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Fonix Files March 31, 2001 Quarterly Report
May 15, 2001 5:09:00 PM ET
SALT LAKE CITY, May 15 /PRNewswire/ -- Fonix(R) Corporation (OTC Bulletin Board: FONX), a leading provider of natural-user interface solutions for wireless and mobile devices, Internet and telephony systems, and vehicle telematics, today announced financial results for the three months ended March 31, 2001.
Revenue from multiple license fees and product sales was $132,713 for the three months ended March 31, 2001, reflecting a 135% increase over the revenue reported for the same period in 2000. Deferred revenues (cash receipts from customer contracts not yet recognized as revenue) were $256,751 for the first quarter of 2001 compared to no receipts in the first quarter of 2000. "Customer contracts and marketing partnerships are leading to revenue opportunities," said Thomas A. Murdock, Chairman and CEO of Fonix Corporation. "Our focused efforts in marketing, sales, and strategic technology development are yielding additional licensing agreements and sales of Fonix solutions. We believe this progress will continue and even accelerate as our voice-in, voice-out solutions and advanced applications gain greater acceptance in our target markets."
"Improved cash receipts from sales contracts, combined with $2 million cash released from escrow relating to the sale of the medical group assets to Lernout & Hauspie Speech Products N.V. (L&H) in 1999, have allowed us to rely less on equity capital. Marketing and sales expenses are naturally increasing in order to support and maximize the revenue opportunities," said Roger D. Dudley, Executive Vice President and CFO. "Our goal is to depend more on revenue from licensing fees and product sales and less on equity capital."
Significant announcements made during the quarter ended March 31, 2001, include the Fonix contract with Nuance for integration of Fonix Text-To-Speech (TTS) in the Vocalizer offering, a distribution agreement with Microsoft Corporation to ship FAAST(R) (Fonix Accelerated Application Solutions Technology) in each Microsoft Smart Phone ("Stinger") Adaptation Kit (SAK), and the February release into the market of the Panasonic KX-TG2680N telephone featuring Fonix TTS in the new Talking Caller ID solution. Furthermore, Fonix announced a collaboration agreement with, and investment in, Audium Corporation, a leading developer of VoiceXML applications and server software, and expansion into Asian markets with the opening of a sales office in Seoul, Korea. The growing sales and marketing activities in the United States, Asia, and Europe, and the investment in Audium will be supported by revenue and an additional $20 million equity line of credit obtained from a private investor.
Fonix reported a net loss of $4.2 million ($0.02 per common share) for the three months ended March 31, 2001, as compared to a net loss of $5.8 million ($0.06 per common share) for the three months ended March 31, 2000. Cash used in operating activities increased from $3.2 million in the first quarter of 2000 to $3.5 million for the same period in 2001, primarily due to increased expenditures related to marketing and sales activities in 2001.
FONIX(R) CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
For the Three Months Ended
March 31, 2001 March 31, 2000
Revenues $132,713 $56,447
Cost of revenues 6,999 2,948
Gross margin 125,714 53,499
Expenses:
Selling, general, and administrative 2,146,902 3,338,606
Product development and research 1,655,649 1,450,758
Amortization of intangible assets 607,137 607,137
Purchased in-process research and development -- 474,000
Total expenses 4,409,688 5,870,501
Loss before extraordinary gain (4,283,974) (248,617)
Total other expenses, net 35,357 (2,128)
Loss before extraordinary gain (4,248,617) (5,819,130)
Extraordinary gain -- 31,977
Net loss $(4,248,617) $(5,787,153)
Net loss per common share $(0.02) $(0.06) CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
As of
March 31, 2001 December 31, 2000
Assets $16,213,852 $17,517,373
Liabilities 3,617,017 3,591,621
Stockholders' equity 12,596,835 13,925,752
About Fonix Corporation
Fonix Corporation (OTC Bulletin Board: FONX) is a leading provider of natural-user interface technology and voice solutions for wireless and mobile devices, Internet and telephony systems, and vehicle telematics. Leading chip manufacturers, independent software and hardware vendors, and Internet content and service providers incorporate Fonix technology to provide their customers with an easier and more convenient user experience. Fonix products, including Text-To-Speech (TTS), Automatic Speech Recognition (ASR), and Handwriting Recognition (HWR), can be implemented easily on multiple microprocessors and operating systems, and provide the most natural communication solutions available. For more information visit www.fonix.com or call (801) 553-6600.
Media Information, contact Whitney Seamons, (801) 553-6600, mediarel@fonix.com
Investor Information, contact Michelle Aamodt, (801) 328-0161, invrel@fonix.com
Note: The statements released by Fonix Corporation that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the Company's business prospects and performance. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Risk factors including general economic, competitive, governmental, and technological factors as discussed in the Company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The Company does not undertake any responsibility to update the forward-looking statements contained in this release.
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