Xybernaut Reports Fourth Quarter and Full Year 2002 Results
Thursday March 27, 7:55 am ET
2002 Hardware Revenues Increase 17 percent over 2001
Q4 2002 Net Operating Expenses Decrease 56 percent from Q4 2001
FAIRFAX, Va.--(BUSINESS WIRE)--March 27, 2003--Xybernaut® Corporation (NASDAQ: XYBR - News) today announced the results of its operations for the fourth quarter and full year 2002.
Total revenues for 2002 were $10.0 million, a 2% increase over 2001. These results include a 17% increase in 2002 hardware revenues to $6.1 million. Total revenues for the fourth quarter ended December 31, 2002 were $2.6 million, representing an increase of approximately 2% over revenues during the third quarter of 2002.
Net operating expenses for the fourth quarter of 2002 were $4.5 million, a reduction of 56% from the fourth quarter of 2001 and 26% from the third quarter of 2002. Net operating expenses exclude restructuring and certain other non-recurring charges and are discussed in further detail below. Net loss for 2002 decreased 17% from $32.2 million, or $0.63 per share, for 2001 to $26.6 million, or $0.37 per share, for 2002.
"Xybernaut continues to achieve considerable success despite challenging market conditions," stated Edward G. Newman, chairman, president and CEO. "We recently launched the third product in the successful Atigo(TM) family of mobile computers. We continue to strengthen our intellectual property, as evidenced through recent announcements of patent grants and an aggressive new licensing strategy. We have reorganized our management structure and strengthened our corporate governance through the appointment of two new independent directors to our board. Furthermore, we are amongst a small number of technology companies actually deploying comprehensive solutions into first responder and homeland security communities," added Newman.
"I am very pleased to announce that Xybernaut has surpassed our previously stated targets related to reductions in operating expenses, as evidenced by the 56% decline in net operating expenses for the fourth quarter of 2002 over the comparable 2001 period," stated Tom Davis, senior vice president and CFO. "Additionally, we have recently been successful in eliminating a considerable amount of long-term liabilities and commitments relating to both product and inventory."
Summary of Results
Three Months Twelve Months
Ended Dec. 31 Ended Dec. 31
--------------------------------------------------
2002 2001 2002 2001
------ ------ ------ ------
Revenue $2,604,850 $3,206,795 $9,973,561 $9,819,993
Net loss ($4,035,627) ($9,735,759) ($26,580,833) ($32,199,579)
Net loss
per share ($0.05) ($0.17) ($0.37) ($0.63)
Weighted
Average
Shares
Outstanding 82,545,861 55,909,200 71,963,440 50,827,020
Net Operating Expenses
The Company's management uses the measurement of net operating expenses in reviewing the results of its operations as well as in analyzing the impact of the various cost-saving initiatives it has implemented or plans to implement in the future. When used herein, net operating expenses represents total operating expenses as reported on the Company's consolidated statements of operations (as reported in accordance with U.S. GAAP) as adjusted for restructuring charges (as reported in accordance with U.S. GAAP) as well as certain other non-recurring transactions (that do not meet the criteria for recordation as restructuring charges).
Management believes that by reviewing net operating expenses, it is better able to focus on the Company's recurring operations than it would be if it reviewed total operating expenses, which include charges such as severance payments to terminated employees, charges related to reductions in facilities and other large charges related to non-recurring activities. The net operating expense balances presented in this press release and the Company's SEC filings reconcile to the amounts included on the Company's consolidated statements of operations as follows:
Fourth First Second Third Fourth
quarter quarter quarter quarter quarter
of 2001 of 2002 of 2002 of 2002 of 2002
--------- --------- --------- --------- ---------
Total
operating
expenses $10,114,109 $8,745,553 $7,102,474 $8,101,940 $4,092,317
Restructuring
charges - - (155,234) (361,227) (521,699)
Charges for
cancellation of
a marketing and
lease agreement - - - (729,511) (127,500)
(Reserve), and
subsequent
reversal, of
note receivable - - - (1,015,575) 1,015,575
--------- --------- --------- ---------- ----------
Net operating
expenses $10,114,109 $8,745,553 $6,947,240 $5,995,627 $4,458,693
========== ========= ========= ========= ==========
Conference Call
A conference call is scheduled at 8:30 a.m. Eastern Time today, March 27, to discuss the results for the quarter and year. The conference call can be accessed by dialing toll free to 877-322-9648 from within the U.S. or 954-797-0718 from outside the U.S. and asking for the Xybernaut Fourth Quarter 2002 Financial Results conference call or conference ID code BEN7053. The Participant Access Code for the call is 858175. A re-broadcast of the call will be available from 11:30 a.m. Eastern Time on March 27 until 6:00 p.m. Eastern Time on April 10 by dialing 877-471-6581 from within the U.S. or 402-970-2661 from outside the U.S. and entering the following access code - 494356. The call will also be available via audio streaming over the Internet by accessing the Xybernaut Web site at xybernaut.com.
About Xybernaut
Xybernaut Corporation is the leading provider of wearable/mobile computing hardware, software and services, bringing communications and full-function computing power in a hands-free design to people when and where they need it. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan). Visit Xybernaut's Web site at www.xybernaut.com. Product photos are also available directly from Xybernaut.
Xybernaut, the Xybernaut logo, Atigo(TM) and Mobile Assistant® V (MA® V) are trademarks or registered trademarks of Xybernaut Corporation in the USA and other countries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the Company's products, general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
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Contact:
Xybernaut Corporation
Michael Binko, 703/631-6925
mbinko@xybernaut.com |
