EX-99 3 prbody.txt PRESS RELEASE BODY Press Release For Immediate Release Company Contact: Company Contact: William Swain, GraphOn Corporation 1.800.GRAPHON Bill.Swain@GraphOn.com GraphOn Corp. Today Announces Fourth Quarter and Year End 2003 Results; Will Host Fourth Quarter Investors Teleconference on Friday, March 5, 2004 MORGAN HILL, CA, USA - March 4, 2004 - GraphOn(R) Corporation, (OTCBB: GOJO) (www.graphon.com) a leading developer of business software for remote computing, today announced it will host an investor conference call at 11:00 am Pacific Coast Time (2:00 pm East Coast Time) on Friday, March 5, 2004, moderated by GraphOn CEO and Chairman, Robert Dilworth and Chief Financial Officer, William Swain. Discussions will include a review of financial results of the fourth quarter and year-end, which ended December 31, 2003. The GraphOn management team will discuss the company's business and will take questions for a limited time following the presentation. U.S. and Canada participants may access the call by phone by dialing (877) 591-1124 ten minutes prior to the call; international participants may dial (706) 643-0488 and state GraphOn Conference Call. GraphOn Corporation also reported results for the fourth quarter and year-end, which ended December 31, 2003. Financial Highlights Revenues were approximately $865 thousand for the three-month period ended December 31, 2003, as compared to approximately $1.6 million recorded in the same period of 2002. Revenues were approximately $4.2 million for the twelve-month period ended December 31, 2003, as compared to approximately $3.5 million for the same period of 2002. The net loss for the three-month period ended December 31, 2003 was approximately $577 thousand, as compared to the approximate $73 thousand net loss for the same period of 2002. The net loss for the twelve-month period ended December 31, 2003 was approximately $1.9 million, as compared to the approximate $8.8 million net loss for the same period of 2002. The loss per common share on a basic and diluted basis for the quarter ended December 31, 2003 was $0.03 per share as compared with a loss of $0.00 per share for the same quarter of 2002. The loss per common share on a basic and diluted basis for the twelve-month period ended December 31, 2003 was $0.11 per share as compared with a loss of $0.50 per share for the same period in 2002. "As we have stated in the past, our quarterly revenue can be "lumpy" and we have historically seen substantial fluctuations, similar to what we experienced in both the fourth quarter of this year as well as last year; however, we are pleased with the increase in total revenue this year as compared to the total revenue we reported in 2002," Robert Dilworth, CEO, said. "We are a small company with limited resources and are continually striving to better understand the reporting implications of the complex and expanding accounting interpretations, relative to the requirements of revenue recognition for software companies, and as such we endeavor to be conservative in our reporting. It is important to note that in addition to the increase in revenue for 2003, we also increased our deferred revenue by almost $400 thousand this year over 2002." Mr. Dilworth continued, "We are pleased with the results of our operations for the year, in that the increase in total revenue we attained combined with the reduction in expenses we were able to accomplish, allowed us to contain our net loss in 2003 to less than $2 million as compared to the nearly $9 million net loss we sustained in 2002." About GraphOn Corporation For over a decade, GraphOn Corporation has been an innovator and developer of business connectivity software. GraphOn's high performance software provides fast remote access, cross platform capability, and a centralized architecture that delivers a dramatically lower cost of ownership to the user. Using GO-Global, any application can be simply and easily Web enabled without any software modification required, allowing applications to be run from browsers or portals. GraphOn, which markets its solutions through OEM licenses, independent software vendors (ISVs), application service providers (ASPs), value-added resellers (VARs) and systems integrators, is headquartered in Morgan Hill, CA and is traded on the Over the Counter Bulletin Board under the ticker GOJO (OTCBB:GOJO). For more information, please visit the company's Web site at http://www.graphon.com. This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to GraphOn's most recent periodic and other reports filed with the Securities and Exchange Commission. GraphOn and GO-Global are a registered trademarks of GraphOn Corp. All other trademarks belong to their respective owners. # # #
GRAPHON CORPORATION Condensed Balance Sheets December 31, December 31, 2003 2002 ------------ ------------ Cash and cash equivalents $ 1,025,500 $ 1,958,200 Accounts receivable, net 521,100 337,900 Other current assets 23,100 192,000 ------------ ------------ Total current assets 1,569,700 2,488,100 ------------ ------------ Property and equipment, net 144,800 421,900 Purchased technology, net 335,000 1,163,100 Capitalized software, net 500,600 406,500 Other assets 11,900 70,000 ------------ ------------ Total assets $2,562,000 $ 4,549,600 ============ ============ Current liabilities $ 523,100 $ 1,023,800 Deferred Revenue 1,192,000 796,100 Stockholders' equity 846,900 2,729,700 ------------ ------------ Total liabilities and stockholders' equity $ 2,562,000 $ 4,549,600 ============ ============
Condensed Statements of Operations Three months ended December 31, Twelve months ended December 31, 2003 2002 2003 2002 ------------ ------------ ------------ ------------ Revenue $ 864,700 $ 1,587,400 $ 4,170,300 $ 3,535,000 Cost of revenue 391,000 308,700 1,371,600 1,679,900 ------------ ------------ ------------ ------------ Gross Profit 473,700 1,278,700 2,798,700 1,855,100 ------------ ------------ ------------ ------------ Selling and marketing 390,100 522,100 1,679,800 2,235,100 General and administrative 281,200 483,700 1,419,100 2,801,000 Research and development 381,400 351,200 1,515,000 2,831,300 Fixed assets impairment - - - 914,000 Restructuring charge - - 80,100 1,942,800 ------------ ------------ ------------ ------------ Total operating expenses 1,052,700 1,357,000 4,694,000 10,724,200 ------------ ------------ ------------ ------------ Loss from operations (579,000) (78,300) (1,895,300) (8,869,100) Other income (expense), net 1,600 5,400 8,700 76,600 ------------ ------------ ------------ ------------ Loss before income taxes (577,400) (72,900) (1,886,600) (8,792,500) Income taxes - - - - ------------ ------------ ------------ ------------ Net loss $ (577,400) $ (72,900) $ (1,886,600) $ (8,792,500) ============ ============ ============ ============ Basic and diluted loss per share $ (0.03) $ (0.00) $ (0.11) $ (0.50) ============ ============ ============ ============ Weighted average shares outstanding 16,618,459 16,594,408 16,607,328 17,465,099 ============ ============ ============ ============