<PAGE>
==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1997
------------------
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ___________________________
Commission File Number 0-021403
---------
VOXWARE, INC.
------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 36-3934824
- ------------------------------- ----------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
---------
305 College Road East
Princeton, New Jersey 08540
609-514-4100
---------
(Address, including zip code, and telephone
number (including area code) of registrant's
principal executive office)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the last 90 days. YES X NO X
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Shares Outstanding at November 14, 1997
----------------------------- ---------------------------------------
Common Stock, $.001 par value 12,801,508
==============================================================================
<PAGE>
VOXWARE, INC.
INDEX
<TABLE>
<CAPTION>
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited) Page No.
Statements of Operations
Three Months Ended September 30, 1997 and 1996............................ 3
Balance Sheets
September 30, 1997 and June 30, 1997....................................... 4
Statements of Cash Flows
Three Months Ended September 30, 1997 and 1996............................ 5
Notes to Financial Statements................................................. 6
Item 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition....................................................... 7
PART II - OTHER INFORMATION
Other Information............................................................. 12
Signatures.................................................................... 13
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Voxware, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended
September 30,
--------------------
1997 1996
-------- -------
(unaudited)
Revenues:
Product revenues:
Initial license fees $ 1,005 $ 913
Royalties and recurring license fees 651 238
------- --------
Total product revenues 1,656 1,151
Service revenues 156 52
------- --------
Total revenues 1,812 1,203
------- --------
Cost of revenues:
Cost of product revenues 51 24
Cost of service revenues 54 26
------- --------
Total cost of revenues 105 50
------- --------
Gross profit 1,707 1,153
------- --------
Operating expenses:
Research and development 1,444 1,863
Sales and marketing 1,059 801
General and administrative 597 857
------- --------
Total operating expenses 3,100 3,521
------- --------
Operating loss (1,393) (2,368)
Interest income 222 36
------- --------
Net loss $ (1,171) $(2,332)
======== ========
Net loss per share $ (0.09) $ (0.25)
======== ========
Shares used in computing
net loss per share 12,509 9,268
======== ========
The accompanying notes are an integral part of these statements.
3
<PAGE>
Voxware, Inc.
Balance Sheets
(In thousands, except share and per share data)
<TABLE>
<CAPTION>
September 30, June 30,
1997 1997
----------- -----------
(unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 10,216 $ 10,627
Short-term investments 5,316 5,842
Accounts receivable, net of allowance for doubtful accounts of
$475 and $400 2,543 2,822
Prepaid expenses 247 309
-------- --------
Total current assets 18,322 19,660
Property and equipment, net 539 566
Other assets, net 55 55
-------- --------
$ 18,916 $ 20,221
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,999 $ 2,312
Deferred revenues 566 477
-------- --------
Total current liabilities 2,565 2,789
-------- --------
Deferred rent 266 241
-------- --------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 10,000,000 shares authorized;
no shares issued and outstanding -- --
Common stock $.001 par value, 30,000,000 shares authorized;
12,542,883 and 12,497,258 shares issued and outstanding 13 13
Additional paid-in capital 28,553 28,488
Unrealized loss on available-for-sale securities (2) (2)
Accumulated deficit (12,479) (11,308)
-------- --------
Total stockholders' equity 16,085 17,191
-------- --------
$ 18,916 $ 20,221
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
Voxware, Inc.
Statements of Cash Flows
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
--------------------------
1997 1996
------- ------
(unaudited)
<S> <C> <C>
Operating activities:
Net loss $ (1,171) $ (2,332)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 48 56
Provision for doubtful accounts 75 100
Changes in assets and liabilities:
Accounts receivable 204 (494)
Prepaid expenses 62 34
Other assets -- (203)
Accounts payable and accrued expenses (313) 960
Deferred revenues 89 77
Deferred rent 25 --
-------- --------
Net cash used in operating activities (981) (1,802)
-------- --------
Investing activities:
Purchase of short-term investments (20,979) --
Sales and maturities of short-term investments 21,505 --
Purchases of property and equipment (21) (141)
-------- --------
Net cash provided by (used in) investing activities 505 (141)
-------- --------
Financing activities:
Proceeds from exercise of common stock options 65 --
Proceeds from exercise of common stock warrants -- 202
-------- --------
Net cash provided by financing activities 65 202
-------- --------
Decrease in cash and cash equivalents (411) (1,741)
Cash and cash equivalents, beginning of period 10,627 3,837
-------- --------
Cash and cash equivalents, end of period 10,216 2,096
Short-term investments, end of period 5,316 --
-------- --------
Cash and short-term investments, end of period $ 15,532 $ 2,096
======== ========
SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS:
Accretion of redemption premium on Redeemable Series A
Convertible Preferred Stock $ -- $ 4
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
Voxware, Inc.
