Welcome!

Java Authors: Elizabeth White, Trevor Parsons, Sematext Blog, Kevin Benedict, Liz McMillan

News Feed Item

BluePhoenix Solutions Reports Fourth Quarter 2012 Results

BluePhoenix Solutions (NASDAQ: BPHX), the leader in legacy lifecycle modernization, today announced financial results for the fourth quarter of 2012. The turnaround plan continues to be on target showing better operating income and increased gross profit.

With the completion of another discontinued operation, BridgeQuest Inc., net operating income on a non-GAAP basis is reported to have improved 45% in Q4 over Q3 with a loss of only $72 K. Additional achievements in Q4 include an improvement in the cash balance of 33% to $2.56 million. Net cash burn continues to decrease and is down to $281 K in Q4. Earnings per share were better quarter over quarter with a non-GAAP loss of $(0.02) per diluted share in Q4 compared to a loss of $(0.03) in Q3.

Matt Bell, CEO of BluePhoenix said, “We are very happy with the progress we are making and the quarterly numbers continue to show improving results. Almost all of the restructuring is behind us and we are now focused on our core strengths, building sales, and launching new marketing efforts. As a result the pipeline is growing and we are finding new areas to leverage existing technology to sell to new markets.”

BluePhoenix will go over the following numbers during their quarterly conference call today at 4:30PM Eastern US time. The call can be accessed by dialing 1-888-668-9141 within the United States, or via +972-3-9180610 if calling internationally, approximately five minutes prior to its scheduled commencement. A live Veidan Broadcasting and a replay can be accessed through a link that will be available via the BluePhoenix website.

Non-GAAP Results (in thousands US$)     Q4 2012*     Q3 2012*     Q4/2011*
Sales     3,059     2,679     4,642
Operating profit (loss) (72) (130) 990
Net (Loss) Income (264) (241) (2,424)
Earnings (Loss) per share, diluted* (0.02) (0.03) (0.39)
 
GAAP Results (in thousands US$)     Q4 2012*     Q3 2012*     Q4 2011*
Sales 3,059 2,679 4,642
Operating profit (loss) 218** (789) (17,875)
Net loss (383)** (3,685) (21,278)
Loss per share, diluted* (0.04) (0.46) (3.39)

Notes:

* During Q4 2012 we announced the initiation of the sale of the operations of BridgeQuest. The results for 2012 are presented after reclassification of Liacom Ltd. and Bridgequest Inc. as discontinued operation.

** The goodwill valuation is currently underway by a third party appraisal. We expect that the valuation will be completed prior to the filing of our Annual Report on Form 20-F. Actual results may differ from the estimated amount in this press release.

At present, following the completion of the sale of AppBuilder business, an amount of $1 million is held in escrow accounts to secure certain company obligations under the sale agreement.

Non-GAAP financial measures

The release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including non-GAAP operating income and non-GAAP net income. These non-GAAP measures exclude the following items:

  • Amortization of intangible assets;
  • Stock-based compensation;
  • Onetime expenses related to cost saving plan and one time charges;
  • Revaluation of derivatives and discount amortization;
  • Gain on sales of subsidiaries and Appbuilder ;
  • Net loss from discontinued operation.

The presentation of these non-GAAP financial measures should be considered in addition to BluePhoenix' GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. BluePhoenix' management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges and gains that may not be indicative of BluePhoenix' core business operating results. BluePhoenix believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing BluePhoenix' performance. These non-GAAP financial measures also facilitate comparisons to BluePhoenix' historical performance. BluePhoenix includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled "Unaudited Reconciliation of GAAP to Non-GAAP."

