EXHIBIT 99.1
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Media Contacts:
Amy Childress Val Heusinkveld
Extended Systems Extended Systems
208-287-6083 208-322-7575
amy.childress@extendedsystems.com val.heusinkveld@extendedsystems.com
EXTENDED SYSTEMS UPDATES FIRST QUARTER FINANCIAL ESTIMATES AND
ANNOUNCES CHANGE IN REGISTERED INDEPENDENT PUBLIC ACCOUNTANT
BOISE, Idaho--(October 28, 2004)--Extended Systems Incorporated (NASDAQ: XTND),
a leading provider of mobile application solutions for the enterprise, said
today it expects to report fiscal first quarter revenue in the range of $7.7
million to $7.9 million, with per-share results ranging from a net loss of
($0.01) to net income of $0.01. The company had previously forecasted revenue in
the range of $7.2 million to $7.9 million, and net loss per share in the range
of ($0.02) to ($0.06).
The Company also announced that today its registered independent public
accounting firm, Deloitte & Touche LLP ("Deloitte") informed the Company they
are not independent and cannot perform audit and quarterly review services for
the fiscal year ending June 30, 2005. The Audit Committee of the Board of
Directors had previously selected Deloitte as the Company's independent
registered public accounting firm for the fiscal year ending June 30, 2005.
Deloitte advised the Company of its acceptance of this appointment effective
October 1, 2004. However, a formal engagement letter had not been executed
between the Company and Deloitte.
On October 6, 2004 the Company advised Deloitte that it had discovered that one
of Deloitte's member firms had completed work for an immaterial, non-US
subsidiary in the first two months of the fiscal year. Deloitte verified it had
provided prohibited bookkeeping services for total consideration of
approximately (euro)1,200 prior to the time it accepted the appointment as the
Company's independent accountants. The Company immediately destroyed the results
of the prohibited services performed by Deloitte and
had the bookkeeping work performed again by members of the Company's accounting
staff. However, on October 28, 2004, Deloitte advised the Company that as a
result of these de minimis services, Deloitte could not be independent and would
not be able to proceed with the engagement for the Registrant's fiscal year
ending June 30, 2005. Deloitte had not commenced any review of the Company's
financial statements and the withdrawal of Deloitte from the engagement was not
a result of any disagreement between Deloitte and the Company.
The Company has not yet engaged another independent accounting firm to replace
Deloitte although it has initiated discussions with several candidates.
The Company confirmed it will announce its fiscal 2005 first quarter results on
November 3, 2004. A press release containing first quarter financial results
unreviewed by an independent public accountant will be transmitted to the news
media immediately following the close of regular trading on November 3, 2004.
The Company will also hold a conference call to discuss the results beginning at
5:00 p.m. Eastern time on November 3, 2004.
Those wishing to participate should call 877-407-9205 (International dial
201-689-8054) at approximately 4:50 p.m. Eastern time. A simultaneous live web
cast and replay of the call will be available on the Extended Systems website
www.extendedsystems.com/q1call and on www.vcall.com. A replay of the call will
also be available by telephone through November 05, 2004 at 877-660-6853
(International dial 201-612-7415), account number 1628 and conference ID number
122585.
Forward-Looking Statements
This press release contains forward looking statements, including statements
regarding expected revenue and earnings or loss per share for the Company's
first quarter of fiscal 2005 and the Company's ability to retain another
independent auditor. These statements are subject to risks and uncertainties.
These risks and uncertainties include adjustments to the financial results which
may occur during the closing of the Company's books
and the preparation of financial statements and disclosures, the limited number
of independent public accounting firms in the Company's geographic markets with
relevant experience and the uncertainty about whether independent public
accounting firms are accepting new clients due to the resource shortages of
Sarbanes-Oxley Sections 404 compliance reviews and other risks as detailed from
time-to-time in Extended Systems' SEC filings, including its 2004 Annual Report
on Form 10-K filed September 29, 2004.
About Extended Systems
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Extended Systems provides the expertise, strategy and solutions to help
enterprise organizations streamline their business processes through mobile
technology. The Company's OneBridge mobile solutions suite enables companies to
mobilize critical enterprise applications such as e-mail, field service, sales
force automation (SFA), enterprise resource planning (ERP) and customer
relationship management (CRM). Extended Systems has more than 2,500 enterprise
customers worldwide and key alliance relationships. Founded in 1984, Extended
Systems has offices and subsidiaries in the United States and worldwide. For
more information, call 1-800-235-7576 or visit the Company web site at
www.extendedsystems.com.
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