Press release with actuals:
Vicinity Corporation Reports First Quarter Fiscal 2002 Results
SUNNYVALE, Calif., Nov. 15 /PRNewswire/ -- Vicinity Corporation (Nasdaq: VCNT - news) today reported financial results for its first quarter fiscal 2002. Vicinity Corporation (Nasdaq: VCNT - news) is a leading provider of Web, wireless and speech-based location service solutions.
Total revenues for first quarter fiscal 2002 were $4.7 million compared to $5.4 million for the same period in fiscal 2001. On a sequential basis, first quarter fiscal 2002 revenues of $4.7 million grew $0.1 million or 2 percent from fourth quarter fiscal 2001 revenues of $4.6 million. First quarter fiscal 2002 revenue from licensing and hosting services of $3.9 million grew 4 percent from the $3.8 million achieved in fourth quarter fiscal 2001.
Net loss for the first quarter fiscal 2002 was $2.6 million or $0.09 per share, an improvement of $0.10 per share or 50 percent from the $5.2 million recorded in the first quarter fiscal 2001. Vicinity's net loss for first quarter fiscal 2002 improved $0.03 per share or 25 percent compared with the proforma net loss of $0.12 per share recorded in fourth quarter fiscal 2001.
``Despite the recent events and their resulting effect on the economy, we have been able to significantly improve our EPS and exceed our revenue goals,'' said Tim McMullen, SVP and COO of Vicinity. ``We continued to make great progress towards our goal of profitability by improving our EPS 25 percent over our fourth quarter fiscal 2001 results and by adding to our list of market-leading customers.''
First Quarter Fiscal 2002 Highlights
Vicinity added 11 new customers, including Hyatt, Mailboxes, Etc., and La Quinta Inns. It renewed 51 existing customers -- including Hilton Hotels Corp., The Gap, Mercedes Benz, Prudential, Harley Davidson and Starwood Hotels & Resorts.
Vicinity completed significant new implementations for its customers. For Dunkin Donuts, Vicinity implemented its content publishing module that allows them to collect location-based marketing intelligence through our polling and quizzing functionality. For CitiBank, Vicinity launched a wireless version of the financial institution's branch and ATM finder now available through a Blackberry, PDA and WAP phone interfaces. Through Vicinity, Vizzavi now delivers mapping and driving directions services, and European points-of-interest for the international Web and wireless portal available in France, Italy, Netherlands and Germany.
In October, Vicinity launched the latest version of its Vicinity Location Server(SM) (VLS), version 3.0 for the enterprise. VLS 3.0, Vicinity's Enterprise Location Services (ELS) solution, is designed to help companies with multiple physical locations effectively utilize their location information across the enterprise. VLS 3.0 is delivered as a secure, reliable and scalable service offering proximity searching, geo-spatial support, content management and publishing, data aggregation and transformation, customer satisfaction surveys and polling.
Based on the needs and demands of its customers, Vicinity launched a Premium Support Package, a personalized option for customers seeking customized support. The Premium Support Package provides a higher level of support and services for an additional cost
In September, Vicinity's first Customer Advisory Board convened to provide feedback on the proposed direction Vicinity is taking relative to its products and services. Vicinity developed the Customer Advisory Board as a means to gather input on its more than 300 customers' business requirements, and incorporate that input into future products and services. Members of Vicinity's Customer Advisory Board include: McDonald's, Wells Fargo, CitiBank, Best Western International, Domino's Pizza, Starwood Hotels & Resorts, Equiva, a marketing alliance of Shell and Texaco, Hertz Europe, Ericsson, Harley Davidson, Bank of America, Royal Dutch Shell, Kinko's, FedEx, US Bank and U.S. Bancorp Piper Jaffray. Attendees from these companies hold various e-business, IT, and customer relationship management (CRM) senior executive positions.
Vicinity expanded its sales force into New York City, Atlanta, Washington, D.C., Houston, Chicago and Orange County, Calif., in addition to its existing sales offices in Sunnyvale, Calif., and Windsor, U.K.
