Press Release For Immediate Release
Company Contact:
Company Contact:
William Swain, GraphOn Corporation
1.800.GRAPHON
Bill.Swain@GraphOn.com
GraphOn Corp. Today Announces Fourth Quarter and Year End 2003
Results; Will Host Fourth Quarter Investors Teleconference on
Friday, March 5, 2004
MORGAN HILL, CA, USA - March 4, 2004 - GraphOn(R) Corporation, (OTCBB: 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 Friday, March 5, 2004, moderated by
GraphOn CEO and Chairman, Robert Dilworth and Chief Financial Officer, William
Swain. Discussions will include a review of financial results of the fourth
quarter and year-end, which ended December 31, 2003. 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 Corporation also reported results for the fourth quarter and year-end,
which ended December 31, 2003.
Financial Highlights
Revenues were approximately $865 thousand for the three-month period ended
December 31, 2003, as compared to approximately $1.6 million recorded in the
same period of 2002. Revenues were approximately $4.2 million for the
twelve-month period ended December 31, 2003, as compared to approximately $3.5
million for the same period of 2002. The net loss for the three-month period
ended December 31, 2003 was approximately $577 thousand, as compared to the
approximate $73 thousand net loss for the same period of 2002. The net loss for
the twelve-month period ended December 31, 2003 was approximately $1.9 million,
as compared to the approximate $8.8 million net loss for the same period of
2002. The loss per common share on a basic and diluted basis for the quarter
ended December 31, 2003 was $0.03 per share as compared with a loss of $0.00 per
share for the same quarter of 2002. The loss per common share on a basic and
diluted basis for the twelve-month period ended December 31, 2003 was $0.11 per
share as compared with a loss of $0.50 per share for the same period in 2002.
"As we have stated in the past, our quarterly revenue can be "lumpy" and we have
historically seen substantial fluctuations, similar to what we experienced in
both the fourth quarter of this year as well as last year; however, we are
pleased with the increase in total revenue this year as compared to the total
revenue we reported in 2002," Robert Dilworth, CEO, said. "We are a small
company with limited resources and are continually striving to better understand
the reporting implications of the complex and expanding accounting
interpretations, relative to the requirements of revenue recognition for
software companies, and as such we endeavor to be conservative in our reporting.
It is important to note that in addition to the increase in revenue for 2003, we
also increased our deferred revenue by almost $400 thousand this year over
2002." Mr. Dilworth continued, "We are pleased with the results of our
operations for the year, in that the increase in total revenue we attained
combined with the reduction in expenses we were able to accomplish, allowed us
to contain our net loss in 2003 to less than $2 million as compared to the
nearly $9 million net loss we sustained in 2002."
About GraphOn Corporation
For over a decade, GraphOn Corporation has been an innovator and developer of
business connectivity software. GraphOn's high performance software provides
fast remote access, cross platform capability, and a centralized architecture
that delivers a dramatically lower cost of ownership to the user. Using
GO-Global, any application can be simply and easily Web enabled without any
software modification required, allowing applications to be run from browsers or
portals. GraphOn, which markets its solutions through OEM licenses, independent
software vendors (ISVs), application service providers (ASPs), value-added
resellers (VARs) and systems integrators, is headquartered in Morgan Hill, 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 Balance Sheets
December 31, December 31,
2003 2002
------------ ------------
Cash and cash equivalents $ 1,025,500 $ 1,958,200
Accounts receivable, net 521,100 337,900
Other current assets 23,100 192,000
------------ ------------
Total current assets 1,569,700 2,488,100
------------ ------------
Property and equipment, net 144,800 421,900
Purchased technology, net 335,000 1,163,100
Capitalized software, net 500,600 406,500
Other assets 11,900 70,000
------------ ------------
Total assets $2,562,000 $ 4,549,600
============ ============
Current liabilities $ 523,100 $ 1,023,800
Deferred Revenue 1,192,000 796,100
Stockholders' equity 846,900 2,729,700
------------ ------------
Total liabilities and stockholders' equity $ 2,562,000 $ 4,549,600
============ ============
Condensed Statements of Operations
Three months ended December 31, Twelve months ended December 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenue $ 864,700 $ 1,587,400 $ 4,170,300 $ 3,535,000
Cost of revenue 391,000 308,700 1,371,600 1,679,900
------------ ------------ ------------ ------------
Gross Profit 473,700 1,278,700 2,798,700 1,855,100
------------ ------------ ------------ ------------
Selling and marketing 390,100 522,100 1,679,800 2,235,100
General and administrative 281,200 483,700 1,419,100 2,801,000
Research and development 381,400 351,200 1,515,000 2,831,300
Fixed assets impairment - - - 914,000
Restructuring charge - - 80,100 1,942,800
------------ ------------ ------------ ------------
Total operating expenses 1,052,700 1,357,000 4,694,000 10,724,200
------------ ------------ ------------ ------------
Loss from operations (579,000) (78,300) (1,895,300) (8,869,100)
Other income (expense), net 1,600 5,400 8,700 76,600
------------ ------------ ------------ ------------
Loss before income taxes (577,400) (72,900) (1,886,600) (8,792,500)
Income taxes - - - -
------------ ------------ ------------ ------------
Net loss $ (577,400) $ (72,900) $ (1,886,600) $ (8,792,500)
============ ============ ============ ============
Basic and diluted loss per share $ (0.03) $ (0.00) $ (0.11) $ (0.50)
============ ============ ============ ============
Weighted average shares outstanding 16,618,459 16,594,408 16,607,328 17,465,099
============ ============ ============ ============