ANDERLECHT, Belgium, Nov. 19, 2002 (PRIMEZONE) -- Keyware Technologies N.V. ("Keyware") (NASDAQ Europe:KEYW), one of the world's leading providers of multi-application smart card solutions, today announced the financial results for the quarter ended September 30, 2002.
During this third quarter Keyware divested and deconsolidated Keyware Solutions Inc., formerly Lex Solutions (located in Washington, U.S.). Furthermore, Keyware divested the assets linked to IDtech nv/sa (Belgium). Also during this quarter the Company signed a Letter of Intent to divest its subsidiary Able nv/sa (Belgium) and signed a Letter of Intent with Identix Inc. to divest the CAS product line.
From the $8.6 million net loss in the third quarter, $7.4 million is non-cash.
Third quarter revenues decreased from $3.3 million in the previous quarter to $1.9 million. However, the gross margin increased from 37% to 47%. The operational result before amortization of goodwill and non-recurring items improved from minus $2.8 million in Q2 2002 to minus $1.2 million in Q3. The cash position increased from $0.468 at the end of last quarter to $1.047 at the end of Q3.
During the third quarter, Keyware successfully completed the issuance of a bond, for an amount of $1.9 million.
Mr. Chris Buyse, CEO, stated: "The achievements in Q3 are threefold: (1) We substantially improved our cash position, increasing our financial credibility towards our customers and partners. (2) We improved our sales margin by focusing on quality revenue. (3) We realized the sell off against cash of Keyware's loss making entities and product lines. The Q3 results prove that the execution of our business plan pays off."
Forward Looking Statements
The figures mentioned in this press release are unaudited, and, with the exception of historical information set forth herein, the matters set forth in this news release are forward-looking statements that involve risks and uncertainties. Investors are cautioned that the unaudited figures and all forward-looking statements involve risks and uncertainties and that a number of factors could cause audited figures and/or actual results to differ materially from those contained herein. These factors include, among others, anticipated revenues, technology risks, including dependence on core technology, fluctuations in quarterly results, dependence on new product development, rapid technological and market change, reliance on sales by others, management of growth, dependence on key personnel, rapid expansion, financial risk management, future growth subject to risks, and the dependence on intellectual property rights. Most of these factors and other factors which could cause actual results to differ materially are discussed in the offering circular relating to Keyware Technologies' listing on NASDAQ Europe on June 23, 2000.
About Keyware
Keyware (NASDAQ Europe:KEYW) is a leading provider of multi-application card solutions for the Customer Loyalty, Event Ticketing, Electronic Payment, e-Identity, Physical Access, Logical Access, Time & Attendance and Alarm Management markets.
Keyware's award-winning technology is sold globally through an extended network of OEMs, system integrators and VARs, and its Professional Services group supports rapid integration to minimize time-to-market. Some significant customers of Keyware include: Avis, Shell, American Express, Chrysler, Citibank, Visa/Eurocard-Mastercard, Belgian National Social Security Card, Belgian National Football League, Diners Club, Cetelem, Mobistar, Ahold, Keyware has also provided the software for more than ten (10) million health cards and over seven (7) million chip-based loyalty cards. The company is headquartered in Brussels (Belgium) and presented on line at www.keyware.com.
Keyware Technologies nv and subidiaries
Consolidated Income Statements -- unaudited
In thousands of US$, except per share data
For the three months ended
30 September 2001 30 September 2002
unaudited unaudited
Operating revenues 5,210 1,949
Cost of goods sold -3,063 -1,038
Gross Profit 2,147 911
Operating costs
Research & development -1,946 -870
Marketing & Sales -2,936 -1,062
General & administrative -1,443 -752
Amortization of goodwill -1,180 -684
Amortization of intangibles -71 -53
Impairment charges 0 -2,860
Write off of in process R&D 0 0
Other operating expenses -11 -408
Total Operating Expenses -7,587 -6,689
Operating income/loss -5,440 -5,778
Other (expense) income
Interest and other
financing expenses -40 -81
Interest income 70 4
Foreign exchange gains and
losses, net -16 55
Other (expense) income -2 27
Exceptional cost 0 -2,998
Total other (expense) income 12 -2,993
Profit / Loss before income taxes -5,428 -8,771
Provision for income taxes 260 157
Net Profit/Loss -5,168 -8,614
Net Profit/Loss per outst.
Ordinary Share 0.21 0.35
Weighted average number of
common shares outstanding basic
and diluted 24,556,608 24,556,608
Keyware Technologies nv and subidiaries
Consolidated Balance Sheet Statements -- unaudited
In thousands of US$
31 Dec. 2001 30 Sept. 2001 30 Sept. 2002
audited unaudited unaudited
Assets
Current assets
Cash & cash equivalents 1,280 4,605 827
Accounts receivable, net
of allowance for doubtful
accounts 8,637 10,039 3,747
Inventories 2,302 2,631 1,529
Costs and recognized income
on contracts in excess of
billings 45 9 13
Current deferred tax asset,
net 356 937 1,010
Prepaid expenses 452 454 257
Other current assets 885 1,150 1,531
Total Current Assets 13,957 19,825 8,914
Goodwill and other
intangible assets, net 25,765 40,166 23,724
Property and equipment, net 2,478 2,741 1,153
Non current deferred tax asset 1,825 0 1,825
Prepaid royalties 1,361 3,119 396
Other assets 163 617 574
Total Assets 45,549 66,468 36,586
Liabilities and Stockholders'
Equity
Current Liabilities
Trade accounts payable 3,655 3,681 5,544
Short-term borrowings 718 625 16
Current instalments of
long-term debt 778 1,037 464
Current instalments of
obligation under capital
lease 148 136 145
Income taxes payable 222 222 253
Billings in excess of costs
and recognized income 0 168 0
Convertible bond 0 0 1,890
Other current liabilities and
accrued expenses 6,289 3,618 4,188
Total Current Liabilities 11,810 9,487 12,500
Deferred tax liability 0 0 0
Long term debt, excl. current
instalments 508 598 244
Capital lease obligations,
excl. current portion 200 238 143
Convertible bonds 851 874 943
Other long-term liabilities 85 195 95
Total Liabilities 13,454 11,392 13,925
Stockholders' Equity
Common stock, no par value: 98,674 98,674 98,674
and 24,556,608 , 24,556,608
and 24,556,608 Ordinary Shares
issued and outstanding as at
December 31, 2001, June 31,
2001 and March 31, 2002
Additional paid-in-capital 4,268 4,233 4,268
Accumulated deficit -65,738 -43,724 -77,653
Deferred compensation -16 -4 -16
Accumulated and other
comprehensive loss -5,093 -4,093 -2,612
Total Stockholders' Equity 32,095 55,076 22,661
Total Liabilities and
Stockholders' Equity 45,549 66,468 36,586