4/22/2003 - Extended Systems Inc. (Nasdaq:XTND), a leading provider of mobile information management (MIM) software and services for the enterprise, reported net revenue of $7.4 million from continuing operations for the third quarter of fiscal 2003 ended March 31, 2003, up seven percent sequentially from the $6.9 million reported last quarter and up 26 percent from the $5.8 million reported during the third quarter of fiscal 2002.
The company reported a net loss of $648,000, or $.05 per share, an improvement over a net loss of $1.3 million, or $.09 per share, reported in the second quarter of fiscal 2003 and as compared to a net loss of $223,000, or $.02 per share, reported in the third quarter of fiscal 2002. The loss for the third quarter of fiscal 2003 included $361,000 of restructuring charges, primarily related to severance. The loss for the third quarter of fiscal 2002 included the benefit of an income tax refund of approximately $1.6 million.
At a time when many software companies are having difficulty overcoming current economic and political hurdles, Extended Systems not only increased revenue, it improved bottom-line results. "Our success is based on the business value and financial benefits that companies are realizing by mobilizing enterprise applications with Extended Systems software and services," said Extended Systems CEO and President Steve Simpson. "While we continued to build our customer base with new business from Global 2000 companies such as Arthur Gallagher and Nationwide Insurance, existing customers, including 3M and UBS Warburg, increased investments in Extended Systems' mobile technology."
Extended Systems' gross margin for continuing operations for the third quarter of fiscal 2003 was 85 percent, up from 82 percent in the prior quarter but down from 88 percent in the third quarter of fiscal 2002 due to an increase in lower margin professional services revenue in fiscal 2003.
For the nine months ended March 31, 2003, Extended Systems reported net revenue of $20.2 million, an increase of 17 percent over net revenue of $17.2 million for the nine months ended March 31, 2002. The company reported a net loss of $3.9 million, or $0.29 per share, for the first nine months of fiscal 2003, an improvement of 23 percent over a net loss of $5.0 million, or $0.46 per share, for the same period last year.
The company ended the quarter with $3.7 million in cash and cash equivalents, compared to $4.0 million as of December 31, 2002 and $4.6 million as of March 31, 2002.
During Extended Systems' third quarter, the company completed a restructuring plan that included the appointment of Charles Jepson as vice president of worldwide sales and marketing. Jepson's restructuring of the company's sales and marketing organization has resulted in the departure of Brad Surkamer, vice president of sales, and Fernando Ruarte, vice president of products. Jepson, who joined the company on February 28, 2003, is responsible for developing and executing a long-term, strategic global sales and marketing strategy designed to solidify Extended Systems' leadership position in the mobile information management software space.
Extended Systems will hold a conference call today at 5 p.m. Eastern Time to discuss its quarterly financial results, business highlights and outlook. At this time, management may answer questions concerning business and financial developments and trends, management's view on revenue and earnings forecasts and other business and financial matters affecting Extended Systems.
A simultaneous live Web cast and replay of the call will be available over the Internet at www.vcall.com and on the Extended Systems Web site at www.extendedsystems.com on the Conference Call tab of the Investor Relations page of the Company Information section. Replays of the call will also be available by telephone through April 25, 2003 at (877) 660-6853 or (201) 612-7415. The account number to access the telephone replay is 1628 and the conference identification number is 63939.
About Extended Systems
Extended Systems provides the expertise, strategy and solutions to help enterprise organizations streamline their business processes through mobile technology. The company's mobile software suite enables companies to mobilize critical enterprise applications such as e-mail, field service, sales force automation (SFA), enterprise resource planning (ERP), and customer relationship management. In addition, the company offers Bluetooth and IrDA wireless connectivity software and client/server database management systems. Extended Systems has more than 2,500 enterprise customers worldwide and key alliance relationships with Ericsson, Handspring, HP, IBM, Microsoft, Motorola, Nokia, Palm, Sharp, Siemens and Toshiba.
Founded in 1984, Extended Systems has offices and subsidiaries in the United States and worldwide. For more information, visit the company Web site at www.extendedsystems.com.
Previous Page | News by Category | News Search
If you found this page useful, bookmark and share it on: