AvantGo Q3 loss widens on higher revenues:
ad thoughts: AvantGo is a must-use site for PDA users that synch to the internet!
By Lisa Baertlein
PALO ALTO, Calif., Oct 30 (Reuters) - AvantGo Inc. (NASDAQ: AVGO), which makes software for handheld devices and Internet-enabled mobile phones, on Monday said its third-quarter loss widened despite higher revenues.
Shares, which closed down $4 to $11, were mostly unchanged in after-hours trading.
During a conference call with analysts on Monday, AvantGo Chief Financial Officer David Cooper said net losses are expected to increase in the short-term as the company continues to build its business and expand its services, Cooper said.
The company posted a third-quarter adjusted loss, which excludes $5.3 million in acquisition-related, noncash charges, of $10.9 million or 47 cents per diluted share, compared with a loss of $1.6 million or 10 cents per diluted share a year ago.
Revenue grew 341 percent to $4.6 million from $1.1 million in the year-ago quarter.
"We are delighted to report that our business is strong and that we expect continued growth in both our AvantGo Enterprise and AvantGo Mobile Internet service business," Richard Owen, the company's chief executive said in a statement.
During the third quarter, 51 percent of the company's revenues came from software licenses to enterprise customers -- which are often large, corporate users -- while 49 percent came from professional or hosted services.
Analysts who follow AvantGo had sharply differing forecasts ranging from a loss of 37 cents per share to a loss of 70 cents, according to First Call/Thomson Financial.
San Mateo-based AvantGo, which went public in September, said its net loss was $16.2 million or $2.67 per diluted share, compared with a loss of $2.4 million or 51 cents per diluted share in the third quarter of 1999.
AvantGo's competitors include OracleMobile, a unit of Oracle Corp. (NASDAQ: ORCL), Hewlett-Packard Co. (NYSE: HWP) and Aether Systems Inc. (NASDAQ: AETH).
The company also said that handheld computer maker Palm Inc. (NASDAQ: PALM) was bundling the company's software with its new offerings.
Computer giants IBM (NYSE: IBM) and Sun Microsystems Inc. (NASDAQ: SUNW) on Monday announced that they also are jumping into the fray with software and hardware products aimed at grabbing wireless Internet customers. |
