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Be Incorporated Reports First Quarter Results
Recognizes First Revenues for BeIA
MENLO PARK, Calif. — April 19, 2001 — Be Incorporated (Nasdaq:BEOS) today reported financial results for the quarter ended March 31, 2001.
Net revenues for the first quarter of 2001 were $100,000. Revenues were primarily attributable to royalties received for BeIA(TM). Additionally, deferred revenue increased to $477,000 from $109,000 at December 31, 2001, as a result of payments due for ongoing BeIA Integration Services provided by the Company. The Company plans to recognize the revenues in the second quarter. “We are pleased to have recognized the first revenues for BeIA, the Complete IA Solution(TM) for Internet appliances,” said P. C. Berndt, Chief Financial Officer. “We continue to plan to recognize additional revenues in 2001 from each component of BeIA – the Client Platform, Integration Services and MAP (Management and Administration Platform).”
The Company reported a net loss for the quarter of $0.14 per share excluding restructuring charges and non-cash expenses associated with the amortization of deferred compensation. The Company had previously reported a comparable net loss of $0.13 per share for the fourth quarter of last year and a net loss of $0.14 per share for the first quarter of last year. Including non-cash expenses associated with the amortization of deferred compensation, net loss per share for the first quarter this year was $0.15 per share.
Earlier this month, the Company announced the elimination of 27 positions to structure the organization to reflect current market and business conditions. The Company recorded a related restructuring charge of $307,000 in the first quarter and expects to record a restructuring charge of approximately of $150,000 in the second quarter. “We anticipate these actions will allow us to reduce our burn rate going forward to less than $1.5 million per month while continuing to have the capability to market and deliver our products as a fully functioning operating business,” said Steve Sakoman, Chief Operating Officer.
“The first quarter saw the introduction of Sony’s e Villa network entertainment center at the Consumer Electronics Show. We also decided to restructure our operations to reflect the market in which we operate,” said Jean-Louis Gassee, Chairman and CEO. “We look forward to the imminent shipment of BeIA-enabled devices like the e Villa to continue to establish ourselves as the technological and thought leader in the Internet appliance marketplace.”
About BeIA: The Complete IA Solution
BeIA comprises the Client Platform, Integration Services and the BeIA Management and Administration Platform. This integrated package of small footprint client-side software; development, customization and device management tools and services; and key third-party services and technology, delivers a complete Internet appliance solution to device and service providers, including consumer electronics companies.
About Be Incorporated
Founded in 1990, Be Inc. creates software solutions that enable rich media and Web experiences on personal computers and Internet appliances. Be’s headquarters are in Menlo Park, California. 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/.
Statements contained in this Press Release that are not historical facts are “forward-looking statements” including without limitation statements regarding the size and breadth of the Internet appliance market; our ability to lead in such market; the future market penetration and market acceptance of BeIA; the shipment dates of our customers’ products using BeIA and the dates when Be may recognize the revenues associated with such shipments; 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 the speed of development and establishment of the Internet appliance market and the related revenue opportunities; the demand for, and our ability to meet the product and service needs of Internet appliance customers; market acceptance and market penetration of Be’s products and services; our ability to establish and maintain strategic relationships; the availability of third party software and hardware for use with Be’s products; and the benefit of Be’s products to OEMs, Internet appliance manufacturers and other customers. 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, 2000, and other public filings with the Securities and Exchange Commission.