This one is not roaring but it is moving higher...Tecknowledge (TEKC OTC BB .80/.85...filings on Edgar...profitable...could be interesting down the road a bit...recent releases:
Teknowledge Reports Earnings of $273K in Q-3
PALO ALTO, Calif., Oct. 23 /PRNewswire/ -- Teknowledge (OTC Bulletin Board: TEKC - news) reports revenue of
$3,070,219 and earnings of $273,469, or $.01 diluted earnings per share for the third quarter of 1998, compared to revenue
of $3,367,044 and earnings of $371,352, or $.01 diluted earnings per share, for the comparable quarter in 1997. Both
revenue and income were up slightly over Q-2 1998 results. Net income for the nine months ending September 30, 1998 was
$678,857, or $.02 diluted earnings per share, on revenues of $9,221,003, compared to income of $1,651,332, or $.06 diluted
earnings per share, on revenues of $7,654,173 for the comparable period. Included in 1997's net income is a one-time
settlement of a patent matter with Trilogy Development Group Inc. for $1.1M. Teknowledge Corporation has reported
profitable results for eighteen consecutive quarters. Multi-year backlog, representing ongoing and future service contract
commitments, stands at $22M and includes a new award from NIST (National Institute of Standards and Technology) for
$2M that was announced on October 7, 1998.
On October 20, 1998, the Company entered into a cash settlement agreement with Dan Robusto, a former executive of the
Company, in the amount of $80,000. The settlement resolves all severance claims made by the former executive relating to a
1994 lawsuit. As a result of this settlement, the Company was able to recover $46,000 in income from its legal reserves.
The Company has learned that the government intends to discontinue the DARPA Distributed Multi-user Information Fusion
(DMIF) project as a separate program, and combine any continuing related work with a different DARPA program called the
Dynamic Data Base (DDB). Based on the likelihood that DMIF-specific revenue will not materialize, the Company removed
$3.2M from its multi-year backlog. The multi-year service backlog of $22M includes this adjustment. The change in program
priorities is not expected to have a material effect on Teknowledge's 1998 results, due to the Company's relatively high backlog
and its ability to cover technical staff on alternate projects.
Frederick Hayes-Roth, Chairman and CEO, commented, ''Over the last four months, there has been considerable turnover in
management at DARPA, which is our biggest government customer. Whenever this happens, DARPA management identifies
new opportunities and reshapes existing programs to make more money available for its strategic directions. We are actively
pursuing these new opportunities, while continuing to strengthen our performance on other projects that have been identified as
central to the long-term directions of the government. Our leadership on the High Performance Knowledge Base program and
the Quorum program for Quality of Service on distributed, real-time, Internet-based systems should position us for significant
new business in both government and commercial markets. As our customers redefine their priorities, we attempt to work with
them to provide the highest value technology and services they demand. Teknowledge has demonstrated repeatedly that it
knows how to adapt to the changing environment and cultivate several lines of business that can provide multiple paths to
economic success.''
Neil Jacobstein, President and COO said, ''Teknowledge's new NIST Courseware Conversion contract provides an example
of our strategy of multiple paths to success. In addition to developing the software for licensing to our commercial partners, we
plan to incorporate the technology into Teknowledge's Sales Associate(TM) product. The technology we develop will enable
rapid conversion of product catalogs into E-Commerce web sites. Corporations that need quick conversion of their classroom
training materials for Intranet to Internet distribution, will also be able to utilize the software that we are developing.''
Teknowledge is a 17 year-old distributed knowledge management Company. It provides architecture, design, and software
systems development services for government and commercial Internet applications. Teknowledge's E-Commerce Systems
business sells commercial software and services for selling products on the Internet. Teknowledge stock is traded on the
bulletin board under the symbol TEKC.
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
(Unaudited) (Audited)
September 30, December 31,
1998 1997
Assets
Cash and cash equivalents $2,572 $2,172
Receivables and unbilled charges 2,203 2,387
Deferred tax asset, short-term 400 400
Capitalized software, net 226 27
Equipment and improvements, net 562 599
Deferred tax asset, long-term 500 500
Total assets $6,463 $6,085
Liabilities and stockholders' equity
Accounts payable $540 $703
Accrued payroll & related liabilities 659 745
Other accrued liabilities 302 477
Stockholders' equity 4,962 4,160
Total liabilities and stockholders' equity $6,463 $6,085
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Nine Months
Ended Sep 30, Ended Sep 30,
1998 1997 1998 1997
Revenues $3,070 $3,367 $9,221 $7,654
Costs and expenses 2,817 3,045 8,614 7,192
Operating income 254 322 607 462
Nonoperating income 27 56 72 1,205
Income before tax 281 378 679 1,667
Provision for income tax 7 7 0 16
Net income 273 371 679 1,651
Diluted net income per share $0.01 $0.01 $0.02 $0.06
Shares used in computing
net income per share 28,853 28,079 28,713 29,165
Teknowledge Wins Advanced Technology Program
Contract for Internet-Based Courseware Conversion Software
PALO ALTO, Calif., Oct. 7 /PRNewswire/ -- Teknowledge Corporation has been selected as a project award winner in the
National Institute of Standards and Technology (NIST) Advanced Technology Program (ATP) competition. Teknowledge was
awarded $2M of a total $4.3 million cost sharing contract to develop a Courseware Conversion Factory -- an integrated
software system for re- engineering classroom based education and training materials for distribution via the Internet.
Neil Jacobstein, Teknowledge's President and a Principal Investigator for the Conversion Factory project said: ''The NIST
ATP award will enable Teknowledge and its partners to develop a rapid, systematic and cost effective method for
non-programmers to rapidly re-engineer traditional courses for Internet-based instruction on demand. Simply converting
traditional instructional material into software form is only a first step. The course materials typically must be entirely
re-engineered to make them engaging and effective for student learning. Teknowledge's Conversion Factory and Associate will
provide coaching on best instructional practices, and access to repositories of educational objects for developing individualized
instruction.''
Test beds for the Conversion Factory software will be established at Asymetrix Learning Systems (Bellevue, Wash.), Defense
Acquisition University (Alexandria, Va.), and the U.S. Air Force Academy (Colorado Springs). Asymetrix Learning Systems,
Macromedia (San Francisco) and Hewlett-Packard (Palo Alto) have signed technology provider and cooperation agreements
for Teknowledge's Courseware Conversion Factory.
The Courseware Conversion Factory will reduce the time, cost, and skill required to convert existing courses. The system will
provide coaching on instructional techniques that have proven most effective in controlled studies. It will improve utilization of
educational objects stored in web-based repositories, and systematize the methodology for continuous improvement of
Internet-based courses. The conversion technology can be transferred to commercial Internet products and services such as
conversion of paper-based catalogs to E-commerce web sites.
Jacobstein outlined the commercialization paths that were specified in the NIST contract: ''We will utilize three routes to bring
this technology to market: 1) licensing the technology to one of our partners to incorporate into their education and training
software products, 2) incorporating the software into Teknowledge's Sales Associate(TM) product to enable rapid conversion
of product catalogs into E-Commerce sites and 3) offering rapid conversion services to companies that need to convert their
classroom materials for Intranet and Internet distribution.''
Teknowledge is a distributed knowledge management company. It provides software systems design and development services
for government and commercial Internet applications, including education and training. Teknowledge's E-Commerce Systems
business sells commercial software products and services. Teknowledge stock is traded publicly on the bulletin board under the
symbol TEKC.
SOURCE: Teknowledge Corporation
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