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Exhibit 99.1
[VOXWARE LOGO]
CONTACTS:
Voxware, Inc.
Bathsheba J. Malsheen
President & CEO
Nicholas Narlis
Senior Vice President & CFO
609-514-4100
Morgen-Walke Associates
Michele Katz/Cathy Dawson
212-850-5600
VOXWARE(R) REPORTS UNAUDITED RESULTS
FOR FISCAL 2000 FOURTH QUARTER AND FULL-YEAR
Provides update on new deployments and key developments
PRINCETON, NJ -- August 11, 2000 - Voxware, Inc. (Nasdaq: VOXW), a leading
provider of voice-based solutions for e-logistics, today reported unaudited
financial results for the fourth quarter and fiscal year ended June 30, 2000.
Total revenue for the quarter was $0.8 million, compared to $1.0 million in the
prior year quarter. License fees represented 48% of total revenue, while product
revenue, royalties and service revenue represented 36%, 10% and 6% of total
revenue, respectively. Voxware recorded a net loss of $1.8 million or ($0.12)
per share in the fourth fiscal quarter of 2000, excluding $1.0 million or
($0.07) per share of amortization expense for purchased intangibles. In the
prior year quarter, the Company reported a net loss of $0.9 million or ($0.07)
per share, excluding $0.3 million or ($0.02) per share amortization expense for
purchased intangibles.
For the fiscal year ended June 30, 2000, total revenue was $3.8 million. Net
loss for the period was $4.6 million or ($0.33) per share, excluding a $3.8
million gain on the sale of substantially all of the assets relating to the
Company's speech coding business to Ascend Communications, Inc. (a wholly-owned
subsidiary of Lucent Technologies, Inc.), and excluding a $0.04 per share after-
tax gain on the sale of tax credits, and amortization expense for purchased
intangibles of $2.0 million or ($0.15) per share.
Dr. Bathsheba J. Malsheen, President and CEO, stated "During the quarter, we
made significant progress with several large companies across major industry
sectors. In the coming months we hope to engage these organizations in
completing pilot programs, as well as commencing deployments of our
VoiceLogistics solution. We also recently began initial shipments of our
VoiceLogistics solution through one of our value-added resellers."
Commenting on the year, Dr. Malsheen said, "Fiscal year 2000 was marked by our
achieving many key milestones. We developed a new Web-optimized mobile solution
for the warehouse, and a state-of-the-art
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hardware client device through the acquisition of InRoad's assets. We also
completed a successful beta for a returns processing application with a leading
Third Party Logistics vendor. Additionally, we completed our transition as a
supply chain solutions provider. Our VoiceLogistics product launch, coupled with
our development of a sophisticated picking application for multi-billion dollar
companies, were extremely well-received and are rapidly gaining interest. We
reinforced our technological advances by recruiting key sales, marketing,
business development and engineering personnel, who have direct experience in
speech and supply chain technologies. Because of these initiatives, Voxware now
has a sales pipeline which includes several Tier One, billion-dollar companies
spanning diverse markets."
Dr. Malsheen continued, "As we close our fiscal year, we are very proud of the
excellent progress we have made to date in creating a new market for voice-based
solutions for logistics. We are engaged in pilot deployments with several large,
multi-billion dollar companies within North America and Europe, who are
evaluating full-scale voice solutions in order to streamline operations in their
warehouses. We believe that Voxware is positioned to take advantage of the
explosion in wireless technology, speech recognition, and real-time supply chain
execution software. The primary growth driver for voice products in the
warehouse is e-commerce, which is exerting unprecedented pressure on the supply
chain for flawless order fulfillment and rapid product delivery."
Voxware has also entered into an agreement for a $4 million private placement of
convertible preferred stock and warrants to Castle Creek Technology Partners
LLC, a private investment fund focused primarily on the technology sector, to
fund growth initiatives and continued development.
About Voxware, Inc.
Voxware is a leading provider of voice-based solutions for picking, receiving,
return goods processing, cross-docking and put-away operations in the
distribution and logistics industries. Voxware solutions are available for all
major market industry sectors, including consumer goods manufacturers (CGM),
consumer packaged goods (CPG), direct to consumer (e-commerce and catalog), food
and grocery, package handling, retail, third-party logistics providers (3PLs),
and wholesale distribution.
Voxware solutions are also deployed in package handling, mail sorting and
manufacturing inspection operations. Voxware's corporate headquarters are in
Princeton, New Jersey, with regional offices in Boston and the Netherlands.
Additional information about Voxware can be obtained on the Internet at
www.voxware.com, or by calling 609-514-4100.
