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CENTRINITY REPORTS SECOND QUARTER FINANCIAL RESULTS FOR FISCAL 2002
Company increases revenue and lowers net loss
RICHMOND HILL, ON, CANADA - May 16, 2002 - Centrinity Inc. (CTI: TSE), the developers of the FirstClass Communications Platform, today announced its financial results for the second quarter of Fiscal 2002 and six-month period ended March 31, 2002. Revenue for the second quarter was $4.8 million, which was 20 percent higher than the same quarter last year and 12 percent higher than the first quarter of Fiscal 2002. Revenue for the six-month period ended March 31, 2002 was
$9.1 million as compared to $8.6 million, for the same period in the prior year. All figures are unaudited and are in Canadian dollars.
Revenue from the Company's Collaborative Groupware products was $3.3 million, a decrease of 7 percent from $3.6 million for the same period last year and a decrease of 11 percent from $3.8 million in the first quarter of Fiscal 2002. Revenue from sales of the Company's Unified Communications solution to enterprise customers was $0.8 million, an increase of 121 percent from $0.4 million for the same quarter last year and an increase of 53 percent from $0.5 million compared to the first quarter of Fiscal 2002. Revenue from the Company's Unified Communications solution sold to service provider customers was $0.7 million compared to $0.05 million for the same quarter last year.
Total expenses, including amortization of intangible assets and excluding interest income, foreign exchange gains or losses and future income taxes, decreased by $6.7 million (49%) for the quarter ended March 31, 2002 compared to the same quarter of the previous year.
The net loss for the quarter was $2.9 million or $0.12 per share, lower than the comparable quarter in Fiscal 2001 when the net loss was $8.2 million or $0.34 per share. The net loss was $3.2 million or $0.13 per share in the first quarter of Fiscal 2002.
The Company's cash balance was $16.0 million at March 31, 2002 as compared to $17.9 million at December 31, 2001. Cash used in operations as compared to Fiscal 2001 decreased due to the effect of expense management initiatives taken in Fiscal year 2001.
"Revenue for the quarter increased by 20 percent and our net loss was reduced by 60 percent on a year over year basis," said Jane Mowat, chief financial officer and executive vice president, Centrinity Inc. "The Company is encouraged by the growth in revenue from enterprise customers for the first half of fiscal 2002."
"Our service provider revenue has not grown as planned due to market conditions affecting this sector which is causing delays in both the completion of new contracts and the adoption of new services by customers. Accordingly, the Company no longer sees significant revenue growth from service provider customers for the balance of the fiscal year," added Ms. Mowat. "The reduction in our net loss and cash burn rate, and continued expense management should improve the Company's ability to withstand the impact of reduced spending and longer than anticipated sales cycles for service providers in North America."
Highlights of the second quarter include the signing of a Letter of Intent (LOI) between Centrinity and TDS TELECOM, the sixth largest Non-Regional Bell Operating Company (RBOC) in the United States. The proposed arrangement with TDS TELECOM will offer Centrinity's FirstClass Unified Communications technology to its customers. Centrinity continues to negotiate with TDS TELECOM. The Company also announced an arrangement with Unicomms Ltd., an application service provider (ASP) located in the Channel Islands, to deliver Centrinity's FirstClass Unified Communications solution to their customer base in the United Kingdom and Channel Islands. In addition, Centrinity recorded its largest Unified Communications sale to the Oklahoma Board of Education and announced the availability of its Mac OS X beta version of FirstClass 6.1.
"As a Company we continue to remain focused on the enhancement of our technology and the execution of our plan," said John Myers, chief operating officer and executive vice president, Centrinity Inc. "While the service provider market has slowed, our focus is to target those customers that will be making near-term buying decisions. Service providers with aging voice mail platforms will not be able to delay spending or prolong introducing new services. This presents us with an excellent opportunity to provide service providers with a next-generation messaging platform that will evolve with the market and meet customer demand as it builds."
About FirstClass Communications Platform
At the foundation of the FirstClass Communications Platform is Centrinity's Collaborative Groupware, which provides users with the ability to effectively communicate and share valuable resources through email, conferencing, directories, calendaring and on line chats.
Centrinity's FirstClass Unified Communications technology, seamlessly converges email, voice mail and fax messages into one unified mailbox thereby enabling users to access all of their data and messages via the device of their choice including cell phone, telephone, computer and handheld devices - anytime, anywhere.
About Centrinity Inc.
Centrinity is a leading provider of Unified Communications and Collaborative Groupware software solutions to service providers, enterprises and learning organizations. Our award-winning software solutions are designed to enhance productivity and efficiency by simplifying and facilitating the management of communications and information among individuals and groups. Centrinity is listed under the symbol 'CTI' on the Toronto Stock Exchange. Web site: www.centrinity.com.
For more information please contact:
Margaret Williamson
Centrinity Inc.
Manager, Corporate Communications
Tel: 905.762.6234
This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the Company currently foresees.
FirstClass is a registered trademark of a Centrinity Inc. subsidiary used under license. Centrinity and the Centrinity logo are trademarks of Centrinity Inc. All other trademarks are the property of their respective owners.
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