ON Technology Meets Financial Projections for First Quarter

- Increases revenues by 27% compared to first quarter 2000

- Reduces operating loss by 39% compared to first quarter 2000

- Creates alliance with Miramar Systems to jointly pursue Windows(R) 2000

market

- Signs joint sales and marketing agreement with Peregrine Systems

- Receives growing base of pilot orders from major accounts worldwide



Apr 30, 2001, 01:00 ET from ON Technology Corporation

    WALTHAM, Mass., April 30 /PRNewswire/ -- ON Technology Corporation
 (Nasdaq:   ONTC), a leading provider of remote software delivery solutions,
 today announced revenue and operating results for its first quarter ended
 March 31, 2001.
     During the quarter, the Company recorded total revenues of $5.2 million,
 an increase of 27 percent over the same period in 2000, excluding the results
 of the Company's Meeting Maker operations.  Over 33,000 seat licenses were
 sold worldwide.  Forty five percent of these licenses were additional seats
 sold to existing customers, reflecting their continued satisfaction with the
 business and operational benefits delivered by the Company's products and
 services in real-world environments.  The Company expects this momentum to
 continue and is maintaining its projections of sequential quarterly revenue
 growth with the target of returning to profitability by the second half of the
 fiscal year.
     "We're pleased to report that we attained our revenue and profit
 projections for the first quarter, which is traditionally our slowest fiscal
 quarter," said Robert L. Doretti, Chairman, President and CEO of ON
 Technology.  "We remain confident about our annual financial projections,
 although this is tempered somewhat by concern over IT purchasing delays
 resulting from the slowdown in the U.S. economy, which have extended our sales
 cycle.  Nevertheless, our total revenue pipeline has grown significantly and
 we are seeing increased sales activity from our relationship with Dell
 Computer Corporation.  We believe that demand for our solutions will continue
 to expand in the current economic climate because they play a major role in
 reducing infrastructure costs while simultaneously accelerating completion of
 business-critical IT initiatives."
     The Company reported an operating loss of $2.0 million versus a first
 quarter 2000 loss of $3.3 million thousand, excluding the $640 thousand of
 operating profit of the Meeting Maker operations.  The operating loss reported
 for the first quarter of 2000 was $2.7 million, including the results of
 Meeting Maker.
     In the first quarter of 2001, the Company marked-to-market the value of
 the financial instruments that were issued as a part of the agreement reached
 with the Company's private investors in December 2000.  ON also revalued the
 inter-company debt between its European and United States operating units
 based on changes in foreign exchange rates.  These non-cash accounting charges
 generated the majority of the non-operating expense of $1.7 million reported
 in the quarter.
     The Company reported a net loss of $2.0 million or $0.13 per share,
 excluding the non-operating expenses of $1.7 million, versus a first quarter
 2000 loss of $3.1 million or $0.22 per share.  Including the non-operating
 expenses, the reported net loss for the first quarter of 2001 was $3.7 million
 or $0.24 per share.
 
     About ON Technology Corporation
     ON Technology empowers IT organizations and service providers to rapidly
 deliver business-critical software to a range of remote computing devices
 including desktops, mobile PCs, handhelds and servers.  The Company's flagship
 product, ON Command CCM(R), has been judged by analysts, product reviewers,
 enterprise IT customers and service providers as the industry's best solution
 for remote software delivery.  ON Command CCM is currently being used to
 deliver software to over 500,000 corporate computing devices worldwide in over
 500 leading Global 2000 corporations.  For more information, visit ON
 Technology's web site at www.on.com or call 800-767-6638.
 
     ON Technology and ON Command CCM are registered trademarks and the ON logo
 is a trademark of ON Technology Corporation.
     All other brand names and trademarks are properties of their respective
 owners.
 
     The statements in this news release that relate to future plans, events or
 performance are forward-looking statements that involve risks and
 uncertainties, including risks associated with uncertainties pertaining to
 customer orders, demand for products and services, development of markets for
 the Company's products and services, new product development and market
 acceptance, and other risks identified in the Company's SEC filings.  Actual
 results, events and performance may differ materially.  Readers are cautioned
 not to place undue reliance on these forward-looking statements, which speak
 only as of the date hereof.  The Company undertakes no obligation to release
 publicly the result of any revisions to these forward-looking statements that
 may be made to reflect events or circumstances after the date hereof or to
 reflect the occurrence of unanticipated events.
 
     For further information, please contact Steven R. Wasserman, Chief
 Financial Officer of ON Technology Corporation, 781-487-3330,
 swasserman@on.com; or Michael Mason of Allen & Caron, 212-691-8087,
 michaelm@allencaron.com, for ON Technology Corporation.
 
