forma basis, for the three months ended March 31, 2000. "We were pleased to deliver solid revenue growth along with bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. results in line with original expectations," stated Stuart R. Patterson Patterson, family of American journalists. Robert Wilson Patterson, 1850–1910, b. Chicago, grad. Williams, 1871, became (1871) a reporter on the Chicago Times and after 1873 was attached to the Chicago Tribune. , Chief Executive Officer of SpeechWorks. "In an uncertain economic environment, companies are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. solutions to improve customer service and reduce costs. SpeechWorks' solutions do exactly that, and our performance in the first quarter reflects the growing recognition of the value our speech-activated solutions and services provide. A good example is AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from , which recently deployed one of our systems and has already reduced the average speed of answering flight information calls to just under two seconds. Their customer service representatives are now free to assist customers with revenue-generating reservations and more complex questions, resulting in less hold-time in the reservations queue Pronounced "Q." A temporary holding place for data. See queuing, message queue and print queue. (programming) queue - A first-in first-out data structure used to sequence objects. Objects are added to the tail of the queue ("enqueued") and taken off the head ("dequeued"). which can be very costly. These metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. show the powerful impact of speech for companies and their callers." Expanding Customer Base SpeechWorks continued to add new customers and projects in the first quarter including Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. in the technology sector, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Credit Lyonnais, Travelers Insurance and Hyundai Securities in the financial sector, E-Plus in the communications sector, Union Pacific Railroad Union Pacific Railroad, transportation company chartered (1862) by Congress to build part of the nation's first transcontinental railroad line. Under terms of the Pacific Railroads Act, the Union Pacific was authorized to build a line westward from Omaha, Nebr. in the transportation sector, Imperial Home Decor Group in the retail sector, Dialogic di·a·log·ic also di·a·log·i·cal adj. Of, relating to, or written in dialogue. di  a·log Communications Corporation in the home
entertainment industry and University of Texas Southwestern Medical
Center in the healthcare sector. In the first quarter, the Company
expanded into the government sector with the launch of its Government
Systems Group and is working on customer facing systems for the Internal
Revenue Service and the State of Washington Department of Revenue.
The Company continued to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. its relationships with existing customers as companies such as United Airlines and WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. returned to SpeechWorks to increase the capabilities of their systems. Growing Partner Channel SpeechWorks channel partners play a key role in the Company's ability to meet the increasing demand for speech recognition and text-to-speech products and services. During the first quarter, the Company significantly expanded its network of channel partners around the world, signing several reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. and distribution agreements with leading providers of communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. including Call Sciences, FlashSpot Networks, MasterMind Technologies, ON24, VocalPoint, VoiceGenie and Webversa, among others. Increasing International Investment Over the past three months, the Company has increased its presence in international markets, adding three seasoned executives to its international management team and opening offices in Korea and Japan. For the first quarter of 2001, international revenues accounted for 9% of total revenues, excluding non-cash stock compensation charges, down from 14% in the year-earlier period. Expanding SpeechWorks Technology Solutions SpeechWorks announced work on user interface solutions with companies such as Compaq, to provide multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting access to content on wireless devices, which allows callers to speak input and see output displayed on mobile device screens. The resulting work uses SpeechWorks speech recognition and text-to-speech technologies and was cited as one of the most exciting technologies at the CTIA (1) See CompTIA. (2) (Cellular Telecommunications & Internet Association, Washington, DC, www.ctia.org, www.wow-com.com) A membership organization founded in 1984 that is involved with regulatory and public affairs issues in the wireless industry. Wireless 2001 show. In recognition of SpeechWorks' technical advances, the Defense Advanced Research Projects Agency Defense Advanced Research Projects Agency (DARPA), U.S. government agency administered by the Department of Defense (see Defense, United States Department of). of the U.S. Federal Government (DARPA DARPA: see Defense Advanced Research Projects Agency. (Defense Advanced Research Projects Agency) The name given to the U.S. Advanced Research Projects Agency during the 1980s. It was later renamed back to ARPA. ) awarded the Company a grant to conduct this research on multimodal interfaces. During the quarter, SpeechWorks also made considerable progress with its initiative to help companies become part of an open, interconnected web of speech services, announcing the availability of its open source VoiceXML Interpreter A high-level programming language translator that translates and runs the program at the same time. It translates one program statement into machine language, executes it, and then proceeds to the next statement. , known as Open VXI (VME EXtensions for Instrumentation) A peripheral bus specialized for data acquisition and real time control systems. Introduced in 1987, VXI uses all Eurocard form factors and adds trigger lines, a local bus and other functions suited for measurement applications. , and its speech links technology. The Company is currently in beta trials of its VoiceXML-based speech browser browser Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used that will allow speech applications to access VoiceXML-enabled web content. SpeechWorks also announced an expanded partnership with VoiceGenie that will result in the SpeechGenie(TM) solution, providing 100% compliance to VoiceXML 1.0. In addition, SpeechWorks enhanced its Speechify speech·i·fy intr.v. speech·i·fied, speech·i·fy·ing, speech·i·fies To give a speech: "In Washington, cabinet secretaries pose and speechify" Jonathan Alter. (TM) text-to-speech solution with a male voice, e-mail preprocessing A preliminary processing of data in order to prepare it for the primary processing or for further