Geoworks Reports Record Revenue for Quarter and Fiscal Year ended March 31, 2001

Apr 24, 2001, 01:00 ET from Geoworks Corporation

    ALAMEDA, Calif., April 24 /PRNewswire Interactive News Release/ --
 Geoworks Corporation (Nasdaq:   GWRX), a leading innovator in mobile data
 communications software and services, today reported record revenue for the
 quarter and fiscal year ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010124/GWRXLOGO )
 
     Fiscal 2001 - Software and Related Services Revenue Grew 71 percent
     For the fiscal year 2001, Geoworks reported record revenue of $16,565,000,
 up 36% from $12,139,000 in fiscal year 2000.  Software and related services
 revenue grew 71% to $8,222,000 or almost 50% of total revenue.  Professional
 services revenue grew 19% to $8,343,000.
     "These results demonstrate our success in building a mobile data software
 and related services business," said Dave Grannan, chief executive officer.
 "Over the last year, we created a comprehensive software product offering with
 the launch of Mobile Server+ and Mobile ASP and the acquisition of the AirBoss
 Application Platform from Telcordia.  We forged relationships with a number of
 significant customers, including Telcordia, Cingular Interactive, Toshiba and
 United Airlines.  As a result, software and related services revenue grew 71%.
 At the same time, our longstanding relationships with global cellular phone
 leaders Mitsubishi and Nokia contributed to a 19% increase in professional
 services revenues.  Professional services is an important component of our
 business as these projects enhance our core technology competence and new
 product development efforts, while also providing cash flow to fund our more
 rapid growth in mobile data software," said Grannan.
     Operating expenses, net of non-cash items, increased approximately 76% to
 $31,623,000 in fiscal year 2001, from $17,934,000 in fiscal year 2000,
 reflecting the AirBoss acquisition, increased investment in R&D and an
 expanded sales and marketing organization to support the new mobile data
 software and services products.
     Non-cash items included in reported operating expenses and net income for
 the year included $6,788,000 in charges for amortization of goodwill and other
 intangibles and purchased in-process research and development as a result of
 the AirBoss acquisition in fiscal year 2001, and $589,000 in a non-cash
 benefit for the reversal of a restructuring charge in fiscal year 2000.
     For fiscal year 2001, the pro forma net loss, before non-cash charges, was
 $14,270,000, or $0.67 per share.  This compares with a pro forma net loss of
 $5,611,000, or $0.31 per share in fiscal year 2000, before non-cash benefits
 and $4,049,000 in other income resulting from investment gains.
     For fiscal year 2001, Geoworks reported a net loss of $21,058,000, or
 $0.99 per share on 21.2 million shares.  In fiscal year 2000, the company
 reported a net loss of $973,000, or $0.05 per share on 17.9 million shares.
 The fiscal year 2000 net loss included the $4,049,000 in other income from
 gains on investments.
     At March 31, 2001, Geoworks had cash, cash equivalents and long-term
 investments of $17.7 million.
     "We made tremendous progress in fiscal 2001, and believe Geoworks is
 significantly stronger and better positioned than we were just a year ago,"
 said Grannan.  "We've built a platform for growth based on providing
 standards-based, scaleable mobile data software and services to leading global
 companies.  We believe our products, our technology leadership, our global
 operations, our customers and our partners position us well to capitalize on
 the rapidly expanding market for mobile data software."
 