Notes To Financial Statements
1. BASIS OF PRESENTATION
The financial statements as of September 30, 1997 and for the three
month periods ended September 30, 1997 and 1996 are unaudited and
reflect all adjustments (consisting only of normal recurring
adjustments) which are, in the opinion of management, necessary for a
fair presentation of the financial position and operating results for
the interim periods. The financial statements should be read in
conjunction with the financial statements and notes thereto, together
with management's discussion and analysis of financial condition and
results of operations, contained in the Company's Annual Report on Form
10-K which was filed on September 29, 1997, as amended on Form 10-K/A on
October 28, 1997, and in this report on Form 10-Q.
The results of operations for the interim period ended September
30, 1997 are not necessarily indicative of the results to be expected
for the fiscal year ending June 30, 1998 or any other future periods.
2. NET LOSS PER SHARE
Net loss per share was calculated by dividing net loss by the
weighted average number of common shares outstanding for the respective
periods adjusted for the dilutive effect of common stock equivalents,
which consist of stock options and warrants, using the treasury stock
method. The calculation of shares used in computing net loss per share
for the three months ended September 30, 1996 also includes 6,000,000
shares of Redeemable Series A Convertible Preferred Stock which
converted into 3,000,000 shares of Common Stock upon the consummation
of the Initial Public Offering, as if they were converted to Common
Stock on their original date of issuance.
In March 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS No. 128"). SFAS No. 128 is effective for fiscal years
ending after December 15, 1997, and, when adopted, will require
restatement of prior years' earnings per share. If the Company had
adopted SFAS No. 128 for the period ending September 30, 1997, there
would have been no effect on net loss per share, on either the basic or
diluted basis.
3. REVENUE RECOGNITION
The Company generates revenues from two sources: fees from product
licenses and fees for services provided. Product revenues consist of
initial license fees and royalties and recurring license fees. Product
revenues from initial license fees are generally recognized upon
shipment, provided that there are no significant post-delivery
obligations, the payment is due within one year and collection of the
resulting receivable is deemed probable. Royalties and recurring
license fees include royalties, which are generally
6
<PAGE>
based on a percentage of licensees' sales or units shipped, and
pre-determined periodic license fees. Royalty revenues are recognized
at the time of the customer's shipment of products incorporating the
Company's technology. Recurring product license fees are generally
recognized at the inception of the renewal period, provided that there
are no significant post-delivery obligations, the payment is due within
one year and collection of the resulting receivable is deemed probable.
Service revenues from customer support, including the amounts bundled
with initial or recurring license fees, are recognized over the term of
the support period, which is typically one year. Service revenues from
engineering fees are recognized upon customer acceptance or over the
period in which services are provided if customer acceptance is not
required.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
This report contains forward-looking statements which involve risks
and uncertainties. Such statements are subject to certain factors which
may cause the Company's plans and results to differ. Factors that may
cause such differences include, but are not limited to, the rate of
progress, if any, of the Company's product development programs and the
uncertainty of acceptance of the Company's products in the marketplace,
the uncertain development of the Internet and its use as a means for
voice communications, the highly competitive nature of the Company's
industry and the Company's ability to compete successfully, the
Company's ability to attract and retain qualified personnel, the
Company's ability to successfully enter into and maintain relationships
with third parties and the Company's dependence on such third parties
to develop and market products using the Company's technology and to
develop a recurring revenue stream to the Company, the Company's
ability to manage its growth, the costs involved in obtaining and
enforcing patents and any necessary licenses, the Company's ability to
obtain additional funds, and those other risks discussed in the
Company's Annual Report on Form 10-K.
