Earnings Conference Call Scheduled for Wednesday, August 7, 2002 at 8:30 A.M. EDT
Southborough, Mass. - August 6, 2002 - ViryaNet (NASDAQ: VRYA), a provider of integrated wireless and Web-based software applications for workforce management and the automation of field service delivery, today announced preliminary revenues and earnings for the second quarter of 2002.
For the quarter ended June 30, 2002, the Company expects to report revenues of approximately $1.5 million and a net loss of approximately $2.6 million, or $0.98 per share. The Company's available cash position on June 30, 2002, including its full line of credit, was $9.4 million, compared to $9.5M at the end of the previous quarter.
The Company attributed its lower than expected preliminary results to the general state of the economy and difficult business conditions, resulting in continuing delays in closing deals.
The Company took extra time to carefully consider the accounting treatment of its results for the quarter, and on August 5, the Company concluded that it would not recognize revenue in connection with a significant customer transaction that the Company had intended to include in its results.
"The economy remains weak and fragile, and IT spending for technology and software continues at lower than normal levels. Despite these difficult market conditions, three significant end user customers licensed ViryaNet software from the Company and its partners, demonstrating continuing acceptance of our products", said Win Burke, president and CEO, ViryaNet.
ViryaNet will announce the financial results of its second quarter of 2002 on Wednesday, August 7, 2002. ViryaNet management will host a conference call on that same day at 8:30 A.M. EDT to discuss the results and answer questions from the investment community.
Interested parties should call 888-273-9889 (United States) or 612-332-0345 (International) and indicate "ViryaNet Second Quarter Earnings Conference" to join the conference call, or log on to
www.viryanet.com to connect to a live Web broadcast of the earnings call.
A digital replay of the conference call will be available from approximately 1:45 P.M. EDT, on Wednesday, August 7 until 11:59 P.M. EDT on Wednesday, August 14. To access the replay, residents of the United States can call 800-475-6701. Anyone outside the United States can access the replay by calling 320-365-3844. The access code from either phone number is 648135.
To confirm your participation or obtain more information, contact Lola Leggett at 508-490-5966.
About ViryaNet
ViryaNet is a provider of software applications that improve the quality and efficiency of an organization's service operations. ViryaNet's flagship product - the award-winning ViryaNet Service Hub - combines the power of the Internet, the freedom of wireless technologies, and the resources of ViryaNet's deep service expertise to help companies improve workforce scheduling, dispatching, and
activity reporting; customer contract and entitlement automation; and asset, logistics and repairs management.
Customers in the telecommunications, utility, high-technology manufacturing, grocery and retail, insurance, HVAC, and other industries use ViryaNet Service Hub to transition complex service business processes into a manageable, scalable Internet operation, with the goal of increasing service revenues, decreasing service costs, and maximizing customer satisfaction.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding ViryaNet's expectations, beliefs, intentions, or strategies regarding the capabilities of its
products, its relationships with its customers, its customer purchases, its future operational plans and objectives including integration of other businesses, its future business prospects, its future financial performance, and its future prospects for profitability. All forward-looking statements included in this document are based upon information available to ViryaNet Ltd. as of the date hereof, and ViryaNet Ltd. assumes no obligation to update any such forward-looking statements.
Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to ViryaNet's business include market acceptance of and demand for the Company's products, risks associated with a slow-down in the economy, risks associated with the financial condition of the company's customers, risks associated with competition and competitive pricing pressures, risks associated with increases in
costs and operating expenses, risks in technology development and commercialization, the risk of operating losses, risks in product development, risks associated with international sales, and other risks that are set forth in ViryaNet's Form F-1, as amended, declared effective by the SEC on September 19, 2000, and the other reports filed from time to time with the Securities and Exchange Commission. Reported results should not be considered an indication of future performance. You should
not place undue reliance on these forward-looking statements, which speak only as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.