HERZLIYA, Israel — June 19, 2008 — BluePhoenix Solutions (NASDAQ: BPHX - News), the leader in value-driven legacy modernization, today provided an interim update on the Company’s outlook and business pipeline.
“Demand for our solutions remains strong globally,” said Arik Kilman, CEO of BluePhoenix Solutions. “While current economic conditions, particularly in the United States, have caused customers to take more time with their decisions, our opportunities are continuing to expand around the world. We are making progress on several large deals, some of which require additional time to close due to their scope and scale. The business proposition for our solutions has not changed and remains undisputed. We offer a tangible return on investment that makes increasing financial sense for our customers in troubling economic times. This continues to drive long-term demand even in the event of longer sales cycles and occasional delays.”
Mr. Kilman continued, “Currently, we anticipate adjusted, non-GAAP earnings per share of $0.14 to $0.18 for the second quarter, reflecting the impact of the Shekel against the U.S. Dollar and higher expenses related to headcount in anticipation of accelerated progress in deal closing during the later part of this year. We expect similar results in the third quarter, and are optimistic that that we will see substantial business growth during the fourth quarter. We are not providing an update on full-year guidance due to the possible upside impact of several major deals in various stages of discussion.”
“The U.S. Dollar, however, continues to deteriorate against the Israeli Shekel and other currencies and this will likely impact our adjusted non-GAAP earnings for the year,” Mr. Kilman concluded. “As we discussed in our last earnings call, we are not planning to adjust our guidance on a monthly basis as the Dollar fluctuates. However, based on current exchange rates we expect an approximate $0.06 to $0.07 impact against our earnings over the next three quarters.”
About BluePhoenix Solutions
BluePhoenix Solutions (NASDAQ: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, re-hosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Merrill Lynch, Rabobank, Rural Servicios Informáticos, SDC Udvikling, TEMENOS, Toyota and Volvofinans. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.
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. This press release is also available at www.bphx.com. All names and trademarks are their owners’ property.
Company Contact Investor Contact Financial Media Contact
Varda Sagiv Peter Seltzberg Jeffrey Stanlis
BluePhoenix Solutions Hayden Communications Hayden Communications
+97299526100 (646) 415-8972 (602) 476-1821
vsagiv@bphx.com peter@haydenir.com jeff@haydenir.com