analysis. The term can be applied to any first or preparatory processing stage when there are several steps required to prepare data for the user. capabilities and 50% more efficiency. Patterson concluded, "Over the past quarter, we signed-on a number of exciting new customers and partners, increased our international presence, and advanced our technology offerings. The market is beginning to understand the value proposition of speech technology and organizations around the world are realizing that SpeechWorks is the innovative and reliable partner for these solutions." Detailed Q1 Financial Results Product license revenues for the first quarter of 2001 grew 134% to $6.1 million from $2.6 million for the same period last year, and represented 53% of total first quarter 2001 revenues excluding non-cash stock compensation charges, compared to 51% in the first quarter of last year. Professional services revenues for the first quarter of 2001 increased 102% to $4.4 million, from $2.2 million in the first quarter of last year, and represented 38% of total first quarter 2001 revenues excluding non-cash stock compensation charges, compared to 42% in the same period last year. Other revenues, which include the resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of hardware products and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services, increased to $1.0 million in the first quarter of 2001, from $0.3 million in the first quarter of 2000 as we recognized hardware sales upon the completion of several existing projects. Other revenues represented 8% of total revenues excluding non-cash stock compensation charges in the first quarter of 2001, up from 6% in the first quarter of 2000. For the three months ended March 31, 2001, the pro forma net loss, excluding non-cash stock compensation charges and amortization of intangible assets, was $6.1 million, or $0.19 per share on a pro forma basis, compared to $5.7 million, or $0.29 per share on a pro forma basis, for the three months ended March 31, 2000. The net loss attributable to common stockholders for the first quarter of 2001 was $10.1 million, or $0.32 per share, compared to a net loss of $6.7 million, or $1.19 per share, for the first quarter of 2000. Industry Awards In the first quarter, the Company received three prominent awards for its speech technologies from industry magazines. Communications Solutions and Customer Inter@ction Solutions selected SpeechWorks(R) 6.5 and Speechify as Product of the Year Award winners. In recognition of SpeechWorks' ability to help government agencies serve citizens better and faster by increasing access to information, Government Computer News declared the Company's solutions the Best New Technology in the Enterprise Software category. Conference Call on Tuesday, April 24th at 5:00 p.m. Eastern SpeechWorks' management will conduct a conference call this afternoon at 5:00 p.m. Eastern Time to discuss its first quarter 2001 results. Investors and interested parties may listen to the call via a live webcast accessible on the investor relations Investor relations The process by which the corporation communicates with its investors. page of the Company's Web site, http://www.speechworks.com . To listen, please register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. audio software at the site at least 15 minutes prior. The webcast will be available on the site for approximately 14 days, while a telephone replay of the call is available for 7 days beginning at 7:00 p.m. Eastern Time, April 24, at 1.800.633.8284 or 1.858.812.6440, reservation # 18354595. About SpeechWorks International, Inc. Organizations worldwide rely on SpeechWorks (Nasdaq: SPWX) to delight their callers and provide them with a new level of service over the phone. Complementing the self-service model of e-business, SpeechWorks speech solutions, including the revolutionary SpeechSite(TM) product, SpeechSecure(TM) authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. module and Speechify(TM) text-to-speech engine, let customers direct their calls, obtain information and complete transactions automatically, simply by speaking naturally over any phone, anytime. SpeechWorks customers include some of the world's most sophisticated customer service innovators innovators people who will try new things. early innovators important figures in the farming or client community because they are the leaders in the introduction of new techniques and management systems. such as America Online See AOL. , Continental Airlines, E*Trade, Microsoft and Thrifty thrifty said of livestock that put on body weight or produce in other ways with a minimum of feed. The opposite of illthrift. Car Rental. The Company offers the SpeechWorks Here Guarantee, the industry's only program that includes a money-back guarantee. SpeechWorks strategic partners include leading corporations such as AT&T, Avaya, Dialogic, an Intel company, InterVoice-Brite and Net2Phone. SpeechWorks is headquartered in Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New and has offices around the world. To experience the power of SpeechWorks, call 888.SAY.DEMO. For additional information, call 617.428.4444 or visit http://www.speechworks.com. Join Global Speech Day, the first-of-its-kind free Web event about speech recognition technology on May 2, 2001. Information and registration are available at http://www.globalspeechday.com . SpeechWorks, SpeechSite, Speechify, SpeechSecure and SpeechWorks Here are either trademarks or registered trademarks of SpeechWorks International, Inc. 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 other countries. All other trademarks are the property of their respective owners. Other than historical information contained herein, certain statements in this release are "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. " within the meaning of 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 based on management's current expectations. Factors that could cause future results to differ materially from such expectations include: the timing of sales of the Company's products and services; market acceptance of the Company's speech-activated systems; the Company's reliance on a limited number of large orders for substantially all its revenue; uncertainties related to current economic conditions; the Company's ability to develop new products and services in the face of rapidly evolving technology; the uncertainties related to the Company's planned international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; the Company's ability to manage growth of its business; the Company's ability to protect its intellectual property; the Company's reliance on resellers and original equipment manufactures for a portion of its sales; the Company's ability to respond to competitive developments; and the Company's reliance on attracting, retaining and motivating key technical and management personnel. These and other risk factors are detailed in the Company's filings with the Securities and Exchange Commission.
