12/16/2003 - e-SIM Ltd. (OTCBB: ESIM.OB), a leading provider of MMI solutions for electronic products, announced its financial results for the third quarter, ended October 31, 2003.
Revenues for the third quarter were $933,659, compared with the revenues for the previous quarter of $1,306,839, representing a decrease of 47% in Q3 2003. The third quarter of 2002 saw revenues of $1,763,072, 88.8% more than the current quarter. Combined revenues for the first three quarters of 2003 were $3,401,385, compared to $4,367,900 for the first three quarters of 2002, a decrease of 22%.
Gross profit for the current quarter was $378,224 as compared to $821,811 for Q2 of this year, representing a decrease of 53.9%. In Q3 of 2002 gross profit was $1,227,121, 224.4% higher than Q3 2003. Gross profit for the nine months ending October 31, 2003 was $1,912,405 as compared to $2,965,835 for the nine months ending October 31, 2002, a decrease of 35.5%.
Net loss for the quarter was $860,413 or $0.07 a share, compared with the previous quarter's net loss of $595,363 or $0.05 a share, an increase of 44.5%. The comparable quarter in 2002 saw a net loss of $329,670 or $0.03 per share, an increase of 160.9% in Q3 2003.
Operating expenses for Q3 2003 were $1,125,479 as compared to $1,370,511 for the preceding quarter, a decrease of 17.8%. In Q3 of 2002, operating expenses were $1,282,468, representing a decrease of 12.24%.
The company's backlog of orders is $2,003,477.
e-SIM CEO, Marc Belzberg said, "Despite this quarter's lower revenues, e-SIM is already beginning to see the fruit of its refocusing efforts. Specifically, the revenue stream in the form of royalties from our wireless platform partners has started to flow. Furthermore, as a result of our growing reputation as a leading provider of MMI solutions for mobile handsets, we are involved in advanced, serious negotiations with important wireless platform manufacturers. Putting our refocusing plan into effect, we were fully aware that focus on wireless handsets and related royalty revenue would reduce our short-term revenues, but all indications show that we are gaining significant momentum as world leading suppliers of MMI solutions for mobile handsets, and that we can expect significant royalty-based future revenues."
Founded in 1990, e-SIM Ltd. (http://www.e-sim.com/) is a major provider of MMI (Man-Machine Interface) solutions for wireless and electronic products. e-SIM's MMI solutions are used by a wide range of wireless and electronic consumer goods manufacturers as well as by makers of aerospace and military equipment. e-SIM's RapidPLUSTM line of software products enables product designers and engineers to expedite the concept-to-market life cycle of products by easily creating simulated computer prototypes that are fully functional, and generating code from them to be used in the actual product. The RapidPLUSTM solution enables smooth development of wireless and electronic products and brings them to market faster with lower development costs.
e-SIM's proprietary technology enables the creation and distribution of electronic LiveManuals, which are "virtual products" that look and behave like real products, over the Internet.
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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