 
      ON Technology Corporation
      Consolidated Condensed Statement of Operations
      (in thousands, except share and per share data)
                                                          Three Months
                                                         Ended March 31
                                                          (Unaudited)
     Revenue:                                         2001           2000
     Net CCM and related products                   $3,134         $2,669
     CCM and related service and maintenance         1,985          1,440
     Other                                             118             --
     Meeting Maker, Inc (MMI)                           --          1,609
     Total revenue                                   5,237          5,718
 
     Operating Expenses
     Cost of CCM and related product and service       764            862
     Cost of MMI revenue                                --             34
     Sales and marketing                             3,076          2,753
     Research and development                        2,167          2,211
     General and administrative                      1,235          1,588
     MMI operating expenses                             --            935
         Loss from operations                       (2,005)        (2,665)
     Interest income, net                               50            180
     Other expense                                  (1,753)            --
         Loss before allocation to MMI
          and provision for income taxes            (3,708)        (2,485)
     Allocation to MMI                                  --           (640)
         Loss before income taxes                   (3,708)        (3,125)
     Provision for income taxes                         --             --
         Net (loss)                                $(3,708)       $(3,125)
     Basic earnings per share                       $(0.24)        $(0.22)
     Diluted earnings per share                     $(0.24)        $(0.22)
     Basic shares used in
      per share calculation                     15,315,252     13,944,344
     Diluted shares used in
      per share calculation                     15,315,252     13,944,344
 
 
      Consolidated Condensed Balance Sheets        March 31       March 31
      (in thousands)                                 2001           2000
                                                 (Unaudited)    (Unaudited)
     Assets:
     Current Assets:
     Cash and cash equivalents                      $7,502        $15,678
     Restricted cash                                 1,069             --
     Accounts receivable, net                        3,645          6,867
     Due from Meeting Maker, Inc. (MMI)                120             --
     Prepaid expenses and other current assets         627            991
         Total current assets                       12,963         23,536
     Property and equipment, net                     1,452          1,622
     Other assets and deposits                         105            150
     Total Assets                                  $14,520        $25,308
 
     Liabilities and Stockholders' Equity:
     Current Liabilities:
     Accounts payable                               $1,991         $3,527
     Accrued expenses                                2,650          2,279
     Notes payable                                     765             --
     Due to Meeting Maker, Inc. (MMI)                   --            640
     Reserve for distributor inventories                --            120
     Deferred revenue - short term                   3,244          3,894
         Total current liabilities                   8,650         10,460
     Warrant liability                               2,148             --
     Deferred Revenue - long term                      218             --
     Total Liabilities                              11,016         10,460
 
     Stockholders' Equity                            3,504         14,848
 
     Total Liabilities and Stockholders' Equity    $14,520        $25,308
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X73376579
 
 

SOURCE ON Technology Corporation
    WALTHAM, Mass., April 30 /PRNewswire/ -- ON Technology Corporation
 (Nasdaq:   ONTC), a leading provider of remote software delivery solutions,
 today announced revenue and operating results for its first quarter ended
 March 31, 2001.
     During the quarter, the Company recorded total revenues of $5.2 million,
 an increase of 27 percent over the same period in 2000, excluding the results
 of the Company's Meeting Maker operations.  Over 33,000 seat licenses were
 sold worldwide.  Forty five percent of these licenses were additional seats
 sold to existing customers, reflecting their continued satisfaction with the
 business and operational benefits delivered by the Company's products and
 services in real-world environments.  The Company expects this momentum to
 continue and is maintaining its projections of sequential quarterly revenue
 growth with the target of returning to profitability by the second half of the
 fiscal year.
     "We're pleased to report that we attained our revenue and profit
 projections for the first quarter, which is traditionally our slowest fiscal
 quarter," said Robert L. Doretti, Chairman, President and CEO of ON
 Technology.  "We remain confident about our annual financial projections,
 although this is tempered somewhat by concern over IT purchasing delays
 resulting from the slowdown in the U.S. economy, which have extended our sales
 cycle.  Nevertheless, our total revenue pipeline has grown significantly and
 we are seeing increased sales activity from our relationship with Dell
 Computer Corporation.  We believe that demand for our solutions will continue
 to expand in the current economic climate because they play a major role in
 reducing infrastructure costs while simultaneously accelerating completion of
 business-critical IT initiatives."
     The Company reported an operating loss of $2.0 million versus a first
 quarter 2000 loss of $3.3 million thousand, excluding the $640 thousand of
 operating profit of the Meeting Maker operations.  The operating loss reported
 for the first quarter of 2000 was $2.7 million, including the results of
 Meeting Maker.
     In the first quarter of 2001, the Company marked-to-market the value of
 the financial instruments that were issued as a part of the agreement reached
 with the Company's private investors in December 2000.  ON also revalued the
 inter-company debt between its European and United States operating units
 based on changes in foreign exchange rates.  These non-cash accounting charges
 generated the majority of the non-operating expense of $1.7 million reported
 in the quarter.
     The Company reported a net loss of $2.0 million or $0.13 per share,
 excluding the non-operating expenses of $1.7 million, versus a first quarter
 2000 loss of $3.1 million or $0.22 per share.  Including the non-operating
 expenses, the reported net loss for the first quarter of 2001 was $3.7 million
 or $0.24 per share.
 
