News release |
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Zi More Than Doubles Revenue in Second Quarter
CALGARY, ALBERTA--Zi Corporation (NASDAQ: ZICA) (TSX: ZIC), a
leading provider of intelligent interface solutions today
announced its financial results for the three months ended June
30, 2002.
Highlights
- Increased revenues to $3.2 million, an increase of nearly two and a half times revenue a year earlier.
- Introduced 13 new eZiText enabled device models to market. Total Zi enabled devices in worldwide market now total more than 100.
- Reached definitive agreement to sell Magic Lantern group of companies to JKC Group Inc., subject to regulatory approval.
- Entered into a letter of intent to divest Zi Services, the company's Hong Kong based telecom engineering operation.
Total revenue for the three months ended June 30, 2002 was $3.2 million, an increase of 137 per cent or $1.8 million over second quarter 2001. Revenue from Zi Technology, representing licensing of eZiText was over $2.0 million for the quarter, an increase of nearly 60% from last year. Included in revenue for the three months is a full quarter of revenue from the Magic Lantern group of companies, acquired in March of this year.
Loss from continuing operations was $4.3 million, a reduction of $1.5 million compared to a year earlier. Loss from discontinued operations, which reflects Zi Services results and accrued disposition costs was $2.7 million in the quarter.
"The second quarter of 2002 reflects the success of our focussed strategy to penetrate our core markets by going deeper with our customers, monetize our e-Learning and telecom investments, and accelerate into the new opportunities in front of us," said Michael E. Lobsinger, Chairman and Chief Executive Officer of Zi Corporation. "We continue to have a positive outlook for strong revenue growth."
Zi Corporation will host a teleconference and web cast to discuss its second quarter results on August 15, 2002 at 9 am eastern time. To participate, please make your connection 10 minutes prior to the start of the call.
/T/
Conference call: Toll Free 1-877-888-4120
International: 1-416-695-5261
Web cast: A web cast of the call can be accessed on the Internet at: www.zicorp.com
Recording: A recording will be available shortly following the conference call until 11:55 pm Eastern (9:55 pm Mountain) on Friday, August 23, 2002
Toll Free in North America 1-888-509-0081
International: 1-416-695-9731
/T/
About Zi Corporation
Zi Corporation is a market-driven technology company delivering intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company's core technology product, eZiText(R) connects people to short messaging, e-mail, e-commerce, Web browsing and similar applications in more than 35 languages and regional dialects. Zi supports its strategic partners from offices in Calgary, Beijing, Hong Kong, London, San Francisco, Shenzhen and Stockholm. A publicly traded company, Zi Corporation is listed on the NASDAQ National Market (ZICA) and the Toronto Stock Exchange (ZIC).
Certain statements in this press release that involve expectations or intentions (such as those relating to future deployments or planned cooperation) may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The information in this press release is based on Zi Corporation's current expectations and assumptions, and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks include, among others, general business and economic conditions, competitive actions, continued acceptance of Zi Corporation's products and services and dependence on third party performance as well as the risks and uncertainties referred to in Zi Corporation's 20-F for the most recent calendar year that is filed with the Securities and Exchange Commission. The reader should not place undue reliance on such forward looking statements. Zi Corporation does not assume any obligation to update such forward looking statements.
/T/
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ZI CORPORATION |
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CONSOLIDATED BALANCE
SHEETS |
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June 30, |
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December 31, |
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June 30, |
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2002 |
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2001 |
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2001 |
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(unaudited) |
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(audited) |
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(unaudited) |
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Assets |
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Current
assets |
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Cash and
cash equivalents |
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14,696,467 |
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19,090,964 |
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35,626,299 |
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Short-term
investments |
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- |
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8,577,503 |
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- |
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Accounts
receivable |
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3,146,737 |
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2,752,262 |
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1,998,755 |
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Work-in-progress
and inventory |
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300,981 |
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509,298 |
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- |
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Prepayments
and deposits |
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1,534,689 |
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909,388 |
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1,455,696 |
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19,678,874 |
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31,839,415 |
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39,080,750 |
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Capital
assets – net |
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4,954,999 |
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3,160,008 |
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3,332,204 |
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Intangible
assets – net |
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13,683,924 |
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13,082,923 |
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10,652,575 |
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38,317,797 |
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48,082,346 |
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53,065,529 |
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Liabilities
and shareholders’ equity |
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Current
liabilities |
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Accounts
payable and accrued liabilities |
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3,624,210 |
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3,097,692 |
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2,789,117 |
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Deferred
revenue |
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703,643 |
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773,115 |
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73,039 |
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Notes
payable |
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844,641 |
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- |
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- |
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Current
portion of capital lease obligations |
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196,117 |
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175,996 |
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158,441 |
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5,368,611 |
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4,046,803 |
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3,020,597 |
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Capital
lease obligations |
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86,673 |
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159,013 |
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198,621 |
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5,455,284 |
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4,205,816 |
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3,219,218 |
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Shareholders’
equity |
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Share
capital |
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96,588,274 |
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94,871,503 |
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92,394,448 |
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Deficit |
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(63,725,761) |
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(50,994,973) |
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(42,548,137) |
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32,862,513 |
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43,876,530 |
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49,846,311 |
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38,317,797 |
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48,082,346 |
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53,065,529 |
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ZI CORPORATION |
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CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT |
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3 months
ended June 30, |
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6 months
ended June 30, |
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(UNAUDITED) |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenue |
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License and implementation fees |
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2,038,515 |
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1,294,311 |
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3,888,805 |
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2,445,474 |
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Other product revenue |
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1,155,853 |
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51,961 |
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1,455,535 |
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