Mbrane Announces 2001 First Quarter Results

Company Completes Key Strategic Initiatives Continuing its Focus as a Leading

Platform in Mobile, Wireless and Embedded Computing Markets



Apr 23, 2001, 01:00 ET from Mbrane

    REDWOOD SHORES, Calif., April 23 /PRNewswire Interactive News Release/ --
 Mbrane (Nasdaq: MBRN), a global software company whose secure wireless
 software solutions allow companies to extend enterprise information systems to
 mobile and embedded devices, today announced first quarter results for the
 period ended March 31, 2001.
     Net revenue related to Mbrane's ongoing mobile and wireless and embedded
 business was $1.4 million for the first quarter ended March 31, 2001 compared
 with net revenue of $1.8 million in the fourth quarter of 2000 and
 $2.7 million for the comparable portion of Mbrane's business in the first
 quarter of 2000.   Net loss for the first quarter ended March 31, 2001 was
 $1.4 million and net loss available to common stockholders was $1.7 million or
 $0.03 and $0.04 per basic share, respectively.
     Total net revenues from Mbrane's client/server business through February
 22, 2001, the date the client/server business was sold, were an additional
 $2.5 million, resulting in total reported revenue of $3.9 million for the
 quarter ended March 31, 2001.
     New agreements signed during the first quarter included a partnership with
 BT Cellnet that positions Mbrane as a major player in BT Cellnet's developers
 forum.  As part of this partnership, Mbrane will deliver the Touchpoint
 platform running on GPRS to wirelessly connect PDAs to the enterprise.  In
 addition, the company completed a joint strategic alliance agreement with
 powerhouses Telstra and Powerlan that further enhances market penetration
 opportunities in the Asia Pacific region.  Mbrane also completed key
 Touchpoint license agreements with SalesLogix and Mobile Automation.
     During the past three months, the company executed on the five initiatives
 that support the company's long-term mobile and embedded computing strategy.
 First, on February 22, 2001, Centura Software closed the sale of its
 client/server business, which resulted in a gain of $7.9 million, net of
 associated closing costs and related expenses.  Second, the company announced
 Centura Software's evolution and name change to Mbrane, and subsequent new
 Nasdaq ticker symbol: MBRN on April 2, 2001.  Third, the company materially
 reduced its cost structure to match current revenue expectation in order to
 bridge to profitability.  Fourth, on March 12, 2001 Mbrane issued $2.0 million
 face value Series B Cumulative Convertible Preferred Stock concurrent with an
 agreement to issue up to an additional $3.0 million in face value in the third
 quarter and  an option to issue an additional $6.0 million in face value over
 the next 11 months, predicated on certain conditions being met, and fifth, on
 April 18, 2001, Mbrane entered into an agreement to acquire Veriprise Wireless
 Corporation, a B2E software solutions company in an asset-based purchase
 transaction.
     Commenting on these events, Chairman and CEO Scott Broomfield said, "The
 divestiture of our client/server business will now enable us to devote our
 complete attention and resources to developing new products and services
 related to mobile, wireless and embedded computing.  Based on industry
 research, we believe that the adoption of enterprise mobilization as a
 standard of business is beginning to accelerate and as we expand the
 functionality of our Touchpoint product suite we are enhancing our
 opportunities to leverage this market opportunity."
     Broomfield continued, "The Touchpoint product suite is designed to address
 many of the current business initiatives surrounding efforts to deploy
 wireless and mobile applications.  With our pending acquisition of Veriprise,
 expected to close in May 2001, we expect to solidify our position as an
 industry standard platform for enterprise class mobility systems.  The
 integration of Veriprise will expand our Touchpoint platform to support email,
 Groupware, Unix servers, and Java.  This functionality enables true platform
 independence.  We anticipate the announcement of the new features later this
 quarter."
     John Bowman, Chief Operating Officer of Mbrane commented, "The first
 quarter of 2001 was a period of tremendous transition for Mbrane.  First
 quarter costs included $2.7 million of expenses directly associated with our
 client/server line of business and other elements of our divested business.
 The sale and orderly transition of the client/server line of business took
 significant effort from all areas of the company, but most of that effort is
 behind us."
     Bowman continued,  "We sold our subsidiaries in Germany, Austria,
 Netherlands, and Mexico, and portions of the US, UK, and Australia, as part of
 the client/server sale.  Subsequent to the close of the sale, we discontinued
 our presence in France, Switzerland, Italy, Brazil, and Japan, retaining four
 primary offices in the UK, Australia, and two offices in the US.  These
 actions, and other reductions recently undertaken, will produce a cost
 structure that will reflect our more streamlined and focused organization, is
 more in line with current revenue projections, and will be driven by our
 commitment to being the leader in mobilizing the enterprise with high value
 product offerings."
     Mbrane will hold a conference call today at 2:00 p.m. PDT to discuss the
 quarterly results. Interested parties have the opportunity to listen to the
 conference call live on the Internet at www.streetfusion.com .  This webcast
 will be available at that address for 90 days.  A replay of the call is also
 available through April 29th by dialing 703-925-2435, code #5110864.
     Investors are invited to post messages for Scott Broomfield on Mbrane's
 Investors page at www.mbrane.com/investors .   A live simulcast and replay of
 the conference call will be available through StreetFusion at
 www.streetfusion.com for 30 days.
 
