Welcome!

Java IoT Authors: AppDynamics Blog, Pat Romanski, Liz McMillan, Elizabeth White, Akhil Sahai

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
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
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...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
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.
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
SYS-CON Events announced today that MangoApps 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. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, 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 has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
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...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.