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Guillaume Perrotin, Corporate Controller
Be Incorporated Reports First Quarter Results
MENLO PARK, Calif.-April 19, 2000-Be Incorporated (Nasdaq: BEOS) today reported financial results for the quarter ended March 31, 2000.
Net revenues for the first quarter of 2000 were $254,000. Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the first quarter of $5.0 million, or $0.14 per share, as compared to a net loss of $4.2 million, or $1.08 per share, for the same period in 1999, and a net loss of $4.9 million, or $0.14 per share, in the fourth quarter of 1999.
Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the first quarter of 2000 was $6.0 million, or $0.17 per share, compared to $6.0 million, or $1.54 per share, for the same period in 1999 and $6.2 million, or $0.18 per share, for the fourth quarter of 1999.
“Although we show a decrease in net revenues as compared to the first 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,” commented Jean-Louis Gassée, president and chief executive officer. “To date, all of our revenues have been derived from BeOS, with future revenues to be derived primarily from BeIA, our software platform for Internet appliances.”
“Our intent in making a downloadable version of BeOS available for free was to promote and increase the visibility of our technology and obtain valuable market feedback while aggressively pursuing Internet appliance opportunities,” continued Mr. Gassée. “The results of this effort so far, have exceeded our expectations.”
Within a week of the release of BeOS 5 Personal Edition, a record breaking 550,000 downloads were reported, and as of yesterday that total had increased to more than 870,000. These figures include all downloads from Be’s web site, as well as from 18 reporting download partners. Be estimates that at least 39 other download sites have not yet reported. Earlier this week, Be’s publishing partner for the Americas’ began shipping BeOS 5 Pro Edition into retail channels. Be expects its publishing partners in Europe and Asia to begin shipments in their territories within the next quarter.
“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 and National Semiconductor,” commented Mr. Gassée. “In addition, we have announced significant new partnerships this first quarter, including strategic Internet appliance relationships with Intel Corporation, First International Computer, Inc. and Proxim, Inc.”
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Forward Looking Statements
The number of free downloads of BeOS 5 Personal Edition stated is based on numbers reported to Be from the Website managers handling such downloads, and may not accurately reflect the actual number of copies of BeOS downloaded, nor are such numbers intended to imply that every download will result in the actual use and adoption of BeOS by the person or entity downloading the copy. Other 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.
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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended March 31, 2000 1999 (Unaudited) Net revenues $ 254 $ 309 Cost of revenues 293 85 ------- ------- Gross profit (loss) (39) 224 Operating expenses: Research and development 2,148 1,887 Sales and marketing 2,171 1,882 General and administrative 950 737 Amortization of deferred stock compensation 1,033 1,665 ------- ------ Total operating expenses 6,302 6,171 ------- ------ Loss from operations (6,341) (5,947) Other income, net 341 101 ------- ------ Net Loss $(6,000) $(5,846) ======= ======= Net loss attributable to common stockholders $(6,000) $(5,979) ======= ======= Basic and diluted net loss per share $ (0.17) $ (1.54) ======= ======= Shares used to compute basic and diluted net loss per share 34,999 3,881 ======== ======= Net loss per share excluding amortization of deferred compensation and preferred stock accretion $ (0.14) $ (1.08) ======= ======= BE INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, ASSETS 2000 1999 (Unaudited) (Audited) ---- ---- Current assets: Cash, cash equivalents and short term investments $ 26,736 $ 29,129 Accounts receivable, net 72 167 Prepaid expenses and other 624 730 ------------- ------------- Total current assets 27,432 30,036 Property and equipment, net 544 562 Other assets 1,549 1,722 ------------- ------------- Total Assets $ 29,525 $ 32,310 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 515 $ 860 Accrued expenses 1,306 1,550 Technology license obligations 696 777 Deferred revenue 80 99 ------------- ------------- Total current liabilities 2,597 3,286 Technology license obligations 491 597 Total stockholders' equity 26,437 28,427 ------------- ------------- Total Liabilities and Stockholders' Equity $ 29,525 $ 32,310 ============= =============