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Press Releases
(before 1-1-01)
11/15/00: Teknowledge Delivers
100% Earnings Growth in Q3; 25th Profitable Quarter
08/15/00: Teknowledge Doubles
eCommerce Revenues in Q2, and Delivers 24th Consecutive
Profitable Quarter
08/07/00: Financial Fusion and
Teknowledge Announce Worldwide Agreement to Offer Account
Aggregation
07/25/00: Teknowledge Lands Dr.
Robert Balzer as Chief Technical Officer, Transfers Technical
Team, and $2M/Year in Contracts from ISI
7/19/00: Teknowledge
Signs Reseller Agreement with Financial Fusion
7/18/00: Teknowledge
Announces TekPortal™ Solution Contract with BNKR,
Inc. (Bankor)
5/16/00:
Teknowledge Delivers its 23rd
Consecutive Profitable Quarter
4/10/00: Teknowledge Announces
TekPortal™ Solution Contract with BankAtlantic
4/7/00: Teknowledge Announces
$5.2M Cyber Security Contract with DARPA
4/4/00: Teknowledge Reports 22nd
Profitable Quarter and Increase in eCommerce Revenues
4/3/00: (NCR press release) NCR
and Teknowledge Announce Internet Banking Agreement
3/7/00: (Net.B@nk press release)
Net.B@nk™ to Offer Customers 'One-Click' Access to
Their Entire Financial Portfolio, Using Teknowledge's TekPortal™
Product
2/24/00: Teknowledge Announces
Its Ninth Software Patent #6,029,175 Titled: “Automatic
Retrieval of Changed Files by a Network Software Agent”
2/18/00: Teknowledge Announces
TekPortal™ Solution Contract with National InterBank
1/31/00: Teknowledge Signs eCommerce
Contract With California Closets
12/6/99: Teknowledge Announces
TekPortal™ Solution Contract with Lighthouse Bank (In
Formation)
11/22/99: Teknowledge Seeds Web-Based
Real Estate Transactions Company, Spins Out GlobalStake.Com
11/22/99: Neil Jacobstein Elected
Chairman and CEO of Teknowledge
10/29/99: Teknowledge's eCommerce
Business Grows From 4% to 20% of Total Revenues in Q3
10/21/99: Teknowledge Announces
Countersuit Against SAP America, Inc. for Patent Infringement
9/30/99: Teknowledge Announces
Vertical Portal Contract with Fashionmall.com
Teknowledge
Delivers 100% Earnings Growth in Q3; 25th Profitable Quarter
PALO ALTO, CALIF. (November 15, 2000) - Teknowledge
Corporation (NASDAQ SmallCap: TEKC; http://www.teknowledge.com)
announced that revenues from operations in the third quarter
of 2000 grew 45% to $4,195,696. Income improved to $124,998,
or $.02 diluted earnings per share, a 140% increase over
the comparable quarter in 1999 and a 100% increase over
the second quarter of 2000. Revenues from eCommerce sales
rose to 45% of total revenues, a more than 100% improvement
over last year and a 15% improvement over the previous quarter.
For the nine months ending September 30, 2000 the Company
has reported revenues of $10,970,093, nearly equal to the
revenue reported for all of 1999. Teknowledge marked its
25th consecutive profitable quarter in Q3 of 2000.
Neil Jacobstein, President and CEO, commented: “Teknowledge
is experiencing increased customer demand for its TekPortal™
product and services. eCommerce products and services were
21% of revenue in the third quarter of 1999, and they are
now 45% of total revenue in the third quarter of 2000. We
are committed to growing the business as rapidly as possible
to increase Teknowledge’s market share in the financial
information aggregation and portfolio management marketplace.
This is a huge opportunity, and just the beginning of Teknowledge’s
drive to convert knowledge into business value.”
The Company experienced an increase in demand for its financial
service software and steady demand for its government services
in the third quarter. TekPortal software licenses sold to
banks or other financial institutions accounted for 17.5%
of commercial revenues in the third quarter and revenue
from license sales is expected to be a major source of eCommerce
revenue in future periods. Teknowledge is expanding its
workforce to meet anticipated increased demand in the fourth
quarter of 2000 for its TekPortal product. Total multi-year
project backlog for contract R&D at the end of the second
quarter was approximately $18.4M.
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
Sept 30, Dec 31,
2000 1999
Assets
Cash and cash equivalents $698 $1,951
Receivables and unbilled charges 4,777 3,263
Other Assets 142 76
Deferred tax asset, short-term 400 400
Capitalized software, net 1,588 360
Equipment and improvements, net 455 377
Deferred tax asset, long-term 500 500
Other Long Term Assets 1,124 241
Total assets $9,684 $7,168
Liabilities and stockholders' equity
Accounts payable $1,697 $747
Accrued payroll & related liabilities 660 660
Short-term loans 1,100
Other accrued liabilities 183 221
Stockholders' equity 6,044 5,540
Total liabilities and stockholders' equity $9,684 $7,168
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
Three Months Ended Sept 30,
2000 1999
Revenues $4,196 $2,901
Costs and expenses 3,987 2,820
Operating income 209 81
Nonoperating income (1) 34
Income before tax $208 $115
Provision for income tax 83 63
Net income 125 52
Diluted net income per share $0.02 $0.01
Shares used in computing
net income per share 5,885 5,564
Teknowledge
Doubles eCommerce Revenues in Q2, and Delivers 24th Consecutive
Profitable Quarter
PALO ALTO, Calif. (Aug. 15, 2000) -- Teknowledge Corporation
announced a sharp increase in revenues today. Revenues from
eCommerce operations in the second quarter grew 107% to
$1,631,994, more than double the results from the first
quarter of 2000. Total Q2 revenues were $4,019,593 a 45%
improvement over the first quarter of 2000 and the second
quarter of 1999. Earnings rose to $62,785, or $.01 diluted
earnings per share, a 38% improvement over the first quarter's
results. Comparable earnings in the second quarter of 1999
were $138,580 and $.02 diluted earnings per share.
Neil Jacobstein, President and CEO, commented: "Teknowledge
is experiencing increased customer demand for its TekPortal™
product and services. eCommerce products and services were
4% of revenue in Q2 of 1999, and they are now 41% of total
revenue in Q2 of 2000. We are committed to growing the business
as rapidly as possible to increase Teknowledge's market
share in the financial information aggregation and portfolio
management marketplace."
"Teknowledge's funded research and development in Internet
security, knowledge systems, web-based training, and distributed
systems is also growing. This opens many opportunities to
add value to TekPortal, as well as our partner's products,
and our financial services customers.''
Start-up expenses slowed earnings growth for the eCommerce
business unit as it ramped up its operations for accelerated
growth in future periods. The Company also expended more
on legal expenses as it prepared to defend its patent portfolio
in court. Total backlog for new work at the end of the second
quarter was approximately $18.3M. Teknowledge is expanding
its workforce to meet anticipated increased demand in Q3.
Teknowledge's core business is intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge's
eCommerce Division delivers TekPortal™ and third-party
software and services for financial institutions. Teknowledge
holds an extensive intellectual property portfolio with
nine key software patents.
This press release contains forward-looking statements relating
to the demand, market acceptance, and anticipated growth
of products and services offered by the Company that are
subject to a high level of uncertainty. All forward-looking
statements involve risk and uncertainties, and actual results
could differ materially from those set forth in the forward-looking
statements contained herein.
