WavePhore Reports First Quarter, 1999 Operating Results
PR Newswire - April 29, 1999 16:16
PHOENIX, April 29 /PRNewswire/ -- WavePhore, Inc. (Nasdaq: WAVO), today reported first quarter 1999 revenues of $5.7 million compared with $5.4 million for the comparable year earlier period. "Our subscription and fee service revenue continues to show strong growth, with a 35% increase in the first quarter of 1999 over the comparable quarter of 1998," said Ken Swenson, Chief Financial Officer of WavePhore. "Additionally, as WavePhore continues to grow our Internet products and services, we are seeing a positive impact on our gross margin percentage, as shown by the three percentage point increase in the first quarter 1999 over the comparable quarter in 1998."
The net loss was $5.4 million, or $0.19 per basic and dilutive common share, excluding preferred stock dividends, for the first quarter of 1999; that compares to a net loss of $4.8 million, or $0.26 per basic and dilutive common share for the 1998 comparable period.
"Our company's transition to being a provider of Internet-based subscription and fee service products is producing positive results," said David E. Deeds, Chairman, President and CEO of WavePhore, Inc. "In 1999, we are continuing to expand our offerings with products such as NewsPak and the WavePhore Digital Broadcast Suite. These are examples of products that leverage our technology assets and will enable us to open new revenue streams. Our recently announced agreement with General Instrument bundles the WavePhore Digital Broadcast Suite with GI's encoding equipment, and presents it to a potential market of over 11,000 broadcasters and cable systems in the US, as they make their transition to digital television. In addition, the Company is developing a television-oriented version of our WaveTop service for integration with digital television set-top boxes. Industry sources estimate that the digital set-top box marketplace will grow to 55 million units by the year 2005."
About WavePhore
WavePhore, Inc. (Nasdaq: WAVO) is in the business of moving media. It partners with the foremost providers of news, business data, Internet-based content and multimedia programming to deliver selective intelligence and quality content to an information-dependent society. Additional information on WavePhore is available via the Internet at www.wavephore.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, and risk factors listed from time to time in WavePhore's SEC filings.
WavePhore, Inc.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended March 31,
1999 1998
Revenues:
Information delivery services and
communication systems $3,961 $4,140
Subscription and fee services 1,718 1,275
Total revenues 5,679 5,415
Cost of revenues 2,967 2,986
Gross margin 2,712 2,429
Operating expenses:
Research and development 3,106 2,251
Sales and marketing 3,254 3,056
General and administrative 1,526 1,488
Amortization 399 623
8,285 7,418
Other (income) expense:
Interest expense 57 53
Interest (Income) (213) (215)
Other 12 (4)
(144) (166)
Net loss (5,429) (4,823)
Less: Preferred stock dividends 138 577
Net loss after preferred stock
dividends $(5,567) $(5,400)
Basic and dilutive net loss
per common share $(0.19) $(0.26)
Basic and dilutive net loss per
common share after preferred
stock dividends $(0.19) $(0.30)
Number of shares used in per
share calculation 28,630 18,287
WavePhore, Inc.
Consolidated Balance Sheets
(in thousands)
March 31, December 31,
1999 1998
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $13,848 $17,719
Accounts receivable 3,744 3,999
Inventories 2,841 3,314
Other receivables -- 29
Prepaid expenses and other 1,510 977
Total current assets 21,943 26,038
Property and equipment, net 5,766 4,762
Intangible assets of businesses
acquired, net 20,282 20,617
Deposits & other assets 1,618 1,570
Total assets $49,609 $52,987
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $2,151 $1,073
Accrued expenses 3,250 2,938
Deferred revenue 1,990 1,874
Bank loans 1,983 2,000
Current portion of long-term debt 199 52
Total current liabilities 9,573 7,937
Long-term debt, less current portion 80 40
Other long-term liabilities 286 380
Total shareholders' equity 39,670 44,630
Total liabilities and shareholders'
equity $49,609 $52,987
SOURCE WavePhore, Inc.
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