Revenue from continuing operations for the third quarter of fiscal 2009
decreased to
The decline in revenue is due to a contractual dispute with a significant
customer. Revenues from providing services to this significant customer for
the three months ended
Search traffic activity from the Excalibur supported vertical sites
continued to grow due to our audience development efforts, increasing 17% from
30.8 million searches in the second quarter to over 36 million searches in the
third quarter ended
As of today, a total of 82 Excalibur supported vertical search sites are under contract with customers, 47 of these sites have been commercially launched and 35 sites are in development. These contracted sites represent publications in over 24 major vertical industries.
On
We continue to make progress in building search traffic and page views for
our customers. President and CEO of Convera,
The loss from continuing operations for the three-month period ended
The loss from continuing operations for the three months ended
With the launch of Converanet and our self service operation, we reduced
the cost structure of our sales, marketing and customer service groups in
The results for the three months and nine months ended
Net loss for the three months ended
Cash and investments as of
The attached financial information compares the results of operations for
the three months and nine months ended
The condensed, consolidated statements of operations for the Company for the three months ended October 31, 2008 and 2007 appear below and are presented in accordance with accounting principles generally accepted in the United States. All amounts, except per share amounts, are expressed in thousands of U.S. dollars. Three Months Ended October 31, 2008 2007 Continuing Operations: (unaudited) (unaudited) Revenues: Hosted services $239 $259 Operating Expenses: Cost of revenue - hosted services 1,892 2,457 Sales and marketing 911 772 Research and product development 1,216 1,140 General and administrative 2,288 2,239 Total Expense 6,307 6,608 Operating loss (6,068) (6,349) Other income , net 98 482 Net (loss) from continuing operations $(5,970) $(5,867) Discontinued Operations: Loss from discontinued operations - (240) Gain from sale of discontinued RetrievalWare operations - 17,759 Income from discontinued operations - 17,519 Net income (loss) $(5,970) $11,652 Earnings(loss) per share - basic & diluted Continuing operations $(0.11) $(0.11) Discontinued operations - 0.33 $(0.11) $0.22 Weighted average number of common shares outstanding - basic and diluted 53,327 53,218 The condensed, consolidated statements of operations for the Company for the nine months ended October 31, 2008 and 2007 appear below and are presented in accordance with accounting principles generally accepted in the United States. All amounts, except per share amounts, are expressed in thousands of U.S. dollars. Nine Months Ended October 31, 2008 2007 (unaudited) (unaudited) Continuing Operations: Revenues: Hosted services $1,110 $838 Operating Expenses: Cost of revenue - hosted services 5,573 6,461 Sales and marketing 2,560 2,984 Research and product development 3,509 3,335 General and administrative 5,712 9,153 Total Expense 17,354 21,933 Operating loss (16,244) (21,095) Other income , net 1,222 1,451 Net (loss) from continuing operations $(15,022) $(19,644) Discontinued Operations: Loss from discontinued operations - (221) Gain from sale of discontinued RetrievalWare operations - 17,759 Income from discontinued operations - 17,538 Net Loss $(15,022) $(2,106) Earnings(loss) per share - basic & diluted Continuing operations $(0.28) $(0.37) Discontinued operations - 0.33 $(0.28) $(0.04) Weighted average number of common shares outstanding - basic and diluted 53,320 53,101
The condensed, consolidated Balance Sheets for the Company as of
October 31, 2008 January 31, 2008 Assets (Unaudited) Current Assets: Cash and cash equivalents $26,817 $36,641 Accounts receivable, net 484 182 Escrow, Prepaid expenses and other 857 4,002 Total current assets 28,158 40,825 Equipment and leasehold improvements, net 3,767 4,913 Other assets 598 629 Total assets $32,523 $46,367 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $604 $699 Accrued expenses 1,793 2,282 Deferred revenues 61 651 Total Liabilities 2,458 3,632 Shareholders' Equity 30,065 42,735 Total liabilities and shareholders' equity $32,523 $46,367
About Convera(R)
Convera is the leading provider of vertical search services for publishers. Convera enables publishers to generate additional revenue by creating customized search applications for specialist audiences under their own brand.
Convera vertical search applications can combine publisher proprietary content with an editorially vetted best of the Web for specific professional audiences, providing an authoritative and comprehensive search experience. Many of the world's largest publishers are working with Convera to accelerate their e-publishing strategies, meet growing online revenue goals and build loyal online professional communities.
This release, including any statements from Convera personnel, contains
statements about Convera's future expectations, performance, plans, and
prospects, as well as assumptions about future events. The reader is cautioned
not to put undue reliance on these forward-looking statements, as these
statements are subject to numerous factors and uncertainties, including
without limitation, business and economic conditions and trends; the ability
to continue funding operating losses; fluctuations in operating results
including impacts from reduced corporate IT spending and lengthier sales
cycles; continued success in technological advances and development; possible
disruption in commercial activities caused by terrorist activity and armed
conflict, such as changes in logistics and security arrangements; reduced
customer demand relative to expectations; competitive factors; and other risk
factors listed from time to time in the company's reports to the Securities
and Exchange Commission. Actual results may differ materially from our
expectations as the result of these and other important factors relating to
Convera's business and product development efforts, which are further
described in Convera's filings with the SEC. These filings can be obtained
from the SEC's website located at www.sec.gov. Any forward-looking statements
are based on information available to Convera on the date of this release, and
Convera assumes no obligation to update such statements. Convera(R) and the
Convera design logo are trademarks of Convera in
SOURCE Convera Corporation