Oryx Technology Announces Second Quarter Fiscal 2003 Results
SAN JOSE, Calif.--Oct. 15, 2002--Oryx Technology Corporation (Nasdaq:ORYX), a technology licensing, investment and management services company, today announced a net loss attributable to common stock of $516,000, or $0.28 per share, on revenues of $57,000 for the second quarter ended August 31, 2002. This compares to a net loss attributable to common stock of $278,000, or $0.17 per share, on revenues of $109,000 for the second quarter ended August 31, 2001. The net loss for the second quarter of this year includes $221,000 for Oryx's pro-rata share of its investment in S2 Technologies. This compares to a $187,000 loss resulting from Oryx's pro rata share of its investment in S2 Technologies for the second quarter last year.
For the six months ended August 31, 2002, Oryx reported a net loss attributable to common stock of $963,000, or $0.53 per share, on revenues of $113,000. This compares to a net loss attributable to common stock of $665,000, or $0.40 per share, on revenues of $227,000 for the six months ended August 31, 2001. The net loss for the six months ended August 31, 2002 includes a loss of $439,000 related to Oryx's investment in S2 Technologies. This compares to a $338,000 loss resulting from Oryx's pro rata share of its investment in S2 Technologies for the six months ended August 31, 2001.
Phil Micciche, President and Chief Executive Officer of Oryx, said, "The licensees of our SurgX technology continue to maintain monthly product shipments averaging over 3.5 million units. We are gratified that this sales momentum is continuing in this difficult economic environment. To further expand the acceptance of our SurgX technology, we are focusing our efforts on improving the electrical performance of SurgX components as well as expanding the number of licensees selling products incorporating SurgX technology."
Micciche further stated, "We continue to provide management services to S2 Technologies, an early stage developer of test and integration software solutions for embedded systems. While S2 has a number of ongoing pilot test programs with several OEMs and is currently being installed in several worldwide divisions of a leading electronics company, its sales effort continues to be impacted by the economic slowdown in the technology sector.
"Because of the uncertainty of our future royalty revenues, there is a significant risk that we will not have sufficient capital to meet our anticipated working capital requirements through fiscal year 2003. In addition, we are currently not in compliance with Nasdaq's minimum tangible net worth requirement for continued listing on The Nasdaq SmallCap Market. Our Board of Directors has determined that Oryx will not, at this time, attempt to undertake an additional equity financing in an amount sufficient to ensure continued listing on The Nasdaq SmallCap Market. Our Board has concluded that an equity offering of Oryx common stock at current prices would be too dilutive to our stockholders. However, we plan to petition Nasdaq to maintain our listing on The Nasdaq SmallCap Market, but there can be no assurance that we will receive a waiver or deferral of Nasdaq's minimum tangible net worth requirement and maintain our listing. If our stock is delisted from The Nasdaq SmallCap Market, trading in Oryx common stock would move to the OTC Bulletin Board. For further information regarding the OTC Bulletin Board, please refer to their website at www.otcbb.com.
"Reflecting the potential market opportunities of both our SurgX technology and S2 Technologies, the Board has declared its commitment to raising the necessary financing to sustain Oryx as a going concern. As a result, we are actively exploring financing opportunities."
Company Profile
Headquartered in San Jose, California, Oryx Technology Corporation is a technology licensing, investment and management service company with a proprietary portfolio of high technology products in surge protection. Oryx also provides management services to early-stage technology companies through its affiliate, Oryx Ventures, LLC. Oryx's common stock trades on The Nasdaq SmallCap Market under the symbol ORYX.
Forward-Looking Statements
Certain of the matters discussed in this release are forward-looking and involve a number of risks and uncertainties. Oryx's actual results could differ materially from those described for a variety of factors. Such factors could include, but are not limited to, those discussed in "Risk Factors" and "Management's Discussion and Analysis" in Oryx's Form 10-KSB filed for the fiscal years ended February 28, 2001 and February 28, 2002, as well as those discussed elsewhere in other public filings made by Oryx with the Securities and Exchange Commission. Among the factors that could cause actual results to differ materially are the following: adverse changes in the specific markets for Oryx products, adverse business conditions, dependence on licensees of Oryx technology for the commercial success of new products, lack of success in technological advancement, management of cost controls and cash resources, need for additional financing and other factors.
ORYX TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
August 31, August 31,
2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenue:
Services $ 45,000 $ 61,000 $ 89,000 $ 144,000
Others 12,000 48,000 24,000 83,000
----------- ----------- ----------- -----------
57,000 109,000 113,000 227,000
----------- ----------- ----------- -----------
Cost of Revenue:
Services 46,000 40,000 93,000 97,000
Other -- -- -- 39,000
----------- ----------- ----------- -----------
46,000 40,000 93,000 136,000
----------- ----------- ----------- -----------
Gross profit 11,000 69,000 20,000 91,000
----------- ----------- ----------- -----------
Operating expenses:
General and
administrative 259,000 245,000 472,000 498,000
Research and
development 50,000 68,000 108,000 119,000
----------- ----------- ----------- -----------
Total operating
expenses 309,000 313,000 580,000 617,000
----------- ----------- ----------- -----------
Loss from
operations (298,000) (244,000) (560,000) (526,000)
Interest income,
net 3,000 25,000 7,000 62,000
Equity share of
loss on
investments, net (221,000) (187,000) (439,000) (338,000)
Other income -- 128,000 30,000 138,000
----------- ----------- ----------- -----------
Net loss (516,000) (278,000) (962,000) (664,000)
Dividends -- -- (1,000) (1,000)
----------- ----------- ----------- -----------
Net loss
attributable
to Common Stock $ (516,000) $ (278,000) $ (963,000) $ (665,000)
=========== =========== =========== ===========
Basic and diluted
net loss per
common share $ (0.28) $ (0.17) $ (0.53) $ (0.40)
=========== =========== =========== ===========
Weighted average
common shares
used to compute
basic and
diluted net
loss per share 1,833,000 1,670,500 1,833,000 1,670,500
=========== =========== =========== ===========
ORYX TECHNOLOGY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Assets August 31, February 28,
2002 2002
------------ ------------
Current assets:
Cash and cash equivalents $ 620,000 $ 2,053,000
Accounts receivable, net
of allowance for doubtful
accounts of $34,000 35,000 14,000
Other current assets 168,000 164,000
------------ ------------
Total current assets 823,000 2,231,000
Property and equipment, net 11,000 6,000
Investments 985,000 520,000
------------ ------------
$ 1,819,000 $ 2,757,000
============ ============
Liabilities, Mandatorily Redeemable
Convertible Preferred Stock and
Stockholders' Equity
Current liabilities:
Accounts payable $ 61,000 $ 10,000
Accrued liabilities 132,000 196,000
------------ ------------
Total current liabilities 193,000 206,000
Series A 2% mandatorily redeemable
convertible Preferred Stock $0.001
par value; 3,000,000 shares
authorized; 3,750 shares issued
and outstanding 89,000 89,000
Stockholders' equity:
Common Stock, $0.001 par
value; 25,000,000 shares
authorized; 1,832,834
issued and outstanding 18,000 18,000
Additional paid-in capital 26,171,000 26,133,000
Accumulated deficit (24,652,000) (23,689,000)
------------ ------------
Total stockholders' equity 1,537,000 2,462,000
------------ ------------
$ 1,819,000 $ 2,757,000
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