Press Release For Immediate Release
Company Contact:
William Swain, GraphOn Corporation
1.800.GRAPHON
Bill.Swain@GraphOn.com
GraphOn Corp. Today Announces Fourth Quarter and Year End 2004
Results; Will Host Fourth Quarter Investors Teleconference Today
at 1:00 pm West Coast Time
SANTA CRUZ, CA, USA - March 8, 2005 - 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 1:00 pm Pacific
Coast Time (4:00 pm East Coast Time) today, March 8, 2005, 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, 2004. The GraphOn management team will
discuss the company's business, acquisition of Network Engineering Software Inc.
("NES"), raising of additional capital and will take questions for a limited
time following the presentation.
Participants may access the call by phone by dialing (877) 591-1124 ten minutes
prior to the call.
Financial Highlights
Revenues were approximately $1.0 million for the three-month period ended
December 31, 2004, as compared to approximately $865 thousand recorded in the
same period of 2003. Revenues were approximately $3.5 million for the
twelve-month period ended December 31, 2004, as compared to approximately $4.2
million for the same period of 2003. The net profit for the three-month period
ended December 31, 2004 was approximately $29 thousand, as compared to the
approximate $577 thousand net loss for the same period of 2003. The net loss for
the twelve-month period ended December 31, 2004 was approximately $1.4 million,
as compared to the approximate $1.9 million net loss for the same period of
2003. The profit per common share on a basic and diluted basis for the quarter
ended December 31, 2004 was $0.00 per share as compared with a loss of $0.03 per
share for the same quarter of 2003. The loss per common share on a basic and
diluted basis for the twelve-month period ended December 31, 2004 was $0.07 per
share as compared with a loss of $0.11 per share for the same period in 2003.
"We are able to announce that we were profitable in the fourth quarter of 2004"
Robert Dilworth, CEO, said. "We have been reducing our quarterly expense burn
rate over the last several years and are currently expecting to generate
sufficient revenues to cover our GO-Global product line business." Mr. Dilworth
continued, "We are pleased to have completed the acquisition of NES, which
includes intellectual property which we expect may provide a new royalty revenue
stream in future periods. Additionally, the capital we raised will allow us to
incorporate the acquired technology into some of our current GO-Global product
line and allow for new products to be developed," Mr. Dilworth concluded.
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 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 Sheets
UNAUDITED AUDITED
December 31,
-----------------------
2004 2003
---------- ----------
Cash and cash equivalents ............................ $ 675,300 $ 1,025,500
Accounts receivable, net ............................. 518,900 521,100
Other current assets ................................. 24,100 23,100
---------- ----------
Total current assets ................................. 1,218,300 1,569,700
---------- ----------
Property and equipment, net .......................... 75,400 144,800
Purchased technology, net ............................ - 335,000
Capitalized software, net ............................ 273,700 500,600
Other assets ......................................... 657,000 11,900
---------- ----------
Total assets ......................................... $ 2,224,400 $ 2,562,000
========== ==========
Current liabilities .................................. $ 741,700 $ 523,100
Deferred Revenue ..................................... 1,116,400 1,192,000
Stockholders' equity ................................. 366,300 846,900
---------- ----------
Total liabilities and stockholders' equity $ 2,224,400 $ 2,562,000
========== ==========
Condensed Consolidated Statements of Operations
UNAUDITED UNAUDITED AUDITED
Three months ended Twelve months ended
December 31, December 31,
----------------------- -----------------------
2004 2003 2004 2003
----------- ---------- ----------- -----------
Revenue $ 1,018,000 $ 864,700 $ 3,529,800 $ 4,170,300
Cost of revenue 141,900 391,000 903,800 1,371,600
----------- ---------- ----------- -----------
Gross Profit 876,100 473,700 2,626,000 2,798,700
----------- ---------- ----------- -----------
Selling and marketing 264,200 390,100 1,383,700 1,679,800
General and administrative 314,000 281,200 1,183,600 1,419,100
Research and development 274,500 381,400 1,500,900 1,515,000
Restructuring charge - - - 80,100
----------- ---------- ----------- -----------
Total operating expenses 852,700 1,052,700 4,068,200 4,694,000
----------- ---------- ----------- -----------
Income (loss) from operations 23,400 (579,000) (1,442,200) (1,895,300)
Other income (expense), net 5,600 1,600 14,700 8,700
----------- ---------- ----------- -----------
Income (loss) before income taxes 29,000 (577,400) (1,427,500) (1,886,600)
Income taxes - - - -
----------- ---------- ----------- -----------
Net income (loss) $ 29,000 $ (577,400) $(1,427,500) $(1,886,600)
=========== ========== =========== ===========
Basic and diluted income (loss) per share $ 0.00 $ (0.03) $ (0.07) $ (0.11)
=========== ========== =========== ===========
Basic weighted average shares outstanding 21,716,765 16,618,459 21,307,966 16,607,328
=========== ========== =========== ===========
Diluted weighted average shares outstanding 21,857,903 - - -
=========== ========== =========== ===========