Teknowledge Reports 2000 Results

Apr 03, 2001, 01:00 ET from Teknowledge Corporation

    PALO ALTO, Calif., April 3 /PRNewswire/ --
 Teknowledge Corporation (Nasdaq: TEKC) ( http://www.teknowledge.com ) ended
 2000 on a profitable note reporting net income of $158,859, or $.03 diluted
 earnings per share, on revenues of $3,405,931 for the quarter ended
 December 31, 2000.  This marks Teknowledge's 26th consecutive quarter of
 profitability.  In the comparable period in 1999, Teknowledge reported
 revenues of $2,626,178 on earnings of $41,325, or $.01 diluted earnings per
 share.  Revenues between periods improved as a result of continuing sales of
 the Company's TekPortal product to banks and financial institutions.
     Total revenues were $14,376,024 in 2000 compared to $11,094,672 in
 1999 and net income was $392,017, or $.07 diluted earnings per share, compared
 to $383,539, or $.07 diluted earnings per share, in the previous fiscal year.
 Approximately 36% of revenues were from the sales of Financial Systems and
 64% from government-sponsored contract R&D in 2000.  This compares to 15% and
 85%, respectively, in 1999.
     Neil Jacobstein, President and CEO, commented:  "Teknowledge is
 experiencing increased customer demand for its TekPortal(TM) product and
 services.  Financial products and services were 15% of revenue in 1999, and
 they are now 36% of total revenue in 2000.  We are committed to growing the
 business as rapidly as possible to increase Teknowledge's share of the
 financial information aggregation and portfolio management marketplace.
 Teknowledge's funded research and development in Internet security, knowledge
 systems, web-based training, and distributed systems is also growing.  This
 opens many opportunities to add value to TekPortal, as well as our partner's
 products, and our financial services customers."
 
     About Teknowledge
     Teknowledge's core business is intelligent Internet transactions.  These
 transactions provide flexible, secure, and knowledge-based interactions with
 customers.  The Company provides solutions for commercial and government
 Internet applications.  Teknowledge's eCommerce Division delivers
 TekPortal(TM) and 3rd-party software and services for financial institutions.
 Teknowledge holds an extensive intellectual property portfolio with nine key
 software patents.
     This press release contains forward-looking statements relating to the
 demand, market acceptance, and anticipated growth of products and services
 offered by the Company that are subject to a high level of uncertainty.  All
 forward-looking statements involve risk and uncertainties, and actual results
 could differ materially from those set forth in the forward-looking statements
 contained herein.
 
 
                              TEKNOWLEDGE CORPORATION
                            Consolidated Balance Sheets
 
                                   (In thousands)
 
                                                       Dec. 31,       Dec. 31,
                                                         2000           1999
     Assets
 
     Cash and cash equivalents                         $1,049         $1,951
     Receivables and unbilled charges                   4,761          3,263
     Other Assets                                          38             76
     Deferred tax asset, short-term                       268            400
     Capitalized software, net                          2,292            360
     Equipment and improvements, net                      486            377
     Deferred tax asset, long-term                        500            500
     Investiment in GlobalStake.com                     1,134            212
     Other Long Term Assets                                25             29
 
     Total assets                                     $10,553         $7,168
 
 
     Liabilities and stockholders' equity
 
     Accounts payable                                  $2,098           $747
     Accrued payroll & related liabilities                733            660
     Short-term loans                                   1,350
     Other accrued liabilities                            279            221
     Stockholders' equity                               6,093          5,540
 
     Total liabilities and stockholders' equity       $10,553         $7,168
 
 
                              TEKNOWLEDGE CORPORATION
                           Consolidated Income Statements
 
                       (In thousands, except per share data)
 
 
                                                         Three Months Ended
                                                            December 31,
                                                         2000          1999
 
     Revenues                                          $3,406         $2,626
     Costs and expenses                                 3,252          2,613
 
     Operating income                                     154             13
     Nonoperating income                                  (18)            28
 
     Income before tax                                   $136            $41
     Provision for income tax                             (23)            --
 
     Net income                                           159             41
 
     Diluted net income per share                       $0.03          $0.01
 
     Shares used in computing
      net income per share                              5,338          5,810
 