     About ON Technology Corporation
     ON Technology empowers IT organizations and service providers to rapidly
 deliver business-critical software to a range of remote computing devices
 including desktops, mobile PCs, handhelds and servers.  The Company's flagship
 product, ON Command CCM(R), has been judged by analysts, product reviewers,
 enterprise IT customers and service providers as the industry's best solution
 for remote software delivery.  ON Command CCM is currently being used to
 deliver software to over 500,000 corporate computing devices worldwide in over
 500 leading Global 2000 corporations.  For more information, visit ON
 Technology's web site at www.on.com or call 800-767-6638.
 
     ON Technology and ON Command CCM are registered trademarks and the ON logo
 is a trademark of ON Technology Corporation.
     All other brand names and trademarks are properties of their respective
 owners.
 
     The statements in this news release that relate to future plans, events or
 performance are forward-looking statements that involve risks and
 uncertainties, including risks associated with uncertainties pertaining to
 customer orders, demand for products and services, development of markets for
 the Company's products and services, new product development and market
 acceptance, and other risks identified in the Company's SEC filings.  Actual
 results, events and performance may differ materially.  Readers are cautioned
 not to place undue reliance on these forward-looking statements, which speak
 only as of the date hereof.  The Company undertakes no obligation to release
 publicly the result of any revisions to these forward-looking statements that
 may be made to reflect events or circumstances after the date hereof or to
 reflect the occurrence of unanticipated events.
 
     For further information, please contact Steven R. Wasserman, Chief
 Financial Officer of ON Technology Corporation, 781-487-3330,
 swasserman@on.com; or Michael Mason of Allen & Caron, 212-691-8087,
 michaelm@allencaron.com, for ON Technology Corporation.
 
 
      ON Technology Corporation
      Consolidated Condensed Statement of Operations
      (in thousands, except share and per share data)
                                                          Three Months
                                                         Ended March 31
                                                          (Unaudited)
     Revenue:                                         2001           2000
     Net CCM and related products                   $3,134         $2,669
     CCM and related service and maintenance         1,985          1,440
     Other                                             118             --
     Meeting Maker, Inc (MMI)                           --          1,609
     Total revenue                                   5,237          5,718
 
     Operating Expenses
     Cost of CCM and related product and service       764            862
     Cost of MMI revenue                                --             34
     Sales and marketing                             3,076          2,753
     Research and development                        2,167          2,211
     General and administrative                      1,235          1,588
     MMI operating expenses                             --            935
         Loss from operations                       (2,005)        (2,665)
     Interest income, net                               50            180
     Other expense                                  (1,753)            --
         Loss before allocation to MMI
          and provision for income taxes            (3,708)        (2,485)
     Allocation to MMI                                  --           (640)
         Loss before income taxes                   (3,708)        (3,125)
     Provision for income taxes                         --             --
         Net (loss)                                $(3,708)       $(3,125)
     Basic earnings per share                       $(0.24)        $(0.22)
     Diluted earnings per share                     $(0.24)        $(0.22)
     Basic shares used in
      per share calculation                     15,315,252     13,944,344
     Diluted shares used in
      per share calculation                     15,315,252     13,944,344
 
 
      Consolidated Condensed Balance Sheets        March 31       March 31
      (in thousands)                                 2001           2000
                                                 (Unaudited)    (Unaudited)
     Assets:
     Current Assets:
     Cash and cash equivalents                      $7,502        $15,678
     Restricted cash                                 1,069             --
     Accounts receivable, net                        3,645          6,867
     Due from Meeting Maker, Inc. (MMI)                120             --
     Prepaid expenses and other current assets         627            991
         Total current assets                       12,963         23,536
     Property and equipment, net                     1,452          1,622
     Other assets and deposits                         105            150
     Total Assets                                  $14,520        $25,308
 
     Liabilities and Stockholders' Equity:
     Current Liabilities:
     Accounts payable                               $1,991         $3,527
     Accrued expenses                                2,650          2,279
     Notes payable                                     765             --
     Due to Meeting Maker, Inc. (MMI)                   --            640
     Reserve for distributor inventories                --            120
     Deferred revenue - short term                   3,244          3,894
         Total current liabilities                   8,650         10,460
     Warrant liability                               2,148             --
     Deferred Revenue - long term                      218             --
     Total Liabilities                              11,016         10,460
 
     Stockholders' Equity                            3,504         14,848
 
     Total Liabilities and Stockholders' Equity    $14,520        $25,308
 
 
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                http://tbutton.prnewswire.com/prn/11690X73376579
 
 SOURCE  ON Technology Corporation