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EXHIBIT 99.1
i3 MOBILE ANNOUNCES FIRST QUARTER RESULTS
-- AUTHORIZES SHARE REPURCHASE PROGRAM --
Stamford, CT, April 16, 2001 - i3 Mobile, Inc. (Nasdaq: IIIM), a leading
provider of premium data services to mobile phones, today announced results for
the first quarter ended March 31, 2001, and reported that its Board of Directors
had authorized a share repurchase program.
For the first quarter of 2001, the Company reported net revenues of $1.3
million, versus $0.9 million in the first quarter of 2000. The Company reported
a net loss for the 2001 first quarter of $4.7 million, equivalent to $0.21 per
share, versus a net loss of $3.6 million, or $0.63 per share in the year ago
period.
As of March 31, 2001, the Company had approximately 425,000 total paying
subscribers, compared with approximately 130,000 total paying subscribers at the
same point in 2000.
Weighted average shares outstanding increased to 22.8 million shares from 5.8
million shares a year ago as a result of the Company's initial public offering
on April 6, 2000 and the conversion of all preferred shares to common shares on
that date.
John A. Lack, i3 Mobile's President and Chief Executive Officer, stated, "During
the first quarter, we continued to invest in our infrastructure, strengthen our
management team and began field trials of our new products and services."
Additionally, the Company announced that its Board of Directors authorized the
Company to repurchase up to 2.3 million shares of its common stock. Purchases
will be made from time to time in the open market and through privately
negotiated transactions, subject to general market and other conditions. The
repurchase program will be financed with existing cash resources. Shares
acquired will become treasury shares and will be available for later reissuance
for general corporate purposes. As of March 31, 2001, i3 Mobile had 22.8 million
shares of common stock outstanding.
Mr. Lack continued, "The Board's decision to authorize this share repurchase
program reflects our commitment to the creation of shareholder value by
acquiring our stock at what we believe are attractive valuation levels. With
nearly $80 million in cash at the end of the first quarter, we have the
financial strength to make this investment and continue executing on our
business strategy."
Mr. Lack concluded, "The focus of i3 Mobile is changing from being an enabler of
wireless data to a developer and marketer of premium mobile products and
consumer subscription services. We see strong interest from wireless network
operators for a suite of premium wireless data products and services that will
provide significant incremental revenues. Our research and product development
activities, combined with our existing carrier relationships and the steps we
have taken to strengthen our management team, place us in an excellent position
to take advantage of this opportunity, and we remain confident in our ability to
achieve commercial rollout of our enhanced product line in the fourth quarter of
2001."
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The Company also announced that it will be conducting a meeting for investors
and analysts in New York City on June 28, 2001. Mr. Lack and Michael Neuscheler,
Executive Vice President and Chief Financial Officer, will host the meeting. The
event will include presentations from management and demonstrations of the
Company's newly-developed product suite. Further details regarding location and
time will be announced at a later date.
In conjunction with this release, i3 Mobile will host a conference call, which
will be simultaneously broadcast live over the Internet. Management will host
the call, which is scheduled for today, April 16, 2001 at 5:00 p.m. EST.
Listeners can access the conference call live over the Internet at
http://www.streetfusion.com, or through a link in the investor relations section
of the Company's web site at http://www.i3mobile.com. Please allow 15 minutes
prior to the call to visit the sites to download and install any necessary audio
software. After the call has taken place, its archived version may be accessed
at these Web sites.
ABOUT I3 MOBILE
i3 Mobile (www.i3mobile.com) is a leading provider of premium wireless data
services that enable wireless network operators, Web sites and businesses to
extend personalized, location-based information to their customers. As of the
end of the first quarter of 2001, i3 Mobile had approximately 425,000 paying
subscribers receiving information on mobile phones, pagers, PDAs and other
wireless devices. i3 Mobile has distribution relationships with wireless
carriers representing more than 60 percent of the North American market. i3
Mobile's services are offered by more than 25 leading wireless network operators
and new media distributors, including AT&T Wireless Services, Bell Mobility, New
York Times Digital, Rogers AT&T Wireless and U.S. Cellular.
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. Potential risks and uncertainties include, but are not
limited to, those related to the overall market acceptance of i3 Mobile's
products and services; uncertainties related to i3 Mobile's reliance on a small
number of wireless network operators for a significant portion of its revenues,
i3 Mobile's dependence on the distribution of its products by third parties, and
competition from companies with substantially greater financial, technical,
marketing and distribution resources. Further information regarding these and
other risks are included in i3 Mobile's filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release. i3
Mobile undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances after the date of
this release or to reflect the occurrence of unanticipated events.
-Financial Tables Follow-
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i3 MOBILE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
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MARCH 31, MARCH 31,
2001 2000
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Net revenue $ 1,333 $ 910
Cost of revenue 734 569
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Gross profit 599 341
Operating expenses:
Sales and marketing 1,277 1,277
Product development costs 1,100 460
General and administrative 3,916 2,414
Stock compensation 141 130
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Operating expenses 6,434 4,281
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Operating loss (5,835) (3,940)
Interest (income)/expense (1,141) (314)
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Net loss $ (4,694) $ (3,626)
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Net loss per share-basic and diluted $ (0.21) $ (0.63)
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Shares used in computing net loss per share 22,830 5,771
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i3 MOBILE, INC.
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
MARCH 31, DECEMBER 31,
2001 2000
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ASSETS
Current assets:
Cash and cash equivalents $ 77,373 $ 84,900
Accounts receivable, net 933 536
Deferred advertising 3,349 3,349
Prepaid expenses and other current assets 409 416
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Total current assets 82,064 89,201
Fixed assets, net 9,027 9,217
Deposits and other non-current assets 811 829
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Total assets $ 91,902 $ 99,247
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 559 $ 2,019
Accrued liabilities 2,863 3,969
Capital lease obligation, current portion 751 800
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Total current liabilities 4,173 6,788
Capital lease obligation, less current portion 413 568
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Total liabilities 4,586 7,356
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Stockholders' equity:
Common stock: $.01 par value, 50,000,000 shares
authorized; 24,731,440 and 24,706,440
shares issued 247 247
Additional paid-in capital 167,575 168,007
Notes receivable from stockholders -- (3)
Deferred compensation (1,176) (1,724)
Accumulated deficit (75,100) (70,406)
Treasury stock at cost, 1,885,000 shares (4,230) (4,230)
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Stockholders' equity 87,316 91,891
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Total liabilities and stockholders' equity $ 91,902 $ 99,247
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