Berkeley Technology Limited
Preliminary Financial Results
For the Year Ended
December 31, 2005
London, March 28, 2006 - Berkeley Technology Limited (OTCBB: BKLYY.PK, London:
BEK.L) (the "Company") is an international venture capital and consulting firm, primarily in the telecommunications and medical industries. The Company currently represents four Silicon Valley telecommunications equipment companies in dealing with large incumbent European and Japanese telecommunications companies. Its objective is to use consulting revenues to finance the development of large telecommunications company relationships, which will eventually lead to equity based transactions, with fees or direct investment opportunities for the Company. There is also the possibility of new venture funds raised in partnership with international sources of capital leading to management fees and carried interests.
Progress has been made in reducing the cash burn rate of the Company. Consulting fees and net interest income are approaching a total of $1.2 million on an annual basis. Longstanding key employees continue to serve as do the three eminent independent directors on a board of four people, including Mr. Arthur Trueger, the Executive Chairman.
The intention is to continue operating the Company to maximize shareholder value. We are an operating company and intend to generate value through our successful efforts over time.
The Company today reported financial results for the year ended December 31, 2005. The Company's consolidated net loss, computed in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), for the year ended December 31, 2005, was $3.2 million, or $0.06 per diluted share and $0.64 per diluted ADR, compared with a net loss of $12.1 million, or $0.24 per diluted share and $2.39 per diluted ADR, for the year ended December 31, 2004. No dividends will be paid on the outstanding shares and ADRs for 2005.
A decline in expenses of $0.3 million and higher net investment income (after amounts credited to insurance policyholder accounts) of $0.5 million contributed toward the lower net loss for 2005. The impact of stock market volatility on the Company's results has been negligible following the sale of most of its common stock holdings during 2004 and early in 2005. Net realized and unrealized investment losses totaled $26,000 in 2005, compared to net realized and unrealized investment losses of $7.7 million in 2004. The Company's Jersey, Channel Islands based insurance company, London Pacific Assurance Limited ("LPAL"), continued to serve its policyholders; however, no new policies are currently being sold. Policyholder liabilities for LPAL fell during 2005 by $7.7 million to $13.6 million primarily due to maturing policies. As of December 31, 2005, LPAL's corporate bonds, cash and accrued interest totaled $23.7 million. |
