WAVX PRESS RELEASE WITH Q/E 3/99 RESULTS FOLLOWS:
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> > >W1018 May 17, 1999 03:31 PACIFIC 06:31 EASTERN
( BW)(MA-WAVE-SYSTEMS)(WAVX) Wave Systems Reports First Quarter
Results; Initial Consumer Launch of Wave Technology Expected by End of June
Business & Technology Editors
LEE, Mass.--(BUSINESS WIRE)--May 17, 1999--Wave Systems Corp.
(OTC BB:WAVX; wave.com), a provider of electronic commerce,
content distribution and security services, today reported results for
the first quarter ended March 31, 1999. Wave also reviewed recent
progress it has made in extending its Internet presence; in
positioning the Company for deployment of its EMBASSY technology in a
broader range of computers and electronic devices; and in expanding
the range of potential applications being developed to benefit from
the unique e-commerce and security capabilities of the EMBASSY
platform.
Reflecting its accelerated investment in enhancing its
back-office and service infrastructure and expanding its sales and
marketing efforts, Wave Systems, a development stage corporation,
reported a net loss to common stockholders of $3,679,000, or $0.11 per
share, for the first quarter ended March 31, 1999. Included in the
results is a one-time, non-cash interest charge of $666,000, or $0.02
per share relating to a Black-Scholes valuation of 275,000 Warrants
issued as part of bridge loan financing. In the prior year's first
quarter, the Company had a net loss of $2,095,000, or $0.08 per share.
The weighted average number of basic shares outstanding in the first
quarters of 1999 and 1998 was 32,148,000 and 27,359,000, respectively.
Reflecting the Company's private placement of $23 million in
Class A Common Stock to institutional, strategic and accredited
individual investors, as of March 31, 1999, Wave had working capital
of $17,748,000, total current assets of $21,506,000 and total current
liabilities of $3,259,000.
Commenting on the Company's progress, Steven Sprague, President,
stated, "Wave continues to make substantial progress in several areas
of strategic importance to the Company, and our recent private
placement provides a strong financial footing on which to move
forward. In particular, recent agreements with Sigma Designs, Inc.
(Nasdaq:SIGM), Actiontec Electronics and Atmel Corporation
(Nasdaq:ATML) expand our opportunities for deployment, and Hauppauge
Computer Works, Inc., a subsidiary of Hauppauge Digital, Inc.
(Nasdaq:HAUP), is still slated to commence product shipments
incorporating our technology by the end of our second quarter.
"Wave has also made significant progress establishing additional
strategic relationships to expand the scope of applications being
developed to utilize the EMBASSY platform. Our relationship with
Security Dynamics' RSA Data Security, our partnership with Sarnoff
Corporation to form inTelecast and the incorporation of the Sun Java
Card(TM) smart card application framework address this goal and
demonstrate the broad potential for EMBASSY.
"Focusing on the Internet, we launched the MyPublish digital
content distribution system and secured an important partnership with
theglobe.com (Nasdaq:TGLO) to provide access to MyPublish to its
nearly 10.2 million users and 2.3 million members.
"Though we are pleased with our progress to date, we continue to
pursue new strategic partnerships with a broad range of companies with
the ultimate goal of developing broad-scale availability of a growing
range of e-commerce and security services."
About Wave Systems Corp:
Founded in 1988, the mission of Wave Systems Corporation is to
create the world's best technologies and services to secure and sell
digital information. Wave's core EMBASSY technology is an inexpensive,
proprietary hardware and software-based device that enables secure
transaction processing and distributed information metering in users'
PCs. Embedded in PC hardware and peripherals, set top boxes and other
devices, EMBASSY is the foundation for client-based security
applications and a new distribution and purchasing model for content
and services. This low-cost, secure "system within a system" will
enable the personal computer to assume an important new role in the
evolving digital economy. By moving secure transactions to the
desktop, Wave provides intrinsic value to the electronic commerce
process, benefiting PC users, application developers, and hardware
manufacturers. For more information, please visit Wave's corporate web
site at wave.com.
Safe Harbor for Forward-Looking Statements
Except for the statements of historical fact, the information
presented herein constitutes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include
general economic and business conditions, the ability to fund
operations, the loss of market share, changes in consumer buying
habits and other factors over which Wave Systems Corp. has little or
no control.
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Wave Systems Corp. and Subsidiaries
(a development stage corporation)
Consolidated Balance Sheets
(in thousands)
March 31, 1999 December 31, 1998
Assets (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 21,355 $ 1,057
Prepaid expenses and
other receivables 151 5
------------ -----------
Total current assets 21,506 1,062
Property and equipment, net 1,106 888
Other assets 108 108
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Total Assets 22,720 2,058
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Liabilities and Stockholders'
equity (deficiency)
Current liabilities:
Accounts payable and
accrued expenses 2,058 3,029
Deferred license fee 625 1,250
Note payable 576 562
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Total current liabilities 3,259 4,841
Series A Cumulative Redeemable
Preferred Stock, $0.01 par value 499 493
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Total stockholders'
equity (deficiency) 18,962 (3,276)
Total liabilities and
stockholders' equity (deficiency) $ 22,720 $ 2,058
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Wave Systems Corp. and Subsidiaries
(a development stage corporation)
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
1999 1998
---- ----
Net revenues $ 2 $ 9
Operating expenses:
Selling, general and administrative 2,401 1,421
Research and development 1,086 539
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3,487 1,960
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Other income (expense):
License fee 625 0
Interest income 17 5
Interest expense (165) (11)
Non-cash interest charge (666) 0
Net loss (3,674) (1,957)
Accrued dividends on preferred stock 5 138
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Net loss to common stockholders $ (3,679) $ (2,095)
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Net loss per share $ (0.11) $ (0.08)
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Weighted average shares outstanding 32,148 27,359
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CONTACT: Investor Relations:
Jaffoni & Collins Incorporated
David Collins, Kathy Holmes
(212) 835-8500
wavx@jcir.com
or
Wave Systems Corp.
Kent Kappen
(408) 261-9510
kkappen@wavesys.com
or
Media:
Fleishman-Hillard, Inc.
Aaron Feigin
(415) 356-1033
feigina@fleishman.com< < <
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Steve |
