Exhibit 99.1
Contact: | Edward J. Fletcher | |
Chief Financial Officer | ||
(203) 428-3000 |
i3 MOBILE REPORTS FIRST QUARTER RESULTS
Updates Strategic Transaction Progress
STAMFORD, Conn., May 14, 2003 – i3 Mobile, Inc. (NASDAQ: IIIM), today announced financial results for the first quarter ended March 31, 2003, and provided an update on its efforts in pursuing strategic alternatives to maximize shareholder value.
i3 Mobile reported a net loss for the first quarter 2003 of $6.2 million (which includes a non-cash write-down of fixed assets of $0.5 million) or $0.31 per share, versus the first quarter 2002 net loss of $9.9 million or $0.44 per share.
As of March 31, 2003, i3 Mobile had no debt and cash on-hand and working capital of approximately $15.1 million and $11.4 million, respectively.
On March 25, 2003, the Company announced that it had terminated operation of itsPronto service and taken other cost saving measures to continue to reduce recurring operating losses, manage cash resources and working capital and facilitate a potential transaction. J. William Grimes, Chairman of the Board and interim Chief Executive Officer said, “We are in active discussions with a potential strategic partner for a merger transaction that if consummated would result in a change of control of the Company. Although we have made progress to date, we will however, continue to actively explore alternative potential transactions as we remain committed to maximizing shareholder value. Further, we have now taken our recurring cash operating burn down to approximately $0.5 million per month and as contractual obligations are resolved we would expect to further reduce the operating burn.”
About i3 Mobile
Since 1991, Stamford, CT.-based i3 Mobile has pioneered the concept of extending premium products and services to wireless users. In Spring 2002, the Company nationally rolled outPronto, a premium mobile subscription information and communication service for telephones. For information about i3 Mobile visitwww.i3mobile.com.
i3 Mobile Safe Harbor Disclaimer
This news release may be deemed to include forward-looking statements as defined by applicable U.S. law and, as a result, may involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in such forward-looking statements. The words “believe,” “expect,” “intend,” “anticipate,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect i3 Mobile’s actual results in the short term include the ability to locate a suitable strategic investment partner, acquisition candidate or other investment opportunity, and i3 Mobile’s ability to manage its limited cash resources until it is able to do so. Although i3 Mobile’s management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will in fact prove to be correct or that actual results will be different from the expectations expressed herein. A more detailed description of certain factors that could affect actual results are those discussed in i3 Mobile’s Annual Report on Form 10-K and its quarterly reports on Forms 10-Q. i3 Mobile undertakes no obligation to update publicly any forward-looking statements or reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
2
i3 MOBILE, INC.
CONSOLIDATED BALANCE SHEET
(In thousands, except share data)
March 31, 2003 | December 31, 2002 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,077 |
| $ | 20,572 |
| ||
Accounts receivable, net of allowances |
| 93 |
|
| 138 |
| ||
Prepaid expenses and other current assets |
| 105 |
|
| 558 |
| ||
Total current assets |
| 15,275 |
|
| 21,268 |
| ||
Fixed assets, net |
| 1,113 |
|
| 1,764 |
| ||
Deposits and other non-current assets |
| 335 |
|
| 335 |
| ||
Total Assets | $ | 16,723 |
| $ | 23,367 |
| ||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 3,874 |
| $ | 4,328 |
| ||
Total Liabilities |
| 3,874 |
|
| 4,328 |
| ||
Stockholders’ equity: | ||||||||
Common stock: $.01 par value, 75,000,000 shares authorized; | ||||||||
24,805,640 and 24,788,740 shares issued |
| 248 |
|
| 248 |
| ||
Additional paid-in capital |
| 166,951 |
|
| 166,945 |
| ||
Notes receivable from stockholders |
| — |
|
| — |
| ||
Deferred compensation |
| — |
|
| — |
| ||
Accumulated deficit |
| (146,713 | ) |
| (140,517 | ) | ||
Treasury stock at cost, 4,704,650 shares |
| (7,637 | ) |
| (7,637 | ) | ||
Stockholders’ Equity |
| 12,849 |
|
| 19,039 |
| ||
Total Liabilities and Stockholders’ Equity | $ | 16,723 |
| $ | 23,367 |
| ||
3
i3 MOBILE, INC.
CONSOLIDATED INCOME STATEMENT
(In thousands, except per share data)
March 31, 2003 | March 31, 2002 | |||||||
Revenue | $ | 267 |
| $ | 911 |
| ||
Expenses: | ||||||||
Operating |
| 1,198 |
|
| 1,696 |
| ||
Sales and marketing |
| 568 |
|
| 3,781 |
| ||
Product development |
| 1,150 |
|
| 1,469 |
| ||
General and administrative |
| 3,084 |
|
| 4,106 |
| ||
Long-lived asset impairment |
| 516 |
|
| — |
| ||
Total expenses |
| 6,516 |
|
| 11,052 |
| ||
Operating loss |
| (6,249 | ) |
| (10,141 | ) | ||
Interest income, net |
| (53 | ) |
| (209 | ) | ||
Net loss | $ | (6,196 | ) | $ | (9,932 | ) | ||
Net loss per share—basic and diluted | $ | (0.31 | ) | $ | (0.44 | ) | ||
Share used in computing net loss per share |
| 20,113 |
|
| 22,568 |
| ||