     Quarterly Performance In Line with Company Guidance
     For the fourth fiscal quarter ended March 31, 2001, Geoworks reported
 record revenue of $4,769,000, up 11% from the third quarter, in line with the
 company's previous guidance.  Revenue in the fourth quarter of the prior year
 was $4,437,000 and included approximately $1,000,000 in one-time payments for
 source code licenses for discontinued operating system products.  Excluding
 those one-time payments in the prior year, revenue for the quarter grew 39%
 over the same period in the prior year.
     For the quarter, operating expenses, net of non-cash items, were
 $9,024,000, a decrease of 6%, from $9,591,000 in the third quarter, reflecting
 reduced legal expenses and increased operating efficiencies.  This is
 significantly better than the company's previous guidance of an increase in
 operating expenses of between 5% - 10%.  Compared to a year ago, operating
 expenses, net of non-cash items, were up 52% from $5,934,000, reflecting the
 impact of the AirBoss acquisition and increased investment in R&D, and sales
 and marketing.
     Non-cash items included in operating expenses and net income for the
 quarter were $2,029,000 for amortization expense in the fourth quarter of
 fiscal 2001 and $589,000 for a non-cash benefit resulting from the reversal of
 a restructuring accrual in the fourth quarter of fiscal 2000.
     Pro forma net loss for the quarter, before non-cash charges, was
 $4,145,000, or $0.18 per share.  Pro forma loss for the fourth quarter of the
 prior year was $1,395,000, or $0.08 per share, before non-cash benefits and
 $1,740,000 in other income from investment gains.
     Geoworks reported a net loss for the fourth quarter of fiscal 2001 of
 $6,174,000, or $0.27 per share on 23.2 million shares.  In the fourth quarter
 of fiscal 2000, Geoworks reported net income of $934,000, or $0.05 per share
 on 20.7 million diluted shares outstanding, including the $1,740,000 in other
 income from gains on investments.
     "Our performance reflects our ability to continue to execute against our
 business plan despite a softer market.  As several of our peers have already
 reported, the general economic uncertainty has slowed the decision making
 process at some organizations.  While we continued to focus on developing new
 customers during the quarter, it was our ability to expand our relationships
 with key existing customers that supported our revenue growth plan.  We
 continue to see new customer interest, it is simply that the sales cycle has
 gotten longer," Grannan said.
 
     Operating Highlights
     "Geoworks made progress on a number of fronts during the quarter. We
 continued to work closely with Cingular Interactive, the world's largest
 Mobitex network operator, to develop their wireless data service offering
 based on the AirBoss Application Platform.  We worked with customers like
 Toshiba and United Airlines on expanding their ongoing deployments.  We
 partnered with technology leaders like Nuance, U.S. Wireless and Maptuit to
 enhance our product offering.  We signed five new Flex UI licensees, bringing
 our total to 18.  And, we received a direct equity investment of $5 million
 from Toshiba, one of our most strategic customers," said Grannan.
     "On the product front, we delivered a pre-release of our new Mobile
 Server+ Servlet to our customer iValue Creation, a Toshiba subsidiary.  Mobile
 Server+ is a Java-based server that allows one application to be delivered
 appropriately to many devices.  With this Servlet, we have taken the process
 one step farther, enabling our device formatting logic to run with any
 web-application being run on one of Sun's iPlanet Servers, which, according to
 Sun, support 40% of web-sites worldwide today.
     "One of the keys to success in this market will be having the right
 partners," said Grannan.  "Obviously with partners like Telcordia, Toshiba and
 Cingular we've built a great foundation.  This last quarter we took a
 significant step to enhance our network of partners by introducing our Mobile
 Business Alliance program for solution providers and developers.
 
     Looking ahead
     "The market for mobile data software continues to provide Geoworks with
 tremendous opportunities for growth.  The number of mobile Internet users
 around the world is climbing rapidly. Companies are beginning to adopt
 wireless technology to enable access to corporate and Internet data to serve
 both the mobile workforce and the mobile consumer. And, carriers are looking
 for technology partners to enhance their wireless product offerings and meet
 their customers' needs," said Grannan.
     "Long-term market trends clearly support our enthusiasm for this space.
 However, our short-term outlook is conservative.  As we've discussed,
 customers are moving more slowly given the general economic climate.  In
 addition, as we announced in March, our partner Telcordia ended its contract
 with Telkom South Africa and subsequently terminated our sub-contract.  This
 contract contributed $1.2 million in revenue in our fourth quarter.  As a
 result of both of these factors, we expect the first quarter to be a challenge
 but believe we can achieve substantial total revenue growth for the year.
     "At this time, for the first fiscal quarter ending in June 2001, we expect
 revenue to be in the range of $3.9 to $4.4 million and operating expenses to
 be essentially equal to those in the fourth quarter. For the remainder of the
 year, we expect operating expenses to grow between 5% and 10% each quarter, in
 line with the planned growth in our organization.  For the fiscal year ending
 March 2002, we expect total revenue to grow 40% to 60% and be in the range of
 $23 to $27 million, based on 60% to 75% growth in software and related
 services revenues," Grannan concluded.
 
