Growing Revenues
HERZLIA, Israel--(BUSINESS WIRE)-- Nov. 10, 2004 -- BluePhoenix Solutions Ltd. (Nasdaq: BPHX - News), today announced the results of the nine months and third quarter ended on September 30, 2004.
For the nine months that ended on September 30, 2004, BluePhoenix reported sales of $42.6 million, up 6% from $40.3 million in the same period in the previous year. The Company reported operating income of $2.7 million as compared to $1.1 million in the comparable nine months of 2003. The net income for the first nine months of 2004 was $2.2 million, or $0.16 per share, compared with $929,000 or $0.07 per share in the first nine months of last year.
For the third quarter of fiscal 2004, BluePhoenix reported sales of $14.3 million, up 7% from $13.4 million in the comparable third quarter of 2003. Operating income for the third quarter was $712,000, compared with $669,000 in the third quarter of 2003. Net income for the third quarter was $337,000, or $0.02 per share as compared to $615,000 or $0.05 per share in the third quarter of 2003.
"Our successful deliveries together with the growing interest in our tools create an environment conducive to long-term success. During the next year, we plan to launch a variety of new niche tools, mainly in the area of database migrations. These new additions to our portfolio will complete our wide offering to this growing market," said Arik Kilman, Chief Executive Officer of BluePhoenix Solutions. "We have been able to position ourselves as a true leader in the Legacy Modernization space. Our innovative solutions meet the evolving requirements of enterprises to adapt their IT systems to new business needs. I believe that we will see a rapid growth in demand for our modernization solutions by the middle of next year."
"The positive technology analyst reports provide reassurance to our 'tool expansion strategy.' Our solid technology base guarantees that our customers will efficiently achieve their modernization goals. We continuously invest in the development of new tools, in order to round out our offering of a cohesive legacy migration service. Our suite of solutions provides customers with a one-stop-shop offering for any integration requirements they may have, and creates for us a compelling opportunity to grow our business as we go forward." added Mr. Kilman.
Mr. Kilman, BluePhoenix CEO, and Iris Yahal, Chief Financial Officer, will discuss nine months and third quarter results, and will be available to answer questions in a conference call.
Conference Call Details:
The conference call will be held on
Wednesday, November 10th, 2004 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: 877-209-0397
Outside the US call: 612-332-1025
Callers should reference "BluePhoenix Solutions Third Quarter Results 2004" to the AT&T conference call operator.
An automated replay of the conference call will be available from November 10th at 02:00 P.M. until November 12th at 11:59 P.M. (EST).
To access the replay call (USA) 800-475-6701, (International) 320-365-3844, and enter the BluePhoenix Solutions access code of 754320.
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 (Nasdaq:FORTY - News), 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.
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 Nine months ended Year ended
September 30, September 30, December 31,
------------------- ----------------- ------------
2004 2003 2004 2003 2003
--------- --------- -------- -------- ------------
Unaudited Unaudited
Revenues $14,333 $13,443 $42,643 $40,259 $54,340
Cost of revenues 6,044 5,815 18,046 18,089 24,115
--------- --------- -------- -------- ------------
Gross profit 8,289 7,628 24,597 22,170 30,225
Software development
costs, net 2,012 1,987 6,073 6,077 8,138
Selling, general
and administrative
expenses 5,225 4,640 14,809 14,045 18,847
--------- --------- -------- -------- ------------
1,052 1,001 3,715 2,048 3,240
Depreciation 340 332 1,035 986 1,293
--------- --------- -------- -------- ------------
Operating income 712 669 2,680 1,062 1,947
Financial income, net (369) (49) (928) 98 165
Other income, net 704 188 1,087 628 943
--------- --------- -------- -------- ------------
Income before taxes 1,047 808 2,839 1,788 3,055
Taxes on income -- 3 5 147 152
--------- --------- -------- -------- ------------
1,047 805 2,834 1,641 2,903
Minority interest (604) (11) (196) (84) (154)
Equity in losses
of affiliated
companies (106) (179) (424) (628) (898)
--------- --------- -------- -------- ------------
Net income 337 615 2,214 929 1,851
========= ========= ======== ======== ============
Basic earnings per
share 0.02 0.05 0.16 0.07 0.14
==== ==== ==== ==== ====
Diluted earnings
per share 0.02 0.05 0.16 0.07 0.14
==== ==== ==== ==== ====
Common shares
outstanding 13,525 13,449 13,519 13,449 13,451
====== ====== ====== ====== ======
Common shares
assuming dilution 14,836 13,665 14,713 13,544 13,644
====== ====== ====== ====== ======
BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31
2004 2003
------------- ------------
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $9,693 $11,105
Marketable securities 222 406
Accounts receivable:
Trade 17,902 12,617
Other 3,023 1,899
----- -----
Total current assets 30,840 26,027
------ ------
INVESTMENTS 1,879 3,794
----- -----
FIXED ASSETS
Cost 10,499 8,920
Less - accumulated depreciation 7,723 6,121
----- -----
Total fixed assets 2,776 2,799
----- -----
OTHER ASSETS, NET 56,573 48,200
------ ------
Total assets $92,068 $80,820
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $6,354 $8,342
Accounts payable and accruals:
Trade 3,744 3,425
Deferred revenue 3,913 3,034
Other 8,551 10,980
----- ------
Total current liabilities 22,562 25,781
------ ------
LONG-TERM LIABILITIES:
Convertible debentures 5,110 --
Loans from banks and others and
convertible debt 8,546 2,065
Accrued severance pay, net 1,006 915
Provision for losses in
formerly-consolidated subsidiary 1,971 1,971
----- -----
Total long-term liabilities 16,633 4,951
------ -----
MINORITY INTEREST 4,916 4,690
----- -----
SHAREHOLDERS' EQUITY
(net of cost of 1,870,565 shares held by
subsidiaries) 47,957 45,398
------ ------
Total liabilities and shareholders'
equity $92,068 $80,820
======= =======
Contact:
BluePhoenix Solutions Ltd.
Iris Yahal
+972-9-9526110