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
June 30, Dec 31,
2000 1999
Assets
Cash and cash equivalents $1,282 $1,951
Receivables and unbilled charges 3,931 3,263
Other Assets 159 76
Deferred tax asset, short-term 400 400
Capitalized software, net 1,012 360
Equipment and improvements, net 415 377
Deferred tax asset, long-term 500 500
Other Long Term Assets 1,094 241
Total assets $8,793 $7,168
Liabilities and stockholders' equity
Accounts payable $1,525 $747
Accrued payroll & related liabilities 808 660
Short-term loans 500 --
Other accrued liabilities 124 221
Stockholders' equity 5,836 5,540
Total liabilities and stockholders' equity $8,793 $7,168
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
Three Months Ended June 30,
2000 1999
Revenues $4,020 $2,776
Costs and expenses 3,924 2,573
Operating income 96 203
Nonoperating income 9 27
Income before tax $105 $230
Provision for income tax 42 92
Net income 63 138
Diluted net income per share $0.01 $0.02
Shares used in computing
net income per share 5,980 5,889
Financial Fusion and Teknowledge Announce
Worldwide Agreement to Offer Account Aggregation
Advanced System Targets Leading Global Financial Institutions
WESTPORT, Conn. & PALO ALTO, Calif. (Aug. 7, 2000) -- Financial
Fusion Inc. and Teknowledge Corporation announce the signing
of a worldwide Original Equipment Manufacturer's (OEM) agreement
to provide account aggregation to leading global financial
institutions that demand advanced functionality. As part
of this partnership, Financial Fusion, Inc. will use Teknowledge's
TekPortal™ software as the financial information aggregation
component of its Web & Wireless System™.
The Web & Wireless System with TekPortal provides Internet
banking customers with a consolidated view of their financial
portfolio. The solution aggregates information from various
bank, investment, credit card, and travel reward accounts.
It allows for funds transfer capabilities between these
accounts, and offers portfolio management tools that empower
the consumer. Consumers can now use the Web & Wireless System
to schedule self-designed alerts to notify them of status
changes in any of these accounts and set business rules
to have funds automatically transfer from one account to
another under specific conditions.
"By integrating TekPortal within the Web & Wireless
System, Financial Fusion is able to offer services and benefits
that differentiate us from the competition,'' said Chris
Infurchia, senior vice president, Financial Fusion. "Because
this system was specifically designed for leading global
financial institutions, the consumer can independently execute
banking transactions and proactively manage their financial
portfolios, not just view account balances.''
Neil Jacobstein, President & CEO of Teknowledge said: "The
partnership between Teknowledge and Financial Fusion leverages
Teknowledge's account aggregation expertise with the OFX
Gateway in the Financial Fusion Server™ and the user
interface of the Web & Wireless System. Teknowledge's business
relationship with Financial Fusion will increase consumer
value and build business for both companies.''
About Financial Fusion, Inc.
Financial Fusion, Inc. (www.financialfusion.com)
builds complete e-finance solutions that integrate applications
and middleware for retail delivery and capital markets.
It serves the world's leading financial institutions through
its global service and support network. The Financial Fusion
Web & Wireless System™, a 100% Java framework built
to open standards, delivers enterprise-class technology
to provide full spectrum financial destinations on the web;
seamless performance on any Internet device; and the infrastructure
for back-end connectivity and institutional electronic trading--all
on a single, integrated platform. The company's global alliance
partners include Sybase, IBM, Sun Microsystems, e-Profile
and CheckFree. Financial Fusion, Inc. is a wholly owned
subsidiary of Sybase, Inc. (NASDAQ: SYBS).
Teknowledge
Lands Dr. Robert Balzer as Chief Technical Officer, Transfers
Technical Team, and $2M/Year in Contracts from ISI
PALO ALTO, Calif. (July 25, 2000) -- Teknowledge Corporation
(Nasdaq: TEKC) announced today that Dr. Robert (Bob) Balzer
has joined Teknowledge as its Chief Technical Officer, and
head of its Distributed Systems Program. Dr. Balzer will
be accompanied by Dr. David Wile, Dr. Neil Goldman, Dr.
Alex Egyed, Dr. Marcelo Tallis, and Ms. Patty Craig, all
from the University of Southern California's Information
Sciences Institute (USC-ISI). Balzer and team will operate
Teknowledge's Distributed Systems business unit in an office
in Marina Del Rey.
Neil Jacobstein, President & CEO of Teknowledge said, ''Bob
Balzer and his technical team are truly world-class software
talent. I have worked personally with Bob over the years,
and find in him an unusual combination of technical brilliance
and hands-on software pragmatics. He comes to Teknowledge
with a wealth of experience, a large backlog of contract
R&D, a very talented technical team, and lots of product
ideas. I have no doubt that Bob and his team will be able
to add value to Teknowledge's commercial TekPortal™
financial portfolio management product, as well as contribute
innovative new products in network security and distributed
systems.''
After several years at the Rand Corporation, Dr. Balzer
co-founded the University of Southern California's Information
Sciences Institute (which now has a staff of approximately
300). Balzer was Professor of Computer Science at USC and
Director of ISI's Software Sciences Division. He has served
as Chairman or Co-chair of numerous key national and international
software engineering and artificial intelligence conferences.
Balzer was elected a Fellow of the American Association
for Artificial Intelligence in 1993.
Balzer's group combines artificial intelligence, database,
and software engineering techniques to automate the software
development process and support distributed systems. Current
contracts include work on wrapping commercial products to
provide safe and secure execution environments, extend their
functionality, and integrate them together. Additional contracts
are on instrumenting software architectures; and generating
software systems from domain specific specifications.
Dr. Balzer said: ''The Information Sciences Institute has
been a wonderful place to develop the basic science in these
areas, but Teknowledge provides an opportunity for me to
work in a more focused research and product development
environment. I am very fortunate that Drs. Dave Wile and
Neil Goldman who have helped lead my software research group
for over twenty years are joining me at Teknowledge. Our
group adds an ongoing program of over $2M/year of DARPA
and NSF sponsored research to Teknowledge's already strong
R&D and eCommerce customer base. As Chief Technical Officer,
I'm looking forward to helping Teknowledge integrate these
capabilities with one another and to identifying additional
commercial products that can be developed from them.''
Teknowledge
Signs Reseller Agreement with Financial Fusion
PALO ALTO, Calif. (July 19, 2000) - Teknowledge Corporation
(Nasdaq: TEKC) announced today that it has entered into
an agreement with Financial Fusion Inc., to resell the company's
Financial Fusion Server™. Financial Fusion Server is
a robust platform for retail and institutional e-financial
services companies who require scalable, high-availability
solutions that operate on a single, fully integrated platform.
Teknowledge delivers TekPortal™ solutions for financial
and retail Internet portals. TekPortal™ is a multi-institution
account aggregation solution that enables institutions to
provide account aggregation from banks, brokerages, credit
card processors, billers, and travel reward sites. The company
plans to use the Financial Fusion Server in conjunction
with its TekPortal solution at bank and brokerage implementations.
With this agreement, Teknowledge will leverage the Financial
Fusion Server to support financial institutions with online
retail delivery and institutional electronic trade connectivity
including industry leading protocols such as, OFX, FIX,
and SWIFT.
