Be Incorporated Reports Second Quarter Results

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Be Incorporated Reports Second Quarter Results

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Be Incorporated
Guillaume Perrotin, 650/462-4100
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Be Incorporated Reports Second Quarter Results

MENLO PARK, Calif.-- July 19, 2000 -- Be Incorporated (Nasdaq:BEOS) today reported financial results for the quarter ended June 30, 2000.
Net revenues for the second quarter of 2000 were $142,000. Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the second quarter of 2000 of $4.5 million, or $0.13 per share, as compared to a net loss of $4.7 million, or $1.11 per share, for the same period in 1999, and a net loss of $5.0 million, or $0.14 per share, in the first quarter of 2000.
Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the second quarter of 2000 was $5.1 million, or $0.14 per share, compared to $6.6 million, or $1.54 per share, for the same period in 1999 and $6.0 million, or $0.17 per share, for the first quarter of 2000.
``As in the first quarter, we show a decrease in net revenues as compared to the corresponding quarter of 1999. This decrease was expected and is attributable to our decision to make the desktop version of our operating system available for free download, as we reported in our January 18th press release. However, while first quarter revenues were generated from revenue deferred in previous quarters, second quarter revenues are primarily attributable to actual shipments during the quarter under the recently announced publisher agreements'' commented Jean-Louis Gassée, president and chief executive officer. ``To date, all of our revenues have been derived from BeOS and this will continue to be the case until our partners who use BeIA, our software platform for Internet appliances, begin shipping devices incorporating BeIA. Thereafter, we expect future revenues to be derived primarily from BeIA.''
Gobe Software, Be's publishing partner for the Americas and English-speaking territories of the Pacific Rim, began shipping BeOS 5 Pro Edition into American retail channels at the beginning of the quarter, while Hitachi, the publishing partner for Japan, began shipments at the end of the quarter. Be's publishing partners in Europe, Koch Media and Apacabar, began shipments in their territories earlier this month and therefore did not contribute to second quarter revenues.
``Since announcing our focus on Internet appliances early in the first quarter, and formally launching BeIA, our software platform for Internet appliances, we have made significant progress with appliance partners such as Compaq, F.I.C. and National Semiconductor,'' commented Mr. Gassée. ``In addition, we have recently announced significant new partnerships, including strategic Internet appliance relationships with Thomson Multimedia for mp3 encoding and decoding, Gemplus for smart card technology to enable secure e-commerce and Metricom for high-speed wireless Internet access.''
Forward Looking Statements
Statements contained in this Press Release that are not historical facts are ``forward-looking statements'' including without limitation statements regarding the demand for, future market penetration and market acceptance of BeIA and BeOS, the shipment dates of Be's products, and the future operating results of Be Incorporated. Actual events or results may differ materially as a result of risks facing Be Incorporated or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, risks related to competition, market acceptance and market penetration of Be's products, ability to establish and maintain strategic relationships, the benefit of Be's products to OEM and Internet appliance manufacturers. the continued availability of third party BeOS applications and drivers, and the ability to establish and maintain strategic publishing relationships. All forward-looking statements are expressly qualified in their entirety by the ``Risk Factors'' and other cautionary statements included in Be Incorporated's Annual Report on Form 10-K for the year ended December 31, 1999, and other public filings with the Securities and Exchange Commission.
About Be®
Founded in 1990, Be Incorporated creates software platforms that enable rich media and web experiences on personal computers and Internet appliances. Be's headquarters are in Menlo Park, California, and its European office is in Paris, France. It is publicly traded on the Nasdaq National Market under the symbol BEOS. Be can be found on the web at http://www.be.com/.
BE INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2000 1999 2000 1999 Net revenues $ 142 $ 537 $ 396 $ 846 Cost of revenues 261 239 554 324 ------- ------- ------- ------- Gross profit (loss) (119) 298 (158) 522 Operating expenses: Research and development 1,843 1,783 3,991 3,670 Sales and marketing 1,983 2,460 4,154 4,341 General and administrative 839 822 1,789 1,559 Amortization of deferred stock compensation 657 1,713 1,690 3,378 ------- ------ ------- ------- Total operating expenses 5,322 6,777 11,624 12,948 ------- ------ ------- ------- Loss from operations (5,441) (6,479) (11,782) (12,426) Other income, net 322 32 663 133 ------- ------ ------- ------- Net Loss $(5,119) $(6,447) $(11,119) $(12,293) ======= ======= ======= ======= Net loss attributable to common stockholders $(5,119) $(6,578) $(11,119) $(12,557) ======== ======= ======= ======= Basic and diluted net loss per share $ (0.14) (1.54) $ (0.32) $ (3.07) ======== ======= ======= ======= Shares used to compute basic and diluted net loss per share 35,496 4,266 35,247 4,090 ======== ======= ======= ======= Net loss per share excluding amortization of deferred compensation and preferred stock accretion $ (0.13) $ (1.11) $ (0.27) $ (2.18) ======= ======= ======= ======= BE INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, ASSETS 2000 1999 (Unaudited) (Audited) ---- ---- Current assets: Cash, cash equivalents and short term investments $ 22,304 $ 29,129 Accounts receivable, net 129 167 Prepaid expenses and other 585 730 ------------- ------------- Total current assets 23,018 30,036 Property and equipment, net 477 562 Other assets 1,381 1,722 ------------- ------------- Total Assets $ 24,876 $ 32,310 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 289 $ 860 Accrued expenses 1,358 1,550 Technology license obligations 599 777 Deferred revenue 80 99 ------------- ------------ Total current liabilities 2,326 3,286 Technology license obligations 505 597 Total stockholders' equity 22,045 28,427 ------------- ------------ Total Liabilities and Stockholders' Equity $ 24,876 $ 32,310 ============= =============

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