CONTACTS: EDWARD J. FLETCHER
SR. VP, FINANCE
(203) 428-3000
-OR-
JEANNETTE WHITING
LAFORCE & STEVENS
(212) 242-9353
I3 MOBILE REPORTS FOURTH QUARTER & FISCAL 2002 RESULTS
EXPENSE REDUCTIONS RESULT IN LOWER 4TH QUARTER NET LOSS
STAMFORD, CONN., FEBRUARY 13, 2003 - I3 MOBILE, INC. (NASDAQ: IIIM), the creator
of Pronto and a provider of premium wireless content and services, today
announced financial results for the fourth quarter and fiscal year ended
December 31, 2002 as well as provided an update on its efforts to explore
strategic alternatives to maximize shareholder value.
i3 Mobile reported a net loss for the fourth quarter of $4.8 million or $0.24
per share, versus the third quarter 2002 net loss of $14.8 million (which
includes a non-cash write-down of fixed assets of $6.7 million) and the fourth
quarter 2001 net loss of $9.6 million or $0.43 per share. For the year ended
December 31, 2002, i3 Mobile reported a net loss of $41.6 million, or $1.97 per
share, compared with a net loss of $28.5 million, or $1.25 per share from the
prior year period.
For the fourth quarter of 2002, i3 Mobile reported revenue of $0.7 million
compared with $0.9 million in last year's comparable period. For the year ended
December 31, 2002, revenues totaled $3.3 million, compared with $4.6 million in
fiscal 2001.
As of December 31, 2002, i3 Mobile had no debt and approximately $20.6 million
in cash on-hand.
John A. Lack, the Company's President and Chief Executive Officer said,
"Although 2002 was a challenging year for both i3 Mobile and the wireless sector
in general, we have made significant strides in adding content and functionality
to our Pronto product offering. The engagement of Kaufman Brothers in the fourth
quarter has reconfirmed our belief in the increasing demand for innovative voice
services in the marketplace."
Mr. Lack added, "We are encouraged by a number of opportunities that KBRO has
presented to our Board of Directors and are now exploring certain of these
strategic alternatives in order to enhance shareholder value."
On October 31, 2002 the Company had previously announced it had retained the
services of the investment-banking firm of Kaufman Bros., L.P. to assist the
Board of Directors in exploring a full range of options for the Company. i3
Mobile's goal is to
enhance shareholder value through a potential strategic alliance, joint venture,
merger or acquisition, or possible sale of the company."
Mr. Lack also noted that the Company is continuing to take steps to reduce its
operating expenses and preserve its cash resources. "During the first quarter of
2003, we have taken our recurring operating burn down to approximately $1.3
million per month and may further adjust it accordingly." This reduction comes
on the heels of the cost saving measures implemented during the third quarter of
2002, which included a reduction of approximately 30% of the Company's workforce
and the postponement of certain marketing initiatives.
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 out Pronto, a premium mobile subscription information and
communication service for telephones. For information about i3 Mobile and Pronto
visit www.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
include the growth rate of the market for wireless products and content
services, consumer awareness of i3 Mobile's products, the timing of market
acceptance of its products and services, and i3 Mobile's ability to manage its
limited cash resources until it is able to generate revenues and profitable
operations from its Pronto product. 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.
I3 MOBILE, INC.
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
DECEMBER 31, DECEMBER 31,
2002 2001
---------------------- --------------------
ASSETS
Current assets:
Cash and cash equivalents $ 20,572 $ 52,612
Accounts receivable, net of allowances 138 651
Deferred advertising - 2,245
Prepaid expenses and other current assets 558 749
---------------------- --------------------
Total current assets 21,268 56,257
Fixed assets, net 1,764 11,423
Deposits and other non-current assets 335 778
---------------------- --------------------
Total Assets $ 23,367 $ 68,458
====================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,080 $ 1,827
Accrued liabilities 2,248 3,363
Capital lease obligation, current portion - 568
---------------------- --------------------
Total Liabilities 4,328 5,758
---------------------- --------------------
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 166,945 166,919
Notes receivable from stockholders - (500)
Deferred compensation - (133)
Accumulated deficit (140,517) (98,871)
Treasury stock at cost, 4,704,650 and 2,230,800 shares (7,637) (4,963)
---------------------- --------------------
Stockholders' Equity 19,039 62,700
---------------------- --------------------
Total Liabilities and Stockholders' Equity $ 23,367 $ 68,458
====================== ====================
I3 MOBILE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
------------------ -------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002 2001 2002 2001
---------------- --------------- -------------- --------------
Revenue $ 719 $ 927 $ 3,317 $ 4,597
----------- ----------- ----------- --------
Expenses:
Operating 1,223 1,783 6,461 4,198
Sales and marketing 1,127 3,390 12,666 7,921
Product development 856 1,580 5,072 6,593
General and administrative 2,442 4,173 14,642 17,175
Long-lived asset impairment -- -- 6,731 --
----------- ----------- ----------- --------
Total expenses 5,648 10,926 45,572 35,887
----------- ----------- ----------- --------
Operating loss (4,929) (9,999) (42,255) (31,290)
Interest income, net (93) (374) (609) (2,825)
----------- ----------- ----------- --------
Net loss $ (4,836) $ (9,625) $(41,646) $(28,465)
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Net loss per share - basic and diluted $ (0.24) $ (0.43) $ (1.97) $ (1.25)
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Share used in computing net loss per share 20,467 22,645 21,124 22,742
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