     About Mbrane
     Mbrane (Nasdaq: MBRN) pioneered mobile pervasive software that extends the
 power of enterprise computing. The company's enterprise-class software
 membrane enables the free and secure flow of enterprise intelligence to and
 from mobile employees, as well as embedded devices, anywhere and at anytime.
 Mbrane maximizes the ROI on all of its customers' technology investments by
 enabling enterprise systems to be more available, and by ensuring that their
 mobile infrastructure adapts easily to future technologies. Established in
 1984, Mbrane, formerly known as Centura Software, has been named one of the
 "Innovation 100" companies by Information Week and Cap Gemini, Ernst & Young.
 Headquartered in Redwood Shores, California, Mbrane has offices worldwide
 servicing North America, Europe, and Asia/Pacific.  To learn more about Mbrane
 and the Touchpoint product suite, please visit www.mbrane.com .
 
     Safe Harbor
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties, including but not limited to the Company's failure to
 timely develop new products which gain market acceptance, failure of the
 Company's significant resellers or distributors to renew agreements, delays in
 the timing of orders for the Company's products and services, significant
 changes in the business environment in which the Company operates, the
 effectiveness of the Company's management in executing the Company's recent
 strategic changes and the other risks detailed from time to time in the
 Company's SEC reports, including the Annual Report on Form 10-K for the fiscal
 year ended Dec. 31, 2000.
 
                                                            For the three
                                                             months ended
                                                               March 31,
                                                        2001              2000
 
     Net revenues:
         Product                                        $735            $1,674
         Service                                         618               978
             Continuing net revenues                   1,353             2,652
         Divested products                               777             4,299
         Divested services                             1,726             5,453
             Total net revenues                        3,856            12,404
     Cost of revenues:
         Product                                         179               428
         Service                                         386               753
         Amortization of acquired
          technology                                     133               133
             Total cost of revenues                      698             1,314
                 Gross profit                          3,158            11,090
 
     Operating expenses:
         Sales and marketing                           7,054             7,768
         Engineering and product
          development                                  2,668             2,043
         General and administrative                    2,252             2,194
         Amortization of goodwill                        203               208
             Total operating expenses                 12,177            12,213
                 Operating loss                       (9,019)           (1,123)
     Other income (expense):
         Other income (expense), net                    (318)              123
         Gain on divestiture                           7,940
     Loss before income taxes                         (1,397)           (1,000)
     Provision for income taxes                                             15
     Net loss                                         (1,397)           (1,015)
 
     Cost of beneficial conversion feature,
      dividends and accretion of preferred stock        (312)           (4,313)
     Net loss available to common
      stockholders                                   $(1,709)          $(5,328)
 
     Basic net loss per share:
       Net loss per share                              (0.03)            (0.03)
       Cost of beneficial conversion
        feature, dividends and accretion of
        preferred stock                              (0.01)            (0.11)
     Basic net loss per share                         $(0.04)           $(0.14)
 
     Basic weighted average common shares             42,997            38,440
 
 
 
 
                                                   March 31,      December 31,
                                                      2001              2000
 
     ASSETS
 
     Cash and cash equivalents                       $3,261            $5,685
     Accounts receivable, net                         2,341            12,681
     Other current assets                             8,011             5,339
          Total current assets                       13,613            23,705
     Other assets                                     8,772            11,145
          Total assets                              $22,385           $34,850
 
     LIABILITIES, MANDATORY REDEEMABLE
      CONVERTIBLE
     PREFERRED STOCK AND STOCKHOLDERS'
      EQUITY
 
     Current portion of long-term
      obligations                                      $390              $465
     Accounts payable and other current
      liabilities                                    11,451            10,734
     Short-term borrowings                            1,997             2,500
     Deferred revenue                                 1,397            14,582
          Total current liabilities                  15,235            28,281
     Other long-term liabilities                                           84
          Total liabilities                          15,235            28,365
     Mandatory redeemable convertible
      preferred stock                                 1,830
     Stockholders' equity                             5,320             6,485
          Total liabilities, mandatory
           redeemable convertible
           preferred stock and
           stockholders' equity                     $22,385           $34,850
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32083517
 