Overview
Voxware develops, markets, licenses and supports digital speech and
audio technologies, solutions and applications. MetaVoice, the
Company's innovative speech coding technology, is designed to reproduce
high quality speech while requiring very low communications bandwidth
and processing power. In addition to efficiently compressing speech,
MetaVoice enables a broad array of voice transformation capabilities.
MetaSound, the Company's general audio coding technology built on core
technology licensed from Nippon Telegraph and Telephone Corporation,
was introduced during fiscal 1997 and is specifically suitable for high
quality music compression. These technologies enable Voxware and its
licensees to create a new generation of audio-enhanced communications
and interactive products for the Internet and other
bandwidth-constrained environments. The Company licenses its
technologies to software and hardware companies for a wide range of
applications and services including interactive computing and telephony
over packet switched networks.
Since Voxware's inception in August 1993, the Company has raised
net proceeds of approximately $28,566,000 as follows: approximately
$8,838,000, net of offering costs, through private placements;
approximately $18,517,000, net of offering costs, through the Initial
Public Offering which was declared effective on October 30, 1996; and
approximately $1,211,000 through other sales and exercises of equity
securities, including exercises of common stock options and all
outstanding common stock warrants.
The Company generates revenues from two sources: fees from product
licenses and fees for services provided. Product revenues account for a
majority of the Company's revenues and consist of two components:
initial license fees and royalties and recurring license fees.
Voxware's products are
7
<PAGE>
licensed primarily to software and hardware companies which
incorporate the Company's products and technologies into their
products. The Company generally negotiates contract terms with
customers on a case by case basis, with arrangements that have
historically included one or more of the following: initial license
fees, quarterly license fees, annual license fees or royalties based on
the licensee's revenue generated or units shipped of products
incorporating the Company's technologies. One of the Company's
objectives is to develop recurring revenue through entering into
licensing agreements with third parties which provide for royalties or
other recurring payments. As a result, the timing and amount of the
Company's revenues are substantially dependent on the timing and
efforts of the Company's licensees in developing and marketing products
incorporating the Company's products and technologies. There can be no
assurance as to the timing or success of any licensee implementation or
the timing or amount of recurring revenues from any licensee product.
Since inception, the Company has entered into approximately 94 license
agreements, approximately 81 of which provide for potential royalties
and / or recurring license fees. Service revenues consist of customer
support and engineering fees. Customer support services include providing
updates and technical support to licensees of the Company's products and
porting the Company's technologies to specific software platforms that
are considered industry standards. Engineering services include providing
technical resources to support customer-specific development efforts,
which include porting the Company's technologies to specific hardware
platforms.
Software product revenues are generally recognized upon shipment,
provided that there are no significant post-delivery obligations, the
payment is due within one year and collection of the resulting
receivable is deemed probable. If an acceptance period is required,
revenues are recognized upon customer acceptance. Royalty revenues are
recognized in the period of customer shipment. For the three months
ended September 30, 1997 and 1996, respectively, approximately $651,000
and $238,000 of royalties and recurring license fees were recognized.
Customer support revenues, including amounts bundled with license fees,
are recognized over the term of the support period, which typically
lasts for one year. Engineering fees are recognized upon customer
acceptance or over the period in which services are provided if
customer acceptance is not required. All research and development costs
are expensed as incurred.
The Company has only a limited operating history upon which an
evaluation of the Company and its prospects can be based. As of
September 30, 1997, the Company had an accumulated deficit of
$12,479,000. The limited operating history of the Company makes the
prediction of future results of operations impossible and, therefore,
the Company's historical revenues should not be taken as indicative of
future revenues. In addition, the Company's operating results may
fluctuate significantly in the future as a result of a variety of
factors, including the level of usage of the Internet, the budgeting
cycles of potential customers, the volume of, and revenues derived from
sales of products by the Company's licensees that incorporate the
Company's products, the rate of new licensing activity, as well as the
termination of existing license agreements, the introduction of new
products or services by the Company or its competitors, pricing changes
in the industry, technical difficulties with respect to the use of
products developed by the Company or its licensees, and general
economic conditions.
