Zi achieves revenue growth in 2001
CALGARY, ALBERTA--Zi Corporation (NASDAQ: ZICA) (TSE: ZIC), a leading provider
of intelligent interface solutions today announced its financial results for
the year ended December 31, 2001.
Zi completed the year 2001 with $6.2 million in revenues, an increase of 19 per
cent over 2000. With the addition or extension of 17 eZiText(R) licensing
agreements in 2001, the company was able to achieve modest revenue growth in
the face of challenging industry conditions. Revenue from all customers except
one increased 73% year over year. Revenue from that one customer declined by
61%.
The net loss for 2001 increased to $18.5 million from $12.0 million a year
earlier with most of the net loss attributable to investing in subsidiaries and
higher selling, general & administrative expenses, of which a significant
portion was related to litigation costs. Net loss per share was $0.50 compared
to $0.33 a year earlier.
"Moving into 2002, it is important to recognize that nearly two thirds of the
$18 million loss was associated with costs that are either non-recurring or
related to investments we expect to monetize by the end of the year," said
Michael E. Lobsinger, Chairman and Chief Executive Officer of Zi Corporation.
"2001 marked the first time in history that the worldwide handset market
decreased. Shipments that were scheduled for the fourth quarter of 2001,
despite strong indications, were pushed to Q1 2002. So far in 2002, our
customers collectively introduced an eZiText-enabled device into the market
nearly every three days. For the first quarter alone, the number of
eZiText-enabled products introduced into the market increased from 60 to
approximately 85," said Gary Kovacs, President of Zi Corporation.
/T/
2001 highlights
* Revenue increase of 19 per cent over 2000
* Cash, cash equivalents and short term investments of $ 27.7 million
* Over 50 global licensees for eZiText
* Zi successfully defended its intellectual property positions against
Tegic Communications, a unit of AOL Time Warner - which will clear
the way for Zi to launch product in the North American market
* Zi signed and advanced key partnerships with industry leaders such
as Openwave, Qualcomm, Wind River, and Texas Instruments.
* Developed three new technologies including enhanced eZiText, eZiTap
and eZiNet.
/T/
Zi Corporation will host a teleconference and Webcast to discuss its year-end
2001 results on Wednesday, April 10, 2002, 9am eastern time. To participate,
please make your connection 10 minutes prior to the start of the call.
Conference call
Toll free in North America: 1-877-888-4210
International: 1-416-695-5261
Webcast
The call can be accessed on the Internet at: www.zicorp.com
Recording
A recording will be available shortly following the conference call until 11:55
pm eastern time on Wednesday, April 17, 2002.
Toll free in North America: 1-888-509-0082
International: 1-416-695-9731 |
