Ibern,
FYI
John
Company Press Release
Zi Corporation Announces Results For The Nine Months And Quarter Ended September 30, 1998.
CALGARY, Alberta--(BUSINESS WIRE)--Nov. 27, 1998--(NASDAQ:ZICAF -
news; SE:ZIC. - news; Alberta Stock Exchange:ZIC. - news) Zi Corporation (TSE: ZIC - news; NASDAQ:ZICAF - news) announces results for the Nine Months and Quarter Ended Sept. 30, 1998.
Nine Months Ended Three Months Ended
September 30 September 30
(UNAUDITED) 1998 1997 1998 1997
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Revenue $1,611,435 $1,100,066 $364,431 $444,164
Operating Costs
and Expenses
Operating costs 1,699,273 6,954,601 660,339 2,449,543
General and
administrative 545,059 1,478,503 (204,131) 474,455
Depreciation and
amortization 406,439 529,052 145,500 342,460
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2,650,772 8,962,156 601,709 3,266,458
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Operating loss before
undernoted (1,039,337) (7,862,090) (237,278)(2,822,294)
Interest and
other income 122,393 130,194 50,831 25,946
Interest expense (23,671) -- (10,082) --
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Net Loss $(940,616)$(7,731,896) $(196,530)$(2,796,348)
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Loss per share $ 0.033 $ 0.294 $ 0.007 $ 0.106
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Common shares
outstanding at
end of period 28,348,817 27,026,665 28,348,817 27,026,665
-------------------------------------------------------------
Financial Review:
Revenue for the nine month period of $1.6 million represented a 46 percent increase over the same period last year. More significantly, operating costs were 76 percent lower and general and administrative expenses were 63 percent lower than last year. Revenue in the third quarter amounted to $364,000. General and administrative expenses included the recovery of previously recorded legal costs amounting to $486,000. The recovery was the result of a judgement against the company being overturned by the appeal court. During the quarter the company charged $262,000 to deferred development costs.
Operations Review:
The company has been working closely with Original Equipment
Manufacturers (OEMs) on existing technology and the evaluation of new
business opportunities. In addition, we have met all contractual
commitments to date under our licensing agreement with Ericsson Mobile
Communications AB. The development teams in Calgary and Beijing remain
focused on the strategy of implementing our technology on a diversity of consumer devices from mobile phones to computers. In this context, we have developed a number of software prototypes to support our sales
efforts in the consumer electronics market.
Outlook:
The company's office in Beijing is expanding as a result of new and
exciting initiatives in Greater China in the areas of education,
internet applications and telecommunications. We have completed
simulators of products specific to internet access and operation using
Zi Technology. We remain confident that licensing agreements can be
secured with major (OEMs) as well as local manufacturers within China.
In consultation with North American, Asian and European mobile phone
companies and manufacturers, we plan to continue development of
application software opportunities that could leverage our investment in software products and expand our core technology. |