Results of Operations
Revenues
Total revenues increased $609,000 from $1,203,000 in the three
months ended September 30, 1996 to $1,812,000 in the three months ended
September 30, 1997 as a result of the Company entering into an
increased number of license agreements providing customers with the
right to use the Company's products and related services, and an
increase in the amount of royalties and other recurring revenues
recognized from customers who licensed the Company's products in
previous periods. One of
8
<PAGE>
the Company's largest customers, Netscape Communications Corporation
("Netscape"), accounted for 21% of total revenues in the
three month periods ended September 30, 1997 and 1996. As reported in
the Company's Report on Form 8-K dated September 30, 1997, on September
30, 1997 Netscape notified the Company of its desire to renegotiate the
terms of the Company's license agreement with Netscape. The Company
believes that Netscape is reevaluating certain of its product plans as
its business focus and objectives are shifting, and therefore, Netscape
is seeking to modify the Netscape license agreement in such a way that
would significantly reduce the revenue the Company earns from Netscape.
The Company has entered into negotiations with Netscape with respect to
the terms of the license agreement and the Company has agreed to amend
the license agreement to allow Netscape to terminate the current
agreement at any time after the Company has received payment from
Netscape for all quarters through the quarter ending December 31, 1997.
There can be no assurance that Netscape will not terminate the license
agreement and, if the Netscape license agreement is renegotiated, the
Company anticipates that the revised terms would be significantly less
attractive to the Company than the terms of the current agreement. If
Netscape terminates the Netscape license agreement or does not
incorporate and distribute the Company's products and technologies in
its own products, the Company's business, operating results and
financial condition will be materially adversely affected. The success
of the Company is dependent on the ability of industry leaders such as
Netscape and other of the Company's licensees to continue to achieve
widespread distribution and acceptance of their products which
incorporate the Company's products. Failure by Netscape and other of
the Company's licensees to achieve widespread distribution and
acceptance of their products which incorporate the Company's products
may have a material adverse effect on the Company's business, results
and financial condition.
Product revenues increased $505,000 from $1,151,000 in the three
months ended September 30, 1996 to $1,656,000 in the three months ended
September 30, 1997. The increase in product revenues was primarily due
to the increased volume of licenses of the Company's products to new
customers, and an increase in the amount of royalties and other
recurring revenues recognized from customers who licensed the Company's
products in previous periods. For the three month periods ended
September 30, 1997 and 1996, approximately 61% and 79% of the Company's
product revenues were attributable to initial license fees,
respectively, and 39% and 21% were attributable to royalties and
.recurring license fees, respectively.
During the three months ended September 30, 1997, the Company
recognized $1,005,000 in initial license fees related to fourteen
agreements, compared to $913,000 in initial license fees related to
eleven agreements for the three months ended September 30, 1996.
Additionally, for the three months ended September 30, 1997, the
Company recognized $651,000 in royalties and recurring product license
fees, which were derived from a total of approximately ten customers.
These amounts compare to $238,000 in royalties and recurring product
license fees which were derived from one customer during the three
months ended September 30, 1996.
Service revenues were $156,000 for the three months ended September
30, 1997 compared to $52,000 for the three months ended September 30,
1996. Service revenues were primarily attributable to customer support
and fees for engineering services.
Cost of Revenues
Cost of product revenues increased $27,000 from $24,000 in the
three months ended September 30, 1996 to $51,000 in the three months
ended September 30, 1997. The increase in cost of product revenues is
directly attributable to the increase in product revenues recognized
during those periods.
Cost of service revenues consists primarily of the expenses
associated with the staffing of a customer support group and
engineering services, which consist primarily of employee compensation
and equipment depreciation. Cost of service revenues increased $28,000
from $26,000 in the three months ended September 30, 1996 to $54,000 in
the three months ended September 30, 1997. The
9
<PAGE>
increase in cost of service revenues was directly attributable to the
increase in service revenues from the three months ended September 30,
1996 to the three months ended September 30, 1997.
Operating Expenses
Total operating expenses decreased by $421,000 from $3,521,000 in
the three months ended September 30, 1996 to $3,100,000 in the three
months ended September 30, 1997. This decrease in total operating
expenses primarily reflects headcount reductions in application
development and administration, and reductions in outside professional
services. Specifically, the decrease in total operating expenses
consisted of decreases of $419,000 in research and development expenses
and $260,000 in general and administrative expenses, offset by an
increase of $258,000 in sales and marketing expenses.
