CONVERA CORPORATION 
By
Revenue from continuing operations for the second quarter of fiscal 2009
increased to
As of
As of today, a total of 81 Excalibur supported vertical search sites are under contract with customers, 47 of these sites have been commercially launched and 34 of these sites are in development. These contracted sites represent publications in over 24 major vertical industries.
Convera is presently providing vertical search services to 31 different
trade publishers.
The loss from continuing operations for the three-month period ended
The decreased loss reflects a reduction in staffing levels and Convera's efforts to discontinue non-strategic activities stemming from cost streamlining actions taken during fiscal 2008. Convera expects to continue to receive benefits from these actions in the coming quarters as a result of continued alignment of resources to pursue the on-line publishing and media marketplace.
Net loss for the three months ended
Cash and investments as of
The attached financial information compares the results of operations for
the three-months and six-months
The condensed, consolidated statements of operations for the Company for
the three months ended July 31, 2008 and 2007 appear below and are presented
in accordance with accounting principles generally accepted in the United
States. All amounts, except per share amounts, are expressed in thousands of
U.S. dollars.
Three Months Ended
July 31,
2008 2007
Continuing Operations: (unaudited) (unaudited)
Revenues:
Hosted services $469 $255
Operating Expenses:
Cost of revenue - hosted services 1,854 2,071
Sales and marketing 772 1,193
Research and product development 1,059 906
General and administrative 1,355 2,592
Total Expense 5,040 6,762
Operating loss (4,571) (6,507)
Other income, net 945 478
Net (loss) from continuing operations $(3,626) $(6,029)
Discontinued Operations:
Income(loss) from discontinued operations - (186)
Net Loss $(3,626) $(6,215)
Earnings(loss) per share - basic & diluted
Continuing operations $(0.07) $(0.11)
Discontinued operations - (0.01)
$(0.07) $(0.12)
Weighted average number of common
shares outstanding - basic and diluted 53,327 53,177
The condensed, consolidated statements of operations for the Company for
the six months ended July 31, 2008 and 2007 appear below and are presented in
accordance with accounting principles generally accepted in the United States.
All amounts, except per share amounts, are expressed in thousands of U.S.
dollars.
Six Months Ended
July 31,
2008 2007
Continuing Operations:
Revenues:
Hosted services $871 $579
Operating Expenses:
Cost of revenue - hosted services 3,682 4,004
Sales and marketing 1,648 2,212
Research and product development 2,293 2,195
General and administrative 3,424 6,915
Total Expense 11,047 15,326
Operating loss (10,176) (14,747)
Other income , net 1,124 969
Net (loss) from continuing operations $(9,052) $ (13,778)
Discontinued Operations:
Income(loss) from discontinued operations - 20
Net Loss $(9,052) $ (13,758)
Earnings(loss) per share - basic & diluted
Continuing operations $(0.17) $(0.26)
Discontinued operations - -
$(0.17) $(0.26)
Weighted average number of common
shares outstanding - basic and diluted 53,317 53,041
The condensed, consolidated Balance Sheets for the Company as of
July 31, 2008 January 31, 2008
Assets (Unaudited)
Current Assets:
Cash and cash equivalents $27,421 $36,641
Accounts receivable, net 692 182
Escrow, Prepaid expenses and other 4,996 3,796
Total current assets 33,109 40,619
Equipment and leasehold improvements, net 4,509 4,913
Other assets 609 835
Total assets $38,227 $46,367
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $1,431 $699
Accrued expenses 1,847 2,282
Deferred revenues 7 651
Total Liabilities 3,285 3,632
Shareholders' Equity 34,942 42,735
Total liabilities and shareholders' equity $38,227 $46,367
Convera(R) management will host a conference call to discuss the results
on
Conference call participants should dial 866-202-4367 (domestic), 617-213-
8845 (international) and, when prompted, enter pass code number 82728522 at
approximately
In addition, a non-interactive audio Web cast of the conference call will be available live. To access the Web cast, please go to Convera's Web site, www.convera.com and under "Company" and "Investors" click on the live Web cast.
For individuals unable to participate live, a playback of the call will be
available following the conference call beginning at
About Convera(R)
Convera is the leading provider of vertical search services for publishers. Convera enables publishers to generate additional revenue by creating customized search applications for specialist audiences under their own brand.
Convera vertical search applications can combine publisher proprietary content with an editorially vetted best of the Web for specific professional audiences, providing an authoritative and comprehensive search experience. Many of the world's largest publishers are working with Convera to accelerate their e-publishing strategies, meet growing online revenue goals and build loyal online professional communities.
This release, including any statements from Convera personnel, contains
statements about Convera's future expectations, performance, plans, and
prospects, as well as assumptions about future events. The reader is cautioned
not to put undue reliance on these forward-looking statements, as these
statements are subject to numerous factors and uncertainties, including
without limitation, business and economic conditions and trends; the ability
to continue funding operating losses; fluctuations in operating results
including impacts from reduced corporate IT spending and lengthier sales
cycles; continued success in technological advances and development; possible
disruption in commercial activities caused by terrorist activity and armed
conflict, such as changes in logistics and security arrangements; reduced
customer demand relative to expectations; competitive factors; and other risk
factors listed from time to time in the company's reports to the Securities
and Exchange Commission. Actual results may differ materially from our
expectations as the result of these and other important factors relating to
Convera's business and product development efforts, which are further
described in Convera's filings with the SEC. These filings can be obtained
from the SEC's website located at www.sec.gov. Any forward-looking statements
are based on information available to Convera on the date of this release, and
Convera assumes no obligation to update such statements. Convera(R) and the
Convera design logo are trademarks of Convera in
SOURCE Convera Corporation
