BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
Three months ended
March 31,
|
|
2009
|
2008*
|
|
Unaudited
|
| |
|
|
|
|
|
| Revenues |
|
|
$ |
20,500 |
|
$ |
24,035 |
|
| |
|
|
| Cost of revenues |
|
|
|
10,961 |
|
|
9,974 |
|
|
|
|
|
|
| Gross profit |
|
|
|
9,539 |
|
|
14,061 |
|
| |
|
|
| Research and development costs, net |
|
|
|
3,582 |
|
|
4,848 |
|
| |
|
|
| Selling, general and administrative expenses |
|
|
|
6,530 |
|
|
8,028 |
|
|
|
|
|
|
| Total operating expenses |
|
|
|
10,112 |
|
|
12,876 |
|
| |
|
|
| Operating income (loss) |
|
|
|
(573 |
) |
|
1,185 |
|
| |
|
|
| Financial expenses, net |
|
|
|
1,145 |
|
|
48 |
|
| |
|
|
| Other income |
|
|
|
- |
|
|
259 |
|
|
|
|
|
|
| Income (loss) before taxes |
|
|
|
(1,718 |
) |
|
1,396 |
|
| |
|
|
| Taxes on income (benefit) |
|
|
|
31 |
|
|
(103 |
) |
|
|
|
|
|
| Net income (loss) from continued operation |
|
|
|
(1,749 |
) |
|
1,499 |
|
| |
|
|
| Net loss from discontinued operation |
|
|
|
|
|
|
(220 |
) |
|
|
|
|
|
| Net income (loss) |
|
|
|
(1,749 |
) |
|
1,279 |
|
| |
|
|
| Net income attributable to noncontrolling interests |
|
|
|
91 |
|
|
75 |
|
|
|
|
|
|
| Net income (loss) attributable to BluePhoenix |
|
|
$ |
(1,840 |
) |
$ |
1,204 |
|
|
|
|
|
|
| |
|
|
| Net income (loss) per share: |
|
|
| Basic |
|
|
$ |
(0.09 |
) |
$ |
0.06 |
|
| Diluted |
|
|
$ |
(0.09 |
) |
$ |
0.05 |
|
| |
|
|
| Shares used in per share calculation: |
|
|
| Basic |
|
|
|
20,902 |
|
|
20,802 |
|
|
|
|
|
|
| Diluted |
|
|
|
20,902 |
|
|
22,010 |
|
|
|
|
|
|
* Presented after reclassification of Mainsoft Inc. as discontinued operation.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
|
Three months ended March 31,
|
|
2009
|
2008
|
|
GAAP
|
Adjust.
|
Non-GAAP
|
Non-GAAP
|
| |
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
$ |
20,500 |
|
|
|
|
$ |
20,500 |
|
$ |
24,035 |
|
| |
|
|
| Cost of revenues |
|
|
|
10,961 |
|
|
(2,556 |
)(a)(b) |
|
8,405 |
|
|
7,788 |
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
9,539 |
|
|
2,556 |
|
|
12,095 |
|
|
16,247 |
|
| |
|
|
| Research and development costs, net |
|
|
|
3,582 |
|
|
|
|
|
3,582 |
|
|
4,848 |
|
| |
|
|
| Selling, general and administrative expenses |
|
|
|
6,530 |
|
|
(631 |
)(b)(c) |
|
5,899 |
|
|
7,098 |
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
|
10,112 |
|
|
(631 |
) |
|
9,481 |
|
|
11,946 |
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
(573 |
) |
|
3,187 |
|
|
2,614 |
|
|
4,301 |
|
| |
|
|
| Financial expenses, net |
|
|
|
1,145 |
|
|
(24 |
)(d) |
|
1,121 |
|
|
48 |
|
| |
|
|
| Other income |
|
|
|
- |
|
|
|
|
|
- |
|
|
259 |
|
|
|
|
|
|
|
|
|
|
| Income (loss) before taxes |
|
|
|
(1,718 |
) |
|
3,211 |
|
|
1,493 |
|
|
4,512 |
|
| |
|
|
| Taxes on income (benefit) |
|
|
|
31 |
|
|
|
|
|
31 |
|
|
(103 |
) |
|
|
|
|
|
|
|
|
|
| |
|
|
| Net income (loss) |
|
|
|
(1,749 |
) |
|
3,211 |
|
|
1,462 |
|
|
4,615 |
|
| |
|
|
| Net income attributable to noncontrolling interests |
|
|
|
91 |
|
|
|
|
|
91 |
|
|
75 |
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to BluePhoenix |
|
|
$ |
(1,840 |
) |
$ |
3,211 |
|
$ |
1,371 |
|
$ |
4,540 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Net income (loss) per share: |
|
|
| |
|
|
| Diluted |
|
|
$ |
(0.09 |
) |
|
|
|
$ |
0.07 |
|
$ |
0.21 |
|
| |
|
|
| Shares used in per share calculation |
|
|
|
20,902 |
|
|
|
|
|
20,902 |
|
|
22,010 |
|
|
|
|
|
|
|
|
|
|
Notes:
(a) Amortization of intangible assets $2,354K
(b) Termination costs $235K. $202K in cost of sales; $33K in S,G&A.
(c) Stock-based compensation $598K.
(d) Non cash derivative $24K.
