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CENTRINITY REPORTS FIRST QUARTER FISCAL 2002 FINANCIAL RESULTS
Company meets revenue expectations, exceeds cash balance target and significantly reduces expenses and net loss for first quarter
RICHMOND HILL, ON, CANADA - February 13, 2002 - Centrinity Inc. (CTI: TSE), the developers of the FirstClass Communications Platform, today announced its financial results for the first quarter of Fiscal 2002. Revenue for the first quarter was $4.2 million, which was 8 percent lower than the same quarter last year and 6 percent lower than the fourth quarter of Fiscal 2001. The year-over-year comparisons reflect the reclassification of Fiscal 2001 revenues to exclude interest income.
Revenue from the company's Collaborative Groupware products was $3.7 million, an increase of 13 percent from $3.3 million for the same period last year and an increase of 9 percent from $3.4 million in the fourth quarter of Fiscal 2001. Revenue from sales of the company's Unified Communications solution to enterprise customers was $0.45 million, an increase of 21 percent from $0.37 million for the same quarter last year and an increase of 61 percent from $0.28 million compared to the fourth quarter of Fiscal 2001. Revenue from the company's Unified Communications solution sold to service provider customers was $0.06 million compared to $0.9 million for the same quarter last year and $0.7 million from the fourth quarter of Fiscal 2001.
Total expenses, including amortization of intangible assets and excluding interest income, foreign exchange gains or losses and future income taxes, decreased by $5.0 million (42%) for the quarter ended December 31, 2001 compared to the same quarter of the previous year. The majority of the decrease in expenses came from staff reductions, salary and bonus reductions, the curtailment of marketing support activities and the completion of the amortization of intangible assets purchased with the acquisition of the SoftArc Group.
The net loss for the quarter was $3.2 million or $0.13 per share, significantly lower than the comparable quarter in Fiscal 2001 when the net loss was $6.9 million or $0.29 per share. The net loss was $10.9 million or $0.45 per share in the fourth quarter of Fiscal 2001.
The company's cash balance was $17.9 million at December 31, 2001 as compared to $20.2 million at September 30, 2001. Cash used in operations as compared to Fiscal 2001 decreased due to the effect of expense management initiatives taken in Fiscal year 2001. Working capital at the end of the quarter was $11.4 million compared to $14.1 million at September 30, 2001.
"Our revenue for the first quarter of Fiscal 2002 was as expected," said Myles McGovern, president and chief executive officer, Centrinity Inc. "We are extremely pleased that the expense actions that we took in Fiscal 2001 have resulted in a dramatic reduction of our expenses and net loss for this quarter. We will continue to remain fiscally responsible to ensure that we are able to achieve our business objectives and capitalize on market opportunities as they come before us."
"Fiscal 2001 was a very difficult year for many organizations and the first quarter of this Fiscal year was still impacted by delayed buying decisions from customers and the current status of the economic environment. Despite this environment we were still able to achieve a major milestone in the first quarter with the signing of an agreement with Cable & Wireless, who will be a go-to-market partner in the United Kingdom. Cable & Wireless and Centrinity will offer a hosted FirstClass service to the Cable & Wireless customer base," added Mr. McGovern.
Subsequent to the end of the first quarter of Fiscal 2002, Centrinity announced that TDS Telecom selected its FirstClass Communications Platform as their next generation communications platform. The telecommunications provider plans to expand and enhance its messaging product offerings through the FirstClass Unified Communications solution.
TDS Telecom (AMEX: TDS) is part of the Telephone and Data Systems (TDS) family of companies and it is the sixth largest non-RBOC telephone company in the United States. It brings telecommunications services to more than 900 rural and suburban communities across the United States. Headquartered in Madison, Wisconsin, the company, along with its subsidiaries TDS Metrocom and USLink, served over 820,000 access lines and 125,000 Internet service accounts as of September 30, 2001.
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 cellphone, 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.
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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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