Fiscal 1997 Second Quarter Results


(ALAMEDA, CA), October 22, 1996--Geoworks (Nasdaq NMS Symbol: GWRX), a leading developer of operating systems for the emerging mobile communicating device market, today reported results for the second quarter and six months ended September 30, 1996.

Revenues for the second quarter of fiscal 1997 were $2,031,000 versus revenues of $950,000 for the second quarter of fiscal 1996. The company reported a net loss of $2,837,000, or $0.20 per share, versus a loss of $2,371,000, or $0.21 per share, for the same period a year ago.

Revenues for the first six months of fiscal 1997 were $4,460,000, compared with revenues of $1,335,000 for the same period a year ago. Geoworks reported a loss of $4,768,000, or $0.34 per share, for the six months ended September 30, 1996, compared with a loss of $5,211,000, or $0.46 per share, for the same period a year ago. Revenues for the second quarter of fiscal 1997 included the recognition of nonrecurring revenues related to the termination of a contract.

"Clearly the highlight of the quarter was the European launch of the Nokia 9000 Communicator which uses the Geoworks GEOS(R)3.0 operating system platform," said Gordon Mayer, president and CEO of Geoworks.

"In the approximately ten weeks since its introduction, the Nokia 9000 has generated tremendous interest as consumers respond to its broad range of integrated communications capabilities," he added. Mayer noted that Nokia announced last month that the PCS 1900 version of the Nokia 9000 is scheduled for launch in the U.S., Canada and Latin America during the second half of calendar 1997.

"We believe consumers on this side of the Atlantic will also value a communications tool that allows them to phone, fax, page and even access the Internet from an easy-to-use, compact handheld device which enables seamless delivery of information anytime, anywhere," Mayer said.

Mayer said that the company views the ability of mobile communicating device users to access a wide variety of information content and services as critical to the success of the next generation of cellular phones. He noted that during the quarter Geoworks announced the formation of a separate Wireless Content and Services division to facilitate the creation of end-to-end solutions for users of GEOS-based smart phones.

"The focus of this group will be to create packaged wireless content and services designed specifically for smart phone users. The group intends to establish relationships with content and service providers, as well as cellular operators, to deliver compelling solutions for the end user," he added.

"During the quarter, we announced alliances with four leading providers: InfoSpace, Inc, WeatherLabs, HotWired Inc. and Newsbytes News Network," he said. "InfoSpace provides a directory service. WeatherLabs offers a complete and comprehensive weather service. Newsbytes delivers up to the minute global technology news and HotWired delivers updated news briefs," he added.

In addition, the company unveiled a strategic alliance with Puma Technology to develop data synchronization solutions between desktop PCs and GEOS-based communicating devices.

"These announcements reinforce Geoworks' position in the mobile communicating device market. By establishing relationships with content and service providers as well as technology suppliers, Geoworks is extending the functionality and capabilities of GEOS-based devices to meet the demands of the end-user," Mayer said.

Mayer also noted that its GEOS operating system platform is the foundation for the recently announced HP OmniGo 120 Organizer Plus, which features an enhanced display to aid readability and increased built in functionality.

Based in Alameda, California, Geoworks develops and markets the GEOS operating system and application software for the emerging mobile communicating device market. The company is focused on enabling the development of smart phones and electronic organizers and has licensed GEOS to leading manufacturers, such as NEC, Nokia, Ericsson, Toshiba Corporation, Hewlett-Packard Company, Brother International Corp. and Canon Business Machines.

In keeping with U.S. law, Geoworks notes that the statements in this press release concerning the timing and planned availability of smart phones and related content and solutions are forward looking statements. Actual results may vary, due to the timing and development risks inherent in the development of new technologies, and due to the need for complementary technologies and alliances to develop. Additional information may be found in the company's 10-K, 10-Q and other filings with the Securities and Exchange Commission.

Source: Geoworks Home Page
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