     Conference Call Webcast Information
     This press release will be followed by a conference call and webcast at
 2:00 p.m. Pacific Time that is open to all.  Interested participants may
 listen to the call via the Internet at www.geoworks.com and at
 www.streetfusion.com.  To participate in the call, investors can call
 888-813-7836.
     The call will be archived at www.geoworks.com through May 31, 2000.
 Investors can also access a replay via telephone at 800-633-8248 through
 Tuesday, May 8, 2001.  The access code for the replay is 18551959.
 
     About Geoworks
     Geoworks Corporation is an innovator in industry leading software and
 service solutions to enable personalized, real-time access to corporate and
 Internet data.  Geoworks AirBoss(TM) Application Platform provides the
 foundation for creating enhanced wireless solutions that can access corporate
 data, such as e-mail, intranets and the Internet, over a wide variety of
 wireless networks and computing devices. MobileServer+(TM), Geoworks' open
 architecture wireless platform, enables companies to build mobile information,
 multimedia and m-commerce services to meet the expanding needs of today's
 mobile users. Geoworks' Mobile ASP(TM) solution utilizes a flexible
 combination of its high-performance Mobile Server+(TM) technology and its
 mobile media expertise to enable businesses to reach their mobile customers
 with relevant and timely information.  Based in Alameda, California, the
 company has additional offices in New Jersey, Japan and the United Kingdom,
 and can be found on the World Wide Web at http://www.geoworks.com.
     Statements in this press release that relate to future results and events
 are based on the company's current expectations.  Actual results in future
 periods may differ materially from those currently expected or desired because
 of a number of risks and uncertainties, including risks related to the
 company's history of operating losses, competition in mobile data software and
 related services, the continuing adequacy of the company's capital resources,
 the company's dependence on the development of mobile device content and
 services, the company's dependence on a limited number of revenue-generating
 customers, fluctuations in the company's operating results, currency
 fluctuations and other risks related to international operations, and the
 company's dependence on certain key personnel.  Additional discussion of these
 and other factors affecting the company's business and prospects is contained
 in the company's periodic filings with the Securities and Exchange Commission.
 
     NOTE:  Geoworks, AirBoss, Mobile ASP and Mobile Server+ are trademarks of
 Geoworks Corporation.
 
     Financial Tables to Follow
 
                              GEOWORKS CORPORATION
                Condensed Consolidated Statements of Operations
                                  (unaudited)
                     (in thousands, except per share data)
 
                                      Three Months Ended       Year Ended
                                       March 31, March 31, March 31, March 31,
                                         2001      2000       2001     2000
     Net revenues:
       Professional services            $2,342    $2,496    $8,343    $7,004
       Software and related services     2,427     1,869     8,222     4,815
       Research and development fees        --        72        --       320
         Total net revenues              4,769     4,437    16,565    12,139
 
     Operating expenses:
       Cost of professional services     1,308     1,564     4,768     4,584
       Cost of software and
        related services                   725        81     1,967       335
       Sales and marketing               2,585     1,961     8,607     5,577
       Research and development          2,702     1,335     9,202     4,100
       General and administrative        1,704       993     7,079     3,338
       Amortization of goodwill
        and other intangibles            2,029        --     5,410        --
       Purchased in-process research
        and development                     --        --     1,378        --
       Restructure charge reversal          --     (589)        --     (589)
         Total operating expenses       11,053     5,345    38,411    17,345
 
