[ XYBR Financials just out. ] Xybernaut Corporation (Nasdaq) Reports Third Quarter and Nine Month Financial Results; Product Sales in Third Quarter Increase 100% Over Prior Year
FAIRFAX, Va., Nov. 17 /PRNewswire/ -- XYBERNAUT CORPORATION
(Nasdaq: XYBR), a pioneer and leader in the wearable computer market, today
reported financial results for the third quarter and nine months ended
September 30, 1998.
Edward G. Newman, Xybernaut's Chairman and CEO, stated , "The third
quarter represented solid revenue growth for the P133 product in spite of
limited discounting. I anticipate that this trend will continue to accelerate
as we transition to the MA IV(TM). Market reaction to the MA IV, especially
at COMDEX and at the Munich Computer Fair, is clearly exceeding our
expectations. With the balance sheet actions and charges taken in the third
quarter essentially behind us, and with financing in place, and a good portion
of the development expenses related to our agreement with Sony Corporation now
out of the way, we believe we have a solid base upon which we will be able to
significantly grow the business over subsequent quarters as sales of the MA IV
begin to ramp-up."
Revenues for the third quarter ended September 30, 1998 were
$259,043 compared with $356,365 for the corresponding period in the prior
year. Product sales and leases revenue was $259,043 representing a
100% increase over the prior year's third quarter. Consulting and license
revenue in the period decreased versus the corresponding period of the prior
year. During the third quarter of the prior year, Rockwell Corporation
restructured its businesses and withdrew from the wearable computer
marketplace. At that time, Xybernaut Corporation recognized $210,000 of
deferred revenue associated with an existing Rockwell licensing agreement.
The non-recurrence of a similar type transaction in 1998 is the primary factor
for the overall revenue decline in the quarter.
The net loss for the quarter was $3,480,275 compared with $2,299,611 in
the third quarter of 1997. Net loss per share was $0.18, on
19,446,119 weighted average shares outstanding, versus $0.18 per share, on
12,758,568 weighted average shares outstanding in the prior year's third
quarter. Losses in the third quarter included significant payments to Sony
Corporation associated with the development of the MA IV. In addition,
management adjusted the value of certain balance sheet items related to the
P133 in anticipation of obsolescence that may occur with the introduction of
the MA IV. Maarten Heybroek, Xybernaut's COO/CFO stated "that the valuation
adjustments related to the P133 are prudent at this time considering the
company's strategy to focus its resources on the worldwide sales and marketing
of the MA IV."
On a year-to-date basis, for the nine months ending September 30, 1998,
Xybernaut had total revenues of $617,743, compared with $606,822 for the
comparable period in 1997. Product sales for the period were $615,904 or
76.1% higher than the corresponding period of the prior year. Consulting
revenues in the current period of $1,839 are down by 99.3% versus the prior
year. The modest year-to-date growth in revenues is due to recognition of
deferred revenue in the prior year related to a Rockwell Corporation licensing
agreement mentioned above. There was a net loss for the period of
$7,272,779 compared with a net loss of $6,862,384 in the prior year nine month
period. The net loss per share was $0.43 on 16,840,480 weighted average
shares outstanding, compared with $0.53 per share on a weighted average of
12,758,929 shares outstanding in the prior year.
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, flat panel 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.
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.
XYBERNAUT CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Product Sales and
Leases $ 259,043 $ 129,365 $ 615,904 $ 349,822
Consulting and
Licenses $ -- $ 227,000 $ 1,839 $ 257,000
Total Revenues $ 259,043 $ 356,365 $ 617,743 $ 606,822
Net Loss $ (3,480,275) $ (2,299,611)$ (7,272,780) $(6,862,384)
Net Loss Per Share $ (0.18) $ (0.18) $ (0.43) $ (0.53)
Weighted Average Number
of Shares
Outstanding 19,446,119 12,758,568 16,840,480 12,758,929
SOURCE Xybernaut Corporation
CO: Xybernaut Corporation
ST: Virginia
IN: CPR FIN
SU: ERN
11/17/98 09:30 EST prnewswire.com
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