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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (97548)	5/15/2000 8:35:00 AM
From: johnsto1	Read Replies (1) \| Respond to of 120523

ZICA...Earnings Attention Business/Financial Editors: Zi Corporation's first quarter revenue grows 191 per cent CALGARY, May 15 /CNW/ - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) recorded first quarter revenue of $672,000, a 191 per cent increase over the $231,000 earned in the same period of 1999. Revenues earned during the first quarter of 2000 were primarily based on royalties, compared to 1999 where revenues were earned primarily on up front licensing fees. ``Our revenues are growing 50 per cent faster than our operating loss,'' says Peter Inman, chief financial officer of Zi Corporation. ``This is a positive signal for future margins as our customers continue introducing their products to the market.'' First quarter highlights - Revenue growth of 191 per cent over first quarter of 1999 - Cash and short term investments of $62 million - no debt - Delivered software on eight customer contracts - Established a strong and talented management team - Added three new licensees and two new strategic partnerships - Currently support and license 24 world languages ------------------------------------------------------------------------ (in 000's except earnings per share) Q1 2000 Q1 1999 % change ------------------------------------------------------------------------ Revenues $ 672 $ 231 191 (up) Operating income (loss) $(2,694) $(1,176) 129 (up) Interest and other income $685 $2 n/a Earnings (loss) per share $(0.056) $(0.042) 33 (up) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Common shares outstanding 36,643,467 30,148,817 29 (up) Employees 145 46 215 (up) ------------------------------------------------------------------------ Operating loss in the first quarter was $2,694,000, ($0.06 per share, a 33 per cent increase over the same period in 1999). Operating costs increased in areas necessary to expand Zi's business including, wages and salaries ($782,000), marketing and sales ($171,000 excluding wages and salaries), research and development activities ($672,000) and depreciation and amortization ($267,000). Zi expects operating costs to increase over subsequent quarters as new employees and locations are added to support Zi's global sales and marketing efforts. Additional funds are being designated for Zi's research and development activities and Zi also anticipates that these costs will continue to increase over the next several quarters. Zi currently has $62 million in cash and short-term investments, no debt and working capital of $63 million, which is certainly sufficient to achieve growth targets for 2000. Interest income from cash and short-term investments generated $685,000 during the first quarter. Zi's cash and short-term investments are designated for the expansion of Zi's employee complement and offices, as well as acquisitions in the wireless and interactive delivery arena. Zi is positioned to grow with the market for wireless and interactive delivery devices. Industry estimates now project one billion mobile subscribers by 2002. Broadband delivery methods that could benefit from Zi technology are also being developed and enhanced in all major world markets. Products for the future marketplace emphasize data capability. Key areas of strength in Zi's technology portfolio are the user interface and language capabilities - product features that differentiate manufacturer's offerings. Zi Corpo