Voxware Announces Fiscal 2007 First Quarter Results.LAWRENCEVILLE, N.J. -- Voxware, Inc. (Nasdaq: VOXW), a leading supplier of voice-driven solutions for the logistics workforce, announced financial results for the quarter ended September 30, 2006. [TABLE OMITTED] Total revenues were $3,142,000, with a corresponding 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. equal to $1,314,000 in the quarter ended September 30, 2006. Approximately a year ago Voxware made the decision to transition from direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. of custom solutions that included proprietary hardware and software, to the sale through partners of productized, standards-based voice software that operates on open hardware platforms Each hardware platform, or CPU family, has a unique machine language. All software presented to the computer for execution must be in the binary coded machine language of that CPU. Following is a list of the major hardware platforms in existence today. See platform. . While we believe the market is reacting favorably to the flexibility and freedom of choice inherent to Voxware's voice technology, the Company's new business strategy requires a longer period than originally anticipated before revenue is realized. As part of its business transition, Voxware stopped manufacturing its own proprietary hardware, and instead has partnered with major mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings equipment manufacturers such as Symbol Technologies and LXE LXE Lightguide Express Entry (AT&T) , Inc. One implication of this strategy is that the portion of the Company's revenue associated with proprietary hardware sales will diminish over time as the Company transitions to a software-centric business model. At the same time, the Company is developing partnerships with key Value Added Resellers See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). and Warehouse Management System companies, in both 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 international markets, who are incorporating into their offerings Voxware's voice technology, most notably its newly introduced VoiceLogistics[R] Pro([TM]) product. We believe this initiative is proceeding well, and the first deliveries of solutions by partners to end customers have recently occurred. The more significant partnerships require Voxware and its partners to complete product integration efforts and secure customer acceptance of their initial deployments. It takes longer to generate significant revenues through these third party channels versus our selling directly to the end user. The revenue generated through third party distribution channels has not been sufficient to offset the decline in direct sales to end customers. The Company expects revenue to continue to lag while it focuses its resources on developing its channel partner business. The Company believes its major investors, who collectively hold approximately 60% of the Company's outstanding stock, support the Company's vision and the still nascent market opportunity for standards-based, productized voice software designed for the warehousing distribution environment. Voxware continues to experience a very positive reaction from both partners and end customers to its revolutionary VoiceLogistics Pro software and strategy for voice-enabling third party mobile computers. As a result, the Company increased its rate of spending on research and development and sales and marketing to further enhance VoiceLogistics Pro. Details of the Company's quarterly financial results are as follows: Revenues for the fiscal first quarter decreased to $3.1 million, down 9.8% from $3.5 million in the fourth quarter of 2006, and down $2.2 million from fiscal 2006 first quarter, both due to lower unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. through direct channels. Total 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. for the quarter were $2.8 million, down 50% from $5.6 million in the fourth quarter of 2006, and down 4% from $2.9 million in the first quarter of 2006. The decrease in operating expenses over the fourth quarter of 2006 was due primarily to accelerated vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: on June 30, 2006 of all outstanding options to purchase shares of our Common Stock held by our employees, which lowered deferred compensation charges by approximately $0.4 million. After excluding the deferred compensation charges in the prior year's quarter, the resultant increase in operating expenses is attributable primarily to an overall increase of 17% in spending in R&D and Sales & Marketing over the same quarter a year ago, associated with developing a new product line, VoiceLogistics Pro, and development of a partner-led sales channel. The Company presently expects to continue this increased level of spending to take advantage of the use of voice in the logistics market. Net loss applicable to common stockholders for the first quarter fiscal 2007 increased to $1.3 million or $0.21 per diluted share, compared to $0.1 million or $0.03 per diluted share in the first quarter of 2006. About Voxware Voxware, Inc. (Nasdaq: VOXW) provides voice-driven logistics solutions that optimize the full spectrum of warehouse operations for greater accuracy, productivity and flexibility in supply chain execution. Voxware's corporate headquarters are in Lawrenceville, New Jersey Lawrenceville is a census-designated place and unincorporated area located within Lawrence Township in Mercer County, New Jersey. As of the United States 2000 Census, the CDP population was 4,081. Lawrenceville is located roughly halfway between Princeton and Trenton. , with operating offices in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , the United Kingdom and France. Additional information about Voxware can be obtained at http://www.voxware.com. This news release contains 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. . Such statements are subject to certain factors that may cause Voxware's plans to differ or results to vary from those expected including the risks associated with Voxware's need to introduce new and enhanced products and services in order to increase market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and the risk of obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of its products and services due to technological change; Voxware's need to attract and retain key management and other personnel with experience in providing integrated voice-based solutions for e-logistics, specializing in the supply chain sector; the potential for substantial fluctuations in Voxware's results of operations; competition from others; Voxware's evolving distribution strategy and dependence on its distribution channels; the potential that speech products will not be widely accepted; Voxware's need for additional capital; and a variety of risks set forth from time to time in Voxware's filings with the Securities and Exchange Commission. Voxware undertakes no obligation to publicly release results of any of these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. Please visit our website at www.voxware.com for additional disclosures and further information [TABLE OMITTED] Financial statements should be read in conjunction with the Notes to Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge contained in Forms 10-KSB, 10-QSB and 10-QSB/A. [TABLE OMITTED] Financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Forms 10-KSB, 10-QSB and 10-QSB/A. |
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