Welcome!

Java IoT Authors: Elizabeth White, Mike Raia, PagerDuty Blog, Pat Romanski, Greg O'Connor

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 Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. 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 dev...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.