Neil Jacobstein, President & CEO of Teknowledge, said "This
exciting partnership allows us to leverage Financial Fusion's
strong OFX and FIX transaction processing capabilities.
The Financial Fusion Server, installed with our TekPortal
solution will provide our customers with increased flexibility,
volume capacity and speed."
"Their fast-moving, entrepreneurial edge along with their
implementation expertise make Teknowledge a strong partner
for Financial Fusion," said Chris Infurchia, senior vice
president, Financial Fusion. "This agreement with Teknowledge
further establishes Financial Fusion Server as the 'de facto
standard' for middleware in the financial services industry."
Teknowledge Corporation (Nasdaq: TEKC) has developed its
core business in Intelligent Internet transactions. These
transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company sells software
services and products to support eCommerce, network security,
Web- based training and knowledge processing. Teknowledge
delivers TekPortal™ solutions for financial and retail
Internet portals. Teknowledge holds an extensive intellectual
property portfolio with nine key software patents. More
information about Teknowledge may be found at www.teknowledge.com.
About Financial Fusion
Financial Fusion, Inc. (www.financialfusion.com) builds
complete e-finance solutions that integrate applications
and middleware for retail delivery and capital markets.
It serves the world's leading financial institutions through
its global service and support network. The Financial Fusion
Web & Wireless System™, a 100% Java framework built
to open standards, delivers enterprise-class technology
to provide full spectrum financial destinations on the web;
seamless performance on any Internet device; and the infrastructure
for back-end connectivity and institutional electronic trading--all
on a single, integrated platform. The company's global alliance
partners include IBM, Sun Microsystems, e-Profile, Intuit
and CheckFree. Financial Fusion, Inc. is a wholly owned
subsidiary of Sybase, Inc. (NASDAQ: SYBS).
Teknowledge Announces TekPortal™ Solution Contract
with BNKR, Inc. (Bankor)
PALO ALTO, Calif. (July 18, 2000) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
today the signing of its tenth TekPortal™ customer
with a contract with BNKR, Inc. (Bankor), a rapidly growing
alliance of Community Banks, Credit Unions, and Third Party
Administrators with a shared investment and strategy to
affordably meet consumer and small business online needs.
The contract includes a license for TekPortal™, Teknowledge’s
multi-bank account aggregation solution, that will be integrated
into Bankor’s online financial services solution.
TekPortal provides Internet banking customers with a
consolidated view of their financial portfolio from bank,
credit union, investment, credit card, and travel reward
accounts, provides funds transfer capabilities between
these accounts, and offers basic portfolio analysis capabilities.
Neil Jacobstein, President & CEO of Teknowledge said:
“We are excited about offering the TekPortal solution
to Bankor. TekPortal’s account aggregation will benefit
community banking individuals and small businesses by
adding a valuable service to customers who want to track
their investments and gain greater control over managing
their money.”
“The integration of TekPortal’s powerful tools into
our financial services portal provides one more piece
of the ultimate solution we’re building for our financial
clients and their customers,” said Tom Mandt, Chief Technology
Officer, BNKR, Inc. “This additional functionality will
make our clients highly competitive with the best online
products offered by the super regional banks; it will
help level the playing field for our community banks and
credit unions.”
Bankor offers business to consumer, business to business,
and third party financial services products. The Bankor
mission is to change the way individuals and communities
manage their money by enhancing the competitive advantage
of local banks and credit unions. Bankor empowers these
financial institutions to grow and improve their business
by adding the power of affordable, localized marketing
and technology innovations to their strength in personalized
service. As a result, Bankor network affiliates are as
competitive as the regional banking superpowers in meeting
customer needs related to: easy-to-use online financial
services, access to sophisticated investment and lending
products, coupled with the familiarity and trust of their
local community bank or credit union. Bankor is headquartered
in Tulsa. More information may be found at www.bankor.com.
Teknowledge Corporation (Nasdaq: TEKC - news) has developed
its core business in Intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company sells software
services and products to support eCommerce, network security,
Web- based training and knowledge processing. Teknowledge's
eCommerce Division delivers TekPortal™ solutions
for financial and retail Internet portals. Teknowledge
holds an extensive intellectual property portfolio with
nine key software patents. More information about Teknowledge
may be found at www.teknowledge.com.
All brand and product names appearing in this release
are registered trademarks or trademarks of their respective
holders.
SOURCE: Teknowledge Corporation
Teknowledge
Delivers its 23rd Consecutive Profitable Quarter
PALO ALTO, Calif. (May 16, 2000) - Teknowledge
Corporation (Nasdaq SmallCap: TEKC; http://www.teknowledge.com)
announced its 23rd consecutive profitable quarter today.
Teknowledge reported net income of $45,375, or $.01 diluted
earnings per share, on revenues of $2,754,804 for the quarter
ended March 31, 2000. For the comparable period in 1999,
the Company reported net income of $151,545, or $.03 diluted
earnings per share, on revenues of $2,790,644. Commercial
revenues from eCommerce customers rose from 5% of total
revenues in the first quarter of 1999 to 29% of total revenues
in the first quarter of 2000.
The Company deferred approximately $158,000 of potential
service revenues and $200,000 of TekPortal license revenues
on eCommerce projects until the target acceptance date in
Q2 or customer acceptance is assured. The Company's total
backlog for new work at the end of the first quarter was
approximately $18.7M.
Neil Jacobstein, President and CEO, commented: "Teknowledge's
eCommerce unit was selling and performing TekPortal™
solution contracts in Q1. TekPortal gives financial institution
customers the ability to register and manage their multiple
bank, brokerage, frequent flier, and credit card accounts
at a single web site. Teknowledge expects an increase in
demand for TekPortal, and is hiring staff accordingly. In
Q1, Teknowledge won a major Cyber Security contract, which
is just being put into place. Finally, Teknowledge was issued
U.S. Patent #6,029,175 titled 'Automatic Retrieval of Changed
Files by a Network Software Agent,' which contains 96 claims,
and is a strategic opportunity for the Company. We continue
to be committed to increasing our commercial revenues, and
growing Teknowledge profitably."
Teknowledge's core business is intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company provides software
solutions for commercial and government Internet applications.
Teknowledge's eCommerce Division delivers TekPortal and
3rd-party software and services for financial institutions.
Teknowledge holds an extensive intellectual property portfolio
with nine key software patents.
This press release contains forward-looking statements relating
to the demand, market acceptance, and anticipated growth
of products and services offered by the Company that are
subject to a high level of uncertainty. All forward-looking
statements involve risk and uncertainties, and actual results
could differ materially from those set forth in the forward-looking
statements contained herein.
