Company Press Release- GraphOn Reports Q2 FY99 Results
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CAMPBELL, Calif.--(BUSINESS WIRE)--Aug. 16, 1999--GraphOn Corporation (www.graphon.com; OTC BB:GOJO) today reported revenue of $707 thousand for its second fiscal quarter ended June 30, 1999, as compared to $710 thousand recorded in the second quarter of fiscal 1998.
Net loss was $2.02 million in the quarter as compared to $321 thousand in the prior year. Loss per common share on a basic and diluted basis was $0.12 per share, compared with a loss of $0.05 per share in the year-earlier period.
For the first six months of fiscal 1999, GraphOn's revenue increased 16 percent year-over-year to $1.347 million due to increasing demand for product sales. Net loss was $4.048 million or $0.25 per share as compared to a loss of $414 thousand or $0.07 per share the year before. Included in the six months ended June 30, 1999 amount is amortization and depreciation charges ($1.6 million non-cash charges) and research and development costs of approximately $2.1 million relating to the jBridge acquisition from Corel Corporation, which is scheduled for release by GraphOn in late 1999.
GraphOn's balance sheet at the end of the second fiscal quarter on a pro forma basis reported cash and cash equivalents of $5.7 million, compared with $1.8 million at the December 1998 fiscal year-end. Total liabilities were $1.2 million exclusive of deferred revenue.
''While revenues are equal to our second quarter revenues of last year, which was our highest revenue quarter for 1998, we are pleased to report a 16 percent increase in sales overall for 1999,'' said Walt Keller, president and CEO of GraphOn. ''We have invested significantly in promotions the first half of 1999, including advertising, tradeshows, public relations, and joining important industry organizations. We have added key personnel in the sales and marketing departments, continue to increase our new customer base, and are less dependent on our ongoing OEM business. We expect to see the results of these activities later this year,'' he continued.
''During this quarter GraphOn entered into an important strategic relationship with Sun Microsystems, with our GO-Joe product being bundled with iPlanet Webtop, the first product to be marketed by the Sun-Netscape Alliance. This agreement leverages the iPlanet channel and is expected to provide GraphOn with significant opportunity in the web-enabling market,'' Keller said.
In recent news, GraphOn announced an agreement with AVCOM Technologies, Inc., one of Sun Microsystems' largest U.S. VARs, to license GraphOn's web-enabling software as an essential element of MyIntranetSM, part of AVCOM's comprehensive Applications Service Provider (ASP) service and portal, WebHarbor.com. Last week GraphOn was named one of the best companies distributing communications products for Linux by attendees at last week's LinuxWorld Conference & Expo trade show. Attendees cast their ballots using web-based kiosks on the show floor to select their favorites in various categories.
On July 12, 1999, the company completed its merger with Unity First Acquisition Corporation. As previously announced, GraphOn shareholders received a fixed exchange ratio of 0.5576 share of Unity common stock for each share of GraphOn common stock. The merger provided GraphOn Corporation with $5.4 million in operating capital. In addition, GraphOn has applied for Nasdaq SmallCap Market listing.
About GraphOn
GraphOn develops and markets thin, server-based software to speed, centralize and simplify enterprise computing and enable efficient network deployment of applications to a wide variety of devices and platforms. GraphOn products include GO-Global, the first thin client X server for PCs running Microsoft Windows; GO-Joe, the first thin client X server for Java; and GO-Between(TM), the first thin client X server for multi-user NT (such as Microsoft Terminal Server and Citrix WinFrame). GraphOn's jBridge technology enables deployment of 32-bit Windows applications over the Internet (scheduled for release late 1999). Fully functional demos of GraphOn's products are available from the company's website at graphon.com. GraphOn is headquartered in Campbell, California and has offices in Seattle, Washington and Concord, New Hampshire. Investors can obtain financial and corporate information at www.sec.gov under GOJO or the Company's former ticker symbol UFAC.
This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to UFAC's and GraphOn's most recent reports on Form S-4, Form 10-K and 10-Q and other reports filed with the Securities and Exchange Commission.
GraphOn, GO-Joe, GO-Global, GO-Between, and jBridge are trademarks or registered trademarks of GraphOn Corp. |
