STRATEGIC PARTNERS
December 10, 2001
NEW YORK -- U.S. Wireless Data reported a net loss of $7.2 million, or 71 cents a share, for the quarter ended June 30, 2001, as compared to a net loss of $3 million, or 37 cents per share, for the same period in fiscal year 2000.
For the twelve months ended June 30, 2001, the company's net loss totaled $19.2 million or $1.88 per share, compared to a net loss of $54.3 million or $9.05 per share for the twelve months ended June 30, 2000. Excluding a non-cash preferred stock dividend charge in fiscal year 2000 related to the Company's March 2000 private placement, the net loss was 37 cents per share.
USWD reported that it had record revenues for the three and twelve months ended June 30, 2001 of $2 million and $4.1 million, respectively, as compared to $100,000 and $600,000 for the same periods in fiscal year 2000.
The company said its net loss in the fourth quarter of fiscal year 2001 included $3.4 million of expenses not recorded in the fourth quarter of 2000. These expenses were related to the amortization of intangibles associated with the acquisitions of NXT Corporation and Cellgate Technologies LLC, non-cash compensation related to issuance of stock options, incremental research and development costs and $2.4 million in restructuring charges relating to the consolidation of facilities.
The net loss for fiscal year 2001 included $7 million of expenses not recorded in fiscal year 2000. These expenses were related to amortization of intangibles associated with the acquisitions of NXT Corporation and Cellgate Technologies LLC, non-cash compensation related to issuance of stock options, incremental research and development costs and restructuring charges. Excluding these charges, the company said its net loss for fiscal year 2001 was $12.2 million or $1.19 per share.
According to a news release, the company is implementing an integration and consolidation plan for its recent acquisitions, which will reduce overall operating expenses by approximately $700,000 per month or $8.4 million on an annual basis, representing approximately 42 percent of its on-going annual operating expenses.
Dean M. Leavitt, chairman and CEO said, "An accurate picture of our progress on all fronts can be best illustrated by reviewing our financial results on a quarterly basis and noting the important milestones that we have achieved thus far in calendar 2001. The acquisitions of NXT Corporation and Cellgate Technologies late last year were important catalysts for expanding our offerings and, thereby, increasing revenues."
"We have made significant progress in revenue growth and expense reductions, while successfully implementing our acquisition integration and consolidation plan, which is expected to reduce overall operating expenses by over $8 million a year," said CFO Rick DeVincenzo. "Going forward, assuming revenues continue to grow at our current levels, we expect EBITDA loss to continue to improve from its current levels of $1 million per month and to achieve EBITDA breakeven by the third fiscal quarter ending March 31, 2002."
