Fiscal 1997 Third Quarter Results


ALAMEDA, Calif. -(BUSINESS WIRE)- Jan. 28, 1997 - Geoworks (Nasdaq NMS Symbol: GWRX), a leading developer of operating systems for the emerging mobile communicating device market, today reported results for the third quarter and nine months ended December 31, 1996.

Revenues for the third quarter of fiscal 1997 were $3,204,000 compared with revenues of $2,867,000 for the same period a year ago. Geoworks reported a loss of $2,156,000 or $0.15 per share, versus a loss of $646,000, or $0.05 per share, in the third quarter of fiscal 1996.

For the first nine months of fiscal 1997, Geoworks reported revenues of $7,664,000 versus revenues of $4,202,000 for the same period in fiscal 1996.

The company reported a loss of $6,924,000, or $0.49 per share for the first nine months of fiscal 1997, compared with a loss of $5,857,000, or $0.49 per share, for the same period in fiscal 1996. Revenues for the third quarter and first nine months of fiscal 1997 included the recognition of nonrecurring revenues related to the termination of certain contracts.

"We continued to see excellent response to the Nokia 9000 Communicator," said Gordon Mayer, president and chief executive officer of Geoworks. "The Nokia 9000, which uses the Geoworks GEOS(R) operating system platform, was introduced in Europe in August."

"The 9000's broad range of integrated communications capabilities including phone, fax, e-mail, paging and Internet access, is proving to be attractive to consumers. We are anxiously anticipating its planned introduction in the U.S. and Canada during the second half of calendar 1997," he added.

Mayer said the company continues to pursue relationships with providers of information content and services, as well as hardware manufacturers and cellular carriers. In addition, during the quarter, the company announced new alliances with Unwired Planet and Wink Communications.

Based in Alameda, California, Geoworks develops and markets the GEOS operating system and application software for the emerging Consumer Computing Devices (CCD) market.

The company is focused on enabling the development of smart communicating devices and has licensed GEOS to leading manufacturers such as Nokia, Ericsson, NEC, Toshiba Corporation, Hewlett-Packard Company and Brother International Corp.

Geoworks is also working with content and services providers such as HotWired, Newsbytes, WeatherLabs and InfoSpace to deliver compelling content and services to users of GEOS-based smart phones.

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.

For additional information on Geoworks and the GEOS-operating systems, contact Geoworks on the World Wide Web at http:/www.geoworks.com .

                           GEOWORKS
           Condensed Consolidated Financial Summary
                          (unaudited)
             (in thousands, except per share data)

                       Three Months Ended     Nine Months Ended
                      Dec. 31,    Dec. 31,   Dec. 31,   Dec. 31,
                        1996        1995       1996       1995

Net Revenues         $ 3,204     $ 2,867    $ 7,664    $ 4,202

Net Loss             $(2,156)    $  (646)   $(6,924)   $(5,857)

Net loss per share   $ (0.15)    $ (0.05)   $ (0.49)   $ (0.15)

Shares used in per
 share computation    14,077      12,939     14,028     11,881

Source: Geoworks Home Page
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