E-SIM REPORTS SECOND QUARTER EARNINGS RESULTS
FOR IMMEDIATE RELEASE
MEDIA CONTACTS:
Sona Mirakian
e-SIM Ltd.
(212) 725-9099
sona@e-sim.com
INVESTOR CONTACT:
Yaron Eldad
e-SIM Ltd.
+972-2-587-0770
yaron@e-sim.co.il
NEW YORK, September 13, 2001 -- e-SIM (NASDAQ:ESIM), the leader in advanced simulation technology for product design, Web-based customer support and marketing, announced today its financial results for the second quarter ended July 31, 2001.
Revenues for the second quarter were $1.5 million, compared with $2.8 million for the comparable quarter. Gross profit for the second quarter was $1.1 million, compared with $2.3 million for the comparable quarter. The net loss for the second quarter was $3.1, or $0.27 per share, compared to a net loss of $1.0 or $0.09 per share for the comparable quarter.
On a pro forma basis, excluding restructuring and impairment costs, the net loss was $2.2 million or $0.19 per share.
“Our revenues in Q2 were less than anticipated as a result of the continued weakness in the business of many of our customers. This weakness has been more severe and is lasting longer than we previously anticipated” said Ken Dixon, President of e-SIM Inc. “In light of current market conditions, we do not expect that we will be able to achieve break even in Q3 as previously stated.”
Marc Belzberg, chairman of the board, noted, “To our New York employees, the New York financial community,and to all the citizens of the United States, we express our condolences on the great loss of life which resulted from the heinus terrorist attack in the heart of New York.”
About e-SIM
Founded in 1990, e-SIM Ltd. (http://www.e-sim.com/) is the leading provider of advanced simulation technology for product development, Web-based customer support and marketing. e-SIM`s simulation technologies build off its RapidPLUS line of software products that enable product designers and engineers to expedite the concept-to-market life cycle by easily creating simulated computer prototypes that are fully functional, interactive and behaviorally identical to the manufactured products and systems. e-SIM`s proprietary technology enables the creation and distribution of electronic LiveManuals, ``virtual products`` that look and behave like real products, over the Internet or intranet. e-SIM’s customer support Web service, LiveManuals (http://www.livemanuals.com), featuring its proprietary product simulations from multiple manufacturers, interactive user manuals, personal product folios for easy reference, comprehensive manufacturer support information and extended warranties.
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, significant fluctuations and unpredictability of operating results, risks in product and technology development and rapid technological change, dependence on a single product line, extent of demand for the Company`s product, impact of competitive products and pricing, market acceptance, lengthy sales cycle, changing economic conditions, risks of joint development projects, dependence on key personnel, difficulties in managing growth, risks relating to sales and distribution, risks associated with international sales, risks of product defects, dependence on company proprietary technology. For a more detailed discussion of these and other risk factors, see the Company`s Form 20-F as filed with the United States Securities and Exchange Commission.
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