WavePhore Reports Revenue Growth in Second Quarter of 1998
PR Newswire - July 23, 1998 16:24
Jump to first matched term
PHOENIX, Ariz., July 23 /PRNewswire/ -- WavePhore, Inc. (Nasdaq: WAVO), today reported second quarter 1998
revenues of $6.8 million compared with $5.5 million for the comparable year earlier period, a 24% increase. "Our Newscast
business unit continues to experience significant growth, with revenue in the second quarter 171% greater than the comparable
quarter of 1997," stated Ken Swenson, Chief Financial Officer of WavePhore.
The net loss was $4.9 million, or $0.23 per basic and dilutive common share, excluding preferred stock dividends, for the
second quarter of 1998 compared to net loss of $9.8 million, or $0.60 per basic and dilutive common share, for the 1997
comparable period. The net loss in 1997 included a one- time non-cash charge to operations of $6.0 million, or $0.37 per
basic and dilutive common share, related to the acquisition of Paracel Online Systems, Inc.
For the six months ended June 30, 1998, WavePhore reported revenue of $12.2 million compared to $9.2 million for the same
period in 1997, a 33% increase. The net loss was $9.7 million, or $0.50, per basic and dilutive common share, excluding
preferred stock dividends, for the six months ended June 30, 1998 compared to a net loss of $13.3 million, or $0.81 per basic
and dilutive common share, excluding preferred stock dividends for the same period of 1997. The 1997 period includes the
one-time acquisition charge of $6.0 million, or $0.37 per share.
"We are pleased with the continued strong revenue growth by our Newscast and Networks business units, while at the same
time we have just launched a major consumer advertising campaign introducing WaveTop for Windows 98(R)," stated David
E. Deeds, Chairman, President and CEO of WavePhore. "Our WaveTop advertising campaign is designed to spread the word
that, for the first time, consumers have fast, free and easy-to-use access to the best of the World Wide Web without having to
tie up a telephone line or deal with the delays of the Internet," said Mr. Deeds.
About WavePhore
WavePhore, Inc., (Nasdaq: WAVO) is the global leader in connecting people with compelling information in the office and at
home. The corporation is headquartered in Phoenix, AZ and composed of three business units: WavePhore Networks,
WavePhore Newscast and WavePhore WaveTop. WavePhore Networks, the industry leader in data broadcasting provides
flexible, high-speed data delivery for information publishers, to more than 80,000 sites worldwide. WavePhore Newscast, is
the Web's premier business infosource for enterprise- wide use. WavePhore WaveTop is the first free, advertising-supported,
nationwide data broadcast system to deliver multimedia content to broadcast ready PCs in the home. Additional information on
WavePhore is available via the Internet at wavephore.com, wavetop.net, wavo.com and
newscast.com.
Certain of the above statements regarding WavePhore constitute forward- looking statements, which may involve risks and
uncertainties. Actual results could differ materially from such forward-looking statements as a result of a variety of factors,
including, but not limited to, technology changes, competitive developments, industry and market acceptance of new products
and services, risk factors listed from time to time in WavePhore's SEC filings.
For Further Information Contact, Kenneth D. Swenson, Chief Financial Officer of WavePhore, Inc., at 602-952-5500, or
kswenson@wavephore.com.
Investors are invited to join a conference call with David E. Deeds, Chairman, President and CEO of WavePhore, Inc. today,
Thursday, July 23, 1998 at 4:35 p.m. EST by calling 800-388-8975 the password is "WavePhore." WavePhore, Inc.
Condensed Consolidated Statement of Operations (Unaudited) (In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Networks services
and equipment $5,169 $4,917 $9,309 $8,154
Newscast services 1,646 607 2,921 1,055
Total Revenues 6,815 5,524 12,230 9,209
Cost of revenues 3,350 3,150 6,337 5,138
Gross margin 3,465 2,374 5,893 4,071
Operating expenses:
Research and
development 2,482 1,942 4,583 3,528
Sales and marketing 3,802 2,509 7,008 4,640
General and
administrative 1,611 1,220 3,099 2,316
Amortization 634 530 1,257 1,019
Charge for purchased
research and development -- 6,000 -- 6,000
8,529 12,201 15,947 17,503
Loss from operations (5,064) (9,827) (10,054) (13,432)
Other (income) expense:
Interest expense 58 45 111 93
Interest income (231) (100) (446) (263)
Other -- 12 (5) 11
(173) (43) (340) (159)
Net loss $(4,891) $(9,784) $(9,714) $(13,273)
Less: Preferred
stock dividends (439) (283) (1,016) (572)
Net loss after
preferred stock
dividends $(5,330) $(10,067) $(10,730) $(13,845)
Basic and diluted net loss
per common share $(0.23) $(0.60) $(0.50) $(0.81)
Basic and dilutive net loss
per common share after
preferred stock
dividends $(0.25) $(0.62) $(0.55) $(0.85)
Number of shares
used in per share
calculation 20,904,905 16,345,867 19,603,420 16,303,405
WavePhore, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1998 1997
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $19,237 $11,553
Accounts receivable 6,350 8,359
Inventories 3,718 2,906
Other current assets 1,720 2,154
Total Current Assets 31,025 24,972
Property and equipment, net 4,482 4,507
Intangible assets of businesses
acquired, net 21,995 22,084
Other assets 1,548 1,428
$59,050 $52,991
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $1,538 $991
Other accrued expenses 1,857 1,805
Deferred revenue 1,907 1,973
Short-term debt 1,934 2,232
Total Current Liabilities 7,236 7,001
Long-term liabilities 502 377
Stockholders' equity 51,312 45,613
$59,050 $52,991
SOURCE WavePhore, Inc.
/CONTACT: Kenneth D. Swenson, Chief Financial Officer of WavePhore, Inc.,
602-952-5500, kswenson@wavephore.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 107524/
/Web site: wavo.com
/Web site: wavetop.net
/web site: newscast.com
/Web site: wavephore.com
(WAVO)
|