Investor Conference Call
Vicinity Corporation will host a conference call to discuss first quarter fiscal 2002 results on November 15th, 2001, at 2:00 p.m. Pacific. U.S. callers should dial 1-888-942-8132. International callers should dial +1-773-756-4602. The pass code is ``Vicinity Q1.'' A live, listen-only Web cast of the conference call will be available at www.vicinity.com under the ``Investor Relations'' section of the Web site. The call will be available for replay starting two hours following the call and will be available until November 30, 2001, at 2 a.m. Eastern. The replay number is 1-800-944-3459 (U.S. only) and +1-402-998-1732 (International only) and the pass code is ``Vicinity Q1.''
About Vicinity Corporation
Vicinity Corporation is a leading provider of Enterprise Location Services solutions to Global 2000 companies across Web, wireless and speech platforms. 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.
Vicinity's customers include Domino's Pizza, FedEx, Ford, GM, Hilton Hotels Corporation, Marriott International, McDonald's, NEC, Pizza Hut, Starbucks, Starwood Hotels & Resorts Worldwide, Taco Bell, Toyota and UPS.
Vicinity was established in 1995 and is headquartered in Sunnyvale, California. Vicinity®(R) is a registered service mark and Vicinity Location Server(SM) is a service mark of Vicinity Corporation.
Business Risks and Forward-Looking Statements
This press release contains forward-looking statements relating to the results for the quarter ended October 31, 2001, and the future business outlook for Vicinity, trends in business conditions, revenues, expenses and earnings, actions to be taken with the objective of improving business efficiency, and other factors affecting growth in sales and earnings. Statements regarding market conditions and Vicinity's business outlook are based largely 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 further expand the sales of existing products and to up-sell our existing customers, and the ability to productively integrate the people and technologies of any current or future acquisitions into our business, some of which are outside of the Company's control. We have a limited operating history, which limits the ability of past performance to act as a predictor of future events.
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. The statements made by management 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
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 the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2001, and the other reports that have been filed by Vicinity with the Securities and Exchange Commission and may be accessed through the EDGAR database maintained by the SEC at www.sec.gov.
VICINITY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, July 31,
2001 2001
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $9,639 $12,439
Short-term investments 79,367 81,284
Accounts receivable, net 3,507 2,893
Prepaid expenses and other current
assets 975 1,010
Total current assets 93,488 97,626
PROPERTY AND EQUIPMENT, net 8,297 9,229
INTANGIBLE ASSETS, net 6,074 6,610
OTHER ASSETS 317 317
Total Assets $108,176 $113,782
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable $981 $845
Accrued liabilities 2,851 4,054
Deferred revenue 7,750 7,638
Capital lease obligations, current
portion 82 227
Total current liabilities 11,664 12,764
OTHER LIABILITIES 420 420
Total liabilities 12,084 13,184
STOCKHOLDERS' EQUITY
Common stock 27 29
Additional paid-in capital 156,243 158,364
Deferred stock-based compensation (235) (263)
Notes receivable from stockholders (39) (39)
Accumulated other comprehensive
income 523 339
Accumulated deficit (60,427) (57,832)
Total stockholders' equity 96,092 100,598
Total Liabilities and
Stockholders' Equity $108,176 $113,782
VICINITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
October 31,
2001 2000
(unaudited)
REVENUES
License and hosting fees $3,895 $4,030
Service and transaction fees 823 1,400
Total revenues 4,718 5,430
COST OF REVENUES 2,472 3,230
Gross profit 2,246 2,200
OPERATING EXPENSES
Product development 1,681 1,417
Sales and marketing 2,982 5,312
General and administrative 1,188 2,372
Stock-based compensation 28 201
Total operating expenses 5,879 9,302
LOSS FROM OPERATIONS (3,633) (7,102)
Other income, net 1,038 1,918
NET LOSS $(2,595) $(5,184)
Basic and diluted net loss per share $(0.09) $(0.19)
Weighted average shares outstanding
used in basic
and diluted net loss per share
calculation 28,253 27,311
SOURCE: Vicinity Corporation
Estimates:
Revenues 4.5m, EPS (0.13)
