GoRemote Announces First Fiscal Quarter 2005 Financial Results

GoRemote Announces First Fiscal Quarter 2005 Financial Results
Company Narrows Loss to $0.02 Per Share and Adds $1.3 Million in Cash 


MILPITAS, Calif., March 7  /PRNewswire-FirstCall/ -- GoRemote Internet
Communications, Inc. (NASDAQ:GRIC), a leading provider of secure managed remote
access solutions, announced that its revenues for the first quarter of 2005
were $12.0 million, compared with $11.9 million in the three-month period
ending January 31, 2004.  Net loss in the first quarter of 2005 was $819,000,
or $0.02 per share, compared with net loss of $1.8 million, or $0.05 per share,
in the three-month period ending January 31, 2004.  Overall gross margin was 58
percent in the first quarter of 2005, compared with 60 percent in the
three-month period ending January 31, 2004.   GoRemote had $19.3 million in
cash and cash equivalents on January 31, 2005, representing an increase of $1.3
million over the prior quarter.

"GoRemote's newly implemented go-to-market strategy showed early signs of
success during the first quarter of 2005," said Tom Thimot, President and CEO.
"We continued to expand existing relationships with carriers such as AT&T, MCI
and T-Systems GmbH.  By extending our reach into the corporate enterprise
market with our broadband solutions, directly and through channel partners, we
are well positioned to respond to the decline in legacy dialup usage caused by
broadband displacement in the remote access market."

"Approximately two quarters after our August 2004 restructuring, we are
benefiting from a strong cash balance and a stable, disciplined expense
environment," said Daniel Fairfax, Senior Vice President and Chief Financial
Officer.  "We continue to make progress toward profitability, increase deferred
revenues, and maintain expense discipline, which together with our enhanced
cash position demonstrates the long-term value inherent in our business model."

Solid Portfolio of Customers and Channel Partners

GoRemote's portfolio of customers and channel partners includes some of the
world's largest and best-known Global 2000 and Fortune 1000 enterprises, many
of which are leaders in their industries and market segments.  Revenues from
enterprise customers and VARs on a combined basis comprised 58% of the
Company's overall revenue mix in the first quarter.  GoRemote's growing roster
of worldwide customers and partners includes AT&T, Lockheed Martin Corp., MCI,
Merrill Lynch, Novartis, Philip Morris USA, Procter & Gamble, Schering-Plough,
Stanley Works, T-Systems GmbH, VeriSign and many others.

Growing Broadband Revenues

In addition to expanding its roster of enterprise customers and VARs in the
first quarter of 2005, GoRemote also increased the percentage of its revenues
that are generated from broadband and Wi-Fi related services. Approximately 40
percent of GoRemote's revenues were generated from broadband and Wi-Fi related
services in the first quarter of 2005 as compared to 34 percent in the prior
quarter.

The GoRemote Global Network(TM) includes over 16,500 unique Wi-Fi access points
with Wi-Fi access in 52 countries.  The Company also has more than 1,500
Ethernet locations, primarily in hotel chains like the Marriott, Hyatt, Hilton,
Four Seasons, Novotel and Mandarin. The broadband footprint in the aggregated
GoRemote Global Network includes thousands of mobile broadband access points
around the globe as well as DSL and cable coverage throughout North America. 
In addition to this leading broadband footprint, the GoRemote Global Network
includes more than 27,000 dial-up access locations worldwide in 153 countries
and territories.

The Company reported that it increased deferred revenues by approximately
$867,000 during the first quarter of 2005, principally reflecting broadband
service installation revenues that will be recognized over the next 24 months.
In addition, the Company reported that more than 53 percent of the Company's
revenues came from monthly subscriptions or from customer commitments.

BUSINESS OUTLOOK

The following statement is based on current expectations and information
available to us as of March 7, 2005; we do not undertake a duty to update it.
Our ability to project future results is inherently uncertain. This statement
is "forward-looking" and actual results may differ materially as a result of
risks outlined below.

**The Company expects to be profitable during 2005.**

The statements by Tom Thimot and Daniel Fairfax, and the Company's statements
about revenue trends and business outlook, are forward-looking statements that
involve risks and uncertainties. Factors that could cause such statements to be
inaccurate include the risk factors listed from time to time in our most recent
reports on Form 10-K and Form 10-Q on file with the SEC and available through
http://www.sec.gov/.