Research and development expenses primarily consist of employee
compensation and equipment depreciation and lease expenditures related
to product research and development. Research and development expenses
decreased $419,000 from $1,863,000 in the three months ended September
30, 1996 to $1,444,000 in the three months ended September 30, 1997.
The decrease in research and development expenses was primarily due to
a shift in the Company's business model away from consumer application
software and toward an OEM (original equipment manufacturer) focus,
which involves less application development work. In particular, the
Company decreased expenses incurred for independent contractors who
perform application development services for the Company.
Sales and marketing expenses consist primarily of employee
compensation (including direct sales commissions), travel expenses,
trade shows and costs of promotional materials. Sales and marketing
expenses increased $258,000 from $801,000 in the three months ended
September 30, 1996 to $1,059,000 in the three months ended September
30, 1997. The increase in sales and marketing expenses was primarily
due to the expansion of the Company's sales force and marketing staff
from 13 at September 30, 1996 to 25 at September 30, 1997, expenses
related to the Company's sales offices in Europe and Asia which were
initially opened during the fourth quarter of fiscal 1997, and
increased expenses associated with the promotion and marketing of the
Company's products and services.
General and administrative expenses consist primarily of
employee compensation and fees for insurance, rent, office expenses and
professional services. General and administrative expenses decreased
$260,000 from $857,000 in the three months ended September 30, 1996 to
$597,000 in the three months ended September 30, 1997. The decrease in
general and administrative expenses was primarily due to reductions in
legal costs, recruitment and relocation expenses and general cost
savings achieved through expense management.
Interest Income
Interest income increased $186,000 to $222,000 for the three
months ended September 30, 1997 from $36,000 for the three months ended
September 30, 1996. The increase in interest income primarily reflects
interest earned on the remaining net proceeds from the Initial Public
Offering closed during November and December 1996 (see "Liquidity and
Capital Resources").
Income Taxes
As of September 30, 1997, the Company had approximately
$9,500,000 of federal net operating loss carryforwards which will begin
to expire in 2009 if not utilized. As of September 30, 1997, the
Company has provided a full valuation allowance on the deferred tax
asset because of the uncertainty regarding realizability of these
deferred assets, primarily as a result of considering such factors as
the Company's limited operating history, the volatility of the market
in which it competes, the operating losses incurred to date and the
operating losses anticipated in future periods.
10
<PAGE>
Liquidity and Capital Resources
As of September 30, 1997, the Company had a total of $15,532,000
in cash, cash equivalents and short-term investments consisting of
$10,216,000 of cash and cash equivalents and $5,316,000 in short-term
investments. The Company's cash, cash equivalents and short-term
investments portfolio is liquid and investment grade, consisting of
high-grade money-market funds, United States Government-backed
securities and commercial paper and corporate obligations. Since
inception, the Company has primarily financed its operations through
the sale of equity securities.
Cash of $981,000 and $1,802,000 was used to fund operations for
the three months ended September 30, 1997 and 1996, respectively. The
decrease in cash used to fund operations was primarily due to the
decrease in the net loss for the three months ended September 30, 1997
compared to the net loss for the three months ended September 30, 1996.
For the three months ended September 30, 1997, cash provided by
investing activities was $505,000, which consisted of $526,000 in net
sales and maturities of short-term investments, offset by $21,000 in
equipment purchases. For the three months ended September 30, 1996,
cash used in investing activities totaled $141,000 which was related to
equipment purchases. For the three months ended September 30, 1997,
cash provided by financing activities totaled $65,000, which represents
proceeds from the exercise of common stock options. For the three
months ended September 30, 1996, cash provided by financing activities
totaled $202,000, which represents proceeds from the exercise of common
stock warrants.
The Company maintains a $5,000,000 revolving line of credit with
Silicon Valley Bank (the "Credit Facility"). Borrowings under the
Credit Facility will bear interest at the bank's prime lending rate,
which approximates the prime rate. The Credit Facility contains certain
restrictive financial covenants including a minimum quick ratio, a
minimum tangible net worth requirement, a maximum debt to tangible net
worth ratio and certain other covenants, as defined in the agreement.
