@Road (NASDAQ:ARDI)
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@Road, Inc. (Nasdaq:ARDI), a global provider of next
generation solutions for Mobile Resource Management (MRM), today
announced its results for the quarter ended March 31, 2006.
Total revenues for the first quarter of 2006 were $24.7 million, a
24% increase compared to $20.0 million for the first quarter of 2005.
Hosted revenues for the first quarter of 2006 were $20.9 million, and
licensed revenues for the first quarter of 2006 were $3.8 million.
Net loss attributable to common stockholders for the first quarter
of 2006 was $2.7 million, or $0.04 per diluted share.
Non-GAAP earnings before tax for the first quarter of 2006 were
$0.6 million, or $0.01 per diluted share. Non-GAAP earnings before tax
are calculated by adjusting GAAP net loss attributable to common
stockholders for the impacts of stock-based compensation of $0.9
million, intangibles amortization expense of $1.0 million, an expense
for the change in the value of the derivative instrument liability of
$1.2 million, a benefit from income taxes of $0.6 million, and
depreciation expense of $0.8 million. A reconciliation of non-GAAP
financial measures used in this press release to the GAAP financial
measures and presentation of the most directly comparable GAAP
financial measures can be found in the Reconciliation of GAAP to
Non-GAAP Financial Measures, included in this press release on page 8.
"New subscriber sales as well as total revenue and results of
operations were consistent with our previously provided estimates. We
believe that our first quarter performance is a good first step toward
meeting our 2006 financial objectives," said Krish Panu, president and
CEO of @Road. "We are seeing opportunities in the market for new and
add on business with customers, and we believe that momentum will
continue to build particularly in the second half of 2006."
The Company's condensed consolidated balance sheet at March 31,
2006 included $100.2 million of cash, cash equivalents and short-term
investments. "Our balance sheet remains strong and we believe that it
can help us capture the opportunity we see in the Mobile Resource
Management market," stated Mr. Panu.
Year to Date Highlights
New Customers
-- Announced that ELM Locating and Utility Services has selected
@Road as its MRM solutions provider to give real-time
visibility into the work of up to approximately 900 ELM
Underground Utility Locating Field Technicians.
-- Announced that British Gas, a Centrica company, recently
completed the deployment of the @Road Taskforce(TM) solution
to help optimize the service delivery of about 6,500 field
engineers.
-- Announced that The ServiceMaster Company has selected @Road as
its supplier of MRM solutions with an initial deployment
expected in ServiceMaster's Terminix business unit. The @Road
MRM solution is designed to provide Terminix branch managers
with greater location intelligence, manageability and
visibility into the work of up to approximately 6,000 field
personnel.
New Services
-- Introduced @Road(R) Dynamic Capacity Management (DCM(TM))
Suite. DCM is a capacity management solution designed to
optimize field service planning, capacity control and
appointment management by using intelligent automation that
can continually synchronize available resources in line with
ever-changing customer needs and preferences. DCM builds on
existing @Road capabilities for Field Service Management and
is available to both new and current customers.
-- Introduced AppSmart, a next-generation MRM solution platform
designed to enable businesses to deliver integrated field
service applications with advanced location intelligence,
mobile device independence and a higher level of business
performance on demand. AppSmart is built upon an existing
@Road product and technology portfolio and extends the @Road
vision for an on-demand application platform designed to serve
the needs of medium-sized businesses as well as the complex
field service delivery requirements of large enterprises.
Intellectual Property
-- Announced the issuance of three recently awarded patents by
the U.S. Patent and Trademark Office, bringing the Company's
patent portfolio to twenty issued patents. @Road has
additional patents and patents pending in jurisdictions
throughout the world.
Alliances
-- Announced a strategic agreement with Eaton Corporation's
Vehicle Solutions business unit. Under the terms of the
agreement, @Road and Eaton will cooperate on the development
of a comprehensive Field Asset Management (FAM) solution as
well as co-marketing and distribution initiatives in the
global commercial vehicle market.
-- Entered into an agreement with LogicaCMG that enables
LogicaCMG to integrate, market and resell the @Road Taskforce
Field Service Management software to North American utilities
as part of LogicaCMG's Asset and Resource Management (ARM)
product suite.
-- Announced a strategic relationship with Dexterra, Inc., a
leading innovator of mobile business software. By applying
Dexterra's mobile application development and integration
tools, @Road seeks to accelerate the development of
mission-critical, next-generation on-demand solutions built on
the @Road AppSmart(TM) MRM solution platform.
