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 Second Quarter 2006 Results; Will Host Investors
Teleconference on Thursday August 31, 2006
SANTA CRUZ, CA, USA - August 22, 2006 - GraphOn(R) Corporation (OTCBB: GOJO)
(www.graphon.com), a leading developer of business software for remote
computing, today announced it will host an investors conference call at 1:00 pm
Pacific Daylight Time (4:00 pm Eastern Daylight Time) on Thursday, August 31,
2006. The call will be moderated by Robert Dilworth, GraphOn's CEO and Chairman,
and William Swain, GraphOn's CFO. Discussions will include a review of financial
results for the second quarter, which ended June 30, 2006. The GraphOn
management team will discuss the company's business and will take questions for
a limited time following the presentation.
Participants may access the call by phone by dialing (888) 511-3739 ten minutes
prior to the call and stating conference ID # 4743259
Financial Highlights
Revenues were approximately $1.5 million for the three-month period ended June
30, 2006, as compared to approximately $1.3 million recorded in the same period
of 2005. Revenues were approximately $2.8 million for the six-month period ended
June 30, 2006, as compared to approximately $2.5 million for the same period of
2005. The net loss for the three-month period ended June 30, 2006 was
approximately $494 thousand, as compared to the approximate $267 thousand net
loss for the same period of 2005. The net loss for the six-month period ended
June 30, 2006 was approximately $1.1 million, as compared to the approximate
$586 thousand net loss for the same period of 2005. The loss per common share on
a basic and diluted basis for the quarter ended June 30, 2006 was $0.01 per
share as compared with a loss of $0.01 per share for the same quarter of 2005.
The loss per common share on a basic and diluted basis for the six-month period
ended June 30, 2006 was $0.02 per share as compared with a loss of $0.12 per
share for the same period in 2005. The loss per common share for the six-month
period ended June 30, 2005 included a loss of $0.10 per common share, resulting
from the effect of a $4 million non-cash deemed dividend.
"Commencing on January 1, 2006 we are required to include non-cash stock-option
based compensation as an operations expense in accordance with the accounting
pronouncement, FASB123R. This additional non-cash expense has significantly
contributed to the increase in our net loss over the comparable periods of
2005," commented Mr. Swain.
"We are pleased with the increased revenue that we have achieved in both the
current quarter and the six months to date of this year as compared to the
comparable periods in 2005, an increase of approximately 14% and 12%
respectively," Mr. Dilworth said. "Our cash flow from operations continues to be
strong, unaffected by our increased deferred income and the non-cash expenses of
both our stock-option based compensation and the amortization of our patent
portfolio," Mr. Dilworth continued. "Because of this, we are very comfortable
with the new initiatives we are investing in this year. We are increasing the
size of both our engineering staff and consultants, we have recently hired a new
Vice President of Engineering and have established a subsidiary in
placecountry-regionIsrael in order to improve and expand our product development
and support capabilities. Additionally, we have expanded our sales and marketing
activities and have recently hired a new sales engineer in placeEurope in order
to better serve our customers in that region. We also continue to aggressively
protect and maximize the value of our intellectual property," Mr. Dilworth
concluded.
About GraphOn Corporation
GraphOn Corporation is an innovative provider of cost-effective, advanced
solutions that help customers 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 CityplaceSanta Cruz, StateCA 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
June 30,
2006
--------------------
($000s)
Cash and cash equivalents $ 3,138
Other current assets 929
--------------------
Total current assets 4,067
Patents, net 4,075
Property and equipment, net and other assets 160
--------------------
Total assets $ 8,302
====================
Current liabilities $ 610
Deferred Revenue - Short Term 1,110
Deferred Revenue - Long Term 1,025
Shareholders' equity 5,557
--------------------
Total liabilities and shareholders' equity $ 8,302
====================
Condensed Consolidated Statements of Operations
UNAUDITED UNAUDITED
Three months ended June 30, Six months ended June 30,
-------------- -------------- -------------- --------------
2006 2005 2006 2005
-------------- -------------- -------------- --------------
($000s, except per share data) ($000s, except per share data)
Revenue $ 1,451 $ 1,276 $ 2,757 $ 2,456
Cost of revenue 151 131 262 252
-------------- -------------- -------------- --------------
Gross profit 1,300 1,145 2,495 2,204
-------------- -------------- -------------- --------------
Selling and marketing 426 342 840 677
General and administrative 925 768 1,915 1,495
Research and development 452 313 846 636
-------------- -------------- -------------- --------------
Total operating expenses 1,803 1,423 3,601 2,808
-------------- -------------- -------------- --------------
Loss from operations (503) (278) (1,106) (604)
Other income, net 12 11 22 18
-------------- -------------- -------------- --------------
Loss before income taxes (491) (267) (1,084) (586)
Income taxes 3 - 3 -
-------------- -------------- -------------- --------------
Net loss (494) (267) (1,087) (586)
Deemed dividends on preferred stock - - - (4,000)
-------------- -------------- -------------- --------------
Loss attributable to common shareholders $ (494) $ (267) $ (1,087) $ (4,586)
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Basic and diluted loss per share $ (0.01) $ (0.01) $ (0.02) $ (0.12)
============== ============== ============== ==============
Weighted average shares outstanding 46,192,250 46,147,047 46,188,073 37,432,395
============== ============== ============== ==============