@Road, Inc. (Nasdaq:ARDI), a global provider of next generation
solutions for Mobile Resource Management (MRM), today announced its
results for the quarter ended March 31, 2006. Total revenues for
the first quarter of 2006 were $24.7 million, a 24% increase
compared to $20.0 million for the first quarter of 2005. Hosted
revenues for the first quarter of 2006 were $20.9 million, and
licensed revenues for the first quarter of 2006 were $3.8 million.
Net loss attributable to common stockholders for the first quarter
of 2006 was $2.7 million, or $0.04 per diluted share. Non-GAAP
earnings before tax for the first quarter of 2006 were $0.6
million, or $0.01 per diluted share. Non-GAAP earnings before tax
are calculated by adjusting GAAP net loss attributable to common
stockholders for the impacts of stock-based compensation of $0.9
million, intangibles amortization expense of $1.0 million, an
expense for the change in the value of the derivative instrument
liability of $1.2 million, a benefit from income taxes of $0.6
million, and depreciation expense of $0.8 million. A reconciliation
of non-GAAP financial measures used in this press release to the
GAAP financial measures and presentation of the most directly
comparable GAAP financial measures can be found in the
Reconciliation of GAAP to Non-GAAP Financial Measures, included in
this press release on page 8. "New subscriber sales as well as
total revenue and results of operations were consistent with our
previously provided estimates. We believe that our first quarter
performance is a good first step toward meeting our 2006 financial
objectives," said Krish Panu, president and CEO of @Road. "We are
seeing opportunities in the market for new and add on business with
customers, and we believe that momentum will continue to build
particularly in the second half of 2006." The Company's condensed
consolidated balance sheet at March 31, 2006 included $100.2
million of cash, cash equivalents and short-term investments. "Our
balance sheet remains strong and we believe that it can help us
capture the opportunity we see in the Mobile Resource Management
market," stated Mr. Panu. Year to Date Highlights New Customers --
Announced that ELM Locating and Utility Services has selected @Road
as its MRM solutions provider to give real-time visibility into the
work of up to approximately 900 ELM Underground Utility Locating
Field Technicians. -- Announced that British Gas, a Centrica
company, recently completed the deployment of the @Road
Taskforce(TM) solution to help optimize the service delivery of
about 6,500 field engineers. -- Announced that The ServiceMaster
Company has selected @Road as its supplier of MRM solutions with an
initial deployment expected in ServiceMaster's Terminix business
unit. The @Road MRM solution is designed to provide Terminix branch
managers with greater location intelligence, manageability and
visibility into the work of up to approximately 6,000 field
personnel. New Services -- Introduced @Road(R) Dynamic Capacity
Management (DCM(TM)) Suite. DCM is a capacity management solution
designed to optimize field service planning, capacity control and
appointment management by using intelligent automation that can
continually synchronize available resources in line with
ever-changing customer needs and preferences. DCM builds on
existing @Road capabilities for Field Service Management and is
available to both new and current customers. -- Introduced
AppSmart, a next-generation MRM solution platform designed to
enable businesses to deliver integrated field service applications
with advanced location intelligence, mobile device independence and
a higher level of business performance on demand. AppSmart is built
upon an existing @Road product and technology portfolio and extends
the @Road vision for an on-demand application platform designed to
serve the needs of medium-sized businesses as well as the complex
field service delivery requirements of large enterprises.