Awards
-- The @Road MRM Technology Demo Van was selected as a winner of
the Wireless Emerging Technologies Award at CTIA WIRELESS 2006
for the Enterprise Solutions - Location Based Services
category. Award recipients were announced at the CTIA WIRELESS
2006 Convention.
-- Received Frost & Sullivan's 2006 Customer Value Enhancement
Award for developing the @Road AppSmart on-demand technology
and service delivery platform. The Award recognizes the
company that is best positioned to expand its customer base,
while maintaining its existing installed base, through more
innovative value creation and enhancement strategies than
competing vendors.
-- Recognized by Frost & Sullivan as a "Player to Watch in 2006"
in the leading market research and consulting firm's just
released U.S. Next Generation Mobile Resource Management
study.
-- Ranked fourth on the Forbes Magazine Midas List of the 25
Fastest-Growing Technology Companies. This year's ranking for
@Road is based on a 122% five-year sales growth rate and marks
the second year in a row that @Road has ranked on the Forbes
list.
Conference Call and Webcast Details
@Road will host a teleconference Thursday, April 27, commencing at
2:00 p.m. Pacific Time, to discuss the first quarter financial
results. Participating in the call will be @Road President and CEO
Krish Panu and CFO Mike Martini. All interested parties may listen by
dialing 888-481-7939 or 617-847-8707, pass code 19466150, or by tuning
into the webcast at www.road.com.
Non-GAAP Measures
To supplement @Road's consolidated financial statements presented
in accordance with GAAP, @Road has begun providing certain non-GAAP
measures of financial performance. These non-GAAP measures include
non-GAAP earnings before tax and non-GAAP earnings before tax per
diluted share.
@Road's reference to these non-GAAP measures should be considered
in addition to results prepared under current accounting standards,
but are not a substitute for, or superior to, GAAP results.
These non-GAAP measures are provided to enhance investors' overall
understanding of @Road's current financial performance and provide
further information for comparative information due to the adoption of
the new accounting standard FAS 123(R).
Specifically, the Company believes the non-GAAP measures provide
useful information to both management and investors by excluding
certain expenses, gains and losses that may not be indicative of its
core operating results and business outlook. In addition, @Road
believes the non-GAAP measures that exclude stock-based compensation
enhance the comparability of results against prior periods.
Reconciliation to the nearest GAAP measure of all non-GAAP measures
included in this press release can be found in the financial tables
included on page 8 of this press release.
About @Road
@Road, Inc. is a leading global provider of solutions designed to
automate the management of mobile resources and to optimize the
service delivery process for customers across a variety of industries.
@Road delivers Mobile Resource Management solutions in three key
areas: Field Force Management, Field Service Management and Field
Asset Management. By providing real-time Mobile Resource Management
infrastructure integrating wireless communications, location-based
technologies, transaction processing and the Internet, @Road solutions
are designed to provide a secure, scalable, upgradeable,
enterprise-class platform, and are offered in on-demand software
delivery, on-premise or hybrid environments that can seamlessly
connect mobile workers in the field to real-time corporate data. @Road
is headquartered in Fremont, Calif., and has a global presence with
offices in North America, Europe and Asia. For more information on
@Road solutions, visit www.road.com.
Except for the historical information contained herein, the
matters discussed in this news release are forward-looking statements
involving risks and uncertainties that could cause actual results to
differ materially from those in such forward-looking statements.
Numerous factors, risks and uncertainties affect the Company's
operating results and could cause actual results to differ materially
from forecasts and estimates or from any other forward-looking
statements made by, or on behalf of, @Road, and there can be no
assurance that future results will meet expectations, estimates or
projections. These factors, risks and uncertainties include, but are
not limited to, @Road historical and future operating results and
profitability; the ability of customers to optimize operations as a
result of using @Road solutions; the market acceptance of new @Road
solutions such as AppSmart, DCM and other solutions mentioned in this
press release; the ability of @Road to develop new solutions to meet
market demand and deployment commitments; the ability of @Road and its
alliances to market, sell and support @Road solutions; the ability of
@Road and its alliances, such as Eaton, LogicaCMG and Dexterra to
perform in accordance with the terms of alliance agreements; the
ability of @Road to protect its intellectual property and enforce its
intellectual property rights; the size and timing of purchasing and
implementation decisions by ELM, The ServiceMaster Company and other
prospects and customers; competition; the dependence of @Road on
mobile data systems technology, wireless networks, network
infrastructure and positioning systems owned and controlled by others;
and general economic and political conditions. The Company cautions
the reader that the planned appearances of @Road personnel, time
and/or manner of the live teleconference, webcast and replays may
change for administrative or other reasons outside the Company's
control. Further information regarding these and other risks is
included in the @Road Report on Form 10-K dated March 22, 2006 and in
its other filings with the Securities and Exchange Commission.
