Zi Corporation (TSE: ZIC) (NASDAQ: ZICA) (''Zi'') Announces Results for
the Six Months Ended June 30, 1999
CALGARY, Aug. 30 /CNW/ - (TSE: ZIC) (NASDAQ: ZICA) -
<<
Six Months Ended June 30
1999 1998
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Revenue $ 602,650 $ 1,247,004
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Operating Costs and Expenses
Operating costs 1,861,326 1,038,934
General and administrative 865,402 749,190
Depreciation and amortization 513,096 260,939
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3,239,824 2,049,063
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Operating loss before undernoted (2,637,174) (802,059)
Interest and other income 17,929 71,562
Interest expense (19,836) (13,589)
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Net loss $ (2,639,081) $ (744,086)
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Loss per share $ (0.09) $ (0.026)
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Weighted average common shares
outstanding at end of period 29,329,204 28,267,273
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>>
Financial Review
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Total revenue for the first six months amounted to $602,650. Revenues in the comparative period in 1998 are higher because of licensing fees from the Ericsson agreement. The second quarter revenue is 61% higher than that of the first quarter of 1999.
Operating expenses in the second quarter were 30% higher than the first quarter of the year. The increase is a result of new hires in the area of sales and marketing as well as travel and legal expenses incurred in the preparation of the various licensing agreements mentioned above.
Operations Review
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During the second quarter the company was diligently negotiating the final aspects of a number of significant agreements which were ultimately signed and announced in the months of July and August. Zi has been patiently building a close relationship with the Ministry of Education in the Peoples Republic of China for a number of years. The value of this relationship is reflected in the agreement reached on July 8, 1999 with China Huayu Development Corporation, a wholly owned subsidiary of the Ministry of Education. As a result of this relationship, Zi technology will be embedded in numerous products destined for the 975,000 schools to benefit the 240 million students throughout the country.
Another government related contract was announced on July 26 with the Ministry of Information Industry and its Research Institute of TV and Electro-Acoustics wherein the Zi Input System will be provided on a range of set top box devices to be sold in China and for export in international markets. The Institute adapts set top box designs to suit specific needs of the Chinese consumer and is currently working with several set top box solutions from leading international semiconductor manufacturers. The company also announced licensing agreements with two of China's largest electronics manufacturing companies, Konka Group Co. Ltd. and Xiamen Overseas Electronics Co. Ltd. which will see our technology embedded into their cell phones, set top boxes and other hand held devices.
In August Ericsson began the launch of its mobile phones that include the Zi Input System. There will be three models with Zi inside, the T10, T18 and T28. Sales of the new phone are reported to be very strong across Asia.
Outlook
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The Company is in various stages of discussions with numerous potential licensees of the Zi technology located in Asia, North America and Europe. After three years in the making, it is very satisfying to see acceptance of our technology around the world. We look forward to the launch of a number of products in which the Zi Input System will be embedded within the next six months
NEITHER THE TORONTO STOCK EXCHANGE NOR NASDAQ HAVE APPROVED OR
DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.
/For further information: Zi Corporation, Manager, Investor/Media
Relations, Tel: 403.233.8875, Web site: zicorp.com.
To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports(at)cnw. /
(ZIC. ZICA) |
