SUNNYVALE, Calif., May 21-- Vicinity Corporation (NASDAQ: VCNT) today reported financial results for its third quarter fiscal 2002. Vicinity is a leading provider of Web, wireless and speech-based enterprise location-based services.
Total revenues for the quarter ended April 30, 2002 were $4.3 million compared to $4.9 million for the same period in fiscal 2001. Net loss for the third quarter fiscal 2002 was $1.5 million, or a loss of $0.06 per share, an improvement of $0.12 per share from the pro forma net loss of $5.0 million recorded in the third quarter fiscal 2001. Pro forma amounts for the third quarter fiscal 2001 exclude charges related to the impairment of intangible assets as well as restructuring and other special charges, as more fully described below. There were no pro forma adjustments for third quarter fiscal 2002.
On a sequential basis, third quarter fiscal 2002 revenues declined $0.2 million or 5 percent from second quarter fiscal 2002 revenues of $4.5 million. Net loss per share for the third quarter fiscal 2002 improved to $0.06 per share compared with the pro forma net loss of $0.09 per share for the second quarter fiscal 2002. Net loss of $1.5 million for the third quarter fiscal 2002 improved $0.9 million from the pro forma net loss of $2.4 million for the second quarter fiscal 2002. Pro forma amounts for the second quarter fiscal 2002 reflect adjustments for charges related to the impairment of intangible assets as well as restructuring and other special charges, as more fully described below.
Revenues for the nine months ended April 30, 2002 totaled $13.5 million, compared with revenues of $15.4 million for the nine-month period a year ago. Pro forma net loss for the nine-month period ended April 30, 2002 was $6.5 million, or a loss of $0.24 per share, compared with a pro forma net loss of $16.4 million, or a loss of $0.59 per share, for the nine months ended April 30, 2001.
On a GAAP basis, net loss for the third quarter fiscal 2002 was $1.5 million, or a loss of $0.06 per share, compared with a net loss of $8.3 million, or a loss of $0.29 per share, for the same period last fiscal year. The net loss for the nine months ended April 30, 2002 was $10.1 million, or a loss of $0.37 per share, compared with a net loss of $20.8 million, or a loss of $0.74 per share, for the same period last fiscal year.
"During the third fiscal quarter we made significant progress towards positioning the Company for future revenue growth," said Chuck Berger, President and CEO. "Teri Dahlbeck assumed the role of senior vice president of marketing and business development, and Dan Shaver was appointed senior vice president of worldwide sales. The addition of these two seasoned executives strengthens our demand creation capability and adds depth to the overall executive staff," Berger continued. "We continued to experience a strong renewal rate and signed double the number of new accounts signed in the previous quarter. At the same time we reinforced our financial discipline lowering operating expenses further and reducing our days sales outstanding substantially."
Third Quarter Fiscal 2002 Highlights
-- Vicinity had a strong renewal rate of 80% in Q3, renewing 38 contracts with customers such as Toyota/Lexus, Volvo North America, Starbucks, Kinko`s, JC Penney, Hollywood Entertainment, GM Europe and BP International.
-- Vicinity added 20 new customers, including SBC/Smart Pages, Toys R Us, Denny`s, DHL Europe, Ritz-Carlton and Yamaha Europe.
-- Vicinity Location Server was added to the mMode(SM) service recently launched by AT&T; Wireless. Customers in all AT&T; Wireless GSM/GPRS markets can now use their wireless phone and Vicinity technology to find the nearest ATM, fast food establishment or other retailer.
-- In March 2002, Teri Dahlbeck joined the company as Senior Vice President of Marketing and Business Development, bringing two decades of management and technical expertise with start-ups and Fortune 500 organizations.
-- In April 2002, Dan Shaver joined as Senior Vice President of Worldwide Sales. Shaver has more than 25 years of sales leadership experience with many of the largest technology companies, including AdForce, Sun Microsystems and Apple Computer.
Pro Forma Results
Vicinity`s pro forma results for the nine months ended April 30, 2002 and for the three months and nine months ended April 30, 2001 differ from reported results in accordance with GAAP due to adjustments for the following items reported in Vicinity`s unaudited consolidated statements of operations:
-- Impairment of intangible assets charges of $0.8 million and $3.8 million in the third quarter fiscal 2001 and second quarter fiscal 2002, respectively, related to the write-off of intangible assets related to Vicinity`s October 2000 acquisition of NetCreate Systems, Inc.
-- Restructuring and other special charges in the second and third quarters of fiscal 2001 of $1.1 million and $2.5 million, respectively, related to plans to restructure certain of our operations in order to reduce expenses as well as severance-related expenses for several of our senior executives.
Investor Conference Call
Vicinity Corporation will host a conference call to discuss third quarter fiscal 2002 results on May 21, 2002 at 5:00 p.m. EDT. U.S. callers should dial 1-800-289-0468. International callers should dial +1-913-981-5517. A live, listen-only Web cast of the conference call will be available at http://www.vicinity.com/ under the "Investor Relations" section of the Web site. The call will be available for replay starting three hours following the call until May 25, 2002 at 12:01 a.m. EST. The replay number is 1-888-203-1112, or +1-719-457-0820 for international callers; the pass code is 415846.
About Vicinity Corporation
Vicinity Corporation is a leading provider of Enterprise Location Services to Global 2000 companies across Web, wireless and speech platforms. Backed by patented technology, Vicinity`s suite of services includes the Vicinity Location Server(SM) along with a comprehensive portfolio of application services and application programming interfaces (APIs) that embed location intelligence deep within existing enterprise applications.
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