Press Release For Immediate Release
Company Contact: Agency Contact:
William Swain, GraphOn Corporation Pinnacle Group
1.800.GRAPHON (516) 773-2477
Bill.Swain@GraphOn.com pnaclgrup@aol.com
GraphOn Corp. Today Announces Third Quarter 2002 Results and to
Host Second Quarter Investors Teleconference on Wednesday, November 20, 2002
CONCORD, NH, USA - November 19, 2002 - GraphOn(R) Corporation, (Nasdaq: GOJO)
(www.graphon.com) a leading developer of business software for remote computing,
today announced it will host an investor conference call at 11:00 am Pacific
Coast Time (2:00 pm East Coast Time) on Wednesday, November 20, 2002, moderated
by GraphOn Chairman of the Board, Robert Dilworth and Chief Financial Officer,
William Swain. Discussions will include a review of financial results of the
third quarter, which ended September 30, 2002. The GraphOn management team will
discuss the company's business and will take questions for a limited time
following the presentation.
U.S. and Canada participants may access the call by phone by dialing (877)
591-1124 ten minutes prior to the call; international participants may dial
(706) 643-0488 and state GraphOn Conference Call.
GraphOn(R) Corporation (Nasdaq: GOJO), (http://www.GraphOn.com) also reported
results for the third quarter, which ended September 30, 2002.
Financial Highlights
Revenues were approximately $837 thousand for the three-month period ended
September 30, 2002, as compared to approximately $1.0 million recorded in the
same period of 2001. The net loss for the three-month period ended September 30,
2002 was approximately $3.0 million, as compared to the approximate $4.3 million
net loss for the same period of 2001. Revenues were approximately $1.9 million
for the nine-month period ended September 30, 2002, as compared to approximately
$5.3 million recorded in the same period of 2001. The net loss for the
nine-month period ended September 30, 2002 was approximately $8.7 million, as
compared to the approximate $8.8 million net loss for the same period of 2001.
The loss per common share on a basic and diluted basis for the current quarter
was $0.17 per share as compared with a loss of $0.25 per share for the third
quarter of 2001. The loss per common share on a basic and diluted basis on a
year to date basis in the current year was $0.50 per share as compared with a
loss of $0.57 per share on a year to date basis for 2001.
The current quarter's loss is inclusive of restructuring and asset impairment
charges of approximately $1.4 million, or $.08 per share. The current year's
loss is inclusive of restructuring and asset impairment charges of approximately
$2.9 million, or $.17 per share, for the anticipated costs of closing facilities
and the re-valuation of asset values of certain technology purchases.
"We are encouraged by the increase in revenues for the third quarter over those
reported in each of the three previous quarters," Robert Dilworth, CEO, said,
"and we expect this trend to continue. We have continued to reduce our operating
expenses, and are pleased with the progress we are making in the enhancements of
our Windows(R) and UNIX product offerings and their acceptance by our customer
base."
About GraphOn Corporation
GraphOn's award-winning software allows any display device to run any
application over any type of connection, including low-bandwidth, dial-up, and
wireless. GraphOn's products instantly web enable UNIX, Windows, and Linux
applications without any software modification, offering organizations of all
types high performance remote access and a cost effective way to bring their
applications to the web world -- TODAY. GraphOn, which markets its solutions
through OEM licenses, independent software vendors (ISVs), the enterprise,
application service providers (ASPs), value-added resellers (VARs) and systems
integrators, is headquartered in Bellevue, Washington and is traded on the
Nasdaq under the ticker GOJO (Nasdaq: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 Balance Sheets
UNAUDITED AUDITED
September 30, December 31,
2002 2001
----------- -----------
Cash and available for sale securities ........ $ 1,659,100 $ 6,960,600
Accounts receivable, net ...................... 325,400 620,400
Other current assets .......................... 172,000 251,300
----------- -----------
Total current assets .......................... 2,156,500 7,832,300
Purchased technology, net ..................... 1,370,100 3,132,400
Other assets, net ............................. 718,700 2,021,100
----------- -----------
Total assets .................................. $ 4,245,300 $12,985,800
=========== ===========
Current Liabilities ............................ $ 1,460,500 $ 1,659,800
Stockholders' equity ........................... 2,784,800 11,326,000
----------- -----------
Total liabilities and stockholders' equity ..... $ 4,245,300 $12,985,800
=========== ===========
Condensed Statements of Operations
UNAUDITED UNAUDITED
Three months ended Sept. 30, Nine months ended Sept. 30,
---------------------------- ----------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Revenue ............................ $ 836,500 $ 1,018,300 $ 1,947,600 $ 5,274,500
Cost of revenue ................... 454,700 933,700 1,371,200 1,683,600
------------ ------------ ------------ ------------
Gross Profit ...................... 381,800 84,600 576,400 3,590,900
------------ ------------ ------------ ------------
Selling and marketing ............. 387,500 2,141,700 1,712,900 5,110,200
General and administrative ........ 837,800 1,264,500 2,295,300 4,119,900
Research and development .......... 782,700 1,090,000 2,502,100 3,559,300
Asset impairment .................. 914,000 - 914,000 -
Restructuring charge .............. 452,400 - 1,942,800 -
------------ ------------ ------------ ------------
Total operating expenses .......... 3,374,400 4,496,200 9,367,100 12,789,400
------------ ------------ ------------ ------------
Loss from operations .............. (2,992,600) (4,411,600) (8,790,700) (9,198,500)
Other income (expense), net ....... 11,500 67,500 71,200 356,400
------------ ------------ ------------ ------------
Loss before income taxes .......... (2,981,100) (4,344,100) (8,719,500) (8,842,100)
Income taxes ...................... - - - -
------------ ------------ ------------ ------------
Net loss .......................... $ (2,981,100) $ (4,344,100) $ (8,719,500) $ (8,842,100)
============ ============ ============ ============
Basic and diluted loss per share .. (0.17) (0.25) (0.50) (0.57)
============ ============ ============ ============
Weighted average shares outstanding
17,508,574 17,225,996 17,455,439 15,579,701
============ ============ ============ ============