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  Be Incorporated Reports Second Quarter Results

  For more information, contact:

Be Incorporated
Guillaume Perrotin, 650/462-4100

Be Incorporated Reports Second Quarter Results

MENLO PARK, Calif.-- July 19, 2000 -- Be Incorporated (Nasdaq:BEOS) today reported financial results for the quarter ended June 30, 2000.

Net revenues for the second quarter of 2000 were $142,000. Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the second quarter of 2000 of $4.5 million, or $0.13 per share, as compared to a net loss of $4.7 million, or $1.11 per share, for the same period in 1999, and a net loss of $5.0 million, or $0.14 per share, in the first quarter of 2000.

Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the second quarter of 2000 was $5.1 million, or $0.14 per share, compared to $6.6 million, or $1.54 per share, for the same period in 1999 and $6.0 million, or $0.17 per share, for the first quarter of 2000.

``As in the first quarter, we show a decrease in net revenues as compared to the corresponding quarter of 1999. This decrease was expected and is attributable to our decision to make the desktop version of our operating system available for free download, as we reported in our January 18th press release. However, while first quarter revenues were generated from revenue deferred in previous quarters, second quarter revenues are primarily attributable to actual shipments during the quarter under the recently announced publisher agreements'' commented Jean-Louis Gassée, president and chief executive officer. ``To date, all of our revenues have been derived from BeOS and this will continue to be the case until our partners who use BeIA, our software platform for Internet appliances, begin shipping devices incorporating BeIA. Thereafter, we expect future revenues to be derived primarily from BeIA.''

Gobe Software, Be's publishing partner for the Americas and English-speaking territories of the Pacific Rim, began shipping BeOS 5 Pro Edition into American retail channels at the beginning of the quarter, while Hitachi, the publishing partner for Japan, began shipments at the end of the quarter. Be's publishing partners in Europe, Koch Media and Apacabar, began shipments in their territories earlier this month and therefore did not contribute to second quarter revenues.

``Since announcing our focus on Internet appliances early in the first quarter, and formally launching BeIA, our software platform for Internet appliances, we have made significant progress with appliance partners such as Compaq, F.I.C. and National Semiconductor,'' commented Mr. Gassée. ``In addition, we have recently announced significant new partnerships, including strategic Internet appliance relationships with Thomson Multimedia for mp3 encoding and decoding, Gemplus for smart card technology to enable secure e-commerce and Metricom for high-speed wireless Internet access.''

Forward Looking Statements

Statements contained in this Press Release that are not historical facts are ``forward-looking statements'' including without limitation statements regarding the demand for, future market penetration and market acceptance of BeIA and BeOS, the shipment dates of Be's products, and the future operating results of Be Incorporated. Actual events or results may differ materially as a result of risks facing Be Incorporated or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, risks related to competition, market acceptance and market penetration of Be's products, ability to establish and maintain strategic relationships, the benefit of Be's products to OEM and Internet appliance manufacturers. the continued availability of third party BeOS applications and drivers, and the ability to establish and maintain strategic publishing relationships. All forward-looking statements are expressly qualified in their entirety by the ``Risk Factors'' and other cautionary statements included in Be Incorporated's Annual Report on Form 10-K for the year ended December 31, 1999, and other public filings with the Securities and Exchange Commission.

About Be®

Founded in 1990, Be Incorporated creates software platforms that enable rich media and web experiences on personal computers and Internet appliances. Be's headquarters are in Menlo Park, California, and its European office is in Paris, France. It is publicly traded on the Nasdaq National Market under the symbol BEOS. Be can be found on the web at http://www.be.com/.

                            BE INCORPORATED 
               (in thousands, except per share amounts) 

                               Three Months Ended   Six Months Ended 
                                     June 30,            June 30, 
                                 2000      1999       2000      1999 

 Net revenues                  $   142   $   537    $   396   $   846 
 Cost of revenues                  261       239        554       324 
                               -------   -------    -------   ------- 
 Gross profit (loss)              (119)      298       (158)      522 

 Operating expenses: 
  Research and development       1,843     1,783      3,991     3,670 
  Sales and marketing            1,983     2,460      4,154     4,341 
  General and administrative       839       822      1,789     1,559 
  Amortization of deferred 
   stock compensation              657     1,713      1,690     3,378 
                               -------    ------    -------   ------- 
 Total operating expenses        5,322     6,777     11,624    12,948 
                               -------    ------    -------   ------- 
 Loss from operations           (5,441)   (6,479)   (11,782)  (12,426) 

 Other income, net                 322        32        663       133 
                               -------    ------    -------   ------- 
 Net Loss                      $(5,119)  $(6,447)  $(11,119) $(12,293) 
                               =======   =======    =======   ======= 
 Net loss attributable to 
  common stockholders          $(5,119)  $(6,578)  $(11,119) $(12,557) 
                               ========   =======    =======  ======= 
 Basic and diluted net 
 loss per share                $ (0.14)    (1.54)   $ (0.32)  $ (3.07) 
                               ========   =======    =======  ======= 
 Shares used to compute 
  basic and diluted net 
  loss per share                35,496     4,266     35,247     4,090 
                               ========   =======    =======  ======= 
 Net loss per share excluding 
  amortization of deferred 
  compensation and preferred 
  stock accretion              $ (0.13)  $ (1.11)   $ (0.27)  $ (2.18) 
                               =======    =======    =======  ======= 

                            BE INCORPORATED 
                            (in thousands) 

                                        June 30,      December 31, 
ASSETS                                    2000            1999 
                                       (Unaudited)      (Audited) 
                                          ----             ---- 
Current assets: 
 Cash, cash equivalents 
    and short term investments         $ 22,304         $ 29,129 
 Accounts receivable, net                   129              167 
 Prepaid expenses and other                 585              730 
                                      -------------    ------------- 
Total current assets                     23,018           30,036 

Property and equipment, net                 477              562 
Other assets                              1,381            1,722 
                                      -------------    ------------- 

Total Assets                           $ 24,876         $ 32,310 
                                      =============    ============= 

Current Liabilities: 
 Accounts payable                       $   289          $   860 
 Accrued expenses                         1,358            1,550 
 Technology license obligations             599              777 
 Deferred revenue                            80               99 
                                       -------------    ------------ 
Total current liabilities                 2,326            3,286 
Technology license obligations              505              597 
Total stockholders' equity               22,045           28,427 
                                       -------------    ------------ 
Total Liabilities and 
 Stockholders' Equity                  $ 24,876         $ 32,310 
                                      =============    ============= 

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