CellPoint Inc. Files Third Quarter Results

CellPoint Inc. Files Third Quarter Results; Announces Financial Calendar for 2001/2 London, May 16 - CellPoint Inc. (Nasdaq: CLPT) has filed the Company's unaudited financial results for the fiscal third quarter ended March 31, 2001. Revenues were $2,463,294 for the quarter and $4,388,301 for the nine months ended March 31, 2001. Revenues grew 2.5 times faster than operating expenses and increased 828% over the same time last year and 160% over the previous quarter. During the quarter, the Company focused on keeping operating expenses under control; this together with the increased sales resulted in an improvement in EBITDA* to -$3,108,448, with the average burn-rate down to just over $1 million per month. Current assets at the end of the quarter were $8.5 million, compared to $11.6 million at the end of Q2. The Company has grown to 150 staff from 66 a year ago. Results for the nine-month period ending March 31, 2001 report revenues of $4,388,301 compared to $619,274 for the period ending March 31, 2000, an increase of 609%. For the nine-month period, EBITDA* was -$8,703,811. Selling, general and administrative expenses were $11,063,744 for the nine-month period compared to $2,580,902 in 2000. The Company incurred a Net loss of $20,026,376 which included depreciation and amortization expenses of $9,593,495, $7,737,576 of which was attributable to the acquisition of Unwire in February 2000. This compares to a Net loss of $6,511,820 for the same period ending March 31, 2000. Preliminary results were released in a press release on April 30, 2001, http://www.cellpt.com/PR/010214eng.htm. There are no material changes in the final results from the preliminary results reported therein. Peter Henricsson, Chairman & CEO of CellPoint Inc., discussed the quarterly report in a Q&A session; a full transcript is posted at http://www.cellpt.com/corporateupdate2.htm. The Company's full report on Form 10QSB can be viewed at http://www.freeedgar.com. CellPoint's financial calendar for upcoming reporting: Fiscal Year 2000/2001 for the year ending June 30, 2001 - August 29,2001 Q1 2001/2002 for the quarter ending September 30, 2001 - November 15,2001 Q2 2001/2002 for the quarter ending December, 2001 - February 14, 2002 Q3 2001/2002 for the quarter ending March 31, 2002 - May 15, 2002 Fiscal Year 2001/2002 for the year ending June 30, 2002 - August 29,2002 (*) EBITDA is defined as: Earnings (loss) before financial items, taxes, depreciation and amortization. CELLPOINT INC. and SUBSIDIARIES Consolidated Balance Sheets (Amounts in US$) March 31, 2001 June 30, 2000 ASSETS (unaudited) (audited) Current assets: Cash and cash equivalents $4,411,243 $6,624,662 Accounts receivable, net of allowance for 1,184,325 211,948 doubtful accounts of $nil and $36,732, respectively Prepaid expenses and other current assets 1,927,815 532,617 Other receivables 552,501 242,198 Inventory 424,446 169,635 8,500,330 7,781,060 Total current assets Long-term assets: Acquired technology net of amortization 61,064,009 68,801,585 of $11,153,363 and $3,415,787, respectively Investment in affiliated company 500,000 Other intangible assets, net of 7,259,643 8,993,080 amortization of $4,356,624 and $2,760,972, respectively Furniture, equipment and motor vehicles, 1,355,114 630,585 net of depreciation of $440,375 and $180,108, respectively 69,678,766 78,925,250 Total long-term assets $78,179,096 $86,706,310 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accrued expenses and other current $2,222,575 $1,623,441 liabilities Accounts payable 1,443,786 786,766 Due to affiliate 55,517 Other loans and overdrafts and current 4,101,086 140,510 maturities of long term debt Total current liabilities 7,767,447 2,606,234 Long term debt, net of current maturities 7,938,371 4,000,000 Total liabilities $15,705,818 $6,606,234 Stockholders' equity: Common Stock ($0.001 par value; $10,733 $10,465 22,000,000 shares authorized, 10,733,030 shares and 10,465,000 shares issued and outstanding, respectively) Additional paid-in capital 98,359,043 95,434,348 Cumulative translation adjustment (232,518) 292,866 Accumulated deficit (35,663,980) (15,637,603) Total stockholders' equity 62,473,278 80,100,076 Total liabilities and stockholders' $78,179,096 $86,706,310 equity CELLPOINT INC. and SUBSIDIARIES Consolidated Statements of Operations (Amounts in US$) Three Months Nine Months Ended Ended March 31, March 31, March 31, March 2001 2000 2001 31, (unaudited) (unaudited) (unaudited) 2000 (unaudited) Sales, net $2,463,294 $265,511 $4,388,301 $619,274 Cost of sales 460,351 62,458 920,325 62,458 Gross profit 2,002,943 203,053 3,467,976 556,816 Selling, general and (4,742,237) (600,521) (11,063,744) (2,580,902) administrative expenses Professional fees (369,154) (1,027,433) (1,108,043) (1,270,967) Depreciation and (3,254,529) (1,379,378) (9,593,495) (2,398,419) amortization Total operating (8,365,920) (3,007,332) (21,765,282) (6,250,288) expenses Loss from operations (6,362,977) (2,804,279) (18,297,306) (5,693,472) Financial Items Loss on sale of 0 0 (342,285) 0 investment Net interest income (633,797) (9,172) (1,386,785) (818,348) (expense) Net Loss (6,996,774) (2,813,451) (20,026,376) (6,511,820) Net loss per share (.66) (.29) (1.91) basic and diluted (.73) Weighted average 10,609,015 9,748,333 10,511,861 8,933,361 shares outstanding basic and diluted CellPoint Inc. (Nasdaq and Stockholm OM Exchange: CLPT, www.cellpoint.com) is a US company with subsidiary operations in Sweden, Great Britain and South Africa delivering location and wireless telemetry services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in unmodified GSM networks and uses standard GSM or WAP phones and standard Internet services. Several commercial applications are available for business and personal location services including Resource Managertm for mobile resource management, iMatetm for location-sensitive information and Findertm, an application for locating friends and family. Subsidiary Unwire's programmable telemetry terminal servers are also integrated with the CellPoint System Platform enabling a broad range of applications for wireless remote management and control. For information, please contact: CellPoint Inc.: Lynn Duplessis, Tel: +44 1344 624 565, lynn.duplessis@cellpoint.com CellPointtm and CellPoint Systemstm are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward- looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties that may cause actual results to differ from those described. Copyright © CellPoint Inc. 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/16/20010516BIT00200/bit0002.doc http://www.bit.se/bitonline/2001/05/16/20010516BIT00200/bit0002.pdf