     Operating loss                    (6,284)     (908)  (21,846)   (5,206)
 
     Other income (expense):
       Other income                         --     1,740       265     4,049
       Interest income                     164       199       840       646
       Interest expense                    (4)        --       (4)      (10)
     Income (loss) before
      income taxes                     (6,124)     1,031  (20,745)     (521)
 
     Provision for income taxes             50        97       313       452
     Net income (loss)                $(6,174)      $934 $(21,058)    $(973)
 
     Net income (loss) per share
      - basic and diluted              $(0.27)     $0.05   $(0.99)   $(0.05)
 
     Shares used in per share computation
       Basic                            23,160    18,248    21,190    17,866
       Diluted                          23,160    20,714    21,190    17,866
 
 
                              GEOWORKS CORPORATION
                     Condensed Consolidated Balance Sheets
                                  (unaudited)
                                 (in thousands)
 
 
                                                         March 31,  March 31,
                                                            2001        2000
     ASSETS
     Current assets
       Cash and cash equivalents                          $13,713    $17,204
       Accounts receivable                                  2,769      1,492
       Prepaid expenses and other current assets              538        417
         Total current assets                              17,020     19,113
 
     Property and equipment, net                            3,576      1,155
     Long-term investments and derivative instruments       4,038     21,180
     Goodwill and other intangible assets, net             31,556         --
     Other assets                                              73         11
                                                          $56,263    $41,459
 
     LIABILITIES AND STOCKHOLDERS'
     EQUITY
     Current liabilities
       Accounts payable                                    $2,374     $1,173
       Accrued liabilities                                  2,874      2,025
       Deferred revenue                                     1,128      1,629
       Current portion of capital lease obligations            28         --
         Total current liabilities                          6,404      4,827
 
     Capital lease obligations                                128         --
     Stockholders' equity                                  49,731     36,632
                                                          $56,263    $41,459
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X15864308
 
 

SOURCE Geoworks Corporation
    ALAMEDA, Calif., April 24 /PRNewswire Interactive News Release/ --
 Geoworks Corporation (Nasdaq:   GWRX), a leading innovator in mobile data
 communications software and services, today reported record revenue for the
 quarter and fiscal year ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010124/GWRXLOGO )
 
     Fiscal 2001 - Software and Related Services Revenue Grew 71 percent
     For the fiscal year 2001, Geoworks reported record revenue of $16,565,000,
 up 36% from $12,139,000 in fiscal year 2000.  Software and related services
 revenue grew 71% to $8,222,000 or almost 50% of total revenue.  Professional
 services revenue grew 19% to $8,343,000.
     "These results demonstrate our success in building a mobile data software
 and related services business," said Dave Grannan, chief executive officer.
 "Over the last year, we created a comprehensive software product offering with
 the launch of Mobile Server+ and Mobile ASP and the acquisition of the AirBoss
 Application Platform from Telcordia.  We forged relationships with a number of
 significant customers, including Telcordia, Cingular Interactive, Toshiba and
 United Airlines.  As a result, software and related services revenue grew 71%.
 At the same time, our longstanding relationships with global cellular phone
 leaders Mitsubishi and Nokia contributed to a 19% increase in professional
 services revenues.  Professional services is an important component of our
 business as these projects enhance our core technology competence and new
 product development efforts, while also providing cash flow to fund our more
 rapid growth in mobile data software," said Grannan.
     Operating expenses, net of non-cash items, increased approximately 76% to
 $31,623,000 in fiscal year 2001, from $17,934,000 in fiscal year 2000,
 reflecting the AirBoss acquisition, increased investment in R&D and an
 expanded sales and marketing organization to support the new mobile data
 software and services products.
     Non-cash items included in reported operating expenses and net income for
 the year included $6,788,000 in charges for amortization of goodwill and other
 intangibles and purchased in-process research and development as a result of
 the AirBoss acquisition in fiscal year 2001, and $589,000 in a non-cash
 benefit for the reversal of a restructuring charge in fiscal year 2000.
     For fiscal year 2001, the pro forma net loss, before non-cash charges, was
 $14,270,000, or $0.67 per share.  This compares with a pro forma net loss of
 $5,611,000, or $0.31 per share in fiscal year 2000, before non-cash benefits
 and $4,049,000 in other income resulting from investment gains.
     For fiscal year 2001, Geoworks reported a net loss of $21,058,000, or
 $0.99 per share on 21.2 million shares.  In fiscal year 2000, the company
 reported a net loss of $973,000, or $0.05 per share on 17.9 million shares.
 The fiscal year 2000 net loss included the $4,049,000 in other income from
 gains on investments.
     At March 31, 2001, Geoworks had cash, cash equivalents and long-term
 investments of $17.7 million.
     "We made tremendous progress in fiscal 2001, and believe Geoworks is
 significantly stronger and better positioned than we were just a year ago,"
 said Grannan.  "We've built a platform for growth based on providing
 standards-based, scaleable mobile data software and services to leading global
 companies.  We believe our products, our technology leadership, our global
 operations, our customers and our partners position us well to capitalize on
 the rapidly expanding market for mobile data software."
 
