Zi Corporation well positioned for profitable 2002
PR NEWSWIRE - November 15, 2001 09:01
CALGARY, Nov 15, 2001 /PRNewswire via COMTEX/ -- Zi Corporation's (NASDAQ: ZICA) (TSE: ZIC) revenue increased 32 per cent over the same nine-month period last year. In addition Zi Corporation delivered improved results during the third quarter with the company reporting a 59 per cent decrease in net loss compared to the second quarter 2001. Zi's funds applied to operating activities were within $1.8 million of break-even for the three-month period ended September 30, 2001.
"By establishing a diversified customer base, Zi has built a strong position moving into 2002. Despite industry turbulence we have held our revenue steady and narrowed our loss," says Michael Lobsinger, chairman and chief executive officer, Zi Corporation. "When the wireless and telecom sectors recover, we are well positioned to realize accelerated growth as we have only scratched the surface on revenue potential from our 48 licensees. eZiText(TM) enabled products in the market now number 52, with several times this amount expected a year from now."
Third quarter highlights - Revenue increased 32 per cent over the same nine-month period last year - Funds applied to operations within $1.8 million of break-even for the three-month period - Decreased loss by 59 per cent compared to the second quarter 2001 - Increased gross margin by 37 per cent over the same nine-month period last year - Secured first significant contract to provide a full Voice over Internet Protocol solution - eZiText(TM) licensees increased to a total of 48 global customers - Strong cash position with no debt
License, implementation and royalty revenue grew 28 per cent in this quarter over third quarter last year, despite two of the company's largest clients generating lower revenue. The nine additional revenue-generating clients, delivered more than enough revenue to offset the decline from these two clients. Of Zi's 48 licensees and six marketing agreements, 11 have begun to generate revenue to date. As product implementations increase over the coming months, revenue from these clients, together with revenue from existing clients is expected to increase.
"Considering the economic and industry environment, we have made considerable progress towards positive operating cash flow," says Dale Kearns, chief financial officer, Zi Corporation. "With potential revenue streams from 37 more licensees, six marketing agreements, VoIP contracts and significant improvements in operating cost levels, 2002 holds the expectation for further growth."
On a year to date basis, total revenue was $4.5 million, up $1.1 million or 32 per cent over the year earlier period. This reflects the diversification and overall increase of Zi's customer base. Total revenue for the three-month period ended September 30, 2001 was $1.6 million, approximately even with revenues for the same period a year earlier.
Zi reported a net loss of $0.08 per share for the three months ended September 30, 2001, approximately equal to the per share loss in the same period in 2000. Increases in litigation costs together with expenses associated with the global expansion of Zi's operations and the development of Zi services resulted in a net loss of $0.36 per share for the first nine months of 2001, compared to $0.18 per share for the first nine months of 2000.
Zi holds $32.6 million in cash and short-term investments and has net working capital of $34.0 million. Zi has no debt other than equipment leases and is capitalized entirely by common stock.
All figures presented are quoted in Canadian dollars. Detailed financial statements for the third quarter ended September 30, 2001 are attached.
<< Financial highlights (CDN $000) 3 months 9 months September 30 September 30 ------------------------------------------------------------------------ 2001 2000 2001 2000 Revenue 1,567 1,515 4,450 3,364 Gross margin 1,446 1,173 3,817 2,788 Foreign exchange gain 1,373 940 1,874 2,107 Net loss (2,959) (3,034) (13,194) (6,727) Net loss per share (.08) (.08) (.36) (.18) ------------------------------------------------------------------------ >>
Zi Corporation will host a teleconference and Webcast to discuss the third quarter results on Thursday November 15, 2001, 9am eastern standard time. 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: 1-416-646-3096
Webcast
The call can be accessed on the Internet at:
webevents.broadcast.com
(equals)2134
or
The call can also be accessed on the Internet at:
vcall.com
Recording
A recording is available after 12 pm eastern standard time
(10 am mountain) on Thursday, November 15. The recording will be
available until 11:55 pm eastern standard time (9:55 pm mountain) on
Thursday, November 22.
Toll free in North America 1-877-289-8525 and enter code
145641 No. (pound key) |