Following the publication of its quarterly earnings release, GoRemote will
continue its practice of having company representatives meet privately with
investors, the media, investment analysts and others. At the same time,
GoRemote will keep its earnings release publicly available on its Web site
(http://www.goremote.com/). As of today, GoRemote has not provided an outlook
for future periods.

Towards the end of each fiscal quarter, GoRemote will observe a "Quiet Period"
when it no longer publishes or updates information about GoRemote's current
expectations. During the Quiet Period GoRemote representatives will not comment
concerning GoRemote's financial results or expectations. The Quiet Period
begins on the first day of the last month of each fiscal quarter and continues
until the day when GoRemote publishes its next earnings release.

GoRemote's second fiscal quarter began February 1 and will end on April 30,
2005.  As a result, the Quiet Period for the second fiscal quarter of 2005 will
begin April 1, 2005 and end when we announce our results for that quarter.

About GoRemote

GoRemote Internet Communications, Inc. (NASDAQ:GRIC) is the world's leading
provider of secure remote access solutions, enabling customers to achieve
best-of-breed network security, while reducing capital and operating expenses
associated with their mobile and remote workforces. GoRemote provides a
comprehensive portfolio of managed remote access solutions for mobile office,
teleworker/home offices, and branch office/retail environments. The GoRemote
Global Network(TM) includes more than 45,000 wired and wireless access points
in over 150 countries. More information about GoRemote is available at
http://www.goremote.com/ or by calling [phone].

GoRemote, GoRemote Internet Communications, GoRemote Mobile Office, GoRemote
Teleworker/Home Office, GoRemote Branch Office, GoRemote Global Network,
GoRemote Revolution, GoRemote Total Security Protection, GoRemote Universal
Remote Control and "For the everywhere enterprise" are trademarks of GoRemote
Internet Communications, Inc.  All other trademarks mentioned in this document
are the property of their respective owners.

  GoRemote Internet Communications, Inc.
  Condensed Consolidated Statements of Operations
  (in thousands, except per share data)
  (unaudited)
                                                     Three Months Ended
                                                         January 31,
                                                   2005              2004

  Revenues                                       $11,976           $11,918

  Costs and expenses:

  Cost of revenues                                 5,012             4,709
  Network and operations                           2,159             1,711
  Research and development                           583               868
  Sales and marketing                              3,109             4,758
  General and administrative                       1,595             1,361
  Amortization of stock-based
   compensation & intangibles                        301               326
  Restructuring charge (benefit)                      60                --
  Total costs and expenses                        12,819            13,733

  Loss from operations                              (843)           (1,815)

  Other income (expense), net                         55                (6)

  Operating income (loss) before income
   taxes                                            (788)           (1,821)

  Provision for income taxes                          31                22

  Net income (loss) attributable to
   common stockholders                             $(819)          $(1,843)

  Basic and diluted net loss per share            $(0.02)           $(0.05)

  Shares used in basic and diluted per
   share calculation                              41,320            34,474


  GoRemote Internet Communications, Inc.
  Condensed Consolidated Balance Sheets
  (in thousands)
  (unaudited)
                                                January 31,      October 31,
                                                   2005              2004
  Assets

  Cash, cash equivalents and short-term
   investments                                   $19,334           $18,021
  Accounts receivable, net                         5,850             7,243
  Inventory                                          139               119
  Other current assets                             2,395             2,150

  Total current assets                            27,718            27,533

  Property and equipment, net                      1,563             1,694
  Goodwill                                        21,612            21,612
  Purchased intangible assets                      3,631             3,876
  Other assets                                     1,268             1,182

  Total Assets                                   $55,792           $55,897

  Liabilities and Stockholders' Equity

  Accounts payable                                $6,050            $6,571
  Accrued restructuring                              183               434
  Deferred revenue                                 3,624             2,741
  Other current liabilities                        2,537             2,468

  Total current liabilities                       12,394            12,214

  Deferred revenue, less current
   portion                                         1,289             1,305
  Restructuring accrual, less current
   portion                                           370               416

  Total stockholders' equity                      41,739            41,962

  Total Liabilities and Stockholders'
   Equity                                        $55,792           $55,897


DATASOURCE: GoRemote Internet Communications, Inc.



CONTACT:  investors, Daniel Fairfax, [phone], or

, or media, Bethany Sebra, [phone], or

, both of GoRemote Internet Communications, Inc.



Web site:  http://www.goremote.com/ 

Copyright