Kontron Mobile Computing Announces Earnings, Record Net Income for First Quarter 2001

Apr 25, 2001, 01:00 ET from Kontron Mobile Computing

    EDEN PRAIRIE, Minn., April 25 /PRNewswire Interactive News Release/ --
     FieldWorks, Inc. d/b/a Kontron Mobile Computing (OTC Bulletin Board:   FWRX)
 today announced first quarter 2001 earnings of $.04 per share compared to a
 loss of $0.28 per share in first quarter 2000.  First quarter net income was
 $554,000, the highest quarterly net income figure in the company's 10-year
 history, on revenues of $5.0 million, a 15 percent increase over first quarter
 2000 revenues of $4.3 million.
     "According to plan, we made excellent progress during the first quarter in
 cutting costs, restructuring our organization and sharpening our market focus
 during a time of remarkable change for the company," said Thomas Sparrvik,
 president and CEO, who joined the company in December 2000.  "With our new
 affiliation with the Kontron Embedded Computers AG group of companies, an
 expanded array of products and services, and a positive book-to-bill ratio of
 1.3 for the first quarter, we believe that we are on excellent footing to
 continue to position Kontron Mobile Computing for success."
     Sparrvik also cited the company's contract with the United States Army,
 announced on January 17, 2001, as a significant contributor to first quarter
 revenues.  A portion of this order was shipped during the first quarter and
 the remainder is scheduled to ship during the second quarter.
     Kontron Mobile Computing, which supplies rugged, mobile computers, is the
 North America-based, mobile computing affiliate of Kontron Embedded Computers
 AG, Munich, Germany.  The new name under which the company now conducts
 business, which replaced the name of FieldWorks, Inc. on April 16, 2001,
 reflects the combination of the mobile computing businesses previously
 operated separately by FieldWorks, Inc. and Kontron Embedded Computers AG and
 follows the acquisition by Kontron Embedded Computers AG of a majority share
 in the company late last year.
 
     About Kontron Mobile Computing
     Kontron Mobile Computing, incorporated in 1992 as FieldWorks, Inc.,
 designs, manufactures and sells rugged computers for a variety of industries
 and applications worldwide.  It also provides product customization,
 integration and support services.  The company is headquartered in Eden
 Prairie, Minn., with sales, service and manufacturing locations worldwide.  It
 is traded on the U.S. Over the Counter Bulletin Board under the ticker symbol
 "FWRX."
     Kontron Mobile Computing is the mobile computing affiliate of Kontron
 Embedded Computers AG, Munich, Germany -- one of the world's largest
 manufacturers of embedded computing solutions supplying leading OEMs, systems
 integrators and application providers in the communications, automation and
 mobile markets.
     For more information, visit Kontron Mobile Computing online at
 http://www.kontronmobile.com or phone the company toll-free at 888-343-5396.
 
     Forward-looking statements in this news release, if any, are made under
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Certain important factors could cause results to differ materially from
 those anticipated by the statements, including the impact of changing economic
 or business conditions, the impact of competition, the availability of
 financing, the success of products in the marketplace, other risk factors
 inherent in the computer industry and other factors discussed from time to
 time in reports filed by the Company with the Securities and Exchange
 Commission.
 
 
                            FIELDWORKS, INCORPORATED
                          CONSOLIDATED BALANCE SHEETS
 
                                                       April 1,    December 31,
                                                         2001          2000
                                                     (Unaudited)
                     ASSETS
     Current Assets:
     Cash and cash equivalents                         $538,717       $552,887
     Accounts receivable, net of allowance for
      doubtful accounts of $384,800 and $334,100      4,507,020      3,096,451
     Inventories                                      2,827,671      2,487,643
     Prepaid expenses and other                         498,835        472,287
           Total current assets                       8,372,243      6,609,268
     Property and Equipment:
       Computers and equipment                        1,699,278      1,699,278
       Furniture and fixtures                           943,795        943,795
       Leasehold improvements                           331,736        331,736
       Less: Accumulated depreciation
        and amortization                             (2,275,445)    (2,116,720)
         Property and equipment, net                    699,364        858,089
     Deposits and other assets, net                       7,452          7,774
     Total Assets                                    $9,079,059     $7,475,131
 
 
         LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
     Accounts payable                                $2,857,053     $3,192,823
     Accrued warranty and product upgrade               501,165        507,099
     Accrued compensation and benefits                  186,726        285,893
     Other accrued liabilities                          717,604      1,816,182
     Deferred revenue                                   656,466        738,994
     Current maturities of capitalized
      lease obligations                                  29,509         38,598
     Notes payable:
         Subordinated note, due September 2001        3,000,000      3,000,000
         Less: Discount on notes payable               (220,500)      (330,750)
         Note to Kontron for operating line           5,760,984      3,211,583
     Notes payable, net                               8,540,484      5,880,833
         Total current liabilities                   13,489,007     12,460,422
     Total liabilities                               13,489,007     12,460,422
 
