ARDI @Road (MM)

@Road(R), Inc. (Nasdaq:ARDI), a global provider of mobile resource management (MRM) solutions, today announced its results for the first quarter ended March 31, 2005. Total revenues for the first quarter of 2005 were $20.0 million. Hosted revenues for the first quarter were $19.5 million, and licensed revenues for the first quarter were $0.5 million. "During the quarter, we closed our previously announced acquisition of Vidus Limited," said Krish Panu, president and CEO of @Road. "We believe that our solution integrating the Vidus and @Road capabilities can deliver even more value to our customers going forward. In addition to the Vidus transaction, we continue to transition our customers to newer technologies and continue our vertical market product releases. We are also preparing for the continued rollout of the SBC business in the second half of 2005," commented Mr. Panu. "This is a transformation year for the company and we believe we are making good progress," stated Mr. Panu. Net loss for the first quarter of 2005 was $7.4 million, or a loss of $0.13 per diluted share. Included in the results for the first quarter 2005 were the operations of Vidus Limited from the February 18, 2005 closing date, as well as $5.6 million in in-process research and development costs and $0.5 million in intangibles amortization associated with the Vidus Limited acquisition. The Company's condensed consolidated balance sheet at March 31, 2005 included $110.8 million of cash, cash equivalents and short-term investments. "We are confident that we have the financial resources to meet the mobile resource management needs of our customers and prospects," concluded Mr. Panu. In addition, the Company announced that it has appointed Carol Rice-Murphy, the Company's Vice President of Finance, as the Company's interim Chief Financial Officer (CFO). The Company has commenced a search for a new CFO. Mike Johnson, the Company's CFO since June 2004, is leaving the Company to pursue opportunities with privately-held companies. -0- *T Highlights -- Acquisitions -- On February 18, 2005, @Road completed its previously announced acquisition of Vidus Limited, a leading provider of dynamic field service automation solutions located in Ipswich, United Kingdom. -- Infrastructure -- Announced the expansion of the Company's operations and facilities in Chennai, India. -- Intellectual Property -- Announced the issuance of two patents by the U.S. Patent and Trademark Office, bringing the Company's patent portfolio to fifteen issued patents. @Road has additional patents and patents pending in jurisdictions throughout the world. -- Alliances -- Capgemini Deutschland and Vidus Limited, an @Road subsidiary and international provider of the intelligent field service automation solution, taskforce(TM), announced an alliance for the German speaking market and the integration of taskforce into SAP for Utilities and SAP Mobile Asset for Utilities (MAU). The solution combines consulting, software and expertise from the companies to provide utility organizations with an integrated, intelligent and real-time solution that can help increase service levels to meet customer expectations while reducing operational costs. *T Conference Call and Webcast Details @Road will host a teleconference Thursday, May 5, commencing at 2:00 p.m. Pacific Time, to discuss the first quarter financial results. Participating in the call will be @Road President and CEO Krish Panu and CFO Mike Johnson. All interested parties may listen by dialing 888-481-7939 or 617-847-8707, pass code 21270227, or by tuning into the webcast at www.road.com. About @Road @Road, Inc. is a global provider of solutions that intelligently automate the management of mobile resources to optimize the service delivery process for customers across a variety of industries. By providing real-time Mobile Resource Management infrastructure integrating wireless communications, location-based technologies, software applications, transaction processing and the Internet, @Road solutions provide a secure, scalable, upgradeable, enterprise-class platform, offered in hosted, on-premise or hybrid environments that seamlessly connect mobile workers in the field to real-time corporate data on-demand. @Road is headquartered in Fremont, Calif., and has a global presence with offices in North America, Europe and Asia. For more information on @Road products and solutions, visit www.road.com. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Numerous factors, risks and uncertainties affect the company's operating results and could cause the company's actual results to differ materially from forecasts and estimates or from any other forward-looking statements made by, or on behalf of, @Road, and there can be no assurance that future results will meet expectations, estimates or projections. These factors, risks and uncertainties include, but are not limited to, @Road historical and future operating results and profitability; the ability of @Road to integrate Vidus operations successfully; the ability of @Road to transition its customers from CDPD wireless networks; the ability of @Road to accelerate or continue to grow as a result of its investment initiatives; the ability of @Road and its partners to market, sell and support @Road products and services; the timing of purchasing and implementation decisions by SBC and other prospects and customers; competitive and pricing pressures; the dependence of @Road on mobile data systems technology, wireless networks, network infrastructure and positioning systems owned and controlled by others; and general economic and political conditions. Further information regarding these and other risks is included in the @Road Report on Form 10-K dated March 15, 2005 and in its other filings with the Securities and Exchange Commission. @Road and iLM are registered trademarks of @Road, Inc. The @Road logo, Vidus and taskforce are trademarks of @Road, Inc. All other product names and services are the property of their respective owners. -0- *T @Road, Inc. Condensed Consolidated Balance Sheets (In thousands, unaudited) March 31, 2005 December 31, 2004 --------------- ----------------- ASSETS Current assets: Cash, cash equivalents, and short-term investments $110,771 $117,716 Accounts receivable, net 7,827 7,960 Inventories 3,702 3,593 Deferred product costs and other current assets 13,942 12,646 --------------- ----------------- Total current assets 136,242 141,915 Property and equipment, net 4,963 3,668 Goodwill 22,867 - Intangible assets, net 32,633 - Deferred product costs and other assets 6,920 6,627 --------------- ----------------- Total assets $203,625 $152,210 =============== ================= LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $15,034 $11,195 Deferred revenue and customer deposits 12,209 11,347 --------------- ----------------- Total current liabilities 27,243 22,542 Deferred revenue 7,739 4,830 Deferred tax liabilities 4,691 - Other long term liabilities 323 2 --------------- ----------------- Total liabilities 39,996 27,374 Redeemable preferred stock 7,805 - Stockholders' equity: Common stock 270,361 232,016 Notes receivable from stockholders (10) - Accumulated other comprehensive loss (148) (179) Accumulated deficit (114,379) (107,001) --------------- ----------------- Total stockholders' equity 155,824 124,836 --------------- ----------------- Total liabilities, redeemable preferred stock and stockholders' equity $203,625 $152,210 =============== ================= @Road, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (unaudited) Three months ended -------------------------------------- March 31, December 31, March 31, 2005 2004 2004 ------------ ------------ ------------ Revenues: Hosted $19,490 $19,909 $17,892 Licensed 502 - - ------------ ------------ ------------ Total revenues 19,992 19,909 17,892 ------------ ------------ ------------ Costs and expenses: Cost of hosted revenue 9,524 9,206 8,368 Cost of licensed revenue 700 - - Intangibles amortization 457 - 10 In-process research and development 5,640 - - Sales and marketing 4,647 3,213 3,111 Research and development 2,575 1,698 1,367 General and administrative 4,447 4,227 2,182 Terminated acquisition costs - (18) - Stock compensation - - 4 ------------ ------------ ------------ Total costs and expenses 27,990 18,326 15,042 ------------ ------------ ------------ (Loss) income from operations (7,998) 1,583 2,850 Other income, net 620 532 260 ------------ ------------ ------------ Net (loss) income (7,378) 2,115 3,110 Preferred stock dividends (57) - - ------------ ------------ ------------ Net (loss) income attributable to common stockholders $(7,435) $2,115 $3,110 ============ ============ ============ Net (loss) income per share: Basic $(0.13) $0.04 $0.06 ============ ============ ============ Diluted $(0.13) $0.04 $0.05 ============ ============ ============ Shares used in calculating net (loss) income per share: Basic 57,385 54,709 53,771 ============ ============ ============ Diluted 57,385 57,124 58,298 ============ ============ ============ Stock compensation Cost of hosted revenue - - - Cost of licensed revenue - - - Sales and marketing - - 1 Research and development - - 1 General and administrative - - 2 ------------ ------------ ------------ Total stock compensation - - 4 ------------ ------------ ------------ *T