BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2009
|
2008
|
2009
|
2008
|
|
Unaudited
|
Unaudited
|
| |
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
$ |
18,688 |
|
$ |
22,029 |
|
$ |
58,239 |
|
$ |
69,093 |
|
| |
|
|
| Cost of revenues |
|
|
|
10,309 |
|
|
12,375 |
|
|
31,849 |
|
|
33,997 |
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
8,379 |
|
|
9,654 |
|
|
26,390 |
|
|
35,096 |
|
| |
|
|
| Research and development costs, net |
|
|
|
2,476 |
|
|
4,498 |
|
|
8,708 |
|
|
14,100 |
|
| |
|
|
| Selling, general and administrative expenses |
|
|
|
7,664 |
|
|
10,362 |
|
|
21,663 |
|
|
25,182 |
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
|
10,140 |
|
|
14,860 |
|
|
30,371 |
|
|
39,282 |
|
| |
|
|
| Operating loss |
|
|
|
(1,761 |
) |
|
(5,206 |
) |
|
(3,981 |
) |
|
(4,186 |
) |
| |
|
|
| Financial expenses, net |
|
|
|
(803 |
) |
|
(1,042 |
) |
|
(1,997 |
) |
|
(1,038 |
) |
| |
|
|
| Other income |
|
|
|
- |
|
|
- |
|
|
- |
|
|
273 |
|
|
|
|
|
|
|
|
|
|
| Loss before taxes |
|
|
|
(2,564 |
) |
|
(6,248 |
) |
|
(5,978 |
) |
|
(4,951 |
) |
| |
|
|
| Taxes on income (benefit) |
|
|
|
(99 |
) |
|
- |
|
|
11 |
|
|
(330 |
) |
|
|
|
|
|
|
|
|
|
| Net loss from continued operation |
|
|
|
(2,465 |
) |
|
(6,697 |
) |
|
(5,989 |
) |
|
(4,621 |
) |
| |
|
|
| Net loss from discontinued operation |
|
|
|
- |
|
|
449 |
|
|
- |
|
|
9,021 |
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
|
(2,465 |
) |
|
(6,248 |
) |
|
(5,989 |
) |
|
(13,642 |
) |
| |
|
|
| Net income attributable to noncontrolling interests |
|
|
|
214 |
|
|
142 |
|
|
441 |
|
|
255 |
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to BluePhoenix |
|
|
$ |
(2,679 |
) |
$ |
(6,839 |
) |
$ |
(6,430 |
) |
$ |
(13,897 |
) |
| |
|
|
| Net loss per share: |
|
|
| Basic |
|
|
$ |
(0.13 |
) |
$ |
(0.32 |
) |
$ |
(0.31 |
) |
$ |
(0.66 |
) |
| Diluted |
|
|
$ |
(0.13 |
) |
$ |
(0.32 |
) |
$ |
(0.31 |
) |
$ |
(0.66 |
) |
| |
|
|
| Shares used in per share calculation: |
|
|
| Basic |
|
|
|
21,118 |
|
|
21,368 |
|
|
20,965 |
|
|
21,183 |
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
|
|
21,118 |
|
|
21,368 |
|
|
20,965 |
|
|
21,183 |
|
|
|
|
|
|
|
|
|
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2009
|
2008
|
2009
|
2008
|
|
Unaudited
|
Unaudited
|
| |
|
|
|
|
|
|
|
|
|
| GAAP Gross Profit |
|
|
$ |
8,379 |
|
$ |
9,654 |
|
$ |
26,390 |
|
$ |
35,096 |
|
| |
|
|
| Amortization of intangible assets |
|
|
|
1,862 |
|
|
2,160 |
|
|
6,071 |
|
|
6,473 |
|
| Expenses related to cost saving plan |
|
|
|
- |
|
|
- |
|
|
202 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP gross profit |
|
|
$ |
10,241 |
|
$ |
11,814 |
|
$ |
32,663 |
|
$ |
41,569 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| GAAP operating loss |
|
|
$ |
(1,761 |
) |
$ |
(5,206 |
) |
$ |
(3,981 |
) |
$ |
(4,186 |
) |
| |
|
|
| Amortization of intangible assets |
|
|
|
1,862 |
|
|
2,160 |
|
|
6,071 |
|
|
6,473 |
|
| Stock-based compensations |
|
|
|
496 |
|
|
537 |
|
|
