BluePhoenix Solutions -NASDAQ:BPHX- Announces Nine Months and Third Quarter Results; Growing Revenues.HERZLIA Herzlia: see Herzliya, Israel. , Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. -- BluePhoenix Solutions Ltd. (Nasdaq:BPHX), today announced the results of the nine months and third quarter ended on September September: see month. 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 Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 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 con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-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 Arik is a given name, and may refer to: In sports:
Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, 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 REASSURANCE. When an insurer is desirous of lessening his liability, he may procure some other insurer to insure him from loss, for the insurance he has made this is called 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 cohesive, n the capability to cohere or stick together to form a mass. 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , 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 Wednesday: see week. , November November: see month. 10th, 2004 at 10:00 A.M. (EST EST electroshock therapy. EST abbr. electroshock therapy ) 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 au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. 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 To turn a set of manual steps into an operation that goes by itself. See automation. the process of modernizing and upgrading their mainframe and distributed IT infrastructure, thus quickly and cost-effectively extending the ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). of their existing IT systems. The Company's comprehensive suite of tools and services (including technology for Understanding, Presentment presentment: see indictment. , 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 Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. , Israel, and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . The Company's major shareholder is the Formula Group (Nasdaq:FORTY), 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. (Tables to Follow) SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. : Certain statements contained in this release may be deemed forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 re·train tr. & intr.v. re·trained, re·train·ing, re·trains To train or undergo training again. re·train 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
======= =======
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