PRINCETON, N.J.--(BUSINESS WIRE)--August 4, 1997--Voxware(R), Inc. (Nasdaq:VOXW), a developer of speech and audio technologies, today announced financial results for the fourth quarter and fiscal year ended June 30, 1997.
For the fourth quarter ended June 30, 1997, revenues were $2.7 million, which represents an increase of $1.8 million compared to $0.9 million of revenues reported in the Fiscal 1996 fourth quarter. The increase in revenues reflects an increase in aggregate initial license fees as well as an increase in royalties and recurring license fees related to contracts signed in previous quarters. Revenues for the quarter ended June 30, 1997 were comprised of initial license fees of $1.8 million generated from 18 new license agreements, royalties and recurring license fees of $0.7 million, and service revenues of $0.2 million. These amounts compare to initial license fees of $0.6 million, $0.2 million of royalties and recurring license fees, and $0.1 million of service revenues for the Fiscal 1996 fourth quarter. Since inception, the Company has entered into approximately 80 license agreements, the majority of which provide for royalties and recurring license fees.
The Company reported a net loss for the fourth quarter of Fiscal 1997 of $0.8 million, or ($0.06) per share, compared to a net loss of $1.3 million or ($0.14) per share, for the fourth quarter of Fiscal 1996.
For the fiscal year ended June 30, 1997, total revenues were $7.8 million, reflecting an increase of $6.2 million compared to $1.6 million in revenues in Fiscal 1996. Fiscal 1997 revenues were comprised of initial license fees of $5.4 million, royalties and recurring license fees of $2.0 million and service revenues of $0.4 million. These amounts compare to $1.6 million in revenues for Fiscal 1996, which were comprised of initial license fees of $1.3 million, royalties and recurring license fees of $0.2 million and service revenues of $0.1 million. The net loss for Fiscal 1997 was $7.0 million, or ($0.62) per share, compared to $2.9 million, or ($0.33) per share, in Fiscal 1996.
At June 30, 1997, cash, cash equivalents and short-term investments totaled $16.5 million.
Michael Goldstein, President and Chief Executive Officer of Voxware, commented, "Looking at the fiscal 1997 year, we are pleased to have established our MetaVoice speech coding technology as a premium solution for incorporating voice in a wide variety of software applications with acceptance by Microsoft, Netscape, America Online, Walt Disney, Prodigy and many others. We are also pleased that our MetaSound general audio technology which is more appropriate for music applications, has been accepted by Microsoft, Walt Disney, IBM and others.
"In light of the strength of our core technology development and licensing, we have been focusing on expanding this business and leveraging it into additional markets that provide further opportunities for recurring revenue. At the same time, we have been de-emphasizing the marketing of consumer application software, which has proven to be less attractive due to the economics of marketing these applications to consumers. These factors have contributed to our improved operating margins in this current fiscal year."
Bathsheba Malsheen, Chief Operating Officer of Voxware, added "The first leg of Voxware's strategy has been to establish a leadership position as a technology supplier in the software world. In addition to the revenue generated from software licensing, this is helping to create a very large installed base of users that have Voxware's technologies built into their applications. Our goal is to leverage this broad distribution in software into sales through the computer telephony hardware channels and other media that will need to inter-operate with this installed base using our technologies. We are expanding our DSP engineering resources and working closely with our computer telephony customers to create channels for sustainable recurring revenues over the long term."
This news release contains forward-looking statements. Such statements are subject to certain factors which may cause Voxware's plans to differ or results to vary from those expected including the risks associated with development of new products and the uncertainty of product acceptance, the uncertainty of adoption of the Internet as a medium for voice communications, the Company's reliance on third parties to generate recurring revenues, the competitive nature of the Company's industry, rapid technological changes, the Company's need to develop new and enhanced products, government regulations and legal uncertainties, the Company's dependence on key personnel, uncertainties regarding patents and proprietary rights, and a variety of risks set forth from time to time in Voxware's filings with the Securities and Exchange Commission. Voxware undertakes no obligation to publicly release results of any of these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events.
Voxware, Inc. develops, markets, licenses and supports digital speech processing and audio technologies, solutions and applications. Voxware's coding technologies, including MetaVoice and MetaSound, are designed to reproduce high quality speech and audio while requiring very low communications bandwidth and processing power. Voxware's technologies enable users to create a new generation of audio-enhanced communications and interactive products for the Internet and other bandwidth-constrained environments. Voxware was founded in 1993. Its corporate headquarters are in Princeton, New Jersey, with regional headquarters in Tokyo, Japan and London, England. Additional information about Voxware, Inc. can be obtained on the Internet at http://www.voxware.com, by sending e-mail to vox@voxware.com or by calling (609) 514-4100. -0-
Voxware, Inc. Statements of Operations (In thousands, except per share data) Three Months Year Ended Ended June 30, June 30, 1997 1996 1997 1996 (unaudited) Revenues: Product revenues: Initial license fees $ 1,813 $ 552 $ 5,432 $ 1,256 Royalties and recurring license fees 693 238 1,996 238 Total product revenues 2,506 790 7,428 1,494 Service revenues 146 110 351 113 Total revenues 2,652 900 7,779 1,607 Cost of revenues: Cost of product revenues 60 8 208 17 Cost of service revenues 44 18 164 28 Total cost of revenues 104 26 372 45 Gross profit 2,548 874 7,407 1,562 Operating expenses: Research and development 1,804 1,294 7,846 2,497 Sales and marketing 1,072 447 4,124 1,084 General and administrative 691 442 3,204 980 Total operating expenses 3,567 2,183 15,174 4,561 Operating loss (1,019) (1,309) (7,767) (2,999) Interest income 237 47 722 132 Net loss $ (782) (1,262) (7,045) (2,867) Net loss per share $(0.06) (0.14) (0.62) (0.33) Shares used in computing net loss per share 12,476 9,043 11,301 8,642 -0- Voxware, Inc. Balance Sheets (In thousands, except share and per share data) June 30, June 30, 1997 1996 ASSETS Current assets: Cash and cash equivalents $ 10,627 $ 3,837 Short-term investments 5,842 - - - Accounts receivable, net 2,822 470 Prepaid expenses 309 54 Total current assets 19,600 4,361 Property and equipment, net 568 611 Other assets, net 55 364 $ 20,223 $ 5,336 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable and accrued expenses $ 2,312 $ 365 Deferred revenues 477 109 Total current liabilities 2,789 474 Deferred rent 241 - - - Redeemable Series A Convertible Preferred Stock - - - 5,938 Commitments and contingencies Stockholders' equity (deficit): Preferred stock, $.001 par value, 10,000,000 shares authorized; none and 6,000,000 Redeemable Series A Convertible shares issued and outstanding - - - - - - Common stock, $.001 par value, 30,000,000 shares authorized; 12,497,258 and 5,947,496 shares issued and outstanding 13 6 Additional paid-in capital 28,490 3,177 Unrealized loss on available-for- sale securities (2) - - - Accumulated deficit (11,308) (4,259) Total stockholders' equity (deficit) 17,193 (1,076) $ 20,223 $ 5,336
CONTACT: Voxware, Inc.
Michael Goldstein
President and CEO
Bathsheba Malsheen
Chief Operating Officer
Kenneth H. Traub
Executive Vice President & CFO
609-514-4100
Morgen-Walke Associates
Michele Katz/Jessica Davis/
Libby Marshall
Press: Lee Foley/Ann Travers
212-850-5600