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
Three Months Ended Mar 31,
2000 1999
Revenues $2,755 $2,791
Costs and expenses 2,697 2,565
Operating income 58 226
Nonoperating income 18 26
Income before tax $76 $252
Provision for income tax 31 101
Net income 45 151
Diluted net income per share $0.01 $0.03
Shares used in computing net income per share 6,225 5,920
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
Mar 31, Dec 31,
2000 1999
Assets
Cash and cash equivalents $1,800 $1,951
Receivables and unbilled charges 2,806 3,263
Other Assets 118 76
Deferred tax asset, short-term 400 400
Capitalized software, net 524 360
Equipment and improvements, net 363 377
Deferred tax asset, long-term 500 500
Other Long-Term Assets 983 241
Total assets $7,494 $7,168
Liabilities and stockholders' equity
Accounts payable $506 $747
Accrued payroll & related liabilities 605 660
Short-term loans 500
Other accrued liabilities 213 221
Stockholders' equity 5,670 5,540
Total liabilities and stockholders' equity $7,494 $7,168
Teknowledge
Announces TekPortal™ Solution Contract with BankAtlantic
PALO ALTO, Calif. (April 10, 2000) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com)
announced today the signing of a contract with BankAtlantic,
a Federal Savings Bank, (http://www.bankatlantic.com)
for its full service Internet bank, BankAtlantic.com. The
contract includes a license for TekPortal™, Teknowledge’s
multi-bank account aggregation solution, in addition to
integration of other services. TekPortal places the power
of account aggregation into the hands of financial institutions
and they, in turn, provide customers with a consolidated
view of their financial portfolio from multiple financial,
brokerage, credit card, and travel rewards program institutions.
By warehousing the customer’s approved and aggregated account
information, institutions have access to valuable marketing
information to more effectively sell new products and services.
TekPortal also offers funds transfers, proactive notifications,
and sweeps capabilities.
Neil Jacobstein, President & CEO of Teknowledge said: “The
TekPortal solution is becoming a repeatable and significant
component of Teknowledge’s eCommerce business. TekPortal
will provide BankAtlantic with an enhanced ability to attract
and retain customers, provide unique customer services,
and increase their average assets per customer.”
Jarett Levan, President of BankAtlantic.com, commented:
“We are excited about the benefits the TekPortal Solution
provides to our customers. This is another service catered
towards our customers’ most precious commodity -- time.”
“BankAtlantic.com is a powerful new competitor in the Internet
banking arena providing innovative features and unique value
to its customers. With the addition of TekPortal, BankAtlantic.com
demonstrates its focus on providing their customers a world-class
service,” said Matt Katz, Director of eCommerce Consulting
at Teknowledge.
Teknowledge’s core business is intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge’s
eCommerce Division delivers Teknowledge and 3rd-party software
and services for financial and retail Internet portals.
Teknowledge holds an extensive intellectual property portfolio
with ten software patents.
BankAtlantic, the largest financial institution headquartered
in Florida with $4.2 billion in assets, has 68 branches
in Florida and over 800 ATMs in Florida, Georgia, and Alabama.
BankAtlantic is a wholly owned subsidiary of BankAtlantic
Bancorp (NYSE: BBX; Nasdaq: BANC). BankAtlantic.com offers
competitive rates and a variety of Internet-based products
and services including Bill Payment, funds transfers, check
reorders, and proactive notification of account activity.
Teknowledge
Announces $5.2M Cyber Security Contract with DARPA
PALO ALTO, Calif. (April 7, 2000) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com)
announced today the signing of a contract for a $5.2 million
dollar integration project in the Cyber Command and Control
(CC2) program. The contract covers 27 months of software
integration and development work.
Neil Jacobstein, President & CEO of Teknowledge said: “Network
security is a critical new growth area for Teknowledge.
The DARPA CC2 contract will allow Teknowledge to build on
its strong base of eSecurity talent and technology solutions.
Over the past several years, we have built a business unit
in our Fairfax office focused entirely on Information Assurance
or eSecurity solutions for government and industry. We see
this work as complementary to Teknowledge's TekPortal™
information aggregation solution for financial institutions.
One of the elements of Teknowledge's strategic objects includes
multiple revenue streams in eSecurity from delivering integration
services, 3rd-party VAR security components, and solution
sales.”
Laura Tinnel, Deputy Program Manager at Teknowledge for
Information Assurance, commented: “Teknowledge will be integrating
components from DARPA's Cyber Command and Control Program,
in addition to several other DoD security programs, including:
Strategic Intrusion Assessment, Autonomic Information Assurance,
Fault Tolerant Systems, and Quality of Service. The project
is focused on providing an integrated solution for situation
assessment and response analysis for cyber security. We
intend to evaluate the best-in-class component solutions
for network security, and integrate them into an open framework
solution for large institutions.”
Teknowledge's core business is intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge's
Information Assurance group is a value added reseller and
certified licensed partner for the Check Point security
software product line. Teknowledge holds an extensive intellectual
property portfolio with ten software
patents.
Teknowledge
Reports 22nd Profitable Quarter and Increase in eCommerce
Revenues
PALO ALTO, Calif. (April 4, 2000) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com)
announced its 22nd consecutive profitable quarter today,
with a major increase in the percentage growth of its eCommerce
business in the fourth quarter 1999. Revenues from eCommerce
were $771,035, or 29% of total revenues in the fourth quarter,
compared to 21% of revenues in the third quarter of 1999.
During 1999, eCommerce projects accounted for 15% of the
Company’s annual revenue base, compared to 1% in 1998.
Teknowledge recorded net income of $41,325, or $.01 diluted
earnings per share, on revenues of $2,626,178 for the quarter
ended December 31, 1999. For the same period in 1998, the
Company reported net income of $106,763, or $.02 diluted
earnings per share, on revenues of $2,979,846. For the year
ended December 31, 1999, Teknowledge recorded net income
of $383,539, or $.07 a share, compared to $785,620, or $.14
diluted earnings per share, in the previous fiscal year.
Total revenues were $11,094,672 in 1999 compared to $12,200,849
in 1998. Tax treatment for accounting purposes was different
in 1998. In 1999, the Company reported and booked a tax
provision, even though it has $67 million in tax loss carryforwards.
As a result of the change in tax reporting treatment starting
in 1999, income was reduced by approximately $250,000 over
the comparable period in 1998. The Company experienced slow
payments from some commercial vendors in 1999, and elected
not to record approximately $275,000 of potential net revenues
pending collection results.
Neil Jacobstein, President and CEO, commented: “Teknowledge
had two key objectives in 1999. One was to increase the
growth of its eCommerce business and launch the TekPortal™
financial information aggregation solution. The other objective
was to create an upside opportunity in a vertical spinout
business, GlobalStake.com (doing business under the ExploreRealty.com
tradename). We accomplished both goals, while retaining
profitability. We are pleased with the growth in our eCommerce
business, and a successful private placement for GlobalStake.com.
In the fourth quarter of 1999, Teknowledge invested both
talent and additional potential profit in growing its commercial
business. We are accelerating our investments in the commercial
growth of the Company because we believe that the TekPortal
solution will be a major success. In addition, our Internet
security, distributed systems, web- based training, and
knowledge systems businesses are positioned to provide follow-on
business from financial services customers.”
Teknowledge's core business is intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge's
eCommerce Division delivers TekPortal and 3rd-party software
and services for financial institutions. Teknowledge holds
an extensive intellectual property portfolio with nine key
software patents.
This press release contains forward-looking statements relating
to the demand, market acceptance, and anticipated growth
of products that are subject to a high level of uncertainty.
All forward-looking statements involve risk and uncertainties,
and actual results could differ materially from those set
forth in the forward-looking statements contained herein.