1,604 |
|
|
2,146 |
|
| Expenses related to cost saving plan and one time charges |
|
|
|
901 |
|
|
2,339 |
|
|
1,746 |
|
|
2,339 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP operating income (loss) |
|
|
$ |
1,498 |
|
$ |
(170 |
) |
$ |
5,440 |
|
$ |
6,772 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| GAAP Net loss attributable to BluePhoenix |
|
|
$ |
(2,679 |
) |
$ |
(6,839 |
) |
$ |
(6,430 |
) |
$ |
(13,897 |
) |
| |
|
|
| Net loss from discontinued operation |
|
|
|
- |
|
|
449 |
|
|
- |
|
|
9,021 |
|
| Amortization of intangible assets |
|
|
|
1,862 |
|
|
2,160 |
|
|
6,071 |
|
|
6,473 |
|
| Stock-based compensations |
|
|
|
496 |
|
|
537 |
|
|
1,604 |
|
|
2,146 |
|
| Expenses related to cost saving plan and one time charges |
|
|
|
901 |
|
|
2,339 |
|
|
1,746 |
|
|
2,339 |
|
| Non-cash financial and other expenses |
|
|
|
432 |
|
|
- |
|
|
585 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Net income (loss) |
|
|
$ |
1,012 |
|
$ |
(1,354 |
) |
$ |
3,576 |
|
$ |
6,082 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Shares used in diluted earnings per share calculation |
|
|
|
21,337 |
|
|
21,368 |
|
|
21,045 |
|
|
22,017 |
|
| |
|
|
| Non - GAAP Diluted Earning (loss) per share |
|
|
$ |
0.05 |
|
$ |
(0.06 |
) |
$ |
0.17 |
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
September 30,
2009
|
December 31,
*2008
|
|
Unaudited
|
|
| |
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| |
|
|
| Current Assets: |
|
|
| |
|
|
| Cash and cash equivalents |
|
|
$ |
23,812 |
|
$ |
30,308 |
|
| Marketable securities |
|
|
|
224 |
|
|
423 |
|
| Trade accounts receivable |
|
|
|
26,111 |
|
|
28,232 |
|
| Other current assets |
|
|
|
3,545 |
|
|
3,217 |
|
|
|
|
|
|
| Total Current Assets |
|
|
|
53,692 |
|
|
62,180 |
|
| |
|
|
| Non-Current Assets: |
|
|
| |
|
|
| Investment in affiliated company |
|
|
|
157 |
|
|
157 |
|
| Property and equipment, net |
|
|
|
2,044 |
|
|
2,493 |
|
| Goodwill |
|
|
|
56,753 |
|
|
52,006 |
|
| Intangible assets and other, net |
|
|
|
17,333 |
|
|
23,151 |
|
|
|
|
|
|
| Total Non-Current Assets |
|
|
|
76,287 |
|
|
77,807 |
|
|
|
|
|
|
| |
|
|
| TOTAL ASSETS |
|
|
$ |
129,979 |
|
$ |
139,987 |
|
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| |
|
|
| Current Liabilities: |
|
|
| |
|
|
| Short-term bank credit |
|
|
$ |
3,757 |
|
$ |
1,021 |
|
| Trade accounts payable |
|
|
|
4,974 |
|
|
5,133 |
|
| Deferred revenues |
|
|
|
3,871 |
|
|
5,541 |
|
| Other current liabilities |
|
|
|
11,107 |
|
|
18,125 |
|
|
|
|
|
|
| Total Current Liabilities |
|
|
|
23,709 |
|
|
29,820 |
|
| |
|
|
| Non-Current Liabilities |
|
|
| |
|
|
| Accrued severance pay, net |
|
|
|
1,442 |
|
|
1,797 |
|
| Loans from banks |
|
|
|
13,549 |
|
|
15,048 |
|
|
|
|
|
|
| Total Non-Current Liabilities |
|
|
|
14,991 |
|
|
16,845 |
|
| |
|
|
| Total Equity |
|
|
|
91,279 |
|
|
93,322 |
|
|
|
|
|
|
| TOTAL LIABILITIES AND EQUITY |
|
|
$ |
129,979 |
|
$ |
139,987 |
|
* Derived from audited 2008 balance sheet.
