Timeline Reports Fiscal 2002 Results.Business Editors Timeline
Timeline may refer to:
See OTC Bulletin Board (OTCBB). :TMLN TMLN Timeline, Inc. (stock symbol) ) today reported fiscal 2002 operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. improved due to increased contributions from our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations and software licensing of WorkWise products. Operating revenue excluding patent licenses increased 12% to $3.3 million with software licensing up 9%, maintenance up 26% and consulting and other fees increasing 9% in fiscal 2002. Results of operations for fiscal 2002 are not directly comparable to prior periods due to the fiscal 2001 acquisitions of Analyst Financials on June June: see month. 30, 2000 and WorkWise on December December: see month. 4, 2000. Both acquisitions were accounted for under the purchase method of accounting. Total revenues including patent licenses decreased 3% to $4.8 million in FY02, compared to $5.0 million in FY01, reflecting lower patent licensing income. Timeline reported a net loss of $2.3 million or $.57 per share in FY02 compared to a loss of $1.9 million or $.47 per share a year ago. Losses on marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities and higher amortization and depreciation expenses offset the steep cuts in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. the company implemented during the year. Results in fiscal 2002 reflect losses on marketable equity securities of $578,000, and the amortization of purchased intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , software and goodwill associated with prior acquisitions amounting to $613,000. "We are continuing to charge earnings with the 3-year amortization of the 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. acquired in fiscal 2001," stated Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Osenbaugh, President and 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. . "Under this method certain charges will continue to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. through the second quarter of fiscal 2004, while others will cease amortizing. Amortization is the single largest expense outside of payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. ." Operating losses 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. were $867,000 when amortization of intangible assets and goodwill, amortization of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software and depreciation of property and equipment in the amount of $863,000 are excluded. "In these troubled economic times we tend to judge our efforts by net cash used in operations which was only $623,000 for the fiscal year," said Osenbaugh. "Obviously, we are not content with any negative cash flow, particularly as our new auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have informed us that they will include a 'going concern' modification in their audit opinion, given our working capital position and 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. operating losses. We are continuing to openly pursue a variety of alternatives to improve our operations and our balance sheet. Nevertheless, cash used in operations shows a marked improvement over the prior year, which used $3.6 million in operations." "This improvement in cash flow demonstrates that operations were enhanced by the businesses acquired in fiscal 2001. While we continued to subsidize sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. these operations in diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. amounts during the first three quarters of the year, we worked throughout to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. operations, thereby reducing head-count, while maintaining relatively stable revenue. With these divisions on their feet, the focus to achieve sustainable profits intensifies on U.S. operations, including the continued commercialization of Timeline's patent portfolio," Osenbaugh continued. "While the European economy is slowly returning to health, the overall enterprise software market remains deeply depressed, and has stymied our recovery. Despite positive trends noted above in the core software business, we have been aggressively cutting costs throughout the year and will continue to cut costs until our revenues can support our operations," said Osenbaugh. Fiscal 2002 Important Events -- Won appeal of contract dispute with Microsoft (Nasdaq: MSFT). "While the legal victory did not entail any direct monetary awards, it was a significant advance in protecting and further establishing our patent technology. We believe the value of our proprietary technology in the data management market continues to be very strong," said Osenbaugh. -- Signed patent license with Lawson Software (Nasdaq: LWSN) for $450,000. -- Signed patent license with Oracle Software (Nasdaq: ORCL) for $1.1 million. -- Entered into OEM and/or partnership agreements with -- Blue Link Associates -- Sage Enterprise Solutions Limited -- ACCPAC International, Inc., a subsidiary of Computer Associates (NYSE:CA) -- Digital Solutions, Inc. -- Deltek Systems, Inc. (Nasdaq: DLTK) -- SIMS (Systems Implementation & Management Specialists) of the UK -- Released New Versions of Data Agent Server(TM)and Business Alerts(TM) by WorkWise(R). -- Reduced operating costs by 19% in the fourth quarter and 10% for the year. -- Improved marketing initiatives to successfully cross-sell Timeline, Analyst Financial and WorkWise products to combined customer base. About Timeline Timeline develops, markets and supports proven, 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. Windows-based financial management reporting software The following is a list of notable reporting software. Commercial software
tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: 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 and Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. Business Partners. WorkWise Distribution Partners include Best Software (formerly known as Sage Software), Deltek Deltek® enables people to win, plan and manage projects that drive outstanding business results. Deltek is the leading provider of enterprise applications software designed specifically for project-focused businesses. Systems, Ascentis Software, Select Systems and Reseller Resources. For more information on WorkWise Software, Inc., visit its website at www.workwise.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under 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: Statements in this news release looking forward in time involve risks and uncertainties, including the ability to increase working capital through additional financing and cost reductions, the ability of third party partners to generate sales, the ability to reach definitive agreements in negotiations with third-parties to market or license Timeline's technology, acceptance of new products introduced by alliance partners, risks associated with 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. , corporate spending patterns, the outcome of pending litigations and the cost related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , and other risk factors detailed in the Company's Securities and Exchange Commission filings.