About BluePhoenix Solutions

BluePhoenix Solutions Ltd. (NASDAQ: BPHX) is the leading provider of legacy language and database translation. The BluePhoenix portfolio includes a comprehensive suite of tools and services for automated database and application migration. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to minimize risk and provide a clear path from legacy platforms like COBOL, Natural/Adabas and others to modern solutions like SQL, DB2, Java and more. BluePhoenix customers come from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. BluePhoenix has 6 offices in the USA, UK, Italy, Romania, and Israel.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this release may be deemed forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. You can identify these and other forward-looking statements by the use of words such as “may,” “will,” “plans,” “believes,” “estimates,” “expects," “predicts”, “intends,” the negative of such terms, or other comparable terminology. Because such statements deal with future events, plans, projections, or future performance of the Company, they are subject to various risks and uncertainties that could cause actual results to differ materially from the Company’s current expectations. These risks and uncertainties include but are not limited to: the effects of the global economic and financial trends; market demand for the Company’s products; successful implementation of the Company’s products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; and such other risks and uncertainties as identified in BluePhoenix’s most recent Annual Report on Form 20-F and other reports filed by it with the SEC. Except as otherwise required by law, BluePhoenix undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

This press release is also available at www.bphx.com. All names and trademarks are their owners’ property.

BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
  Three months ended   Twelve months ended
December 31,   December 31,
2012   2011*   2012   2011*
Unaudited   Unaudited
   
Revenues $3,059 $4,642 $10,624 $21,471
Cost of revenues 1,349   3,207   7,052   15,962
Gross profit 1,710 1,435 3,572 5,509
Research and development costs 327 542 691 3,056
Selling, general and administrative expenses 2,015 5,073 8,685 15,717
Gain on sales of subsidiaries and Appbuilder (850) 4,063 (1,195) 4,063
Goodwill impairment -   9,632   -   9,632
Total operating expenses 1,492 19,310 8,181 32,468
Operating loss 218 (17,875) (4,609) (26,959)
Financial expenses, net 38 395 5,358 1,121
Other income -   -   (580)   -
Loss before taxes 180 (18,270) (9,387) (28,080)
Taxes on income 57   3,233   221   3,272
Net loss from continued operation 123 (21,503) (9,608) (31,352)
Net loss (profit) from discontinued operation 365   (255)   1,469   1,115
Net loss (242) (21,248) (11,077) (32,467)
Net result attributable to noncontrolling interests 141   30   351   (91)
Loss attributed to BluePhoenix shareholders ($383)   ($21,278)   ($11,428)   ($32,376)
 
Loss per share:
 
From continued operation- basic and diluted $ 0.00 ($3.44) ($1.26) ($5.08)
From discontinued operation- basic and diluted ($0.04) $ 0.05 ($0.19) ($0.18)
Attributed to the shareholders ($0.04) ($3.39) ($1.45) ($5.26)
Shares used in per share calculation:
Basic and diluted ** 10,594   6,268   7,897   6,158
 

* Presented after reclassification of Liacom Ltd. as discontinued operation.

** On December 28, 2011 the company performed a one-for-four reverse split of its outstanding shares.
*** The goodwill valuation is currently underway by a third party appraisal. The Company expects that the valuation will be completed prior to the filing of its Annual Report on Form 20-F. Actual results may differ from the estimated amount in this press release.
 
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
       
Three months ended Twelve months ended
December 31,   December 31,
2012   2011   2012   2011
Unaudited   Unaudited
 
GAAP Gross Profit $1,710 $1,435 $3,572 $5,509
Amortization of intangible assets 266 758 1,531 3,708
Expenses related to cost saving plan and one time charges -   1,376   36   5,613
Non-GAAP gross profit $1,976   $3,569   $5,139   $14,830
 
 
GAAP operating loss $218 ($17,875) ($4,609) ($26,959)
Amortization of intangible assets 266 758 1,531 3,708
Expenses related to cost saving plan and one time charges - 4,151 87 13,488
Stock-based compensation 294 261 1,703 1,208
Gain on sales of subsidiaries and Appbuilder (850) 4,063 (1,195) 4,063
Goodwill impairment -   9,632   -   9,632
Non-GAAP operating income (loss) ($72)   $990   ($2,483)   $5,140
 
 
 