In connection with the lease of the Company's office facility, the
Company has outstanding a $300,000 standby letter of credit at
September 30, 1997 naming the lessor of the office facility beneficiary
of the standby letter of credit in the event that the Company defaults
on the lease. As this letter of credit was established under the terms
of the Credit Facility, the Company has $4,700,000 available for
borrowing under the Credit Facility. As of and for the three months
ending September 30, 1997 there were no amounts outstanding under the
Credit Facility.
In addition to the Credit Facility, the agreement with Silicon
Valley Bank provides a lease component in the amount of $1,500,000 (the
"Lease Facility") for the purpose of providing a facility for the
financing of the lease stream of payments that the Company owes to an
equipment lessor.
In November 1996 and December 1996, the Company closed on an
initial public offering of Common Stock. The Company offered and sold
2,823,237 shares of Common Stock at an initial public offering price of
$7.50 per share. The net proceeds to the Company from the Initial
Public Offering after payment of offering expenses were approximately
$18,517,000.
The Company has no material commitments other than those under
normal building and equipment operating leases. The Company believes
that its current cash, cash equivalents and short-term investments
balances will be sufficient to fund its working capital and capital
expenditures requirements, exclusive of cash required for possible
acquisitions of, or investments in businesses, products and
technologies at least through June 30, 1998.
11
<PAGE>
PART II - OTHER INFORMATION
Item 5. Other Information. None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
11.1 Statement re: Computation of Loss Per Share.
27 Financial Data Schedule.
(b) Reports on Form 8-K.
Current Report on Form 8-K dated September 30,
1997 (relating to the renegotiation of the
Company's Software License Agreement with Netscape
Communications Corporation).
12
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 14, 1997
VOXWARE, INC.
(Registrant)
By: /s/ Bathsheba Malsheen
------------------------------------
Bathsheba Malsheen, President and
Chief Executive Officer
By: /s/ Kenneth H. Traub
------------------------------------
Kenneth H. Traub, Executive Vice President,
Chief Financial Officer and Secretary
(Principal Financial Officer)
By: /s/ Nicholas Narlis
------------------------------------
Nicholas Narlis, Vice President,
Chief Accounting Officer and Treasurer
(Principal Accounting Officer)
13
<PAGE>
Exhibit 11.1
Voxware, Inc.
Statements re: Computation of Loss Per Share
Three Months Ended September 30, 1997 and 1996
(In thousands, except per share data)
Three Months Ended
September 30,
--------------------------
1997 1996
------- ------
(unaudited)
Net loss $(1,171) $(2,332)
------- -------
Primary and fully diluted weighted average common
and common equivalent shares outstanding:
Common stock 12,509 9,140
Common stock options and warrants(1) -- 128
------- -------
Total primary and fully diluted weighted average
common and common equivalent shares outstanding 12,509 9,268
------- -------
------- -------
Loss per share $ (0.09) $(0.25)
======= =======
(1) Pursuant to the requirements of the Securities and Exchange Commission,
stock, stock options and warrants issued by the Company during the twelve
months immediately preceding the initial public offering have been
included in computing loss per share as if they were outstanding for all
prior periods prior to the initial public offering using the treasury
stock method, even though their effect is anti-dilutive.
14
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000933454
<NAME> VOXWARE, INC.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1.000
<CASH> 10,216
<SECURITIES> 5,316
<RECEIVABLES> 3,018
<ALLOWANCES> 475
<INVENTORY> 0
<CURRENT-ASSETS> 18,322
<PP&E> 934
<DEPRECIATION> 395
<TOTAL-ASSETS> 18,916
<CURRENT-LIABILITIES> 2,565
<BONDS> 0
0
0
<COMMON> 13
<OTHER-SE> 16,072
<TOTAL-LIABILITY-AND-EQUITY> 18,916
<SALES> 1,812
<TOTAL-REVENUES> 1,812
<CGS> 51
<TOTAL-COSTS> 105
<OTHER-EXPENSES> 3,100
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,171)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,171)
<DISCONTINUED> 0
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