CONSOLIDATED BALANCE SHEET
Unaudited
($ in 000's)
ASSETS
2002 2001
------- -------
CURRENT ASSETS:
Cash and cash equivalents $ 83 $ -
Marketable securities - trading - 29
Marketable securities - available for sale 203 1,069
Securities held for others - 26
Accounts receivable net of allowance of
$61,827 and $4,902 636 773
Prepaid expenses and other 143 167
------- -------
Total current assets 1,065 2,064
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $772,873 and $871,576 120 168
CAPITALIZED SOFTWARE, net of accumulated
amortization of $435,755 and $256,789 208 429
CAPITALIZED PATENTS, net of accumulated
amortization of $26,056 and $15,069 187 157
GOODWILL AND INTANGIBLE ASSETS, net of
accumulated amortization of
$920,783 and $380,983 817 1,394
------- -------
Total assets $ 2,397 $ 4,212
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 474 $ 441
Accrued expenses 470 520
Deferred revenues 570 533
------- -------
Total current liabilities 1,514 1,494
------- -------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value,
20,000,000 shares authorized, 4,153,498 and
4,038,498 issued and outstanding 42 40
Additional paid-in capital 10,448 10,425
Accumulated other comprehensive income (loss) 17 (410)
Accumulated deficit (9,624) (7,337)
-------- --------
Total stockholders' equity 883 2,718
------- -------
Total liabilities and stockholders' equity $ 2,397 $ 4,212
======= =======
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
($ in 000's)
Fourth Quarter Ended Year Ended
-------------------- --------------------
2002 2001 2002 2001
--------- --------- --------- ---------
REVENUE
Software license $ 357 $ 312 $ 1,605 $ 1,466
Other license - - 1,550 2,025
Software development - 7 5 45
Maintenance 244 207 923 734
Consulting and other 195 188 742 680
--------- --------- --------- ---------
Total revenues 796 714 4,825 4,951
COST OF REVENUES 200 197 857 1,085
--------- --------- --------- ---------
Gross profit 596 517 3,968 3,866
--------- --------- --------- ---------
OPERATING EXPENSES:
Sales and marketing 247 376 1,251 1,336
General and
administrative 511 545 2,301 2,624
Research and
development 388 495 1,480 1,605
Depreciation 25 44 53 161
Amortization of
intangibles and goodwill 188 228 613 343
--------- --------- --------- ---------
Total operating expenses 1,359 1,688 5,698 6,070
Loss from operations (763) (1,171) (1,730) (2,204)
---------- --------- -------- -------
OTHER INCOME (EXPENSE):
Realized (loss) gain on
marketable equity
securities (24) (68) (298) 355
Impairment of available
for sale securities (279) - (279) -
Other 15 (8) 20 (37)
--------- ---------- --------- ---------
Total other
(expense) income (288) (76) (557) 318
---------- --------- --------- ---------
Loss before income
taxes (1,051) (1,247) (2,287) (1,886)
Income tax provision - - - -
---------- ---------- -------- --------
Net loss $ (1,051) $ (1,247) $ (2,287) $ (1,886)
========== ========== ========== ==========
Basic and diluted net
loss per share $ (0.26) $ (0.31) $ (0.57) $ (0.48)
========== ========== ========== ==========
Shares used in
calculation of net loss
per share 4,052,248 4,043,498 4,044,080 3,900,400
========= ========= ========= =========
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
($ in 000's)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (2,287) $ (1,886)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 863 701
Loss (gain) on disposal of property and
equipment 2 (19)
Stock-based compensation 39 -
Realized loss (gain) on sale of
marketable equity securities 298 (355)
Impairment of available for sale securities 279 -
Marketable equity securities received as
consideration - (1,425)
Changes in operating assets and liabilities,
net of businesses acquired:
Accounts receivable 141 56
Prepaid expenses and other 25 (95)
Accounts payable 29 (669)
Accrued expenses and other (50) (82)
Deferred revenues 38 156
Other noncurrent assets - 26
------- -------
Net cash used in operating activities (623) (3,593)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired in acquisitions - 29
Purchase of property and equipment (8) (29)
Proceeds from sale of property and equipment 1 22
Investment in capitalized software and
patents (41) (240)
Purchase of short-term investments - (1,017)
Proceeds from sale of short-term investments 745 3,360
Issuance of note receivable - (1)
------- -------
Net cash provided by investing activities 697 2,124
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable to
related parties 172,580 -
Repayment of notes payable to related
parties (172,580) -
Payments on capital lease obligations - (4)
Sales of common stock and exercise of
stock options - 11
Other (14) -
-------- -------
Net cash (used in) provided by
financing activities (14) 7
-------- -------
EFFECT OF FOREIGN EXCHANGE RATE FLUCTUATIONS 23 (9)
NET CHANGE IN CASH AND CASH EQUIVALENTS 83 (1,471)
CASH AND CASH EQUIVALENTS, beginning of period - 1,471
--------- ---------
CASH AND CASH EQUIVALENTS, end of period $ 83 $ -
========= ==========
SUPPLEMENTAL CASH AND NONCASH DISCLOSURES:
Cash paid for interest $ 33 $ 16
Non-cash transactions:
Equity consideration issued for
acquisitions - 1,295
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