Viador Announces Second Quarter Results and $4 Million Funding
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SUNNYVALE, Calif., Aug. 14 /PRNewswire/ -- Viador Inc.(TM) (Nasdaq: VIAD - news), a leading enterprise information portal company, today announced financial results for its second quarter ended June 30, 2001. In recent separate releases, Viador also announced it has received $4 million from new investors and announced changes in its management team.
Revenue for the second quarter of 2001 was $2.7 million compared to $3.6 million during the first quarter of 2001. Revenue was driven by new government and international business, OEM business, and additional business from existing customers.
Net loss per share for the second quarter, excluding ``non-cash charges,'' was $0.33, an 8 percent improvement over net loss per share of $0.36 in the prior quarter. Net loss per share for the second quarter, including ``non-cash charges,'' was $0.76. During the corresponding quarter a year ago, the net loss excluding and including ``non-cash charges'' was $0.29 per share and $0.32 per share, respectively. ``Non-cash charges'' of $7.7 million for the second quarter consist of restructuring expense, impairment loss, amortization of stock-based compensation, amortization of goodwill, and one time write-offs of capitalized software development costs and software held for resale.
Net loss for the second quarter, excluding ``non-cash charges'' of $7.7 million was $6.1 million, and including ``non-cash charges'' was $13.8 million, compared to a net loss of $5.3 million and $5.5 million respectively in the second quarter of 2000.
``Lower revenue results for the second quarter reflect on-going concern on the part of potential customers regarding our financial viability,'' said Dick Warmington, CEO, Viador Inc. ``However, even with this considerable overhang, we developed new business with our targeted government agencies, including the Navy's SPAWAR, a significant new commitment from our German partner DVG, as well as strong continuing business with our OEMs and existing customers.''
``Most importantly, we have announced today new financing for $4 million from the group of investors who were the lead investors in a $500,000 bridge loan we received in early July. This new financing is in place as of August 13 and will meet our financial requirements for the immediate future now that we have streamlined our organization and significantly reduced our other operational expenses,'' said Warmington.
``We continue to successfully reduce costs to be in line with expected near-term revenue, and we plan to achieve profitability and produce positive cash flow from operations in the fourth quarter 2001. On a sequential basis the Company expects revenue in the third quarter 2001 to be flat, and revenue in the fourth quarter to increase in the range of 15 to 20 percent. With the actions already taken to re-size our operations, the on-going cost of revenue and operating expenses for the third and fourth quarter are expected to be at least 50 percent lower than in the second quarter.''
Warmington continued, ``Our sales pipeline remains solid, since the Viador solution continues to win technical evaluations and provides important middleware software to be embedded into critical customer reporting applications. Now that our financing has been received, we believe we will be able to close on a number of new business sales opportunities in the pipeline. For new business, we remain focused on our key market opportunities with government agencies, select OEMs and resellers, and in targeted international markets, such as Germany, Japan, and China where our past investment is providing us with significant new growth potential in the near future.''
``As detailed in a separate release today, we are continuing to work on assuring that our management team can provide the leadership we need to execute on our strategy,'' concluded Warmington. ``While I am sorry to announce the departure of Subramanian Ramakrishnan, who has been CTO and VP of Engineering, I am pleased to announce the return of Stan Wang, who will, in addition to his new position as President of the Company, be filling Mr. Ramakrishnan's position until a suitable replacement is found. With the return of Stan, we have brought back to the Company one of the original founders who established Viador as a leader in the market. I am very encouraged by the enthusiasm and knowledgeable leadership he will be providing.'' |
