EX-99.1 2 f05671exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

     
CONTACTS:
   
Insignia Solutions
  Financial Dynamics
Robert Collins, Chief Financial Officer
  Investors: Teresa Thuruthiyil
(510) 360-3700
  (415) 439-4500

INSIGNIA SOLUTIONS REPORTS FOURTH QUARTER 2004
FINANCIAL RESULTS

FREMONT, Calif., February 10, 2005 — Insignia Solutions (Nasdaq: INSG) today reported financial results for the fourth quarter ended December 31, 2004.

Insignia reported fourth quarter net revenues of $8,000 from the ongoing launch and commercialization of the Company’s new technology, Secure System Provisioning (SSPv2) for the comprehensive device management of a growing, complex and diverse array of mobile devices. The net loss in the fourth quarter was $2.1 million, or $0.06 per share. As of December 31, 2004, the Company had cash and cash equivalents of $902,000.

For the twelve months ended December 31, 2004, Insignia reported net revenues of $541,000. The net loss for 2004 was $7.1 million, or $0.23 per share.

Recent Highlights:

•   In a separate release today, the Company announced that it has entered into an agreement to acquire mi4e Device Management AB, a private company headquartered in Sweden. The acquisition, which is subject to customary closing conditions, is expected to close by March 1, 2005. Furthermore, the Company has secured new equity financing to fund the combined company’s new business pursuits.

•   On December 9, 2004, Insignia announced the appointments of David Lai to Vice President of Field Operations and Mario Cohen Andijar to Director of Southern European and Latin American Sales.

•   In November 2004, the Company announced the deployment of SSP v2 mobile device management platform with the Hong Kong Wireless Development Centre Ltd. (HKWDC) to support the mobile operator community of Hong Kong. The Centre provides a multi-operator and multi-vendor platform with connectivity to the wireless network including GSM, GPRS, 802.11, EDGE and 3G. Insignia SSP v2 has been installed in HKWDC’s facility at Cyberport in Hong Kong SAR and is in the process of testing and deployment with operators.

 


 

Conference Call

Insignia Solutions will host a conference call on Thursday, February 10, 2005 at 2:00 p.m. Pacific Time. A live webcast will be available via a link on the Investor Relations portion of Insignia’s website at www.insignia.com A question and answer session will follow immediately. An on-demand archive of the call will be available through the Company’s website for a period of two weeks after the event.

About Insignia Solutions
Insignia provides an important ingredient to mobile operators and terminal manufacturers by enabling customers to manage a growing, complex and diverse community of mobile devices. Insignia’s products and services radically reduce customer care and recall costs, maintain device integrity, and enable a wide range of new mobile services. Founded in 1986, Insignia has a long history of innovation, stewardship of major industry standards, and the trust of dozens of manufacturers around the world. Insignia Solutions is traded on the NASDAQ under the symbol INSG. The company is headquartered in Fremont, California with research and development and European operations based in the United Kingdom. For additional information about Insignia or its products please visit http://www.insignia.com.

Insignia, Insignia Solutions, and the Insignia Solutions logo are registered trademarks, and Secure System Provisioning, Open Management Client, Dynamic Capabilities and Over-The-Air Repair are trademarks of Insignia Solutions, Inc. All other trademarks are the property of their respective holders.

Forward-Looking Statements
The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties. This release includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, Insignia’s need for additional capital to sustain operations, Insignia’s reliance on the successful introduction of its SSP v2 product line, Insignia’s need to generate significantly greater revenue to achieve profitability and Insignia’s liquidity and capital needs. Further details on these and other risks are set forth in Insignia Solutions’ filings with the Securities and Exchange Commission, including its most recent filings on Forms 10-K and 10-Q. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Insignia Solutions does not undertake an obligation to update forward-looking or other statements in this release.

(Tables Follow)

 


 

INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)

                 
    December 31,     December 31,  
    2004     2003  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 902     $ 2,212  
Restricted cash
    50       20  
Accounts receivable
    175       50  
Other receivables
    241       1,153  
Tax receivable
    322       391  
Prepaid royalties
          2,185  
Prepaid expenses
    456       410  
 
           
Total current assets
    2,146       6,421  
Property and equipment, net
    140       154  
Investment in affiliate
    68        
Other assets
    233       219  
 
           
 
             
 
  $ 2,587     $ 6,794  
 
           
                      LIABILITIES, REDEEMABLE WARRANTS AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 241     $ 468  
Accrued liabilities
    995       1,239  
Note payable
          1,000  
Deferred revenue
    10       1,460  
 
           
Total current liabilities
    1,246       4,167  
 
           
Redeemable warrants
          38  
 
           
Shareholders’ equity:
               
Ordinary shares
    11,940       8,111  
Additional paid-in capital
    64,458       61,898  
Common stock subscription
          575  
Accumulated deficit
    (74,596 )     (67,534 )
Other accumulated comprehensive loss
    (461 )     (461 )
 
           
Total shareholders’ equity
    1,341       2,589  
 
           
 
  $ 2,587     $ 6,794  
 
           

 


 

INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)

                                 
    Three months ended     Twelve months ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
Net revenues:
                               
License
  $     $ 129     $ 521     $ 522  
Service
    8       1       20       188  
 
                       
Total net revenues
    8       130       541       710  
 
                       
Cost of net revenues:
                               
License
          67       28       288  
Service
    14             14       52  
 
                       
Total cost of net revenues
    14       67       42       340  
 
                       
Gross profit
    (6 )     63       499       370  
 
                       
Operating expenses:
                               
Sales and marketing
    588       428       2,511       1,757  
Research and development
    681       678       2,807       3,373  
General and administrative
    715       481       2,579       2,676  
Restructuring
          18             498  
 
                       
Total operating expenses
    1,984       1,605       7,897       8,304  
 
                       
Operating loss
    (1,990 )     (1,542 )     (7,398 )     (7,934 )
Interest income (expense), net
          (13 )     6       (40 )
Other income (expense), net
    1       (277 )     249       3,141  
 
                       
Loss before income taxes
    (1,989 )     (1,832 )     (7,143 )     (4,833 )
Provision for (benefit from) income taxes
    130       (91 )     (81 )     (510 )
 
                       
Net loss
  $ (2,119 )   $ (1,741 )   $ (7,062 )   $ (4,323 )
 
                       
Net loss per share Basic
  $ (0.06 )   $ (0.07 )   $ (0.23 )   $ (0.20 )
 
                       
Diluted
  $ (0.06 )   $ (0.07 )   $ (0.23 )   $ (0.20 )
 
                       
Weighted average shares and share equivalents:
                               
Basic
    33,495       24,539       30,191       21,231  
 
                       
Diluted
    33,495       24,539       30,191       21,231