Revenue results reflect a change in business model implemented during the quarter. Under the Company’s new subscription licensing model, revenue is recognized ratably over the term of the license agreement, rather than upon shipment. For Q1 fiscal 2001, the company recognized revenue of $5.1 million, which was comprised of product revenue recognized primarily under the Company’s prior perpetual license model.
Certicom reported a pro forma net loss (excluding non-operating, restructuring, and goodwill impairment charges) of $9.6 million, or $(0.31) per share for the first quarter of fiscal 2002. In the same period a year ago, under the prior business model, the pro forma net loss was $3.2 million, or $(0.13) per share.
On an as-reported basis, including non-operating charges of $9.5 million for restructuring, $9.4 million for goodwill impairment, $3.6 million in depreciation and amortization, and $0.5 million for deferred compensation. Certicom reported a net loss of $32.6 million, or $(1.06) per share, for the first quarter of fiscal 2002. In the same period a year ago, under the prior business model, on an as-reported basis, Certicom reported a net loss of $6.6 million, or $(0.26) per share, which included $3.3 million of non-operating charges related to depreciation and amortization, deferred compensation amortization and a one-time non-cash interest expense.
Q1 was a challenging quarter for Certicom, but even in the context of a continuing pullback in telecom and wireless, we achieved many of our important goals, said Rick Dalmazzi, president and CEO of Certicom. We successfully leveraged our new subscription licensing model into 26 new licenses during fiscal Q1, up from 18 last quarter.
However, the larger deals remain illusive as buying decisions continue to get pushed out by our larger, more diversified customers and prospects, Dalmazzi continued. In order to stay the course for our commitment to profitability by October 2002, we initiated a second round of restructuring in early Q2, which we deemed necessary to meet our profitability goals.