     Quarterly Performance In Line with Company Guidance
     For the fourth fiscal quarter ended March 31, 2001, Geoworks reported
 record revenue of $4,769,000, up 11% from the third quarter, in line with the
 company's previous guidance.  Revenue in the fourth quarter of the prior year
 was $4,437,000 and included approximately $1,000,000 in one-time payments for
 source code licenses for discontinued operating system products.  Excluding
 those one-time payments in the prior year, revenue for the quarter grew 39%
 over the same period in the prior year.
     For the quarter, operating expenses, net of non-cash items, were
 $9,024,000, a decrease of 6%, from $9,591,000 in the third quarter, reflecting
 reduced legal expenses and increased operating efficiencies.  This is
 significantly better than the company's previous guidance of an increase in
 operating expenses of between 5% - 10%.  Compared to a year ago, operating
 expenses, net of non-cash items, were up 52% from $5,934,000, reflecting the
 impact of the AirBoss acquisition and increased investment in R&D, and sales
 and marketing.
     Non-cash items included in operating expenses and net income for the
 quarter were $2,029,000 for amortization expense in the fourth quarter of
 fiscal 2001 and $589,000 for a non-cash benefit resulting from the reversal of
 a restructuring accrual in the fourth quarter of fiscal 2000.
     Pro forma net loss for the quarter, before non-cash charges, was
 $4,145,000, or $0.18 per share.  Pro forma loss for the fourth quarter of the
 prior year was $1,395,000, or $0.08 per share, before non-cash benefits and
 $1,740,000 in other income from investment gains.
     Geoworks reported a net loss for the fourth quarter of fiscal 2001 of
 $6,174,000, or $0.27 per share on 23.2 million shares.  In the fourth quarter
 of fiscal 2000, Geoworks reported net income of $934,000, or $0.05 per share
 on 20.7 million diluted shares outstanding, including the $1,740,000 in other
 income from gains on investments.
     "Our performance reflects our ability to continue to execute against our
 business plan despite a softer market.  As several of our peers have already
 reported, the general economic uncertainty has slowed the decision making
 process at some organizations.  While we continued to focus on developing new
 customers during the quarter, it was our ability to expand our relationships
 with key existing customers that supported our revenue growth plan.  We
 continue to see new customer interest, it is simply that the sales cycle has
 gotten longer," Grannan said.
 
