SUNNYVALE, Calif., July 25 --
Vicinity Corporation (Nasdaq: VCNT) today reported financial results for its
fourth quarter and fiscal year ended June 30, 2002. Vicinity is the leading
provider of Web, wireless and speech-based enterprise location services.
As previously announced, Vicinity`s fourth fiscal quarter was shortened
from three months to two months in order to align to a fiscal year ending June
30. Accordingly, all comparisons to fiscal 2001 will compare 11 months in
fiscal 2002 to 12 months in fiscal 2001. Comparisons to prior quarters will
compare 2 months in the fourth fiscal quarter 2002 to three months in any
previous quarter. A more detailed comparison and discussion will take place
during the quarterly earnings conference call scheduled for today at 5 p.m.
EST.
Total revenues for the two-month quarter ended June 30, 2002, were $2.8
million compared to $4.6 million in the three-month period ended July 31,
2001. Net loss for the fourth quarter fiscal 2002 was $1.4 million, or a loss
of $0.05 per share, compared to a net loss of $6.5 million recorded in the
fourth quarter fiscal 2001. Results for the fourth quarter fiscal 2001 include
a charge of $3.2 million or $0.11 cents per share for charges related to a
loss on an equity investment.
On a sequential basis, the two-month fourth quarter fiscal 2002 revenues
of $2.8 million declined $1.5 million from third quarter fiscal 2002 revenues
of $4.3 million primarily as a result of the shortened quarter. Net loss of
$1.4 million for the fourth quarter fiscal 2002 compares to a net loss of $1.5
million for the third quarter fiscal 2002. Net loss per share for the fourth
quarter fiscal 2002 was $0.05 per share compared to a net loss of $0.06 per
share for the fiscal third quarter 2002.
Revenues for the 11 months ended June 30, 2002, totaled $16.3 million,
compared to revenues of $20.0 million for the twelve-month period a year ago.
Total operating expenses for fiscal 2002 of $22.9 million declined $14.6
million or 39% from the $37.5 million incurred during fiscal 2001. Net loss
for the eleven-month period was $11.5 million, or a loss of $0.42 per share,
compared to a net loss of $27.3 million, or a loss of $0.97 per share, for the
twelve months ended July 31, 2001.
"We continued to hold the line on spending and began to build sales
momentum during our shortened fourth quarter as we renewed 36 brand-name
customers and added a handful of new customers," said Chuck Berger, president
and CEO of Vicinity. "On the technical and new product front, Steve Weinstein
joined the company as CTO in June, and is already providing great value in
helping shape our future technology strategy and expanding the core
intellectual property of the company. And, last week we completed a major
effort to develop and launch VLS 3.1 which added some compelling new features
to our core offering."
Other Fourth Quarter and Fiscal Year Highlights
-- Vicinity ended fiscal 2002 with approximately 311 customers, up
slightly from fiscal 2001. World-class customers such as Bank of
America, Best Western International, Delta Dental, Ford, Gap Inc.,
Hewlett-Packard, Hilton Hotels Corporation, John Deere, Lexus,
McDonald`s, Pizza Hut, Starwood Hotels & Resorts Worldwide, and many
others continue to utilize Vicinity`s services.
-- In June, Vicinity appointed technology veteran Steven Weinstein as
Chief Technology Officer, bringing more than 25 years of experience
with companies such as Liberate, Microprose, Inc., and Electronics for
Imaging, Inc.
-- On May 23, 2002, Vicinity settled its patent litigation with Murex
Licensing Corporation, a Delaware Corporation. The settlement provides
Vicinity with a license to certain technologies and clarifies
Vicinity`s ability to continue to provide location-based marketing
services.
-- In May 2002, Vicinity appointed Barton L. Faber to its board of
directors. Faber is a general partner in Atrium Partners, a venture
fund focused on information technology, and has served in numerous
executive level positions over a 30-year career. Faber was most
recently Chairman of Metromail Corporation. He also served on the
executive management team of R.R. Donnelley & Sons Company for ten
years. In a venture capital role Faber was involved in overseeing
investments in such companies as MapQuest, Multex.com and AdForce.
Investor Conference Call
The Company will host a conference call at 5 p.m. Eastern today to discuss
these results. Investors can access the call via Webcast on the investor
relations portion of www.vicinity.com or by calling 1-800-289-0572 in the U.S.
International callers should dial +1-913-981-5543. No pass code is needed,
simply reference the "Vicinity earnings call."
The call will be available for replay starting three hours after the call
until 10 p.m. Pacific on July 31, 2002. The number is 1-888-203-1112, or
+1-719-457-0820 for international callers; the pass code is 630691. The
Webcast is also available online for replay.
About Vicinity Corporation
Vicinity Corporation provides technology-based solutions that enable
businesses, governments and agencies to market the local availability of their
products and services. Using Web, wireless and speech platforms, Vicinity
offers a comprehensive portfolio of application services and
application programming interfaces (APIs) that allow enterprises to direct
their customers to a brick-and-mortar store, branch or outlet near them that
offers the specific product or service they are seeking. Vicinity was
established in 1995 and is headquartered in Sunnyvale, California.
NOTE: Vicinity(R) is a registered mark and Vicinity Location Server(SM)
is a service mark of Vicinity Corporation. All other names or product names
are trademarks or service marks of their respective companies.
Business Risks and Forward-Looking Statements
This press release contains forward-looking statements relating to the
future business outlook for Vicinity, trends in business conditions, revenues,
expenses and earnings, new service features and customer renewals, and
development of our technology strategy and intellectual property. We have a
limited operating history, which limits the ability of past performance to act
as a predictor of future events. Statements regarding future events and
results and Vicinity`s business outlook are based on our current expectations
and are necessarily subject to associated business risks related to, among
other things, the speed which with the market for our services develops, our
ability to expand into new vertical markets, our ability to further expand the
sales of existing products and to up-sell our existing customers, the ability
to resolve pending litigation on satisfactory terms, the ability to identify
acquisition targets and to productively integrate the people and technologies
of any future acquisitions into our business, and retention of key employees.
Sales and earnings trends are also affected by many other factors including,
among others, general economic conditions and the effectiveness of our
pricing, sales and technology strategies. In light of these risks, there can
be no assurance that the forward-looking statements contained in this press
release will in fact be realized. Actual events or results may differ
materially.
The statements made in this press release above represent Vicinity`s views
as of the date of this press release, and it should not be assumed that the
statements made herein remain accurate as of any future date. Vicinity does
not presently intend to update these statements and undertakes no duty to any
person to affect any such update under any circumstances, except as otherwise
required by law.
For a further discussion of risks associated with the Vicinity`s business,
please see the discussion under the caption, "Factors That May Affect Future
Results" in our Annual Report on Form 10-K for the fiscal year ended July 31,
2001, and Quarterly Report on Form 10-Q for the latest reported fiscal quarter
ended April 30, 2002, and the other reports that have been filed by Vicinity
with the Securities and Exchange Commission. These reports may be accessed
through the EDGAR database maintained by the SEC at www.sec.gov.
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