Intellectual Property -- Announced the issuance of three recently
awarded patents by the U.S. Patent and Trademark Office, bringing
the Company's patent portfolio to twenty issued patents. @Road has
additional patents and patents pending in jurisdictions throughout
the world. Alliances -- Announced a strategic agreement with Eaton
Corporation's Vehicle Solutions business unit. Under the terms of
the agreement, @Road and Eaton will cooperate on the development of
a comprehensive Field Asset Management (FAM) solution as well as
co-marketing and distribution initiatives in the global commercial
vehicle market. -- Entered into an agreement with LogicaCMG that
enables LogicaCMG to integrate, market and resell the @Road
Taskforce Field Service Management software to North American
utilities as part of LogicaCMG's Asset and Resource Management
(ARM) product suite. -- Announced a strategic relationship with
Dexterra, Inc., a leading innovator of mobile business software. By
applying Dexterra's mobile application development and integration
tools, @Road seeks to accelerate the development of
mission-critical, next-generation on-demand solutions built on the
@Road AppSmart(TM) MRM solution platform. Awards -- The @Road MRM
Technology Demo Van was selected as a winner of the Wireless
Emerging Technologies Award at CTIA WIRELESS 2006 for the
Enterprise Solutions - Location Based Services category. Award
recipients were announced at the CTIA WIRELESS 2006 Convention. --
Received Frost & Sullivan's 2006 Customer Value Enhancement
Award for developing the @Road AppSmart on-demand technology and
service delivery platform. The Award recognizes the company that is
best positioned to expand its customer base, while maintaining its
existing installed base, through more innovative value creation and
enhancement strategies than competing vendors. -- Recognized by
Frost & Sullivan as a "Player to Watch in 2006" in the leading
market research and consulting firm's just released U.S. Next
Generation Mobile Resource Management study. -- Ranked fourth on
the Forbes Magazine Midas List of the 25 Fastest-Growing Technology
Companies. This year's ranking for @Road is based on a 122%
five-year sales growth rate and marks the second year in a row that
@Road has ranked on the Forbes list. Conference Call and Webcast
Details @Road will host a teleconference Thursday, April 27,
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 Martini. All interested
parties may listen by dialing 888-481-7939 or 617-847-8707, pass
code 19466150, or by tuning into the webcast at www.road.com.
Non-GAAP Measures To supplement @Road's consolidated financial
statements presented in accordance with GAAP, @Road has begun
providing certain non-GAAP measures of financial performance. These
non-GAAP measures include non-GAAP earnings before tax and non-GAAP
earnings before tax per diluted share. @Road's reference to these
non-GAAP measures should be considered in addition to results
prepared under current accounting standards, but are not a
substitute for, or superior to, GAAP results. These non-GAAP
measures are provided to enhance investors' overall understanding
of @Road's current financial performance and provide further
information for comparative information due to the adoption of the
new accounting standard FAS 123(R). Specifically, the Company
believes the non-GAAP measures provide useful information to both
management and investors by excluding certain expenses, gains and
losses that may not be indicative of its core operating results and
business outlook. In addition, @Road believes the non-GAAP measures
that exclude stock-based compensation enhance the comparability of
results against prior periods. Reconciliation to the nearest GAAP
measure of all non-GAAP measures included in this press release can
be found in the financial tables included on page 8 of this press
release. About @Road @Road, Inc. is a leading global provider of
solutions designed to automate the management of mobile resources
and to optimize the service delivery process for customers across a
variety of industries. @Road delivers Mobile Resource Management
solutions in three key areas: Field Force Management, Field Service
Management and Field Asset Management. By providing real-time
Mobile Resource Management infrastructure integrating wireless
communications, location-based technologies, transaction processing
and the Internet, @Road solutions are designed to provide a secure,
scalable, upgradeable, enterprise-class platform, and are offered
in on-demand software delivery, on-premise or hybrid environments
that can seamlessly connect mobile workers in the field to
real-time corporate data. @Road is headquartered in Fremont,
Calif., and has a global presence with offices in North America,
Europe and Asia. For more information on @Road 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 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 customers to optimize operations as a result of
using @Road solutions; the market acceptance of new @Road solutions
such as AppSmart, DCM and other solutions mentioned in this press
release; the ability of @Road to develop new solutions to meet
market demand and deployment commitments; the ability of @Road and
its alliances to market, sell and support @Road solutions; the
ability of @Road and its alliances, such as Eaton, LogicaCMG and
Dexterra to perform in accordance with the terms of alliance
agreements; the ability of @Road to protect its intellectual
property and enforce its intellectual property rights; the size and
timing of purchasing and implementation decisions by ELM, The
ServiceMaster Company and other prospects and customers;
competition; 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. The Company cautions the reader
that the planned appearances of @Road personnel, time and/or manner
of the live teleconference, webcast and replays may change for
administrative or other reasons outside the Company's control.
