GraphOn Corp. Reports Q3 FY99 Results
November 8, 1999 04:33 PM
CAMPBELL, Calif.--(BUSINESS WIRE)--Nov. 8, 1999--GraphOn Corporation (www.graphon.com) GOJO today reported revenue of $1.1 million for its third fiscal quarter ended September 30, 1999, as compared to $336,000 recorded in the third quarter of fiscal 1998, an increase of 228%. The increase is due to a rise in OEM license revenue. Net loss was $1.6 million in the 1999 quarter as compared to $976,000 in the prior year. Loss per common share on a basic and diluted basis was $0.15 per share, compared with a loss of $0.26 per share in the year-earlier period.
For the first nine months of fiscal 1999, GraphOn's revenue increased 63% year-over-year to $2.4 million due to increased demand for OEM license sales. Net loss was $5.6 million or $0.59 per share as compared to a loss of $1.4 million or $0.39 per share the year before. Included in the 1999 nine months results is amortization and depreciation charges ($2.4 million non-cash charges) and research and development costs aggregating approximately $3.1 million relating to the jBridge acquisition from Corel.
GraphOn's balance sheet at the end of the third fiscal quarter reported cash, cash equivalents and available for sale securities of $3.8 million, compared with $1.8 million at the December 1998 fiscal year-end.
On July 12, 1999, the Company completed its merger with Unity First Acquisition Corp. 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. All references to share and per-share data for all periods presented have been adjusted to give effect to this .5576 exchange of GraphOn stock.
During this quarter, GraphOn entered into an important strategic relationship with Alcatel, with the GO-Joe product, and Corel and Compuware with the WinBridge product. These enterprise and independent software developer-level agreements are indicative of GraphOn software's ability to enable efficient, cost-effective deployment of Windows, UNIX or Linux applications to remote workers and consumers over any kind of network, the Internet or over a telephone dial-up connection.
In recent news, GraphOn announced a strategic alliance with two technology providers in China. Through the agreement, GraphOn software will help schools in China provide Internet and network access to powerful server-based applications. GraphOn thin, server-based software will help speed adoption of Linux as China's operating system of choice while extending the usable life of their aging Windows-based PCs.
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 will be unified under the Bridges name and include the components UNIXBridge and LinuxBridge, formerly the GlobalHost Universal X Server of GO-Global, first thin client X server for Windows PCs, GO-Joe, the first thin client X server for Java-enabled desktops (including web browsers), and GO-Between, the first thin client X server for multi-user NT (such as Microsoft Terminal Server and Citrix WinFrame). Also being added to Bridges is WinBridge, formerly codenamed jBridge, which enables deployment of 32-bit Windows applications over the Internet and is scheduled for general release late 1999. Fully functional demos of GraphOn's products are available from the Company's web site at graphon.com. GraphOn is headquartered in Campbell, California and has offices in Seattle, Washington, Concord, New Hampshire, and Reading, UK. Investors can obtain financial and corporate information at www.sec.gov.
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 GraphOn's most recent reports filed with the Securities and Exchange Commission.
GraphOn, Bridges, GO-Joe, GO-Global, GO-Between, and jBridge are trademarks or registered trademarks of GraphOn Corp.
Condensed Balance Sheets
September 30, December 31,
1999 1998
---------- ----------
(unaudited)
Cash and available for
sale securities $3,794,200 $1,798,400
Accounts receivable, net 1,322,800 564,700
Other current assets 554,100 32,100
---------- ----------
Total current assets 5,671,100 2,395,200
Property and equipment 548,200 423,300
Purchased technology 1,301,400 3,645,400
Other assets 678,700 646,600
---------- ----------
Total assets $8,199,400 $7,110,500
---------- ----------
Current liabilities $ 951,900 $1,202,200
Stockholders' equity 7,247,500 5,908,300
---------- ----------
Total liabilities and
stockholders' equity $8,199,400 $7,110,500
---------- ----------
Condensed Statements of Operations
(unaudited)
Nine Months Ended
September 30,
1999 1998
------------ ------------
Total revenues $ 2,449,500 $ 1,499,000
Cost of revenues 290,500 251,400
------------ ------------
Gross profit 2,159,000 1,247,600
Selling and
marketing 2,359,200 860,000
General and
administrative 1,251,600 741,100
Depreciation and
amortization 2,473,900 41,700
Research and
development 1,771,800 634,400
------------ ------------
Total operating
expenses 7,856,500 2,277,200
------------ ------------
Loss from operations (5,697,500) (1,029,600)
Other income
(expense), net 67,800 (359,200)
------------ ------------
Loss before
income taxes (5,629,700) (1,388,800)
Income taxes 800 800
============ ============
Net loss $ (5,630,500) $ (1,389,600)
============ ============
============ ============
Basic and diluted
loss per share $ (0.59) $ (0.39)
============ ============
Weighted average
shares outstanding 9,540,148 3,583,798
============ ============
Three Months Ended
September 30,
1999 1998
------------ ------------
Total revenues $ 1,102,600 $ 335,800
Cost of revenues 92,300 70,100
------------ ------------
Gross profit 1,010,300 265,700
Selling and
marketing 783,800 335,600
General and
administrative 513,500 424,100
Depreciation and
amortization 827,000 17,600
Research and
development 517,000 299,500
------------ ------------
Total operating
expenses 2,641,300 1,076,800
------------ ------------
Loss from operations (1,631,000) (811,100)
Other income
(expense), net 48,200 (164,900)
------------ ------------
Loss before
income taxes (1,582,800) (976,000)
Income taxes -- --
============ ============
Net loss $ (1,582,800) $ (976,000)
============ ============
============ ============
Basic and diluted
loss per share $ (0.15) $ (0.26)
============ ============
Weighted average
shares outstanding 10,712,629 3,750,418
============ ============
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