     Shareholders' Equity (Deficit):
     Series B Convertible Preferred Stock, $.001 par
      value, 4,250,000 shares authorized; 4,250,000
      issued and outstanding at April 1, 2001             4,250          4,250
     Series C Convertible Preferred Stock, $.001 par
      value, 500,000 shares authorized; 500,000
      issued and outstanding at April 1, 2001               500            500
     Common stock, $.001 par value, 30,000,000 shares
      authorized; 14,944,426 and 14,894,426 issued
      and outstanding                                    14,944         14,894
     Additional paid-in capital                      32,545,861     32,524,911
     Accumulated deficit                            (36,975,503)   (37,529,846)
           Total shareholders' equity (deficit)      (4,409,948)    (4,985,291)
     Total liabilities and shareholders' equity
      (deficit)                                      $9,079,059     $7,475,131
 
 
                            FIELDWORKS, INCORPORATED
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                                   For the Three Months Ended
                                                     April 1,       April 2,
                                                       2001           2000
     Net Sales                                      $5,009,528     $4,347,157
     Cost of Sales                                   2,754,455      3,382,529
       Gross profit                                  2,255,073        964,628
     Operating Expenses:
       Sales and marketing                             851,505        972,062
       General and administrative                      504,715        887,157
       Research and development                        337,677      1,128,660
         Total operating expenses                    1,693,897      2,987,879
         Operating profit (loss)                       561,176     (2,023,251)
     Gain on currency conversion                       325,735             --
     Interest Expense and Other, net                  (332,568)      (256,626)
     Net profit (loss)                                 554,343     (2,279,877)
     Beneficial conversion feature applicable
      to preferred shareholders                             --       (250,000)
     Net profit (loss) applicable to common
      shareholders                                    $554,343    $(2,529,877)
 
     Basic and Diluted Profit (Loss) Per Common Share:
     Net profit (loss) per common share                   $.04          $(.28)
     Basic weighted average common shares
      outstanding                                   14,934,536      8,894,426
     Diluted weighted average common shares
      outstanding                                   15,036,209      8,894,426
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13416459
 
 

SOURCE Kontron Mobile Computing
    EDEN PRAIRIE, Minn., April 25 /PRNewswire Interactive News Release/ --
     FieldWorks, Inc. d/b/a Kontron Mobile Computing (OTC Bulletin Board:   FWRX)
 today announced first quarter 2001 earnings of $.04 per share compared to a
 loss of $0.28 per share in first quarter 2000.  First quarter net income was
 $554,000, the highest quarterly net income figure in the company's 10-year
 history, on revenues of $5.0 million, a 15 percent increase over first quarter
 2000 revenues of $4.3 million.
     "According to plan, we made excellent progress during the first quarter in
 cutting costs, restructuring our organization and sharpening our market focus
 during a time of remarkable change for the company," said Thomas Sparrvik,
 president and CEO, who joined the company in December 2000.  "With our new
 affiliation with the Kontron Embedded Computers AG group of companies, an
 expanded array of products and services, and a positive book-to-bill ratio of
 1.3 for the first quarter, we believe that we are on excellent footing to
 continue to position Kontron Mobile Computing for success."
     Sparrvik also cited the company's contract with the United States Army,
 announced on January 17, 2001, as a significant contributor to first quarter
 revenues.  A portion of this order was shipped during the first quarter and
 the remainder is scheduled to ship during the second quarter.
     Kontron Mobile Computing, which supplies rugged, mobile computers, is the
 North America-based, mobile computing affiliate of Kontron Embedded Computers
 AG, Munich, Germany.  The new name under which the company now conducts
 business, which replaced the name of FieldWorks, Inc. on April 16, 2001,
 reflects the combination of the mobile computing businesses previously
 operated separately by FieldWorks, Inc. and Kontron Embedded Computers AG and
 follows the acquisition by Kontron Embedded Computers AG of a majority share
 in the company late last year.
 
     About Kontron Mobile Computing
     Kontron Mobile Computing, incorporated in 1992 as FieldWorks, Inc.,
 designs, manufactures and sells rugged computers for a variety of industries
 and applications worldwide.  It also provides product customization,
 integration and support services.  The company is headquartered in Eden
 Prairie, Minn., with sales, service and manufacturing locations worldwide.  It
 is traded on the U.S. Over the Counter Bulletin Board under the ticker symbol
 "FWRX."
     Kontron Mobile Computing is the mobile computing affiliate of Kontron
 Embedded Computers AG, Munich, Germany -- one of the world's largest
 manufacturers of embedded computing solutions supplying leading OEMs, systems
 integrators and application providers in the communications, automation and
 mobile markets.
     For more information, visit Kontron Mobile Computing online at
 http://www.kontronmobile.com or phone the company toll-free at 888-343-5396.
 