Further information regarding these and other risks is included in
the @Road Report on Form 10-K dated March 22, 2006 and in its other
filings with the Securities and Exchange Commission. @Road, the
@Road logo, AppSmart, Taskforce, DCM and Vidus are registered
trademarks, trademarks or service marks of @Road, Inc. or its
subsidiaries. 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,
December 31, 2006 2005 --------- --------- ASSETS Current assets:
Cash and cash equivalents $ 24,177 $ 25,773 Short-term investments
75,975 77,643 Accounts receivable, net 10,798 12,475 Inventories
10,341 6,087 Deferred product costs 17,468 16,187 Deferred tax
assets 1,488 1,448 Prepaid expenses and other 1,691 2,566 ---------
--------- Total current assets 141,938 142,179 Property and
equipment, net 6,185 6,195 Deferred product costs 17,425 16,995
Deferred tax assets 40,771 40,531 Goodwill 13,341 13,341 Intangible
assets, net 26,323 27,333 Other assets 721 400 --------- ---------
Total assets $ 246,704 $ 246,974 ========= ========= LIABILITIES,
REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $ 9,501 $ 6,653 Accrued liabilities
7,492 8,751 Derivative liability 4,065 1,457 Deferred revenue and
customer deposits 14,451 15,495 --------- --------- Total current
liabilities 35,509 32,356 Deferred revenue 17,188 17,333 Deferred
tax liabilities - 323 Derivative liability - 1,457 Other long-term
liabilities 428 461 --------- --------- Total liabilities 53,125
51,930 Redeemable preferred stock 8,308 8,184 Stockholders' equity:
Common stock 266,346 265,347 Notes receivable from stockholders (6)
(7) Accumulated other comprehensive loss (99) (78) Accumulated
deficit (80,970) (78,402) --------- --------- Total stockholders'
equity 185,271 186,860 --------- --------- Total liabilities,
redeemable preferred stock and stockholders' equity $ 246,704 $
246,974 ========= ========= @Road, Inc. Condensed Consolidated
Statements of Operations (In thousands, except per share data)
(unaudited) Three Months Ended ---------------------------------
March 31, December 31, March 31, 2006 2005 2005 --------- ---------
--------- Revenues: Hosted $ 20,963 $ 21,805 $ 19,490 Licensed
3,782 5,464 502 --------- --------- --------- Total revenues 24,745
27,269 19,992 --------- --------- --------- Costs and expenses:
Cost of hosted revenue 11,002 10,668 9,524 Cost of licensed revenue
(excluding intangibles amortization included below) 1,230 1,295 700
Intangibles amortization 1,010 1,010 457 Sales and marketing 5,918
5,423 4,647 Research and development 3,669 3,113 2,575 General and
administrative 4,942 4,393 4,447 Impairment of intangible assets -
2,270 - In-process research and development - - 5,640 ---------
--------- --------- Total costs and expenses 27,771 28,172 27,990
--------- --------- --------- Loss from operations (3,026) (903)
(7,998) --------- --------- --------- Other income, net: Interest
income, net 1,036 911 618 Change in derivative instrument liability
(1,151) 1,484 (741) Other expense, net (17) 32 2 ---------
--------- --------- Total other (expense) income, net (132) 2,427
(121) --------- --------- --------- Net (loss) income before tax
(3,158) 1,524 (8,119) Benefit from income taxes 590 1,465 -
--------- --------- --------- Net (loss) income (2,568) 2,989
(8,119) Preferred stock dividends (124) (131) (57) ---------
--------- --------- Net (loss) income attributable to common
stockholders $ (2,692) $ 2,858 $ (8,176) --------- ---------
--------- Net (loss) income per share: Basic $ (0.04) $ 0.05 $
(0.14) --------- --------- --------- Diluted $ (0.04) $ 0.05 $
(0.14) --------- --------- --------- Shares used in calculating net
(loss) income per share: Basic 61,198 60,740 57,385 ---------
--------- --------- Diluted 61,198 62,133 57,385 ---------
--------- --------- @Road, Inc. Reconciliation of GAAP to Non-GAAP
Financial Measures (In thousands, except per share data)
(unaudited) Three Months Ended March 31, 2006 ------------------
Net loss attributable to common stockholders $ (2,692) Adjustments:
Stock-based compensation 929 Intangibles amortization 1,010 Change
in value of derivative instrument liability 1,151 Benefit from
income taxes (590) Depreciation expense 794 --------- Total
adjustments 3,294 --------- Non-GAAP earnings before tax $ 602
========= --------- Non-GAAP earnings before tax per diluted share
$ 0.01 ========= *T
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