 

SOURCE Mbrane
    REDWOOD SHORES, Calif., April 23 /PRNewswire Interactive News Release/ --
 Mbrane (Nasdaq: MBRN), a global software company whose secure wireless
 software solutions allow companies to extend enterprise information systems to
 mobile and embedded devices, today announced first quarter results for the
 period ended March 31, 2001.
     Net revenue related to Mbrane's ongoing mobile and wireless and embedded
 business was $1.4 million for the first quarter ended March 31, 2001 compared
 with net revenue of $1.8 million in the fourth quarter of 2000 and
 $2.7 million for the comparable portion of Mbrane's business in the first
 quarter of 2000.   Net loss for the first quarter ended March 31, 2001 was
 $1.4 million and net loss available to common stockholders was $1.7 million or
 $0.03 and $0.04 per basic share, respectively.
     Total net revenues from Mbrane's client/server business through February
 22, 2001, the date the client/server business was sold, were an additional
 $2.5 million, resulting in total reported revenue of $3.9 million for the
 quarter ended March 31, 2001.
     New agreements signed during the first quarter included a partnership with
 BT Cellnet that positions Mbrane as a major player in BT Cellnet's developers
 forum.  As part of this partnership, Mbrane will deliver the Touchpoint
 platform running on GPRS to wirelessly connect PDAs to the enterprise.  In
 addition, the company completed a joint strategic alliance agreement with
 powerhouses Telstra and Powerlan that further enhances market penetration
 opportunities in the Asia Pacific region.  Mbrane also completed key
 Touchpoint license agreements with SalesLogix and Mobile Automation.
     During the past three months, the company executed on the five initiatives
 that support the company's long-term mobile and embedded computing strategy.
 First, on February 22, 2001, Centura Software closed the sale of its
 client/server business, which resulted in a gain of $7.9 million, net of
 associated closing costs and related expenses.  Second, the company announced
 Centura Software's evolution and name change to Mbrane, and subsequent new
 Nasdaq ticker symbol: MBRN on April 2, 2001.  Third, the company materially
 reduced its cost structure to match current revenue expectation in order to
 bridge to profitability.  Fourth, on March 12, 2001 Mbrane issued $2.0 million
 face value Series B Cumulative Convertible Preferred Stock concurrent with an
 agreement to issue up to an additional $3.0 million in face value in the third
 quarter and  an option to issue an additional $6.0 million in face value over
 the next 11 months, predicated on certain conditions being met, and fifth, on
 April 18, 2001, Mbrane entered into an agreement to acquire Veriprise Wireless
 Corporation, a B2E software solutions company in an asset-based purchase
 transaction.
     Commenting on these events, Chairman and CEO Scott Broomfield said, "The
 divestiture of our client/server business will now enable us to devote our
 complete attention and resources to developing new products and services
 related to mobile, wireless and embedded computing.  Based on industry
 research, we believe that the adoption of enterprise mobilization as a
 standard of business is beginning to accelerate and as we expand the
 functionality of our Touchpoint product suite we are enhancing our
 opportunities to leverage this market opportunity."
     Broomfield continued, "The Touchpoint product suite is designed to address
 many of the current business initiatives surrounding efforts to deploy
 wireless and mobile applications.  With our pending acquisition of Veriprise,
 expected to close in May 2001, we expect to solidify our position as an
 industry standard platform for enterprise class mobility systems.  The
 integration of Veriprise will expand our Touchpoint platform to support email,
 Groupware, Unix servers, and Java.  This functionality enables true platform
 independence.  We anticipate the announcement of the new features later this
 quarter."
     John Bowman, Chief Operating Officer of Mbrane commented, "The first
 quarter of 2001 was a period of tremendous transition for Mbrane.  First
 quarter costs included $2.7 million of expenses directly associated with our
 client/server line of business and other elements of our divested business.
 The sale and orderly transition of the client/server line of business took
 significant effort from all areas of the company, but most of that effort is
 behind us."
     Bowman continued,  "We sold our subsidiaries in Germany, Austria,
 Netherlands, and Mexico, and portions of the US, UK, and Australia, as part of
 the client/server sale.  Subsequent to the close of the sale, we discontinued
 our presence in France, Switzerland, Italy, Brazil, and Japan, retaining four
 primary offices in the UK, Australia, and two offices in the US.  These
 actions, and other reductions recently undertaken, will produce a cost
 structure that will reflect our more streamlined and focused organization, is
 more in line with current revenue projections, and will be driven by our
 commitment to being the leader in mobilizing the enterprise with high value
 product offerings."
     Mbrane will hold a conference call today at 2:00 p.m. PDT to discuss the
 quarterly results. Interested parties have the opportunity to listen to the
 conference call live on the Internet at www.streetfusion.com .  This webcast
 will be available at that address for 90 days.  A replay of the call is also
 available through April 29th by dialing 703-925-2435, code #5110864.
     Investors are invited to post messages for Scott Broomfield on Mbrane's
 Investors page at www.mbrane.com/investors .   A live simulcast and replay of
 the conference call will be available through StreetFusion at
 www.streetfusion.com for 30 days.
 
