Zi reports results for Q1, 2002
CALGARY, ALBERTA--Zi Corporation (NASDAQ: ZICA) (TSE: ZIC), a leading provider
of intelligent interface solutions today announced its financial results for
the quarter ended March 31, 2002.
Q1 2002 highlights
* Increased revenues to $2.3 million, which represents a 75% increase over the
comparable quarter in the previous year
* Zi Technology business unit becomes profitable
* Added five new eZiText(R) licensees, bringing the total number of global
customers to 56, and increased the number of eZiText(R)-enabled handsets
delivered by Zi's customers by 25 unique handsets to nearly 90
* Acquired the Magic Lantern group of companies, a 25-year old e-learning
company with more than $5 million in annual revenues
Zi closed the first quarter of 2002 with $2.3 million in revenues compared to
$1.3 million the same quarter in the previous year, an increase of over 75 per
cent. Contributing to this revenue growth were 17 eZiText(R) licensees that
launched a combined total of 25 new eZiText(R)-enabled products to the market
during the quarter.
Gross margin was $2.1 million, approximately double the gross margin for the
first quarter of 2001 of $1.1 million. Gross margin was 92 per cent of revenue
compared to 80 per cent in the first quarter of the prior year.
On a business unit basis, Zi Technology, which includes eZiText(R), generated a
modest profit for the quarter compared to a $0.7 million loss a year earlier.
Zi Services, the company's VoIP and Bluetooth(TM) division, posted a $1.4
million loss, down from $2.1 million a year earlier, and Zi's e-Learning
investment generated $0.3 million in revenue but incurred $1 million in loss.
The balance of the company's $5.7 million loss for the quarter includes
corporate and public company operating costs, depreciation and amortization,
and legal fees.
"Given the current economic climate, we are pleased with the results achieved
during the first quarter in our Zi Technology business unit, and we are
optimistic that we will continue to see revenue growth in our technology unit
throughout 2002," said Michael E. Lobsinger, Chairman and Chief Executive
Officer of Zi Corporation. "Additionally, our e-Learning investments are now
contributing revenue and the addition of Magic Lantern, based on its historical
revenue, is also expected to add substantially to our revenue." Finally, the
adoption of VoIP and Bluetooth technology continues to be slower than expected.
As such, our contract with Cidco Communications Corporation to provide VoIP
telephony equipment and design has been adversely affected and is currently
being reconsidered. With these delays, Zi Corporation is taking immediate
steps to reduce or eliminate the cash burn associated with the Zi Services
business unit, which should materialize in the coming quarter."
Zi Corporation will host a teleconference and Webcast to discuss its Q1 2002
results on Wednesday, May 15, 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, May 22, 2002.
Toll free in North America: 1-888-509-0082
International: 1-416-695-9731 |
