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Be Incorporated Reports Revenue Growth of 82%
MENLO PARK, Calif. — October 20, 1999 — Be ® Incorporated (Nasdaq: BEOS) today reported financial results for the quarter and nine months ended September 30, 1999.
Net revenues for the third quarter of 1999 were $775,000, an increase of 44% from $537,000 reported for the second quarter of 1999, and an increase of 243% from $226,000 in the same period in 1998. For the nine months ended September 30, 1999, the Company reported revenue of $1,621,000, an increase of 82% from $892,000 reported in the first nine months of 1998.
Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the third quarter of $4.5 million, or $0.16 per share, as compared to a net loss of $2.4 million, or $0.73 per share, for the same period in 1998, and a net loss of $4.7 million, or $1.11 per share in the second quarter of 1999. Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the third quarter of 1999 was $6.1 million, or $0.22 per share compared to $3.6 million or $1.09 per share for the same period in 1998 and $6.6 million or $1.11 per share for the second quarter of 1999.
Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the first nine months of 1999 of $13.4 million, or $1.12 per share, as compared to a net loss of $9.3 million or $3.06 per share for the first nine months of 1998. Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the first nine months of 1999 was $18.6 million, or $1.56 per share as compared to a net loss of $12.3 million or $4.03 per share reported in the first nine months of 1998.
“For our second quarter as a public company, we are pleased to report continued revenue growth,” commented Jean-Louis GassÃ©e, president and chief executive officer. He added, “During the quarter we completed our initial public offering and took actions to further develop our product offering and our business.”
“To enhance our future product offering, we teamed with RealNetworks to bring the RealPlayer® G2 to BeOS users, with Roland to bring USB audio support to BeOS and with Monolith Productions to develop Shogo : Mobile Armor Division ™, an interactive computer game,” said Roy Graham, executive vice president, sales and marketing at Be. “We are also pleased to report that under previously announced OEM relationships, AST and iDOT shipped their first systems based on BeOS and that we partnered with Ingram Micro and Gigabuys.com, Dell Computer Corporation’s online superstore, to make BeOS available to more retail and online shoppers.”
“In the growing area of Internet appliances, we are expanding the development of BeOS to meet the market requirements for a wider range of Internet appliances and embedded products. In August, we demonstrated our concept design for an Internet appliance at the Intel Developer Forum.” concluded Roy Graham.
During the quarter, Be Incorporated completed an initial public offering of 6.6 million shares. Net of expenses of $4.0 million, proceeds to Be Incorporated from the offering totaled approximately $35.3 million.# # #
About Be, Inc.
Be Incorporated offers the BeOS® operating system, an operating system designed for digital media applications and Internet appliances. BeOS is capable of providing faster and more predictable processing times for digital media applications than traditional desktop operating systems. BeOS can run on a wide range of devices including Internet appliances, desktop PCs and high-performance multiprocessor workstations. BeOS is promoted through relationships with OEMs, applications developers, consumer electronic manufacturers and Internet service and content providers. Be Incorporated was founded in 1990, is headquartered in Menlo Park, California and has offices in Asia and in Europe. Be is publicly traded on Nasdaq under the symbol BEOS and can be reached at (650) 462-4100 or http://www.be.com/.
Forward Looking Statements
The statements contained in this Press Release may contain “forward-looking statements” including, without limitation, statements regarding the growth of the market for internet appliances and the Companyâ€™s products intended for the internet appliances market. 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 and market acceptance of BeOS, ability to establish and maintain strategic relationships, availability of third party applications that operate on BeOS, and ability to increase sales and market awareness for BeOS. All forward-looking statements are expressly qualified in their entirety by the “Risk Factors” and other cautionary statements included in the Company’s prospectus filed pursuant to Rule 424(b) of the Securities Act of 1933 and other public filings with the Securities and Exchange Commission.
BE INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1999 1998 1999 1998 Net revenues $ 775 $ 226 $ 1,621 $ 892 Cost of revenues 372 99 696 1,862 ------- ------- ------- ------- Gross profit (loss) 403 127 925 (970) Operating expenses: Research and development 2,005 1,270 5,675 4,296 Sales and marketing 2,179 887 6,520 2,770 General and administrative 961 549 2,520 1,678 Amortization of deferred stock compensation 1,596 1,097 4,974 2,712 ------- ------ ------- ------- Total operating expenses 6,741 3,803 19,689 11,456 ------- ------ ------- ------- Loss from operations (6,338) (3,676) (18,764) (12,426) Other income, net 284 148 417 417 ------- ------ ------- ------- Net Loss $(6,054) $(3,528) $(18,347) $(12,009) ======= ======= ======= ====== Net loss attributable to common stockholders $(6,082) $(3,625) $(18,639) $(12,269) ======= ======= ======= ======= Basic and diluted net loss per share $ (0.22) $ (1.09) $ (1.56) $ (4.03) ======= ======= ====== ====== Shares used to compute basic and diluted net loss per share 27,853 3,340 11,921 3,042 ======== ======= ======= ====== Net loss per share excluding amortization of deferred compensation and preferred stock accretion $ (0.16) $ (0.73) $ (1.12) $ (3.06) ======= ======= ======= =======