     About Mbrane
     Mbrane (Nasdaq: MBRN) pioneered mobile pervasive software that extends the
 power of enterprise computing. The company's enterprise-class software
 membrane enables the free and secure flow of enterprise intelligence to and
 from mobile employees, as well as embedded devices, anywhere and at anytime.
 Mbrane maximizes the ROI on all of its customers' technology investments by
 enabling enterprise systems to be more available, and by ensuring that their
 mobile infrastructure adapts easily to future technologies. Established in
 1984, Mbrane, formerly known as Centura Software, has been named one of the
 "Innovation 100" companies by Information Week and Cap Gemini, Ernst & Young.
 Headquartered in Redwood Shores, California, Mbrane has offices worldwide
 servicing North America, Europe, and Asia/Pacific.  To learn more about Mbrane
 and the Touchpoint product suite, please visit www.mbrane.com .
 
     Safe Harbor
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties, including but not limited to the Company's failure to
 timely develop new products which gain market acceptance, failure of the
 Company's significant resellers or distributors to renew agreements, delays in
 the timing of orders for the Company's products and services, significant
 changes in the business environment in which the Company operates, the
 effectiveness of the Company's management in executing the Company's recent
 strategic changes and the other risks detailed from time to time in the
 Company's SEC reports, including the Annual Report on Form 10-K for the fiscal
 year ended Dec. 31, 2000.
 
                                                            For the three
                                                             months ended
                                                               March 31,
                                                        2001              2000
 
     Net revenues:
         Product                                        $735            $1,674
         Service                                         618               978
             Continuing net revenues                   1,353             2,652
         Divested products                               777             4,299
         Divested services                             1,726             5,453
             Total net revenues                        3,856            12,404
     Cost of revenues:
         Product                                         179               428
         Service                                         386               753
         Amortization of acquired
          technology                                     133               133
             Total cost of revenues                      698             1,314
                 Gross profit                          3,158            11,090
 
     Operating expenses:
         Sales and marketing                           7,054             7,768
         Engineering and product
          development                                  2,668             2,043
         General and administrative                    2,252             2,194
         Amortization of goodwill                        203               208
             Total operating expenses                 12,177            12,213
                 Operating loss                       (9,019)           (1,123)
     Other income (expense):
         Other income (expense), net                    (318)              123
         Gain on divestiture                           7,940
     Loss before income taxes                         (1,397)           (1,000)
     Provision for income taxes                                             15
     Net loss                                         (1,397)           (1,015)
 
     Cost of beneficial conversion feature,
      dividends and accretion of preferred stock        (312)           (4,313)
     Net loss available to common
      stockholders                                   $(1,709)          $(5,328)
 
     Basic net loss per share:
       Net loss per share                              (0.03)            (0.03)
       Cost of beneficial conversion
        feature, dividends and accretion of
        preferred stock                              (0.01)            (0.11)
     Basic net loss per share                         $(0.04)           $(0.14)
 
     Basic weighted average common shares             42,997            38,440
 
 
 
 
                                                   March 31,      December 31,
                                                      2001              2000
 
     ASSETS
 
     Cash and cash equivalents                       $3,261            $5,685
     Accounts receivable, net                         2,341            12,681
     Other current assets                             8,011             5,339
          Total current assets                       13,613            23,705
     Other assets                                     8,772            11,145
          Total assets                              $22,385           $34,850
 
     LIABILITIES, MANDATORY REDEEMABLE
      CONVERTIBLE
     PREFERRED STOCK AND STOCKHOLDERS'
      EQUITY
 
     Current portion of long-term
      obligations                                      $390              $465
     Accounts payable and other current
      liabilities                                    11,451            10,734
     Short-term borrowings                            1,997             2,500
     Deferred revenue                                 1,397            14,582
          Total current liabilities                  15,235            28,281
     Other long-term liabilities                                           84
          Total liabilities                          15,235            28,365
     Mandatory redeemable convertible
      preferred stock                                 1,830
     Stockholders' equity                             5,320             6,485
          Total liabilities, mandatory
           redeemable convertible
           preferred stock and
           stockholders' equity                     $22,385           $34,850
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32083517
 
 SOURCE  Mbrane