@Road, the @Road logo, AppSmart, Taskforce, DCM and Vidus are
registered trademarks, trademarks or service marks of @Road, Inc. or
its subsidiaries. All other product names and services are the
property of their respective owners.
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@Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, December 31,
2006 2005
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 24,177 $ 25,773
Short-term investments 75,975 77,643
Accounts receivable, net 10,798 12,475
Inventories 10,341 6,087
Deferred product costs 17,468 16,187
Deferred tax assets 1,488 1,448
Prepaid expenses and other 1,691 2,566
--------- ---------
Total current assets 141,938 142,179
Property and equipment, net 6,185 6,195
Deferred product costs 17,425 16,995
Deferred tax assets 40,771 40,531
Goodwill 13,341 13,341
Intangible assets, net 26,323 27,333
Other assets 721 400
--------- ---------
Total assets $ 246,704 $ 246,974
========= =========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,501 $ 6,653
Accrued liabilities 7,492 8,751
Derivative liability 4,065 1,457
Deferred revenue and customer deposits 14,451 15,495
--------- ---------
Total current liabilities 35,509 32,356
Deferred revenue 17,188 17,333
Deferred tax liabilities - 323
Derivative liability - 1,457
Other long-term liabilities 428 461
--------- ---------
Total liabilities 53,125 51,930
Redeemable preferred stock 8,308 8,184
Stockholders' equity:
Common stock 266,346 265,347
Notes receivable from stockholders (6) (7)
Accumulated other comprehensive loss (99) (78)
Accumulated deficit (80,970) (78,402)
--------- ---------
Total stockholders' equity 185,271 186,860
--------- ---------
Total liabilities, redeemable preferred
stock and stockholders' equity $ 246,704 $ 246,974
========= =========
@Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data) (unaudited)
Three Months Ended
---------------------------------
March 31, December 31, March 31,
2006 2005 2005
--------- --------- ---------
Revenues:
Hosted $ 20,963 $ 21,805 $ 19,490
Licensed 3,782 5,464 502
--------- --------- ---------
Total revenues 24,745 27,269 19,992
--------- --------- ---------
Costs and expenses:
Cost of hosted revenue 11,002 10,668 9,524
Cost of licensed revenue (excluding
intangibles amortization included
below) 1,230 1,295 700
Intangibles amortization 1,010 1,010 457
Sales and marketing 5,918 5,423 4,647
Research and development 3,669 3,113 2,575
General and administrative 4,942 4,393 4,447
Impairment of intangible assets - 2,270 -
In-process research and development - - 5,640
--------- --------- ---------
Total costs and expenses 27,771 28,172 27,990
--------- --------- ---------
Loss from operations (3,026) (903) (7,998)
--------- --------- ---------
Other income, net:
Interest income, net 1,036 911 618
Change in derivative instrument
liability (1,151) 1,484 (741)
Other expense, net (17) 32 2
--------- --------- ---------
Total other (expense) income, net (132) 2,427 (121)
--------- --------- ---------
Net (loss) income before tax (3,158) 1,524 (8,119)
Benefit from income taxes 590 1,465 -
--------- --------- ---------
Net (loss) income (2,568) 2,989 (8,119)
Preferred stock dividends (124) (131) (57)
--------- --------- ---------
Net (loss) income attributable to
common stockholders $ (2,692) $ 2,858 $ (8,176)
--------- --------- ---------
Net (loss) income per share:
Basic $ (0.04) $ 0.05 $ (0.14)
--------- --------- ---------
Diluted $ (0.04) $ 0.05 $ (0.14)
--------- --------- ---------
Shares used in calculating net (loss)
income per share:
Basic 61,198 60,740 57,385
--------- --------- ---------
Diluted 61,198 62,133 57,385
--------- --------- ---------
@Road, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data) (unaudited)
Three Months Ended
March 31, 2006
------------------
Net loss attributable to common stockholders $ (2,692)
Adjustments:
Stock-based compensation 929
Intangibles amortization 1,010
Change in value of derivative instrument liability 1,151
Benefit from income taxes (590)
Depreciation expense 794
---------
Total adjustments 3,294
---------
Non-GAAP earnings before tax $ 602
=========
---------
Non-GAAP earnings before tax per diluted share $ 0.01
=========
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