Xybernaut Corporation Announces Reduced Loss for First Quarter $10
Million Standby Financing Facility Established
FAIRFAX, Va., May 18 /PRNewswire/ -- Xybernaut Corporation (Nasdaq: XYBR), a leader in wearable computers, today reported revenues for the quarter ended March 31, 1998 of $127,227, compared to $110,426 for the comparable period in 1997, and a net loss of $1,489,321 for the quarter ended March 31, 1998, or $0.10 per share, compared to a net loss of $2,382,651, or $0.19 per share for the comparable period in 1997.
Edward G. Newman, Xybernaut Corporation's Chairman and Chief Executive Officer stated: "Last quarter management set out three main objectives for the first nine months of this year: reducing our burn rate by 40%, outsourcing all of our manufacturing, and establishing distribution and support channels. To date, Xybernaut has cut its burn rate in the first quarter by over 40% from the previous quarter, presented the world with the 233 MHz Pentium(R)-based Mobile Assistant(R) ("MA IV"), which is the result of our collaboration with world-class technology companies in Japan, and reached an agreement for distribution
channels that we expect will be finalized in the near future. We believe that accomplishing these objectives will lay the foundation for the fourth quarter, when we expect to begin significant sales of the MA IV. We are committed to the growth of the market for wearable computers and Xybernaut's long-term position as a leader in that market."
John F. Moynahan, Xybernaut's Senior Vice President and Chief Financial Officer, stated: "Xybernaut recently established a $10 million standby line of equity that secures the capital required for the launch of the MA IV and is available for future funding. We intend to use this facility as a backstop while we are optimizing other strategic and long-term financing alternatives, consistent with our objective of funding growth while minimizing dilution to shareholders. A portion of the stock that could be issued under this facility has been registered with the SEC, but as of today, Xybernaut has not sold any stock, or taken any money, under this facility. As with all Xybernaut financings to date, any proceeds from drawdowns on this equity line will be solely for corporate purposes."
Xybernaut Corporation is a leader in providing hardware, software and service solutions to the wearable computing industry. The Company's patented wearable computer systems feature speech-activation and head-mounted displays that allow users hands-free access to information in the computer's internal storage, in local area networks, and on the Internet on an as-needed, where- needed basis. Xybernaut's software is designed to provide users with the right information needed for the task at hand using consistent navigation techniques and screen presentations. Xybernaut's customers include leading corporations and government agencies for many mobile knowledge delivery system applications, including maintenance and
repair, inspection, inventory control, manufacturing and data collection.
For more information, contact Xybernaut Corporation, 12701 Fair Lakes Circle, Suite 550, Fairfax, Virginia, 22033 phone:
(703) 631-6925, fax: (703) 631-6734. Web site: xybernaut.com; company contact: Steve Newman, (703)
631-6925, Email: investrel@xybernaut.com; for automated fax releases, please call (800) 832-5522, ext. 114624.
XYBERNAUT CORPORATION Condensed Statement of Operations
Unaudited Unaudited
3 Months Ended 3 Months Ended
Mar. 31, 1998 Mar. 31, 1997
Total Revenues $127,227 $110,426
Net Loss $1,489,321 $2,382,651
Net Loss per Share $0.10 $0.19
Avg. Shares Outstanding 15,168,238 12,459,112
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of
1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan, confident that, believe, expect, or
intend to" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act
and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual
results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties
include, but are not limited to, market conditions, the availability of components for, and delays in the start of, production of the
next generations of the Mobile Assistant, general acceptance of the Company's products and technologies, competitive factors,
the ability to successfully complete additional financings and other risks described in the Company's SEC reports and filings.
Mobile Assistant is a registered trademark of Xybernaut Corporation.
Pentium is a registered trademark of Intel Corporation.
SOURCE Xybernaut Corporation
/CONTACT: Investor Relations: Alan Stone of Alan Stone & Company,
310-444-3940/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 114624/
/Web site: xybernaut.com
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