Exhibit 99.1
Press Release For Immediate Release
Company Contact:
Company Contact:
William Swain, GraphOn Corporation
1.800.GRAPHON
Bill.Swain@GraphOn.com
GraphOn Corp. Announces First Quarter 2006 Results
SANTA CRUZ, CA, USA - May 19, 2006 - GraphOn(R) Corporation (OTCBB: GOJO)
(www.graphon.com), a leading developer of business software for remote
computing, announces results for the first quarter which ended March 31, 2006.
FINANCIAL HIGHLIGHTS
Revenues were approximately $1.3 million for the three month period ended March
31, 2006, as compared to approximately $1.2 million recorded in the same period
of 2005. The net loss for the three month period ended March 31, 2006 was
approximately $593 thousand, as compared to the approximately $318 thousand net
loss for the same period of 2005. The loss per common share on a basic and
diluted basis for the three month period ended March 31, 2006 was $0.01 per
share as compared with a basic and diluted loss of $0.15 per share for the same
period of 2005. The basic and diluted loss per common share for the three month
period ended March 31, 2005 included a loss of $0.14 per common share, resulting
from the effect of a $4,000,000 non-cash deemed dividend excluded from net loss.
"We are pleased with the approximate 10% increase in revenues that we were able
to achieve in the first quarter of this year as compared to the first quarter of
2005," Robert Dilworth, CEO, said. "Expense levels in the first quarter of this
year reflect increased investment not only in the administration of our patent
activities, but in both the research and development and in the sales and
marketing of our GO-Global products. Additionally, in the first quarter of this
year we recorded $110 thousand in non-cash stock option compensation expense
related to the adoption of SFAS 123R" Mr. Dilworth concluded, "We are very
pleased with the continued growth of our core GraphOn business, a trend we
expect to continue throughout 2006.
ABOUT GRAPHON CORPORATION
For over a decade, GraphOn Corporation has been an innovator of cost-effective,
advanced solutions that help users access applications from anywhere. GraphOn's
high-performance software provides fast remote
access, cross-platform connectivity, and a centralized architecture that
delivers a dramatically lower cost of ownership. The Company's solutions run
under Microsoft (MSFT) Windows, Linux, and UNIX, including Sun (SUNW) Solaris,
IBM AIX, Hewlett-Packard (HPQ) HP-UX, and more. GraphOn is located in Santa
Cruz, CA and is traded on the Over the Counter Bulletin Board under the ticker
GOJO (OTCBB:GOJO). For more information, please visit the Company's Web site at
http://www.graphon.com.
This press release contains statements that are forward looking as that term is
defined by the United States Private Securities Litigation Reform Act of 1995.
These statements are based on current expectations that are subject to risks and
uncertainties. Actual results will differ due to factors such as shifts in
customer demand, product shipment schedules, product mix, competitive products
and pricing, technological shifts and other variables. Readers are referred to
GraphOn's most recent periodic and other reports filed with the Securities and
Exchange Commission.
GraphOn and GO-Global are a registered trademarks of GraphOn Corp. All other
trademarks belong to their respective owners.
# # #
GRAPHON CORPORATION
Condensed Consolidated Balance Sheet
UNAUDITED
March 31,
2006
--------------------
($000s)
Cash and cash equivalents $ 3,295
Other current assets 624
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Total current assets 3,919
Patents, net 4,297
Other assets 169
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Total assets $ 8,385
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Current liabilities $ 593
Deferred Revenue - Short Term 1,091
Deferred Revenue - Long Term 763
Shareholders' equity 5,938
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Total liabilities and shareholders' equity $ 8,385
====================
Condensed Consolidated Statements of Operations
UNAUDITED
Three months ended March 31,
-------------- --------------
2006 2005
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($000s, except per share data)
Revenue $ 1,306 $ 1,181
Cost of revenue 111 121
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Gross profit 1,195 1,060
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Selling and marketing 414 335
General and administrative 990 727
Research and development 394 324
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Total operating expenses 1,798 1,386
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Loss from operations (603) (326)
Other income, net 10 8
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Loss before income taxes (593) (318)
Income taxes - -
-------------- --------------
Net loss (593) (318)
Deemed dividends on preferred stock - (4,000)
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Loss attributable to common shareholders $ (593) $ (4,318)
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Basic and diluted loss per share $ (0.01) $ (0.15)
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Weighted average shares outstanding 46,183,849 28,620,913
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