     Operating Highlights
     "Geoworks made progress on a number of fronts during the quarter. We
 continued to work closely with Cingular Interactive, the world's largest
 Mobitex network operator, to develop their wireless data service offering
 based on the AirBoss Application Platform.  We worked with customers like
 Toshiba and United Airlines on expanding their ongoing deployments.  We
 partnered with technology leaders like Nuance, U.S. Wireless and Maptuit to
 enhance our product offering.  We signed five new Flex UI licensees, bringing
 our total to 18.  And, we received a direct equity investment of $5 million
 from Toshiba, one of our most strategic customers," said Grannan.
     "On the product front, we delivered a pre-release of our new Mobile
 Server+ Servlet to our customer iValue Creation, a Toshiba subsidiary.  Mobile
 Server+ is a Java-based server that allows one application to be delivered
 appropriately to many devices.  With this Servlet, we have taken the process
 one step farther, enabling our device formatting logic to run with any
 web-application being run on one of Sun's iPlanet Servers, which, according to
 Sun, support 40% of web-sites worldwide today.
     "One of the keys to success in this market will be having the right
 partners," said Grannan.  "Obviously with partners like Telcordia, Toshiba and
 Cingular we've built a great foundation.  This last quarter we took a
 significant step to enhance our network of partners by introducing our Mobile
 Business Alliance program for solution providers and developers.
 
     Looking ahead
     "The market for mobile data software continues to provide Geoworks with
 tremendous opportunities for growth.  The number of mobile Internet users
 around the world is climbing rapidly. Companies are beginning to adopt
 wireless technology to enable access to corporate and Internet data to serve
 both the mobile workforce and the mobile consumer. And, carriers are looking
 for technology partners to enhance their wireless product offerings and meet
 their customers' needs," said Grannan.
     "Long-term market trends clearly support our enthusiasm for this space.
 However, our short-term outlook is conservative.  As we've discussed,
 customers are moving more slowly given the general economic climate.  In
 addition, as we announced in March, our partner Telcordia ended its contract
 with Telkom South Africa and subsequently terminated our sub-contract.  This
 contract contributed $1.2 million in revenue in our fourth quarter.  As a
 result of both of these factors, we expect the first quarter to be a challenge
 but believe we can achieve substantial total revenue growth for the year.
     "At this time, for the first fiscal quarter ending in June 2001, we expect
 revenue to be in the range of $3.9 to $4.4 million and operating expenses to
 be essentially equal to those in the fourth quarter. For the remainder of the
 year, we expect operating expenses to grow between 5% and 10% each quarter, in
 line with the planned growth in our organization.  For the fiscal year ending
 March 2002, we expect total revenue to grow 40% to 60% and be in the range of
 $23 to $27 million, based on 60% to 75% growth in software and related
 services revenues," Grannan concluded.
 
     Conference Call Webcast Information
     This press release will be followed by a conference call and webcast at
 2:00 p.m. Pacific Time that is open to all.  Interested participants may
 listen to the call via the Internet at www.geoworks.com and at
 www.streetfusion.com.  To participate in the call, investors can call
 888-813-7836.
     The call will be archived at www.geoworks.com through May 31, 2000.
 Investors can also access a replay via telephone at 800-633-8248 through
 Tuesday, May 8, 2001.  The access code for the replay is 18551959.
 
     About Geoworks
     Geoworks Corporation is an innovator in industry leading software and
 service solutions to enable personalized, real-time access to corporate and
 Internet data.  Geoworks AirBoss(TM) Application Platform provides the
 foundation for creating enhanced wireless solutions that can access corporate
 data, such as e-mail, intranets and the Internet, over a wide variety of
 wireless networks and computing devices. MobileServer+(TM), Geoworks' open
 architecture wireless platform, enables companies to build mobile information,
 multimedia and m-commerce services to meet the expanding needs of today's
 mobile users. Geoworks' Mobile ASP(TM) solution utilizes a flexible
 combination of its high-performance Mobile Server+(TM) technology and its
 mobile media expertise to enable businesses to reach their mobile customers
 with relevant and timely information.  Based in Alameda, California, the
 company has additional offices in New Jersey, Japan and the United Kingdom,
 and can be found on the World Wide Web at http://www.geoworks.com.
     Statements in this press release that relate to future results and events
 are based on the company's current expectations.  Actual results in future
 periods may differ materially from those currently expected or desired because
 of a number of risks and uncertainties, including risks related to the
 company's history of operating losses, competition in mobile data software and
 related services, the continuing adequacy of the company's capital resources,
 the company's dependence on the development of mobile device content and
 services, the company's dependence on a limited number of revenue-generating
 customers, fluctuations in the company's operating results, currency
 fluctuations and other risks related to international operations, and the
 company's dependence on certain key personnel.  Additional discussion of these
 and other factors affecting the company's business and prospects is contained
 in the company's periodic filings with the Securities and Exchange Commission.
 
