Record First Quarter Revenues Reported by Xybernaut Corporation; Company Anticipates Accelerated Shipments
FAIRFAX, Va., May 18 /PRNewswire/ -- XYBERNAUT CORPORATION (Nasdaq: XYBR),
the leader in wearable computing, today reported revenues for the first
quarter ended March 31, 1999 of $654,163 and a net loss of $4,221,677, or
$0.20 per share, which compares to revenues of $127,227 and a net loss or
$1,489,321, or $0.10 per share, for the first quarter in the prior year. This
is the highest level of quarterly revenues in Xybernaut's history and was
driven by increases in product sales, primarily of the Company's Mobile
Assistant(R) IV ("MA IV"). The $645,776 of product sales in the first quarter
ended March 31, 1999, is a 408% increase over the same quarter last year and
represents 116% of product sales for the full year ended December 31, 1997 and
74% of product sales for the full year ended December 31, 1998.
Edward G. Newman, President, commented that "we are pleased with this
record quarter, which marks the first full quarter for revenues from the
MA IV. Our operations in the U.S., Japan and Germany all saw significant
increases in revenues and we are enthusiastic about the future of the MA IV.
Customers during the first quarter included some of the world's largest
telecommunications, manufacturing and service companies. A lot of attention
has recently been focused on the role of technology in sustaining
U.S. productivity improvements and we expect that the bottom line benefits of
the MA IV will become apparent to more of the world's leading companies in the
near future. Public awareness of wearable computers has been increasing, as
seen with recent features by the New York Times and CNN, and we expect that
1999 will indeed be the 'Year of the Wearable'."
"Many customers began their evaluations of the MA IV in the first
quarter," continued Mr. Newman, "and we expect that ordering patterns will
follow a typical pattern for new product introductions, with volume shipments
of the MA IV anticipated to start late in the second quarter and accelerating
through the remainder of the year. We have analyzed how this shipment pattern
will translate into revenues and concluded that, as a result of the recently-
announced change to a more conservative method of accounting for revenue
recognition, expected sales recognition is likely to shift a little more than
one quarter. Despite this shift, management continues to believe order
momentum to be robust and that this fiscal year should result in revenues of
approximately $40 million."
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. Key industries include
manufacturing, distribution, transportation, government and insurance.
Headquartered in Fairfax, Virginia, Xybernaut also has offices in Europe
(Germany) and Asia (Japan).
Visit Xybernaut's Web Site at xybernaut.com
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 production of, the
Mobile Assistant, general acceptance of the Company's products and
technologies, competitive factors, the ability to successfully complete
additional financing and other risks described in the Company's SEC reports
and filings.
Xybernaut Corporation
Condensed Statement of Operations
(Unaudited)
Three Months Ended Three Months Ended
March 31, 1999 March 31, 1998
Revenues $654,163 $127,227
Net Loss ($4,221,677) (1,489,321)
Net Loss to Holders of
Common Stock ($4,377,941) ($1,899,448)
Earnings Per Share ("EPS") ($0.20) ($0.10)
EPS to Holders of Common Stock ($0.21) ($0.13)
Weighted Average Shares 21,339,205 15,168,238
SOURCE Xybernaut Corporation
CO: Xybernaut Corporation
ST: Virginia
IN: CPR
SU: ERN
05/18/99 10:11 EDT prnewswire.com |