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
Dec 31, Dec 31,
1999 1998
Assets
Cash and cash equivalents $1,951 $2,378
Receivables and unbilled charges 3,263 2,534
Other Assets 76 87
Deferred tax asset, short-term 400 400
Capitalized software, net 360 267
Equipment and improvements, net 377 505
Deferred tax asset, long-term 500 500
Other Long Term Assets 241 29
Total assets $7,168 $6,700
Liabilities and stockholders' equity
Accounts payable $747 $661
Accrued payroll & related liabilities 660 679
Other accrued liabilities 221 268
Stockholders' equity 5,540 5,092
Total liabilities and stockholders' equity $7,168 $6,700
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
Revenues $2,627 $2,980 $11,095 $12,201
Costs and expenses 2,615 2,901 10,571 11,515
Operating income 12 79 524 686
Nonoperating income 29 33 115 105
Income before tax $41 $112 $639 $791
Provision for income tax 0 5 256 5
Net income 41 107 383 786
Diluted net income per share $0.01 $0.02 $0.07 $0.14
Shares used in computing
net income per share 5,810 5,826 5,796 5,763
NCR
and Teknowledge Announce Internet Banking Agreement
Innovative TekPortal™
Software to Be Part of NCR's Outsource Offering
DAYTON, Ohio, April 3 /PRNewswire/ -- NCR Corporation and
Teknowledge Corporation today announced the signing of a
software licensing agreement in which NCR will offer Teknowledge's
TekPortal™ software as a component of its Internet
banking outsourcing solution.
TekPortal software provides Internet banking customers with
a consolidated view of their financial portfolio, regardless
of the owning institution. NCR's high availability outsourcing
offering for Internet banking allows financial institutions
to provide their customers with secure one-click access
to their personal and business accounts from multiple banks,
brokers, credit card companies and other institutions.
NetBank®, the nation's leading Internet-only bank with more
than $1.3 billion in assets, will be NCR's first outsourcing
customer to implement TekPortal. "We look for solutions
that meet the bank's goals to provide new services to our
customers," said D. R. Grimes, chief executive officer of
NetBank. "With the availability of a consolidated financial
statement through NCR, our Internet banking partner, we
are convinced this will provide an incredibly attractive
and innovative customer offering.''
"This agreement further expands NCR's leading-edge Internet
banking solution and complements our established service
offering to our base of Internet banking customers," said
Greg Hanson, NCR's General Manager for eCommerce Outsourcing.
"This exciting partnership between Teknowledge and NCR enables
NetBank and others to invent the future of Internet banking,"
said Neil Jacobstein, President & CEO of Teknowledge. "Teknowledge
intends to build strong business and technology relationships
with NCR and the Internet banking community."
About Teknowledge
Teknowledge Corporation (Nasdaq: TEKC - news) has developed
its core business in Intelligent Internet transactions.
These transactions provide flexible, secure, and knowledge-based
interactions with customers. The Company sells software
services and products to support eCommerce, network security,
Web- based training and knowledge processing. Teknowledge's
eCommerce Division delivers TekPortal™ solutions for
financial and retail Internet portals. More information
about Teknowledge may be found at www.teknowledge.com.
About NCR Corporation
NCR Corporation (NYSE: NCR - news) is a recognized world
leader in providing Relationship Technology™ solutions
for the retail, financial, communications, travel and transportation,
and insurance markets. NCR's Relationship Technology solutions
include Teradata® warehouses, ATMs and store automation.
The company's business solutions are built on the foundation
of its long-established industry knowledge and consulting
expertise, value-adding software, global customer support
services, a complete line of consumable and media products,
and world-leading hardware technology. More information
about NCR and its solutions may be found at www.ncr.com.
NCR, Relationship Technology and Teradata are trademarks
or registered trademarks of NCR Corporation in the United
States and other countries. All brand and product names
appearing in this release are registered trademarks or trademarks
of their respective holders.
SOURCE: NCR Corporation
Net.B@nk™
to Offer Customers 'One-Click' Access to Their Entire Financial
Portfolio
With Single Log-In, Customers Can Conveniently View Bank
Account, Credit Card, Investment and Mortgage Account Information,
Regardless of Institution
ATLANTA (March 7, 2000) Net.B@nk™, Member FDIC, Equal
Housing Lender (Nasdaq: NTBK; http://www.netbank.com) and
the world's leading Internet bank with more than $1.3 billion
in assets, today announced its customers will soon have
free one-click access to their financial portfolios, regardless
of the owning institution. After a single log-in to their
account at http://www.netbank.com,
Net.B@nk customers will be able to conveniently view all
of their personal and business account information from
multiple banks, brokers, credit card companies, mortgage
companies, and more, all from their personalized page on
the Net.B@nk Web site.
To achieve this functionality, Net.B@nk is integrating with
its online banking platform Teknowledge Corporation's (Nasdaq:
TEKC; http://www.teknowledge.com) TekPortal™ solution,
a multi-bank account aggregation system. Teknowledge Corporation,
based in Palo Alto, CA, is an intelligent Internet transaction
company that provides products and services that capture,
process and distribute knowledge over the Internet.
"We believe a consolidated financial statement is an incredibly
attractive and innovative offering," said D.R. Grimes, chief
executive officer of Net.B@nk, "particularly when presented
by an institution the consumer trusts -- their bank. This
new service will provide Net.B@nk customers an improved
way to manage their entire financial portfolio, making Net.B@nk
the one- stop shop for all their financial services and
account access."
Grimes commented on why the bank chose the TekPortal solution.
"We're working with Teknowledge for several reasons. The
company's solution is oriented toward meeting the bank's
goals and it allows us to serve as the account aggregator
for our customers rather than having them turn to a third
party. TekPortal also offers many benefits we didn't find
elsewhere, and it comes highly recommended by one of our
key online banking partners, NCR Corporation (NYSE: NCR)."
Among TekPortal's many attractive features are Web-based
funds transfer and sweep capabilities, intuitive notification
and alert services, stop payment functionality, as well
as advanced one-to-one marketing capabilities.
In addition to providing customers their top-level account
summary data, Net.B@nk will also offer statement and transaction
detail from multiple institutions. Net.B@nk plans to introduce
this new service to its customers in second quarter.
About Net.B@nk:
Net.B@nk, Inc. (Nasdaq: NTBK), is a financial services company
whose sole subsidiary, Net.B@nk, Member FDIC, is the first
profitable pure Internet bank in the country, having achieved
profitability in the past seven successive quarters. With
over $1.3 billion in assets and customers in all 50 United
States and 20 foreign countries, Net.B@nk is the largest
FDIC- insured bank operating solely on the Internet. In
addition to free checking and money market accounts and
certificates of deposits with exceptional interest rates,
Net.B@nk offers its customers the ultimate convenience in
banking. Products and services include free online account
access, free unlimited online bill payment, free checks,
unlimited ATM use, VISA® Check Card, VISA® credit cards,
online brokerage services, mortgage lending, home equity
lines and loans, and business equipment leasing services.
Net.B@nk is a member of the Cirrus, Honor/Star, and AFFN
ATM networks. For more information on Net.B@nk, its products
and services, visit the Web site at http://www.netbank.com,
or call 1-888-256-6932.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
Net.B@nk's business which are not historical facts are "forward-looking
statements'' that involve risks and uncertainties. For a
discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the
forward- looking statements, see "Risk Factors'' in
the Company's Annual Report or Form 10-K for the most recently
ended fiscal year.