     Forward-looking statements in this news release, if any, are made under
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Certain important factors could cause results to differ materially from
 those anticipated by the statements, including the impact of changing economic
 or business conditions, the impact of competition, the availability of
 financing, the success of products in the marketplace, other risk factors
 inherent in the computer industry and other factors discussed from time to
 time in reports filed by the Company with the Securities and Exchange
 Commission.
 
 
                            FIELDWORKS, INCORPORATED
                          CONSOLIDATED BALANCE SHEETS
 
                                                       April 1,    December 31,
                                                         2001          2000
                                                     (Unaudited)
                     ASSETS
     Current Assets:
     Cash and cash equivalents                         $538,717       $552,887
     Accounts receivable, net of allowance for
      doubtful accounts of $384,800 and $334,100      4,507,020      3,096,451
     Inventories                                      2,827,671      2,487,643
     Prepaid expenses and other                         498,835        472,287
           Total current assets                       8,372,243      6,609,268
     Property and Equipment:
       Computers and equipment                        1,699,278      1,699,278
       Furniture and fixtures                           943,795        943,795
       Leasehold improvements                           331,736        331,736
       Less: Accumulated depreciation
        and amortization                             (2,275,445)    (2,116,720)
         Property and equipment, net                    699,364        858,089
     Deposits and other assets, net                       7,452          7,774
     Total Assets                                    $9,079,059     $7,475,131
 
 
         LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
     Accounts payable                                $2,857,053     $3,192,823
     Accrued warranty and product upgrade               501,165        507,099
     Accrued compensation and benefits                  186,726        285,893
     Other accrued liabilities                          717,604      1,816,182
     Deferred revenue                                   656,466        738,994
     Current maturities of capitalized
      lease obligations                                  29,509         38,598
     Notes payable:
         Subordinated note, due September 2001        3,000,000      3,000,000
         Less: Discount on notes payable               (220,500)      (330,750)
         Note to Kontron for operating line           5,760,984      3,211,583
     Notes payable, net                               8,540,484      5,880,833
         Total current liabilities                   13,489,007     12,460,422
     Total liabilities                               13,489,007     12,460,422
 
     Shareholders' Equity (Deficit):
     Series B Convertible Preferred Stock, $.001 par
      value, 4,250,000 shares authorized; 4,250,000
      issued and outstanding at April 1, 2001             4,250          4,250
     Series C Convertible Preferred Stock, $.001 par
      value, 500,000 shares authorized; 500,000
      issued and outstanding at April 1, 2001               500            500
     Common stock, $.001 par value, 30,000,000 shares
      authorized; 14,944,426 and 14,894,426 issued
      and outstanding                                    14,944         14,894
     Additional paid-in capital                      32,545,861     32,524,911
     Accumulated deficit                            (36,975,503)   (37,529,846)
           Total shareholders' equity (deficit)      (4,409,948)    (4,985,291)
     Total liabilities and shareholders' equity
      (deficit)                                      $9,079,059     $7,475,131
 
 
                            FIELDWORKS, INCORPORATED
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                                   For the Three Months Ended
                                                     April 1,       April 2,
                                                       2001           2000
     Net Sales                                      $5,009,528     $4,347,157
     Cost of Sales                                   2,754,455      3,382,529
       Gross profit                                  2,255,073        964,628
     Operating Expenses:
       Sales and marketing                             851,505        972,062
       General and administrative                      504,715        887,157
       Research and development                        337,677      1,128,660
         Total operating expenses                    1,693,897      2,987,879
         Operating profit (loss)                       561,176     (2,023,251)
     Gain on currency conversion                       325,735             --
     Interest Expense and Other, net                  (332,568)      (256,626)
     Net profit (loss)                                 554,343     (2,279,877)
     Beneficial conversion feature applicable
      to preferred shareholders                             --       (250,000)
     Net profit (loss) applicable to common
      shareholders                                    $554,343    $(2,529,877)
 
     Basic and Diluted Profit (Loss) Per Common Share:
     Net profit (loss) per common share                   $.04          $(.28)
     Basic weighted average common shares
      outstanding                                   14,934,536      8,894,426
     Diluted weighted average common shares
      outstanding                                   15,036,209      8,894,426
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13416459
 
 SOURCE  Kontron Mobile Computing