HERZLIA, Israel--(BUSINESS WIRE)--Feb. 22, 2005--BluePhoenix Solutions Ltd. (NASDAQ: BPHX - News), the leader in Enterprise IT Modernization, today announced financial results for fourth quarter and year ended December 31, 2004.
For the year ended December 31, 2004, BluePhoenix reported record sales of $57.2 million, up 5% from $54.3 million in the previous year. The Company reported operating income of $3.5 million as compared to $1.9 million in 2003. The net income for 2004 was $2.8 million, or $0.21 per share, compared with $1.9 million or $0.14 per share in 2003.
For the fourth quarter of fiscal 2004, BluePhoenix reported sales of $14.5 million, up 3% from $14.1 million in the comparable fourth quarter of 2003. Operating income for the fourth quarter was $810,000, compared to $885,000 in the fourth quarter of 2003. Net income for the fourth quarter was $632,000, or $0.05 per share, as compared to $922,000, or $0.07 per share, in the fourth quarter of 2003.
"During 2004, we successfully managed to expand and improve our suite of modernization tools, while improving the overall performance of the Company. The market for our tools has been proven. We are constantly receiving reassurance of the strong demand for our capabilities, from customers as well as leading technological and market analysts. Part of this year's revenue growth is attributable to the early results of our increased marketing and promotional activities," said Arik Kilman, Chief Executive Officer of BluePhoenix Solutions.
"I am very optimistic about the future growth of the modernization market, and believe that our company's road map will lead us to reap the long-term seeds we have been planting. We are receiving a growing number of initial orders from new customers, where we are required to demonstrate the high-performance capabilities of our various tools. Underlying these orders are large-scale modernization deals. We believe that the successful delivery of these projects, although sometimes at lower margins, helps us address the large potential of this market. Our current orders and pipeline stream is proof of the need for our solutions. Our near-term success will be measured by the growth in the number of new orders. The measurable results will follow the introduction of new and improved automated modernization tools, and are expected to materialize in the second half of 2005 and forward," concluded Mr. Kilman.
Arik Kilman, BluePhoenix Chief Executive Officer, and Iris Yahal, Chief Financial Officer, will discuss twelve month and forth quarter results, and will be available to answer questions in a conference call.
Conference Call Details:
The conference call will be held on
Tuesday, February 22nd, 2005 at 10:00 A.M. (EST)
Interested parties are welcome to call the telephone numbers listed
below, 5-10 minutes prior to the start of the conference call.
In the US call: (800) 288-8975
Outside the US call: +1 (612) 332-0228
Callers should reference "BluePhoenix Solutions Fourth Quarter and
Year End Results 2004" to the AT&T conference call operator.
An automated replay of the conference call will be available from
February 22nd at 01:00 P.M. until February 24th at 11:59 P.M. (EST).
To access the replay call (USA) (800) 475-6701, (International)
1-(320) 365-3844, and enter the BluePhoenix Solutions access code
of 770835.
About BluePhoenix Solutions
BluePhoenix Solutions leads the IT Modernization market by developing unique solutions that enable companies to automate the process of modernizing and upgrading their mainframe and distributed IT infrastructure, thus quickly and cost-effectively extending the ROI of their existing IT systems. The Company's comprehensive suite of tools and services (including technology for Understanding, Presentment, Migration, Remediation, and Redevelopment) reduces the cost of renovation and speeds up the renewal process. BluePhoenix has 12 offices throughout the world, including locations in the US, UK, Denmark, Germany, Italy, The Netherlands, Israel, and Australia.
The Company's major shareholder is the Formula Group (NADSAQ:FORTY), an international Information Technology company principally engaged in providing software products, solutions, and services in various vertical markets.
For more information, please visit our web site at www.bphx.com
(Tables to Follow)
SAFE HARBOR: Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements. These risks and uncertainties include but are not limited to: market demand for the Company's tools, successful implementation of the Company's tools, competitive factors, the ability to manage the Company's growth, the ability to recruit and retrain additional software personnel, and the ability to develop new business lines.
BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Year ended
December 31, December 31,
--------------------------------------
2004 2003 2004 2003
--------------------------------------
Unaudited
Revenues $14,543 $14,081 $57,186 $54,340
Cost of revenues 6,207 6,026 24,253 24,115
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Gross profit 8,336 8,055 32,933 30,225
Software development costs, net 1,982 2,061 8,055 8,138
Selling, general and
administrative expenses 5,172 4,802 19,981 18,847
--------------------------------------
1,182 1,192 4,897 3,240
Depreciation 372 307 1,407 1,293
--------------------------------------
Operating income 810 885 3,490 1,947
Financial income, net 46 67 (882) 165
Other income, net -- 315 1,087 943
--------------------------------------
Income before taxes 856 1,267 3,695 3,055
Taxes on income 255 5 260 152
--------------------------------------
601 1,262 3,435 2,903
Minority interest 123 (70) (73) (154)
Equity in losses of affiliated
companies (92) (270) (516) (898)
--------------------------------------
Net income 632 922 2,846 1,851
======================================
Basic earnings per share 0.05 0.07 0.21 0.14
======================================
Diluted earnings per share 0.05 0.07 0.21 0.14
======================================
Common shares outstanding 13,534 13,458 13,523 13,451
======================================
Common shares assuming dilution 14,752 13,949 14,679 13,644
======================================
BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31 December 31
2004 2003
-----------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $9,363 $11,105
Marketable securities 177 406
Accounts receivable:
Trade 15,814 12,617
Other 2,175 1,899
-----------------------
Total current assets 27,529 26,027
-----------------------
INVESTMENTS -- 3,578
-----------------------
FIXED ASSETS
Cost 10,614 8,920
Less - accumulated depreciation 7,921 6,121
-----------------------
Total fixed assets 2,693 2,799
-----------------------
OTHER ASSETS, NET 60,268 48,416
-----------------------
Total assets $90,490 $80,820
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $7,214 $8,342
Accounts payable and accruals:
Trade 4,382 3,425
Deferred revenue 2,583 3,034
Other 6,993 10,980
-----------------------
Total current liabilities 21,172 25,781
-----------------------
LONG-TERM LIABILITIES:
Convertible debentures 5,149 --
Loans from banks and others and convertible
debt 7,736 2,065
Accrued severance pay, net 961 915
Provision for losses in formerly-consolidated
subsidiary 1,971 1,971
-----------------------
Total long-term liabilities 15,817 4,951
-----------------------
MINORITY INTEREST 4,870 4,690
-----------------------
SHAREHOLDERS' EQUITY (net of cost of 1,870,565
shares held by subsidiaries) 48,631 45,398
-----------------------
Total liabilities and shareholders' equity $90,490 $80,820
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Contact:
BluePhoenix Solutions Ltd.
Iris Yahal, +972-9-9526110