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2009
|
2008
|
2009
|
2008
|
|
Unaudited
|
Unaudited
|
| |
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
$ |
(2,465 |
) |
$ |
(6,697 |
) |
$ |
(5,989 |
) |
$ |
(13,642 |
) |
| Adjustments to reconcile net loss to net |
|
|
| cash provided by operating activities: |
|
|
| Loss from discontinued operation |
|
|
|
- |
|
|
449 |
|
|
- |
|
|
9,021 |
|
| Depreciation and amortization |
|
|
|
2,112 |
|
|
2,500 |
|
|
6,820 |
|
|
7,229 |
|
| Decrease in accrued severance pay, net |
|
|
|
(99 |
) |
|
(128 |
) |
|
(355 |
) |
|
(30 |
) |
| Stock-based and non cash compensation |
|
|
|
496 |
|
|
537 |
|
|
1,604 |
|
|
2,148 |
|
| Deferred income taxes, net |
|
|
|
- |
|
|
(278 |
) |
|
(413 |
) |
|
(767 |
) |
| Marketable securities |
|
|
|
(8 |
) |
|
(29 |
) |
|
199 |
|
|
(29 |
) |
Realized gain from available for sale
Marketable securities |
|
|
|
79 |
|
|
- |
|
|
79 |
|
|
- |
|
| Decrease (increase) in trade receivables |
|
|
|
1,369 |
|
|
946 |
|
|
2,121 |
|
|
(3,050 |
) |
| Decrease (increase) in other current assets |
|
|
|
(673 |
) |
|
668 |
|
|
(118 |
) |
|
(521 |
) |
| Increase (decrease) in trade payables |
|
|
|
(904 |
) |
|
221 |
|
|
(122 |
) |
|
953 |
|
| Increase (decrease) in other current |
|
|
| liabilities and deferred revenues |
|
|
|
108 |
|
|
1,041 |
|
|
(2,542 |
) |
|
565 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
|
|
|
15 |
|
|
(770 |
) |
|
1,284 |
|
|
1,877 |
|
| |
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
| Purchase of property and equipment |
|
|
|
(98 |
) |
|
(540 |
) |
|
(289 |
) |
|
(1,027 |
) |
| Proceeds from sale of property and equipment |
|
|
|
- |
|
|
22 |
|
|
- |
|
|
22 |
|
| Additional consideration of previously |
|
|
| acquired subsidiaries and purchase of |
|
|
| activity |
|
|
|
(1,535 |
) |
|
(1,509 |
) |
|
(8,598 |
) |
|
(7,252 |
) |
| Investment in newly-consolidated |
|
|
| subsidiaries and purchase of new-activity |
|
|
|
- |
|
|
(58 |
) |
|
- |
|
|
(992 |
) |
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
(1,633 |
) |
|
(2,085 |
) |
|
(8,887 |
) |
|
(9,249 |
) |
| |
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
| Repayment of long-term loans |
|
|
|
(264 |
) |
|
- |
|
|
(775 |
) |
|
(75 |
) |
| Receipt of long-term loans |
|
|
|
2,000 |
|
|
16,000 |
|
|
2,000 |
|
|
16,000 |
|
| Purchase of treasury shares |
|
|
|
- |
|
|
- |
|
|
(83 |
) |
|
(591 |
) |
| Issuance of shares |
|
|
|
(35 |
) |
|
- |
|
|
(35 |
) |
|
- |
|
| Exercise of employee share options and |
|
|
| warrants |
|
|
|
- |
|
|
- |
|
|
- |
|
|
2,007 |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by financing activities |
|
|
|
1,701 |
|
|
16,000 |
|
|
1,107 |
|
|
17,341 |
|
| |
|
|
| NET CASH INCREASE (DECREASE) FROM CONTINUED |
|
|
| OPERATION |
|
|
|
83 |
|
|
13,145 |
|
|
(6,496 |
) |
|
9,969 |
|
| CASH AND CASH EQUIVALENTS AT BEGINNING OF |
|
|
| PERIOD |
|
|
|
23,729 |
|
|
19,395 |
|
|
30,308 |
|
|
22,571 |
|
|
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
|
$ |
23,812 |
|
$ |
32,540 |
|
$ |
23,812 |
|
$ |
32,540 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| CASH FLOWS - DISCONTINUED OPERATION: |
|
|
| Cash flow used in operating activity |
|
|
|
- |
|
|
(631 |
) |
|
- |
|
|
(752 |
) |
| Cash flow used in investment activity |
|
|
|
- |
|
|
(19 |
) |
|
- |
|
|
(64 |
) |
|
|
|
|
|
|
|
|
|
| NET CASH USED IN DISCONTINUED OPERATION |
|
|
|
- |
|
|
(650 |
) |
|
- |
|
|
(816 |
) |
|
|
|
|
|
|
|
|
|
Contacts
BluePhoenix Solutions
Varda Sagiv, +972-9-9526110
Vsagiv@BPHX.com