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
March 31,
|
December 31,
|
|
2009
|
*2008
|
|
Unaudited
|
|
| |
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| |
|
|
| Current Assets: |
|
|
| |
|
|
| Cash and cash equivalents |
|
|
|
29,665 |
|
|
30,308 |
|
| Marketable securities |
|
|
|
591 |
|
|
423 |
|
| Trade accounts receivable |
|
|
|
26,012 |
|
|
28,232 |
|
| Other current assets |
|
|
|
3,289 |
|
|
3,217 |
|
|
|
|
|
|
| Total Current Assets |
|
|
|
59,557 |
|
|
62,180 |
|
| |
|
|
| Non-Current Assets: |
|
|
| |
|
|
| Investment in affiliated company |
|
|
|
157 |
|
|
157 |
|
| Property and equipment, net |
|
|
|
2,396 |
|
|
2,493 |
|
| Goodwill |
|
|
|
52,166 |
|
|
52,006 |
|
| Intangible assets and other, net |
|
|
|
20,793 |
|
|
23,151 |
|
|
|
|
|
|
| Total Non-Current Assets |
|
|
|
75,512 |
|
|
77,807 |
|
|
|
|
|
|
| |
|
|
| TOTAL ASSETS |
|
|
$ |
135,069 |
|
$ |
139,987 |
|
|
|
|
|
|
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| |
|
|
| Current Liabilities: |
|
|
| |
|
|
| Short-term bank credit |
|
|
$ |
3,051 |
|
$ |
1,021 |
|
| Trade accounts payable |
|
|
|
5,023 |
|
|
5,133 |
|
| Deferred revenues |
|
|
|
4,877 |
|
|
5,541 |
|
| Other current liabilities |
|
|
|
15,893 |
|
|
18,125 |
|
|
|
|
|
|
| Total Current Liabilities |
|
|
|
28,844 |
|
|
29,820 |
|
| |
|
|
| Non-Current Liabilities |
|
|
| |
|
|
| Accrued severance pay, net |
|
|
|
1,508 |
|
|
1,797 |
|
| Loans from banks |
|
|
|
12,790 |
|
|
15,048 |
|
|
|
|
|
|
| Total Non-Current Liabilities |
|
|
|
14,298 |
|
|
16,845 |
|
|
|
|
|
|
| |
|
|
| Total Equity |
|
|
|
91,927 |
|
|
93,322 |
|
|
|
|
|
|
| TOTAL LIABILITIES AND EQUITY |
|
|
$ |
135,069 |
|
$ |
139,987 |
|
|
|
|
|
|
* Derived from audited 2008 balance sheet.
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Three months ended
March 31,
|
|
2009
|
2008*
|
|
Unaudited
|
| |
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Net loss |
|
|
$ |
(1,749 |
) |
$ |
1,279 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| loss from discontinued operation |
|
|
|
- |
|
|
220 |
|
| Depreciation and amortization |
|
|
|
2,597 |
|
|
2,340 |
|
| Increase (decrease) in accrued severance pay, net |
|
|
|
(289 |
) |
|
116 |
|
| Stock-based and non cash compensation |
|
|
|
598 |
|
|
930 |
|
| Deferred income taxes, net |
|
|
|
- |
|
|
(125 |
) |
| Marketable securities |
|
|
|
(168 |
) |
|
15 |
|
| Decrease (increase) in trade receivables |
|
|
|
2,221 |
|
|
(1,853 |
) |
| Decrease (increase) in other current assets |
|
|
|
(72 |
) |
|
(120 |
) |
| Increase (decrease) in trade payables |
|
|
|
(110 |
) |
|
500 |
|
| Decrease in other current liabilities and deferred revenues |
|
|
|
(1,801 |
) |
|
(1,177 |
) |
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
1,227 |
|
|
2,125 |
|
| |
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
| Purchase of property and equipment |
|
|
|
(137 |
) |
|
(449 |
) |
| Additional consideration of previously acquired subsidiaries and purchase of activity |
|
|
|
(1,422 |
) |
|
(2,285 |
) |
| Purchase of newly consolidated subsidiaries |
|
|
|
- |
|
|
(15 |
) |
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
(1,559 |
) |
|
(2,749 |
) |
| |
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
| Short term bank credit, net |
|
|
|
30 |
|
|
- |
|
| Repayment of long-term loans |
|
|
|
(258 |
) |
|
(40 |
) |
| Purchase of treasury shares |
|
|
|
(83 |
) |
|
- |
|
| Exercise of employee share options and warrants |
|
|
|
- |
|
|
1,620 |
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
|
|
(311 |
) |
|
1,580 |
|
| |
|
|
| NET CASH PROVIDED BY (USED IN) ONGOING OPERATION |
|
|
|
(643 |
) |
|
956 |
|
| |
|
|
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
|
30,308 |
|
|
22,571 |
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
|
$ |
29,665 |
|
$ |
23,527 |
|
|
|
|
|
|
| |
|
|
| CASH FLOWS - DISCONTINUED OPERATION: |
|
|
| Cash flow used in operating activity |
|
|
|
- |
|
|
(1,159 |
) |
| Cash flow used in investment activity |
|
|
|
- |
|
|
(31 |
) |
|
|
|
|
|
| NET CASH USED IN DISCONTINUED OPERATION |
|
|
|
- |
|
|
(1,190 |
) |
|
|
|
|
|
* Presented after reclassification of Mainsoft Inc. as discontinued operation.