 

SOURCE Teknowledge Corporation
    PALO ALTO, Calif., April 3 /PRNewswire/ --
 Teknowledge Corporation (Nasdaq: TEKC) ( http://www.teknowledge.com ) ended
 2000 on a profitable note reporting net income of $158,859, or $.03 diluted
 earnings per share, on revenues of $3,405,931 for the quarter ended
 December 31, 2000.  This marks Teknowledge's 26th consecutive quarter of
 profitability.  In the comparable period in 1999, Teknowledge reported
 revenues of $2,626,178 on earnings of $41,325, or $.01 diluted earnings per
 share.  Revenues between periods improved as a result of continuing sales of
 the Company's TekPortal product to banks and financial institutions.
     Total revenues were $14,376,024 in 2000 compared to $11,094,672 in
 1999 and net income was $392,017, or $.07 diluted earnings per share, compared
 to $383,539, or $.07 diluted earnings per share, in the previous fiscal year.
 Approximately 36% of revenues were from the sales of Financial Systems and
 64% from government-sponsored contract R&D in 2000.  This compares to 15% and
 85%, respectively, in 1999.
     Neil Jacobstein, President and CEO, commented:  "Teknowledge is
 experiencing increased customer demand for its TekPortal(TM) product and
 services.  Financial products and services were 15% of revenue in 1999, and
 they are now 36% of total revenue in 2000.  We are committed to growing the
 business as rapidly as possible to increase Teknowledge's share of the
 financial information aggregation and portfolio management marketplace.
 Teknowledge's funded research and development in Internet security, knowledge
 systems, web-based training, and distributed systems is also growing.  This
 opens many opportunities to add value to TekPortal, as well as our partner's
 products, and our financial services customers."
 
     About Teknowledge
     Teknowledge's core business is intelligent Internet transactions.  These
 transactions provide flexible, secure, and knowledge-based interactions with
 customers.  The Company provides solutions for commercial and government
 Internet applications.  Teknowledge's eCommerce Division delivers
 TekPortal(TM) and 3rd-party software and services for financial institutions.
 Teknowledge holds an extensive intellectual property portfolio with nine key
 software patents.
     This press release contains forward-looking statements relating to the
 demand, market acceptance, and anticipated growth of products and services
 offered by the Company that are subject to a high level of uncertainty.  All
 forward-looking statements involve risk and uncertainties, and actual results
 could differ materially from those set forth in the forward-looking statements
 contained herein.
 
 
                              TEKNOWLEDGE CORPORATION
                            Consolidated Balance Sheets
 
                                   (In thousands)
 
                                                       Dec. 31,       Dec. 31,
                                                         2000           1999
     Assets
 
     Cash and cash equivalents                         $1,049         $1,951
     Receivables and unbilled charges                   4,761          3,263
     Other Assets                                          38             76
     Deferred tax asset, short-term                       268            400
     Capitalized software, net                          2,292            360
     Equipment and improvements, net                      486            377
     Deferred tax asset, long-term                        500            500
     Investiment in GlobalStake.com                     1,134            212
     Other Long Term Assets                                25             29
 
     Total assets                                     $10,553         $7,168
 
 
     Liabilities and stockholders' equity
 
     Accounts payable                                  $2,098           $747
     Accrued payroll & related liabilities                733            660
     Short-term loans                                   1,350
     Other accrued liabilities                            279            221
     Stockholders' equity                               6,093          5,540
 
     Total liabilities and stockholders' equity       $10,553         $7,168
 
 
                              TEKNOWLEDGE CORPORATION
                           Consolidated Income Statements
 
                       (In thousands, except per share data)
 
 
                                                         Three Months Ended
                                                            December 31,
                                                         2000          1999
 
     Revenues                                          $3,406         $2,626
     Costs and expenses                                 3,252          2,613
 
     Operating income                                     154             13
     Nonoperating income                                  (18)            28
 
     Income before tax                                   $136            $41
     Provision for income tax                             (23)            --
 
     Net income                                           159             41
 
     Diluted net income per share                       $0.03          $0.01
 
     Shares used in computing
      net income per share                              5,338          5,810
 
 SOURCE  Teknowledge Corporation