GAAP Net loss attributable to BluePhoenix ($383) ($21,278) ($11,428) ($32,376)
Amortization of intangible assets 266 758 1,531 3,708
Expenses related to cost saving plan and one time charges - 4,151 87 13,488
Stock-based compensation 294 261 1,703 1,208
Gain on sales of subsidiaries and Appbuilder (850) 4,063 (1,195) 4,063
Revaluation of derivatives and discount amortization - 9,632 - 9,632
Net loss from discontinued operation 44 244 4,868 (45)
Net loss from discontinued operation 365   (255)   1,469   1,115
Non-GAAP Net income (loss) attributable to BluePhoenix ($264)   ($2,424)   ($2,965)   $793
 
Shares used in diluted earnings per share calculation 10,594 6,268 7,897 6,167
 
Non - GAAP Diluted Earnings per share ($0.02)   ($0.39)   ($0.38)   $0.13
 
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
      December 31,   December 31,
2012   2011*
Unaudited
ASSETS  
Current Assets:
Cash and cash equivalents $2,560 $3,997
Restricted cash 33 -
Trade accounts receivable, net 2,445 7,675
Other current assets 581 1,041

Assets held for sale

791    
Total Current Assets 6,410   12,713
Non-Current Assets:
Restricted cash - 3,428
Property and equipment, net 562 1,021
Goodwill 12,501 14,238
Intangible assets and other, net 277   3,000
Total Non-Current Assets 13,340   21,687
TOTAL ASSETS $19,750   $34,400
 
LIABILITIES AND EQUITY
Current Liabilities:
Short-term bank credit $217 $6,983
Trade accounts payable 1,256 3,403
Deferred revenues 712 739
Other current liabilities 950 3,272
Liabilities held for sale 467   -
Total Current Liabilities 3,602 14,397
Non-Current Liabilities
Accrued severance pay, net 408 410
Loans from banks and others 281 3,945
Derivative liabilities - Warrants 370   53
Total Non-Current Liabilities 1,059 4,408
Total Equity 15,089   15,595
TOTAL LIABILITIES AND EQUITY $19,750   $34,400

* The goodwill valuation is currently underway by a third party appraisal. The Company expects that the valuation will be completed prior to the filing of its Annual Report on Form 20-F. Actual results may differ from the estimated amount in this press release.

BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
  Three months ended   Twelve months ended
December 31,   December 31,
2012   2011*   2012   2011*
Unaudited   Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss ($242) ($21,248) ($11,077) ($32,467)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 309 917 1,867 4,332
Goodwill impairment - 9,632 - 9,632
Decrease in accrued severance pay, net (16) (154) (32) (874)
Stock–based compensation 294 261 1,703 1,208
Change in fair value of derivatives and discount amortization 44 243 4,868 (45)
Gain on sales of subsidiaries and Appbuilder (787) 4,063 (426) 4,063
Loss on sale of property and equipment - 18 12 18
Deferred income taxes, net - 2,805 - 2,791
Long term receivable - 20 - -
 
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables (145) 755 610 5,780
Decrease (increase) in other current assets 48 1,282 (676) 948
Decrease in trade payables (162) (352) (1,268) (1,723)
Decrease in other current liabilities and deferred revenues 376   (225)   127   (2,053)
Net cash used in operating activities (281) (1,983) (4,292) (8,390)
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash 46 (3,428) 4,077 (3,428)
Purchase of property and equipment (53) (140) (111) (301)
Proceeds from sale of property and equipment - - 50 32
Additional consideration of previously acquired subsidiaries - - - (1,163)
Proceeds from sales of subsidiaries and Appbuilder 1,009   8,586   3,959   8,586
Net cash provided by (used) in investing activities 1,002 5,018 7,975 3,726
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Short term bank credit and convertible notes, net (86) 3,899 (1,687) (2,155)
Issuance of shares and loan - (5,000) - -
Exercise of warrants - - 120 -
Repayment of long-term loans - (1,838) (3,553) (2,264)
Receipt of long term loans - 1,002 - 1,002
Dividend paid to noncontrolling interest -   -   -   (217)
Net cash used in financing activities (86) (1,937) (5,120) (3,634)
NET CASH DECREASE FROM CONTINUED OPERATION 635 1,098 (1,437) (8,298)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,925   2,899   3,997   12,295
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,560   $3,997   $2,560   $3,997

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...