SOURCE: Net.B@nk, Inc.
Teknowledge
Announces Its Ninth Software Patent #6,029,175 Titled: “Automatic
Retrieval of Changed Files by a Network Software Agent”
Palo Alto, California, February 24, 2000 /PR Newswire/ --
Teknowledge Corporation (Nasdaq SmallCap: TEKC) announced
today that the U.S. Patent and Trademark Office issued Patent
#6,029,175, titled: Automatic Retrieval of Changed Files
by a Network Software Agent. The co- inventors of the patent
are: Yen-Whei Chow, Frederick Hayes-Roth, Neil Jacobstein,
James Manley, and Chris McMahan. Teknowledge applied for
the patent in 1996.
The patent, which has 96 claims, is focused on various techniques
for collecting, storing, and forwarding information in a
computer network. The patented technology uses network resources
efficiently, and provides a way of keeping users apprised
in a timely manner of new information that is of particular
interest to them.
Neil Jacobstein, President & CEO of Teknowledge said: “Patents
are a fact of life in today’s software business environment.
BroadVision’s settlement with Art Technology Group is a
recent case in point. Our new patent presents how Internet
users can register interest in Web pages and then be automatically
apprised of subsequent changes. It also describes techniques
for reducing Internet latency and communication costs. This
is a significant contribution to Teknowledge’s knowledge-centric
patent portfolio. We are reviewing the business implications
with our extended intellectual property team and advisors.”
This is Teknowledge’s ninth software patent. Teknowledge’s
patent portfolio includes: Hierarchical Knowledge System,
Basic Expert System Tool, Knowledge Engineering Tool, Intelligent
Assistant for Using and Operating Computer System Capabilities
to Solve Problems, Knowledge Based Processor for Application
Programs Using Conventional Data Processing Capabilities,
Basic Expert System Tool (continuation), Knowledge Based
Tutor, Architecture for Composing Computational Modules
Uniformly Across Diverse Developmental Frameworks, and Automatic
Retrieval of Changed Files by a Network Software Agent.
Teknowledge's core business is intelligent Internet transactions.
These transactions provide secure, flexible, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge's
eCommerce Division delivers Teknowledge and 3rd party software
and services for financial and retail Internet portals.
Teknowledge
Announces TekPortal™ Solution Contract with National
InterBank
PALO ALTO, Calif. (Feb. 18, 2000) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
today the signing of a contract with National InterBank,
www.nationalinterbank.com,
a full service Internet-only bank. The contract includes
a license for TekPortal™, Teknowledge's multi-bank
account aggregation solution, in addition to integration
and other services. TekPortal enables institutions to provide
a consolidated view of their customers' accounts, regardless
of the owning institution.
Neil Jacobstein, President & CEO of Teknowledge said: "The
TekPortal solution is becoming a significant component of
Teknowledge'seCommerce business. We believe that TekPortal
can make a significant difference in National InterBank's
ability to attract and retain customers, as well as increase
their average assets per customer."
"National InterBank is a powerful new entrant into the Internet
banking arena. TekPortal will put National InterBank at
the forefront of Internet Banking, and demonstrates National
InterBank's focus on providing their customers a world class
service," said Rodney Robinson, Director of eCommerce at
Teknowledge.
J. Randall Waterfield, Co-Chairman and CEO of National InterBank,
commented: "National InterBank's philosophy is to partner
only with 'best of breed' technology providers such as Teknowledge.
In keeping with our customer-centric business model, the
account aggregation feature is a wonderful addition. National
InterBank customers will now be able to consolidate financial
account information from several hundred financial institutions
into one summary statement."
Teknowledge's core business is intelligent Internet transactions.
These transactions provide secure, flexible, and knowledge-based
interactions with customers. The Company provides solutions
for commercial and government Internet applications. Teknowledge's
eCommerce Division delivers Teknowledge and 3rd-party software
and services for financial and retail Internet portals.
National InterBank, www.nationalinterbank.com, a division
of FNB, is a nationally chartered institution with a single
mission: help customers enhance their wealth through the
use of technology. The internet-only bank saves customer
time and money by creating easy-to-use financial solutions,
and by passing savings from Internet technologies to customers
in the form of higher interest rates and no fee banking.
All National InterBank accounts are insured through the
FDIC, up to $100,000 per customer.
Teknowledge
Signs E-Commerce Contract With California Closets
PALO ALTO, Calif. (Dec. 8, 1999) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
today the signing of a contract with California Closets
(http://calclosets.com),
the market leader in custom closet solutions and life simplification.
Neil Jacobstein, President & CEO of Teknowledge said: "California
Closets is the recognized leader in its industry. Teknowledge
has been working with California Closets on their vision
for utilizing the Internet to distribute knowledge and help
franchises increase sales and productivity. Teknowledge
is implementing a web-based franchise support system to
provide the California Closets franchise offices with increased
information, and new methods to build their businesses."
Anthony F. Vidergauz, President and CEO of California Closets
said, "California Closets has a brand that represents high
quality products and services. We must continue to give
our franchise owners the tools to deliver on the promise
of our brand. Teknowledge was selected because of their
years of experience and the ability of their team to deliver
the solution for our needs."
"Teknowledge and California Closets are working on a next-generation
franchise support system," said Rodney Robinson, Director
of the E-Commerce Division at Teknowledge. "We will be delivering
applications that run the full spectrum of a franchises
business from product configuration and ordering to franchise
employee training and recruiting."
Teknowledge's core business is in knowledge-based Internet
transactions. The Company provides software component services
and products for commercial and government Internet applications.
Teknowledge's E-Commerce Systems business delivers Teknowledge
and 3rd-party software and services for financial and retail
Internet portals. Teknowledge has been profitable for twenty-
one consecutive quarters.
Teknowledge
Announces TekPortal™ Solution Contract with Lighthouse
Bank (In Formation)
PALO ALTO, Calif. (Dec. 6, 1999) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
today the signing of a contract with Lighthouse Bank.com,
a new Internet-only bank currently in formation, and based
in Boston. Teknowledge is developing a multi-bank portfolio
consolidation and management solution called TekPortal™,
which enables institutions to provide a consolidated view
of their customer’s assets and liabilities, regardless of
where they are managed. Lighthouse Bank.com is the first
TekPortal customer.
Neil Jacobstein, President & CEO of Teknowledge said: "It
is a pleasure to work with the innovative team at Lighthouse
Bank. They have a unique and customer-focused vision for
web-based banking in the 21st Century."
"Lighthouse Bank will be the first to benefit from Teknowledge’s
TekPortal solution. TekPortal will allow a financial institution
to provide its customers with a consolidated view of their
financial portfolio, regardless of where the various accounts
are held," said Rodney Robinson, Director of the E-Commerce
Division at Teknowledge. "The velocity and availability
of financial information is changing rapidly to the benefit
of the consumer. TekPortal will enable Lighthouse Bank to
become a next-generation financial solution provider, instead
of a follower."
Tom Venables, CEO of Lighthouse Bank, added: "We are delighted
to be working with the Teknowledge team to deliver a differentiated
banking and financial management experience to our clients.
The TekPortal solution will allow us to be the first Internet-only
consumer bank offering customers both high-performance banking
products and the ability to securely and conveniently manage
financial relationships in one place."