SPEECHWORKS INTERNATIONAL, INC.
Consolidated Statement of Operations
Three months ended
(unaudited; in thousands, March 31,
except per share amounts) 2001 2000
---- ----
Revenues:
Product licences $ 6,092 $ 2,607
Professional services 4,368 2,158
Other revenues 952 322
Non-cash stock compensation (312) -
--------- ---------
Total revenues 11,100 5,087
--------- ---------
Cost of revenues:
Cost of product licenses 54 45
Cost of professional services
- non-cash stock compensation 154 93
- all other expenses 2,935 1,694
Cost of other revenues 751 150
Amortization of purchased technology 283 -
--------- ---------
Total cost of revenues 4,177 1,982
--------- ---------
Gross profit 6,923 3,105
--------- ---------
Operating expenses:
Selling and marketing
- non-cash stock compensation 1,353 193
- all other expenses 6,313 3,794
Research and development
- non-cash stock compensation 140 72
- all other expenses 3,352 1,810
General and administrative
- non-cash stock compensation 106 35
- all other expenses 5,543 3,308
Amortization of intangible assets 1,627 -
--------- ---------
Total operating expenses 18,434 9,212
--------- ---------
Loss from operations (11,511) (6,107)
Interest and other income net 1,459 8
--------- ---------
Net loss before income taxes (10,052) (6,099)
Provision for income taxes 26 -
--------- ---------
Net loss (10,078) (6,099)
Accretion and deemed dividends on
redeemable convertible preferred stock - (600)
--------- ---------
Net loss attributable to
common stockholders $ (10,078) $ (6,699)
========= =========
Basic and diluted net loss
per common share $ (0.32) $ (1.19)
Shares used in computing
basic and diluted
net loss per common share 31,408 5,644
SPEECHWORKS INTERNATIONAL, INC.
Consolidated Statement of Operations (continued)
Three months ended
(unaudited; in thousands, March 31,
except per share amounts) 2001 2000
---- ----
Pro forma Data: (1)
Net loss attributable to
common stockholders $ (10,078) $ (6,699)
Amortization of intangible assets 1,627 -
Amortization of purchased technology 283 -
Non-cash stock compensation 2,065 393
Accretion and deemed dividends on
redeemable convertible preferred stock - 600
--------- ---------
Pro forma net loss $ (6,103) $ (5,706)
========= =========
Pro forma basic and diluted net loss
per common share $ (0.19) $ (0.29)
Shares used in computing pro forma
basic and diluted net loss
per common share 31,408 19,515
(1) The pro forma net loss per common share is calculated assuming
that the automatic conversion of all of the outstanding
redeemable convertible preferred stock into common stock had
occurred as of the beginning of the period presented or as of
the date of issuance of the preferred stock, if later.
Additionally, the pro forma data excludes the listed non-cash
expenses. This does not purport to be prepared in compliance
with Generally Accepted Accounting Principles.
SPEECHWORKS INTERNATIONAL, INC.
Consolidated Balance Sheet
March 31, December 31,
(unaudited; in thousands) 2001 2000
---- ----
Assets
Current assets:
Cash and cash equivalents $ 85,831 $ 99,203
Marketable securities 12,256 14,370
Accounts receivable, net 13,722 12,502
Other current assets 2,496 2,488
--------- ---------
Total current assets 114,305 128,563
Fixed assets, net 5,885 5,337
Intangible assets, net 26,705 9,581
Other assets 982 893
--------- ---------
Total assets $ 147,877 $ 144,374
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 5,683 $ 8,270
Deferred revenue 4,027 3,873
Current portion of long term debt 500 500
--------- ---------
Total current liabilities 10,210 12,643
Long term debt, net of current portion 167 292
Stockholders' equity 137,500 131,439
--------- ---------
Total liabilities and
stockholders' equity $ 147,877 $ 144,374
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion