Voxware Reports Restated Results for Fiscal 2003 Fourth Quarter and Full Year; Strong Revenues and Sales Momentum Contribute to Record Performance.Business Editors/High-Tech Writers PRINCETON Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. , N.J.--(BUSINESS WIRE)--Oct. 24, 2003 Voxware, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : VOXW), a leading supplier of voice-based solutions for the logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. workforce, has restated its fourth quarter and audited year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. financial results for fiscal year 2003. For the fiscal year ended June June: see month. 30, 2003, total revenue remained unchanged at $8.6 million, an increase of 91% over $4.5 million for the previous year ended June 30, 2002. Total revenue for the quarter was $2.4 million, compared to $1.4 million in the prior year quarter. In the fiscal year ended June 30, 2003, 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. of $1.5 million remained unchanged, a 63% improvement from $4.1 million for the previous year. As restated, the Company reported net loss of $1.6 million for the fiscal year ended June 30, 2003, including a net gain of $447,000 on the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of certain liabilities. As previously reported, the Company reported net income of $1.1 million for the fiscal year ended June 30, 2003, including a net gain of $3.1 million on the extinguishment of certain liabilities. The restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. was made to properly record the extinguishment of the Series B and Series C Mandatorily Adv. 1. mandatorily - in a manner that cannot be evaded; "the ministry considers that contributions to such a fund should be met from voluntary donations rather than from rates compulsorily levied." compulsorily, obligatorily Redeemable Redeemable Eligible for redemption under the terms of an indenture. Stock applied directly to additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements . As previously reported, this benefit was included as part of the net gain on extinguishment of certain liabilities, and included as a component of net income (loss) that was applied through accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. deficit. In the prior year, Voxware reported a net loss of $4.0 million. Net loss applicable to common stockholders remained unchanged for the fiscal year ended June 30, 2003 and June 30, 2002 was $6.8 million and $5.9 million, respectively. Voxware's corporate headquarters are in Princeton, New Jersey
Princeton, New Jersey is located in Mercer County, New Jersey, United States. Princeton University has been sited in the town since 1756. , 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. and Brugge Brugge: see Bruges, Belgium. Brugge or Bruges City (pop., 2000 est.: 116,200), northwestern Belgium. First mentioned in 7th-century records, it was the site of a castle built in the 9th century by the first counts of Flanders against , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. . Additional information about Voxware can be obtained on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unexpected results. (Tables to follow)
Voxware, Inc. and Subsidiaries
Consolidated Statements of Operations
Year Ended June 30,
------------------------------
(Restated)
----------- -------- ---------
2003 2002 2001
------- ------- --------
(In thousands, except per
share data)
Revenues:
Product revenues:
Product sales $ 4,328 $ 2,994 $ 1,020
License fees 2,350 389 336
Royalties and maintenance revenues 643 233 387
------- ------- --------
Total product revenues 7,321 3,616 1,743
Service revenues 1,285 885 302
------- ------- --------
Total revenues 8,606 4,501 2,045
------- ------- --------
Cost of revenues:
Cost of product revenues 3,528 1,997 1,185
Cost of service revenues 597 420 348
------- ------- --------
Total cost of revenues 4,125 2,417 1,533
------- ------- --------
Gross profit 4,481 2,084 512
------- ------- --------
Operating expenses:
Research and development 2,079 1,728 3,317
Sales and marketing 1,310 1,166 3,263
General and administrative 1,787 1,946 2,647
Amortization of purchased
intangibles 774 1,298 4,099
Asset impairment charge - - 4,902
------- ------- --------
Total operating expenses 5,950 6,138 18,228
------- ------- --------
Operating loss (1,469) (4,054) (17,716)
Interest expense (239) - -
Other income, net 38 11 234
Adjustment of warrants to fair
value - 23 784
Gain on sale of tax loss
carryforwards 18 27 279
Gain on sale of assets - - 750
Equity loss in investee prior to
acquisition (366) - -
Net gain on extinguishment of
certain liabilities 447 - -
------- ------- --------
Net loss (1,571) (3,993) (15,669)
Accretion of preferred stock and
warrants to redemption value (934) (1,842) (652)
Amortization of beneficial
conversion features on
mandatorily redeemable preferred
stock to redemption value (115) (82) (2,913)
Beneficial conversion feature-
Series D convertible preferred
stock (6,845) - -
Benefit from extinguishment of
mandatorily redeemable preferred
stock 2,642 - -
Dividends--Series D convertible
preferred stock (4) - -
------- ------- --------
Net loss applicable to common
stockholders $(6,827) $(5,917) $(19,234)
======= ======= ========
Net loss per share applicable to
common stockholders - basic and
diluted $ (0.28) $ (0.32) $ (1.32)
======= ======= ========
Weighted average number of shares
used in computing net loss per
common share - basic and diluted 24,399 18,575 14,517
======= ======= ========
(Table to Follow)
Voxware, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30,
-------------------
(Restated)
---------- --------
2003 2002
-------- --------
(In thousands,
except share data)
ASSETS
Current assets:
Cash and cash equivalents $ 356 $ 6
Cash held in attorney's escrow account 3,891 -
Accounts receivable, net of allowance for
doubtful accounts of $73,000 and $94,000 at June
30, 2003 and 2002, respectively 2,539 1,315
Inventory, net 815 678
Prepaid expenses and other current assets 267 82
-------- --------
Total current assets 7,868 2,081
Property and equipment, net 187 297
Goodwill 1,039 -
Intangible assets, net - 769
Other assets, net 34 44
-------- --------
$ 9,128 $ 3,191
======== ========
LIABILITIES, MANDATORILY REDEEMABLE
CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt $ 28 $ -
Accounts payable and accrued expenses 3,747 2,021
Deferred revenues 616 387
-------- --------
Total current liabilities 4,391 2,408
Long-term debt, net of current maturities 38 -
Series B mandatorily redeemable convertible
preferred stock (liquidation value $2,894
at June 30, 2002) - 2,900
Series C mandatorily redeemable convertible
preferred stock (liquidation value $1,839
at June 30, 2002) - 1,442
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock, $.001 par value, 865,000,000
shares and 10,000,000 shares authorized
as of June 30, 2003 and 2002, respectively:
7% cumulative Series D convertible preferred stock
($7,283 aggregate liquidation preference);
485,267,267 shares issued and outstanding at June
30, 2003 485 -
Series B convertible preferred stock; 1,766.619
shares issued and outstanding at June 30, 2003 - -
Common stock, $.001 par value, 1,035,000,000
shares and 180,000,000 shares authorized as of
June 30, 2003 and 2002, respectively; 28,210,919
and 21,573,860 shares issued and outstanding as
of June 30, 2003 and 2002, respectively 28 21
Additional paid-in capital 64,754 44,296
Accumulated deficit (57,346) (47,876)
Deferred employee compensation (3,220) -
Accumulated other comprehensive loss (2) -
-------- --------
Total stockholders' equity (deficit) 4,699 (3,559)
-------- --------
$ 9,128 $ 3,191
======== ========
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