Teknowledge's core business is in knowledge-based Internet
transactions. The Company provides software component services
and products for commercial and government Internet applications.
Teknowledge's E-Commerce Division delivers Teknowledge and
3rd-party software and services for financial and retail
Internet portals. Teknowledge has been profitable for twenty-one
consecutive quarters.
Lighthouse Bank, a wholly owned subsidiary of Brookline
Bancorp, Inc. (NASDAQ: BRKL), has applied to the Commonwealth
of Massachusetts for a charter, and is also seeking regulatory
approval from the Federal Deposit Insurance Corporation
and the Federal Reserve Bank Board. Lighthouse, headquartered
in Waltham, MA, is an Internet-only bank in formation that
will offer a broad array of banking products and services
to consumers.
Brookline Bancorp, Inc. is also the parent company of Brookline
Savings Bank, a community bank located in Brookline, MA.
Teknowledge
Seeds Web-Based Real Estate Transactions Company, Spins
Out GlobalStake.Com
PALO ALTO, CALIF. (November 22, 1999) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
today that it had completed seeding a new web-based real
estate transactions company called GlobalStake.com. Dr.
Frederick Hayes-Roth will serve as GlobalStake.com’s Chairman
and CEO. Teknowledge will invest $1.2M, proprietary technology,
and rights to practice eight patents in exchange for a 19.9%
non-dilutable ownership position in the start-up company.
Neil Jacobstein, Teknowledge Chairman and CEO, commented:
"This is an outstanding outcome for Teknowledge and its
shareholders. Teknowledge will be able to maintain a 19.9%
non-dilutable ownership interest in GlobalStake.com. Web-based
start-ups typically lose millions of dollars building market
share in their first few years. By spinning out GlobalStake.com,
Teknowledge will not have to consolidate those losses with
its profitable E-Commerce business operating results. Teknowledge
will retain a significant percentage of the upside of the
new company without owning any potential GlobalStake.com
risks or liabilities. Launching a vertical application of
our knowledge-based technology was one of Teknowledge’s
key objectives for 2000. We believe that GlobalStake.com
has the technology, business model, and management to be
a key player in the trillion dollar real estate market."
Rick Hayes-Roth, GlobalStake.com Chairman and CEO, said:
"Teknowledge is now providing a portfolio of ways for its
stockholders to benefit from its powerful technology base.
I am very excited about GlobalStake.com, both because the
fit to Teknowledge’s technology is excellent and because
the real estate transactions market is huge. The real estate
business is arcane, and it is about to dissolve into the
world of competitive Internet transactions. GlobalStake.com
has the ability to capture a significant share of that huge
market with its superior knowledge-based transaction services."
The principal terms of the transaction are as follows: Teknowledge
Corp. will retain a 19.9% share of GlobalStake.com, consisting
of Series A preferred shares. This interest is maintained
against dilution until a liquidation event occurs (such
as an IPO or acquisition) and also has liquidation preferences
over common shares. For this interest, Teknowledge provided
three things: (1) approximately $1,200,000; (2) the proprietary
information and technology developed to date in support
of the GlobalStake.com business plan; and (3) licenses to
practice Teknowledge’s patent portfolio, including 8 current
US patents in knowledge-based software.
Mr. William G. Roth will become a member of the Board of
GlobalStake.com and resign from the Teknowledge Board of
Directors. Mr. Jacobstein will represent Teknowledge’s interest
in GlobalStake.com as a member of its Board. Mr. Hayes-Roth
will continue for one-year as a part-time employee of Teknowledge
to support various Teknowledge projects and activities.
Mr. Scott Robinson will move from Director of Contracts
at Teknowledge to Director of Finance at GlobalStake.com.
No current projects or customers should be adversely affected
by these changes.
Teknowledge’s core business is in knowledge-based Internet
transactions. The Company provides software services and
component products for government and commercial Internet
applications. Teknowledge’s E-Commerce Systems business
delivers Teknowledge and third-party software and services
for financial and retail Internet sites.
This press release contains forward-looking statements relating
to Teknowledge and GlobalStake.com. All forward-looking
statements involve risk and uncertainties, and actual results
could differ materially from those set forth in the forward-looking
statements contained herein as a result of competition,
and other factors.
Neil
Jacobstein Elected Chairman and CEO of Teknowledge
PALO ALTO, CALIF. (November 22, 1999) - Teknowledge Corporation
(Nasdaq SmallCap: TEKC; http://www.teknowledge.com) announced
a change in top management today. The Board of Directors
elected current President and COO Neil Jacobstein to lead
Teknowledge into the 21st Century as Chairman and Chief
Executive Officer. Jacobstein joined Teknowledge in 1984
as a Knowledge Engineer and served in roles as Senior Knowledge
Engineer, Division General Manager, Vice President, and
President & COO. He was instrumental in turning around Teknowledge
in 1993 and launching Teknowledge’s Web-based Training and
E-Commerce Divisions. He is a 1999 Henry Crown Fellow in
the Aspen Institute’s leadership program. Former Chairman
and CEO, Dr. Frederick Hayes-Roth, will continue consulting
for Teknowledge for a period of one year. Dr. Hayes-Roth
will become Chairman and CEO of Teknowledge’s vertical spinout
business GlobalStake.com.
Dr. Frederick Hayes-Roth commented: "Neil Jacobstein and
I have had an outstanding business and technical partnership
for 15 years. He is eminently qualified to lead Teknowledge,
with active involvement in both the commercial business
and our work with DARPA and NIST. We saw an opportunity
to increase the number of ways that Teknowledge stockholders
could profit from what we have built. I will continue to
consult on Teknowledge’s contracts, and Neil will serve
on the Board of Directors of GlobalStake.com. We consider
this a win-win outcome."
Neil Jacobstein commented: "Rick Hayes-Roth has been a great
partner and mentor to me. We will be working to make both
companies successful. I am very excited about Teknowledge’s
future on many fronts. The E-Commerce Division directed
by Rodney Robinson is very promising and growing fast in
the areas of Internet-based financial services and retail
E-Commerce sites. We also have strong divisions in Web-based
Training, Distributed Systems, Data Fusion, and Network
Security, all backed by 8 software patents and Internet-based
products and services that leverage our ability to electrify
knowledge. I think that both Teknowledge and GlobalStake.com
have excellent prospects."
Teknowledge’s core business is in knowledge-based Internet
transactions. The Company provides software services and
component products for government and commercial Internet
applications.
This press release contains forward-looking statements relating
to Teknowledge and GlobalStake.com. All forward-looking
statements involve risk and uncertainties, and actual results
could differ materially from those set forth in the forward-looking
statements contained herein as a result of competition,
and other factors.
Teknowledge's
E-Commerce Business Grows From 4% to 20% of Total Revenues
in Q3
PALO ALTO, Calif. (October 29, 1999) -- Teknowledge Corporation
(Nasdaq SmallCap: TEKC) announced its 21st consecutive profitable
quarter today, with a major increase in the percentage growth
of its E-Commerce business. Teknowledge recorded net income
of $52,090, or $.01 diluted earnings per share, on revenues
of $2,901,267 for the quarter ended September 30, 1999.
For the comparable period in 1998, the Company reported
net income of $273,469, or $.05 diluted earnings per share,
on revenues of $3,070,219. Commercial revenues from E-Commerce
customers rose from 4% in Q2 to over 20% of total revenues
in Q3.
