Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: Roy F who wrote (5223)	11/14/2002 8:22:13 AM
From: Roy F	Respond to of 6847

Xybernaut Reports Third Quarter 2002 Results Thursday November 14, 8:17 am ET Achieves 26% Revenue Increase from Q2 2002 and 41% Expense Reduction from Q4 2001 FAIRFAX, Va.--(BUSINESS WIRE)--Nov. 14, 2002--Xybernaut® Corporation (Nasdaq:XYBR - News) today announced quarterly revenues of $2.5 million for its third quarter ended September 30, 2002. This represents an increase of approximately 26% from revenues during the preceding second quarter of 2002 and an increase of approximately 10% over revenues during the comparable third quarter of 2001. The net loss for the third quarter was $7.9 million, or $0.10 per share, compared with $8.1 million, or $0.15 per share, for the same period in the prior year. ADVERTISEMENT Operating expenses, excluding restructuring and other non-recurring charges, for the third quarter of 2002 were $6.0 million, a reduction of 41% from the fourth quarter of 2001 and 14% from the preceding second quarter of 2002. Revenue for the nine months ended September 30, 2002 was $7.4 million, representing an increase of 11% versus revenue of $6.6 million for the same period a year ago. The Company reported net losses of $22.5 million for both the first nine months of 2002 and 2001. "Throughout 2002, Xybernaut has successfully introduced new product lines, gained traction in critical industry segments, extended the Team Xybernaut(TM) partner community, strengthened our intellectual property position and demonstrated our ability to raise capital despite difficult market conditions," stated Edward G. Newman, chairman, president and CEO. "We continue our drive to profitability and see significant benefits from the restructuring and cost cutting initiatives we have undertaken throughout 2002," continued Newman. "We expect to reduce our operating expenses by 50% over prior levels. We have significantly reduced our headcount, restructured agreements with vendors and partners, reduced inventory commitments and implemented various other cost saving strategies such as consolidating international operations. To build upon these successful efforts, I am pleased to announce management changes within Xybernaut." John F. Moynahan has been promoted from senior vice president and chief financial officer to executive vice president, international operations, and Thomas D. Davis, who has been vice president of finance and controller of Xybernaut since 1999, has been promoted to senior vice president and chief financial officer. "With the consolidation and centralization of our international efforts, we have made the strategic decision to run these operations from headquarters rather than overseas. John is ideally suited for this role with his in-depth knowledge of our products and markets and 23 years of experience in international business. During his seven years with Xybernaut, John has demonstrated strong technical and operational expertise and is a co-inventor of a number of patents, most notably the transferable core," noted Newman. "Promoting John to this position provides increased management strength for the Company and a single point of contact for our multinational customers without increasing costs." "Tom has done an excellent job of maintaining a strong focus on cost management. His business and financial acumen and proven leadership abilities will serve the Company well as he moves into his new role," said Newman. "Tom has my utmost confidence as our new CFO and it is a pleasure to promote him to this position. Additionally, we are fortunate to have John's continued financial guidance during the transition period." Davis has over 10 years of finance and accounting experience and has served as controller and vice president of finance since joining Xybernaut in 1999. Prior to Xybernaut, Davis held various senior finance and accounting positions, including director of finance at MeriStar Hospitality Corporation. While with MeriStar, Davis was active in the company's 1996 initial public offering, and played a key role in raising $3 billion through debt and equity instruments. Davis also served as a senior auditor and certified public accountant (CPA) with Deloitte & Touche. Davis graduated magna cum laude from James Madison University. Revenue Guidance The Company's previous guidance for revenues in the fourth quarter of 2002 remains unchanged; however, the Company also noted that the timing of orders and shipment of product could affect the timing of revenue realized in that period. Conference Call A conference call will be held at 8:30 a.m. Eastern Time today, November 14, to discuss the results for the quarter. The conference call can be accessed by dialing toll free to 888-423-3272 from within the U.S. or 612-288-0318 from outside the U.S. and asking for the Xybernaut Third Quarter 2002 Financial Results conference call. A re-broadcast of the call will be available from 2:15 p.m. Eastern Time on November 14 until 11:59 p.m. Eastern Time on November 15 by dialing 800-475-6701 from within the U.S. or 320-365-3844 from outside the U.S. and entering the following access code - 660109. The call will also be available via audio streaming over the Internet by accessing the Xybernaut Web site at xybernaut.com. About Xybernaut ...