This news release contains forward-looking statements. Such statements are
subject to certain factors that may cause Voxware's plans to differ or results
to vary from those expected including the risks associated with Voxware's need
to introduce new and enhanced products and services in order to increase market
penetration and the risk of obsolescence of its products and services due to
technological change; Voxware's need to attract and retain key management and
other personnel with experience in providing integrated voice-based solutions
for e-logistics, specializing in the supply chain sector; the potential for
substantial fluctuations in Voxware's results of operations; competition from
others; Voxware's evolving distribution strategy and dependence on its
distribution channels; the potential that speech products will not be widely
accepted; Voxware's need for additional capital; and a variety of risks set
forth from time to time in Voxware's filings with the Securities and Exchange
Commission. Voxware undertakes no obligation to publicly release results of any
of these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of unexpected
results.
Voxware and VoiceLogistics are registered trademarks of Voxware, Inc.
All other product names are trademarks of their respective owners.
(Tables to follow)
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Voxware, Inc. and Subsidiary
Consolidated Statements of Operations
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
June 30, June 30,
2000 1999 2000 1999
--------- --------- --------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues:
Product revenues:
Product sales $ 284 $ 662 $ 1,419 $ 791
License fees 382 44 1,668 705
Royalties and recurring revenues 78 54 488 511
--------- --------- --------- --------
Total product revenues 744 760 3,575 2,007
Service revenues 44 253 226 879
--------- --------- --------- --------
Total revenues 788 1,013 3,801 2,886
--------- --------- --------- --------
Cost of revenues:
Cost of produce revenues 179 367 799 429
Cost of service revenues 11 220 70 542
--------- --------- --------- --------
Total cost of revenues 190 587 869 971
--------- --------- --------- --------
Gross profit 598 426 2,932 1,915
--------- --------- --------- --------
Operating expenses:
Research and development 782 403 2,835 2,058
Sales and marketing 932 629 2,870 2,513
General and administrative 730 379 2,140 1,691
Amortization of purchased intangibles 1,025 331 1,989 478
--------- --------- --------- --------
Total operating expenses 3,469 1,742 9,834 6,740
--------- --------- --------- --------
Operating loss (2,871) (1,316) (6,902) (4,825)
Interest income 70 66 349 539
Gain on sale of tax loss carryforwards -- -- 501 --
Gain on sale of assets -- -- 3,799 --
--------- --------- --------- --------
Net loss $(2,801) $(1,250) $(2,253) $(4,286)
========= ========= ========= ========
Basic and diluted net loss per share $ (0.20) $ (0.09) $ (0.16) $ (0.32)
========= ========= ========= ========
Net loss excluding gain on sale of assets, tax
loss carryforwards and amortization of
purchased intangibles $(1,776) $ (919) $(4,564) $(3,808)
========= ========= ========= ========
Basic and diluted net loss per share,
excluding gain on sale of assets, tax loss
carryforwards and amortization of
purchased intangibles $ (0.12) $ (0.07) $ (0.33) $ (0.29)
========= ========= ========= ========
Shares used in computing basic and diluted
net loss per share 14,267 13,357 13,667 13,330
========= ========= ========= ========
</TABLE>
(Table to follow)
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Voxware, Inc. and Subsidiary
Consolidated Balance Sheets
(In thousands, except per share data)
<TABLE>
<CAPTION>
June 30, June 30,
2000 1999
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<S> <C> <C>
ASSETS
Current assets: $ 502 $ 2,438
Cash and cash equivalents 2,724 2,008
Short-term investments
Accounts receivable, net 982 989
Inventory, net 1,089 249
Prepaid expenses and other current assets 247 778
Restricted cash -- 604
--------- ---------
Total current assets 5,544 7,066
Property and equipment, net 443 395
Intangible assets, net 11,068 4,680
Other assets, net 385 451
--------- ---------
$ 17,440 $ 12,592
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 998 $ 2,089
Deferred revenues 195 531
--------- ---------
Total current liabilities 1,193 2,620
--------- ---------
Deferred rent 194 263
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Comments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 10,000,000 shares
authorized; none issued and outstanding -- --
Common stock, $.001 par value, 30,000,000 shares
authorized; 14,295,777 and 13,381,367 shares
issued and outstanding at June 30, 2000 and 1999,
respectively 14 13
Additional paid-in capital 38,730 29,995
Deferred compensation (141) --
Unrealized gain (loss) on available-for-sale securities (2) 4
Accumulated deficit (22,548) (20,303)
========= =========
Total stockholders' equity 16,053 9,709
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$ 17,440 $ 12,592
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</TABLE>
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