Neil Jacobstein, President and COO, commented: "We are pleased
with the rapid growth in our E- Commerce business. In Q3
Teknowledge invested both talent and additional potential
profit in growing its commercial business. We expect this
trend to continue. Given Teknowledge's Internet knowledge
systems expertise and the huge upside opportunity in the
E-Commerce space, we are accelerating our investments in
the commercial growth of the Company, even at the expense
of short-term profitability."
The Company transitioned several of its technical people
working on government technical contracts to E-Commerce
contracts that are now starting up. The Company recorded
less than 1% of its revenues from E-Commerce in 1998. Because
of a growing number of commitments and anticipated growth
in Internet-based financial services, the Company expects
to report considerable improvement in its E-Commerce revenue
in Q4 when compared to the corresponding quarter in 1998.
Dr. Frederick Hayes-Roth, Chairman and CEO, stated: "Our
recent success in the E-Commerce area has not dampened our
commitment to maintaining a robust government R&D business.
Government support for cutting-edge knowledge processing
technology has given Teknowledge a significant competitive
edge in intellectual property and software infrastructure,
and we intend to exploit that technology through new vertical
market applications in the E-Commerce arena. This Internet-based
knowledge processing technology has been perfected over
the past twenty years, and it is now ripe for commercial
harvesting."
Teknowledge's core business is in knowledge-based Internet
transactions. The Company provides software component services
and products for government and commercial Internet applications.
Teknowledge's E-Commerce Systems business delivers Teknowledge
and third-party software and services for financial and
retail Internet sites.
This press release contains forward-looking statements relating
to the demand, market acceptance, and anticipated growth
of products that are subject to a high level of uncertainty.
All forward-looking statements involve risk and uncertainties,
and actual results could differ materially from those set
forth in the forward-looking statements contained herein
as a result of competition, and other factors relating to
government and commercial contracting.
TEKNOWLEDGE CORPORATION
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues $2,902 $3,070 $8,469 $9,221
Costs and expenses 2,821 2,816 7,958 8,614
Operating income 81 254 511 607
Nonoperating income 34 27 87 72
Income before tax $115 $281 $598 $679
Provision for income tax 63 7 256 0
Net income 52 274 342 679
Diluted net income
per share $0.01 $0.05 $0.06 $0.02
Shares used in computing
net income per share 5,564 5,771 5,791 5,743
TEKNOWLEDGE CORPORATION
Consolidated Balance Sheets
(In thousands)
Unaudited Audited
Sept. 30, Dec 31,
1999 1998
Assets
Cash and cash equivalents $2,852 $2,378
Receivables and unbilled charges 2,640 2,650
"Deferred tax asset, short-term" 400 400
"Capitalized software, net" 344 267
"Equipment and improvements, net" 372 505
"Deferred tax asset, long-term" 500 500
Total assets $7,108 $6,700
Liabilities and stockholders' equity
Accounts payable $693 $661
Accrued payroll & related liabilities 733 679
Other accrued liabilities 118 268
Stockholders' equity 5,564 5,092
Total liabilities and
stockholders' equity $7,108 $6,700
Teknowledge
Announces Countersuit Against SAP America, Inc. for Patent
Infringement
PALO ALTO, Calif. (October 21, 1999) -- Teknowledge Corporation
(Nasdaq SmallCap: TEKC) today announced a countersuit against
SAP America, Inc. and SAP Aktiengesellschaft for patent
infringement of two Teknowledge patents. The countersuit
was filed in response to a lawsuit filed by SAP on Oct.
9, 1999, asking the court to invalidate one Teknowledge
patent.
The subject of the countersuit is U.S. Patent 4,591,983,
entitled ''Hierarchical Knowledge System,'' issued May 27,
1986, and U.S. Patent 4,783,752, entitled ''Knowledge Based
Processing for Application Programs Using Conventional Data
Processing Capabilities,'' issued November 8, 1988. The
'983 patent involves the technology of knowledge-based product
configuration systems. The patent includes 70 claims describing
a variety of important functions that sales and manufacturing
companies seek in a knowledge-based configuration system.
The '752 patent involves the technology of using conventional
programming languages to interface with rule-based systems.
The patent includes 41 claims describing various methods
for interacting with knowledge-based systems.
Dr. Frederick Hayes-Roth, Chairman and CEO of Teknowledge,
said, "Teknowledge has an extensive portfolio of important
patents in the area of knowledge-based transaction services,
and the company is committed to licensing these patented
technologies where appropriate. In today's markets for complex
and rapidly changing product lines, the ability to describe
product configuration knowledge using hierarchical, object-oriented
techniques is critical for marketing, selling, configuring,
ordering, and servicing these products effectively and affordably."
Benedict O'Mahoney, Vice President, Administration and Legal
Affairs, said, ''We approached SAP about licensing our Intelligent
Configuration Patent Portfolio, a collection of five patents
relating to configuration technologies. SAP has chosen to
contest one of the patents in the portfolio, and, initially,
we are suing on two of the patents in the portfolio that
we have determined are most relevant to SAP's product line.
Teknowledge intends to defend its patents vigorously and
has appointed Gray, Cary, Ware & Friedenrich for representation
in this case.''
Teknowledge's core business is in knowledge-based Internet
transactions. The Company provides software component services
and products for government and commercial Internet applications.
Teknowledge's E-Commerce Systems business delivers Teknowledge
and third-party software and services for financial and
retail Internet sites. Teknowledge has been profitable for
twenty consecutive quarters.
Teknowledge
Announces Vertical Portal Contract with Fashionmall.com
PALO ALTO, Calif. (September 30, 1999) -- Teknowledge Corporation
(Nasdaq SmallCap: TEKC) announced today the signing of Fashionmall.com,
Inc. (Nasdaq: FASH), the leading vertical web portal focused
on fashion clothing and accessories. Teknowledge, a Microsoft
Certified Solution Provider, will build the updated Fashionmall.com
portal infrastructure around Microsoft Commerce Server™
and other components.
Neil Jacobstein, President and Chief Operating Officer of
Teknowledge, said: "This project will bring enterprise scalability
and reliability to Fashionmall.com’s E-Commerce services.
We are excited about helping Fashionmall.com extend its
reach as the premier fashion portal on the Internet."
"This customer wants to move fast, and we are committed
to deliver. We expect the Fashionmall portal site to evolve
rapidly with new features and capabilities, while supporting
the heavy load over the holidays," said Rodney Robinson,
Director of Teknowledge's E-Commerce Systems Division.
When asked why Fashionmall.com chose Teknowledge as its
solutions provider, Ben Narasin, CEO of Fashionmall.com,
commented: "I’ve been in the business for almost five years
now and the people at Teknowledge are some of the best I've
ever seen. They can help us take the scalability and functionality
of our site to a whole new level. FashionMall does business
only with the best and Teknowledge is the best partner to
enable our technology for growth."
Teknowledge’s core business is in knowledge-based Internet
transactions. The Company provides software component services
and products for government and commercial Internet applications.
Teknowledge’s E-Commerce Systems business delivers Teknowledge
and third-party software and services for financial and
retail Internet sites. Teknowledge has been profitable for
twenty consecutive quarters.
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