Fonix Files March 31, 2002 Quarterly Report
May 09, 2002 6:09:00 PM ET
SALT LAKE CITY, May 9 /PRNewswire-FirstCall/ -- 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, 2002.
Revenue from license fees, royalties, and services was $298,785 for the three months ended March 31, 2002, reflecting a 125% increase of $166,072 over revenue reported for the same period in 2001. "Increased revenues are a reflection of our growing customer base and increasing acceptance of our unique and innovative speech-enabling solutions," said Thomas A. Murdock, Chairman and CEO of Fonix Corporation. "With overall economic conditions reflecting modest improvement, our customer base is expanding and we expect revenues to continue to increase."
Recent announcements reflect the growing success that Fonix is experiencing in speech-enabling solutions and applications. Such announcements include the licensing of Fonix Automatic Speech Recognition (ASR) by Microsoft(R) for the Xbox(TM) platform. Hewlett-Packard has also selected Fonix speech solutions for inclusion in its next generation of PDA's. Fonix personal software products for handheld devices and personal computers, including iSpeak(TM) for Windows, TimeTalk Alert(TM) for Pocket PC, and Commander for Pocket PC, have garnered industry awards in trade show competition, and have gained acceptance from productivity and convenience-minded users.
"Our expansion in sales and marketing efforts has increased our cash used in operating activities," said Roger D. Dudley, Executive Vice President and CFO of Fonix Corporation. "However, our funding sources have remained stable and continue to provide operating capital needed to support these efforts until sufficient revenue is generated to cover operating costs."
Fonix reported a net loss of $5.6 million ($0.01 per common share) for the three months ended March 31, 2002, compared to a net loss of $4.2 million ($0.02 per common share) for the three months ended March 31, 2001. Operating expenses increased from $4.4 million in the first quarter of 2001 to $5.7 million in the first quarter of 2002 due primarily to increases in sales and marketing activities.
FONIX(R) CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
For the Three Months Ended
March 31, March 31,
2002 2001
Revenues $298,785 $132,713
Cost of revenues 18,005 6,999
Gross margin 280,780 125,714
Expenses:
Selling, general and administrative 3,191,381 2,144,586
Product development and research 2,124,315 1,650,945
Amortization of intangible assets 386,139 614,157
Total expenses 5,701,835 4,409,688
Loss from operations (5,421,055) (4,283,974)
Total other income (expense), net (29,813) 35,357
Loss from operations before equity
in loss of affiliate (5,450,868) (4,248,617)
Equity in loss of affiliate (228,306) --
Net loss $(5,679,174) $(4,248,617)
Net loss per common share $(0.01) $(0.02) CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
As of
March 31, December 31,
2002 2001
Assets $15,838,223 $15,068,538
Liabilities 6,614,761 7,346,918
Stockholders' equity 9,223,462 7,721,620
About Fonix Corporation
Fonix Corporation (OTC Bulletin Board: FONX) is a leading provider of natural-user interface technology 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), provide the most natural communication solutions available. For additional information, visit www.fonix.com , or contact a Fonix representative at (801) 553-6600.
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 include 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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