Zi advances market position in first quarter with global contracts
CALGARY, May 15 /CNW/ - Zi Corporation's (Nasdaq: ZICA) (TSE: ZIC) first
quarter 2001 revenues rose to $1.3 million, up from $0.6 million in the first
quarter 2000. Zi Services engineering fees also contributed to the revenue
increase. With the full integration of its engineering team after the
acquisition of Telecom Technology Centre (TTC), Zi has been able to deepen
relationships with its current customer base.
"eZiText(TM) is now making a significant contribution to gross margin,"
says Michael Lobsinger, chairman and chief executive officer, Zi Corporation.
"eZiText(TM) is in place and delivering recurring royalty revenue. During this
quarter additional agreements were secured with Ericsson and Samsung which
will continue to build the contribution from eZiText(TM)."
First quarter highlights
- Increased the range for eZiText(TM) to Ericsson's worldwide offering
through a global licensing agreement
- Signed a global licensing agreement with Samsung
- Partnered with Openwave, expanding marketing channels to mobile
manufacturers
- Extended VoIP development with agreement for customized IP PBX design
- Revenue increase of 97 per cent over first quarter 2000
- Strong cash position and no debt
Selling, general and administrative expenses amounted to $4.8 million in
the first quarter 2001 compared to $1.6 million in the first quarter of 2000.
Legal fees related to patent litigation; costs to support an expanded network
of sales offices; and the integration of TTC contributed to the increase in
overhead and resulted in a net loss of $0.08 per share, compared to $0.06 per
share in the same period in 2000. To develop future products in Bluetooth,
Voice over Internet Protocol (VoIP) and enhance eZiText(TM), Zi charged its
earnings with research and development expenses of $1.3 million.
During the three months ended March 31, 2001, the net loss was $3.0
million compared to $2.0 million during the same period in 2001. The increase
in loss can be attributed to litigation costs and the costs associated with
the expansion of the global sales and marketing group, offset by a foreign
exchange gain and higher contributions from eZiText(TM).
With $43.7 million in cash and liquid investments Zi is strategically
positioned to invest in emerging technologies and pursue other growth
opportunities.
All figures presented are quoted in Canadian dollars.
Zi Corporation will host a teleconference and Webcast to discuss the
first quarter results on Tuesday May 15, 2001, 9am EDT. To participate, please
make your connection 10 minutes prior to the start of the call.
Conference call:
Toll free in North America: 1-888-571-5411
International: 1-416-646-3095
Webcast
The call can be accessed on the Internet at:
webevents.broadcast.com
(equals)2089
Recording
A recording is available after 12 pm eastern (10 am mountain) on Tuesday,
May 15. The recording will be available until 11:55 pm eastern (9:55 pm
mountain) on Monday, May 21.
Toll free in North America 1-877-289-8525 and enter code 111063 followed
by the pound key
International 1-416-640-1917 and enter code 111063 followed by the pound
key |