     NOTE:  Geoworks, AirBoss, Mobile ASP and Mobile Server+ are trademarks of
 Geoworks Corporation.
 
     Financial Tables to Follow
 
                              GEOWORKS CORPORATION
                Condensed Consolidated Statements of Operations
                                  (unaudited)
                     (in thousands, except per share data)
 
                                      Three Months Ended       Year Ended
                                       March 31, March 31, March 31, March 31,
                                         2001      2000       2001     2000
     Net revenues:
       Professional services            $2,342    $2,496    $8,343    $7,004
       Software and related services     2,427     1,869     8,222     4,815
       Research and development fees        --        72        --       320
         Total net revenues              4,769     4,437    16,565    12,139
 
     Operating expenses:
       Cost of professional services     1,308     1,564     4,768     4,584
       Cost of software and
        related services                   725        81     1,967       335
       Sales and marketing               2,585     1,961     8,607     5,577
       Research and development          2,702     1,335     9,202     4,100
       General and administrative        1,704       993     7,079     3,338
       Amortization of goodwill
        and other intangibles            2,029        --     5,410        --
       Purchased in-process research
        and development                     --        --     1,378        --
       Restructure charge reversal          --     (589)        --     (589)
         Total operating expenses       11,053     5,345    38,411    17,345
 
     Operating loss                    (6,284)     (908)  (21,846)   (5,206)
 
     Other income (expense):
       Other income                         --     1,740       265     4,049
       Interest income                     164       199       840       646
       Interest expense                    (4)        --       (4)      (10)
     Income (loss) before
      income taxes                     (6,124)     1,031  (20,745)     (521)
 
     Provision for income taxes             50        97       313       452
     Net income (loss)                $(6,174)      $934 $(21,058)    $(973)
 
     Net income (loss) per share
      - basic and diluted              $(0.27)     $0.05   $(0.99)   $(0.05)
 
     Shares used in per share computation
       Basic                            23,160    18,248    21,190    17,866
       Diluted                          23,160    20,714    21,190    17,866
 
 
                              GEOWORKS CORPORATION
                     Condensed Consolidated Balance Sheets
                                  (unaudited)
                                 (in thousands)
 
 
                                                         March 31,  March 31,
                                                            2001        2000
     ASSETS
     Current assets
       Cash and cash equivalents                          $13,713    $17,204
       Accounts receivable                                  2,769      1,492
       Prepaid expenses and other current assets              538        417
         Total current assets                              17,020     19,113
 
     Property and equipment, net                            3,576      1,155
     Long-term investments and derivative instruments       4,038     21,180
     Goodwill and other intangible assets, net             31,556         --
     Other assets                                              73         11
                                                          $56,263    $41,459
 
     LIABILITIES AND STOCKHOLDERS'
     EQUITY
     Current liabilities
       Accounts payable                                    $2,374     $1,173
       Accrued liabilities                                  2,874      2,025
       Deferred revenue                                     1,128      1,629
       Current portion of capital lease obligations            28         --
         Total current liabilities                          6,404      4,827
 
     Capital lease obligations                                128         --
     Stockholders' equity                                  49,731     36,632
                                                          $56,263    $41,459
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X15864308
 
 SOURCE  Geoworks Corporation