Royalty revenue leads growth for Zi Corporation
CALGARY, March 15 /CNW/ - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC)
increased annual revenue for the year ended Dec. 31, 1999 by 51 per cent to
$2.5 million compared to $1.6 million recorded in 1998. Royalty revenue,
which was introduced in the last four months of the year, accounted for 76 per
cent of total 1999 revenues.
Revenues for the fourth quarter of 1999 were $1.1 million a 197 per cent
increase over the fourth quarter of 1998 and a 40 per cent increase over the
third quarter of 1999. The increase in quarterly revenue results from Zi
collecting royalty revenue from its licensees as they begin introducing
product to the consumer market.
``Nineteen-ninety-nine was an incredible year,' says Michael Lobsinger,
chairman and chief executive officer, Zi Corporation. ``The strategy for
embedding our technology in information and Internet appliances is showing
results.'
1999 highlights
- Well capitalized with a strong cash position and no debt
- Signed contracts with international licensees
- Signed contract with the Ministry of Information Industries in the
People's Republic of China
- Formed partnership with the Ministry of Education in the People's
Republic of China
- Established European sales office and expanded North American and
mainland Chinese offices
Operating costs in 1999 amounted to $8 million, approximately double 1998
levels. Eighty per cent of the company's operating costs are made up of
expenses relating to salaries, travel, professional fees, depreciation and
amortization. Expenditures in each of these areas increased significantly in
the last half of 1999 as the company expanded its sales and marketing team and
added more than 30 people to the areas of engineering, product development and
linguistics. The company is shaping its employee compliment to focus on the
key markets of Asia, Europe and North America as well as supporting growth
initiatives.
Zi signed contracts with 16 new licensees during the third and fourth
quarters of 1999. The companies licensing Zi's technology will introduce
their products to the mass-market throughout 2000. A total of six new
products should enter the market by the end of the first quarter and another
12 products before the end of the second quarter. Additionally, Zi's on-line
education subsidiary is expected to begin contributing to the company's
revenue in fall of 2000 when it becomes fully operational.
``Zi's technology will not only enable the interactive delivery of
courseware and educational products over the Internet in Asia, but we are now
acting as the exclusive Web site administrator for the largest distance
education institution in China,' says Lobsinger.
In October 1999, Zi announced the acquisition of the Beijing subsidiary
of a Canadian company, known as Ozlearning.com. This acquisition provides a
new income stream from the sale of web-based educational and re-training
courseware. The new subsidiary positions Zi to take advantage of the Internet
growth in Asia, which is currently doubling every six months.
Zi Corporation is a leading provider of embedded software technology and
educational products. The company's core product, eZiText(TM) connects people
to short messaging, email, e-commerce, web browsing and similar applications
in almost any written language. Zi's strategic partners use the technology to
enable information and Internet appliances that meet the needs of consumers,
business, government and education systems. Zi Corporation supports its
strategic partners from offices in Calgary, Beijing, Hong Kong, San Francisco,
Shenzhen and Stockholm. A publicly traded company, Zi Corporation is listed on
the NASDAQ Stock Market (ZICA) and the Toronto Stock Exchange (ZIC). |
