Extended Systems Announces FY 2000 Third Quarter Results
Mobile Information Management Revenue Grows 57%
BOISE, Idaho--(BUSINESS WIRE)--April 17, 2000--Extended Systems Inc. (Nasdaq:XTND - news), a provider of mobile information management (MIM) solutions, today announced results for its quarter ended March 31, 2000.
For the third quarter of fiscal 2000, the company reported net revenue of $14.9 million, up from net revenue of $13.4 million for the same period of fiscal 1999. Net revenue for the nine months ended March 31, 2000 was $43.3 million, up from net revenue of $36.2 million for the same period of fiscal 1999.
In the third quarter of fiscal 2000, Extended Systems continued to experience strong demand and an expanding customer base for its MIM products. MIM net revenue was a record $10.6 million, up 57% from the third quarter of fiscal 1999. MIM solutions represented 71% of total net revenue, up from 51% of total revenue in the third quarter of fiscal 1999. Net revenue from the company's maturing printing solutions products was $4.3 million, down 31% from the third quarter of fiscal 1999.
During the third quarter, the company announced an agreement with Palm Computing to use its embedded Bluetooth protocol stack in the Palm operating system, enabling the sending and receiving of data using Bluetooth short-range wireless connectivity specifications. The company also introduced its XTNDAccess BLUE SDK, a software development kit for device manufacturers who are implementing Bluetooth in handheld devices, a new version of XTNDConnect PC software, a PC-based data synchronization and management solution and a new release of the ExtendNet 4000 Internet appliance. Extended Systems announced relationships with Prodigy Communications Corporation and DSL.Net, and expanded its relationships with Palm Computing and NEC.
Net revenue from the company's software products represented approximately 42% of MIM net revenue in the third quarter of fiscal 2000 up from 39% in the second quarter of fiscal 2000. Net revenue from MIM software products includes licensing of the company's XTNDConnect and Bluetooth products. The company expects the MIM software business to continue to expand to become the majority of its business. The remainder of MIM net revenue is derived from sales of hardware connectivity products including both infrared XTNDAccess products and enterprise Internet appliance products. The company expects MIM infrared hardware sales to decline over the coming periods as a large original equipment manufacturer customer reconfigures its product offering.
``We are pleased with the continued growth in our MIM business, particularly the demand for our XTNDConnect Server and Bluetooth software products,' said Steve Simpson, Extended Systems CEO and president. ``We believe that the growing interest in our MIM solutions reflects worldwide growth in mobile computing and communication devices, and the intensifying need to connect, manage and synchronize those devices with corporate IT systems.'
The net loss for the third quarter of fiscal 2000 was $324,000, or $0.03 per diluted share, compared to net income of $377,000 or $0.04 per diluted share for the same period in fiscal 1999. The net loss during the third quarter of fiscal 2000 reflected the company's continued investment in research and development for new MIM products and its global MIM sales and marketing efforts, and reflected amortization of intangibles associated with acquisitions.
The net loss for the first nine months of fiscal 2000 was $3.8 million or $0.41 per diluted share, which included a $2.1 million after-tax charge associated with the Company's August 1999 acquisition of Advance Systems Limited. This compares to a net loss of $1.5 million, or $0.18 per diluted share, for the first nine months of fiscal 1999, which included $1.3 million of after-tax charges related to the company's exit from the port replicator business and a $758,000 after-tax charge related to acquisitions completed during fiscal 1999.
Extended Systems management will hold the quarterly investor conference call on April 17, 2000, at 5 p.m. (EST), which can be heard via an Internet broadcast at www.vcall.com.
About Extended Systems
Extended Systems provides mobile information management solutions that enable mobile users to access, collect, synchronize and print information on demand. The company's products include data synchronization software, wireless connectivity products (Bluetooth and IrDA-compliant), Linux-based Internet access solutions, a line of network print servers and client/server database management systems with remote access capabilities. Extended Systems' customers include Compaq, Microsoft, Ericsson, Hewlett-Packard, IBM, Motorola, 3Com, Sharp, NEC and Toshiba.
Founded in 1984, Extended Systems has offices and subsidiaries in the United States and worldwide. For more information call 800/235-7576 or visit the company Web site at www.extendedsystems.com.
Except for historical information contained herein, the matters set forth in this press release, such as growth in the demand for products that connect mobile computing and communication devices with IT systems and the success of Extended Systems' relationships with Microsoft, Ericsson and other mobile device manufacturers and other business relationships, are forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties include the impact of competitive products and pricing, alternative technological advances, relationships with suppliers, the timely and successful development and market acceptance of new products and upgrades to existing products, the ability to integrate and manage acquired businesses and other risks as detailed from time-to-time in the company's SEC filings, including its Annual Reports on Form 10-K and the Quarterly Reports on Form 10-Q.
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