Crystal Announces Second Quarter And Six Months Results.Business/Technology Editors HERZLIYA Herzliya or Herzlia (hĕrtslē`ə), town (1994 pop. 83,800), central Israel, near the Mediterranean Sea. It is a resort with fine beaches, as well as an important electronics center. , Israel--(BUSINESS WIRE)--Aug. 9, 2000 Crystal System Solutions Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CRYS Crys are a Welsh heavy rock/metal band from Resolven, South Wales, United Kingdom. The band was formed in 1976 by brothers Liam (Vocals, Rhythm guitar) and Scott Forde (Bass guitar) while attending boarding school in Hereford, England. ), a leading provider of cross- cross- combining form 1. indicating action from one individual or group to another: cross-cultural, cross-refer 2. platform software renovation and porting solutions, today announced its financial results for the second quarter and the 6 months ended June June: see month. 30, 2000. Revenues for the second quarter ended June 30,2000 were US$12-million, the same as in the first quarter ended March 31, 2000. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , excluding amortization of goodwill, rose to US$736,000 as compared to operating profit, excluding amortization of goodwill, of US$424,000 in the previous quarter ended March 31,2000. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the three months ended June 30, 2000 was US $0.06 and for the six months ended June 30, was US $ 0.17. All revenues this quarter were generated from the Company's core business: cross-platform (software, hardware) cross-platform - A term that describes a language, software application or hardware device that works on more than one system platform (e.g. Unix, Microsoft Windows, Macintosh). E.g. Netscape Navigator, Java. renovation and porting solutions, as compared to 85% in the first quarter this year. This reflects the Company's effort to focus on the most promising solutions based on its proprietary software, while profitably disposing non-core business activities in order to exploit the clear growth of identified demand for the Company's tools and expertise. The Company is continuously allocating resources to further development, and to extensive marketing and sales efforts devoted to the new suite of conversion tools. The Company intends to further increase its market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by expanding its business activities with its direct customers, and by increasing market coverage through VAR's and strategic partners. Highlights of recent significant events: - MainSoft advances ahead of planned During this quarter, MainSoft enriched its already prestigious customer base by adding among others: Wind River Systems, C-Gate Software, Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corp. and MobileQ. Global leading application developers view MainWin as a "Solution of Choice" to enable Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. applications to run natively on Unix and Linux. In order to increase market penetration and to expand the tools' offerings to vertical markets, while achieving broader scale of adaptation, MainSoft is allocating R&D efforts to expand MainWin's capabilities. The enhanced tool is planned to increase the ease of use and accessibility, while minimizing the deployment time. Based on the fast growth and the evaluation of the market response to the new tools, the Company will consider financial and structural opportunities to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the enhanced value. - Deployment of Crystal's technology by leading American telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. carriers for System, Database and Application renovations, as well as data-modeling and business rule mining. - Conduction conduction, transfer of heat or electricity through a substance, resulting from a difference in temperature between different parts of the substance, in the case of heat, or from a difference in electric potential, in the case of electricity. of several large-scale legacy migration projects such as from Bull to MVS (Multiple Virtual Storage) Introduced in 1974, the primary operating system used with IBM mainframes (the others are VM and DOS/VSE). MVS is a batch processing-oriented operating system that manages large amounts of memory and disk space. , and from VSE See DOS/VSE. VSE - Virtual Storage Extended to MVS. - Expansion awarded on the Company's C-Euro projects in the Netherlands, UK and Germany. - The Company began a conversion project from Legacy code to XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. for e-Business enabling. This large scale implementation is at a second customer, also a large national bank in Israel. - Agreement signed with a large German VAR to sell e-Maker and Java-Maker. "Six months after having started generating revenues from our newly introduced tools, based on our generic, widely used core technology, the Company is gaining recognition and sales engagements", commented Mr. Gad Goldstein Gold·stein , Joseph Leonard Born 1940. American biochemist. He shared a 1985 Nobel Prize for discoveries related to cholesterol metabolism. , Crystal's Chairman of the Board. "I am encouraged both by the positive market response and the improved margins, which are indicators that reinforce our strategy. I believe that with its current suite of tools, the Company is well positioned to pursue our goal of market leadership", added Mr. Goldstein. Conference Call: Crystal will host a conference call on Thursday, August 10, 2000 at 12:00PM (EST EST electroshock therapy. EST abbr. electroshock therapy ). Interested parties are welcome to call the telephone numbers listed below, five to ten minutes prior to the start of the conference call: In the US call 1-888-269-0005. In the UK call 0-800-169-8104 In France call 0-800-914-819 In Israel call 1-800-286-285 (For Replay please phone Israel at +972-3-9255923) Callers should reference "Crystal Conference Call" and the code 1404 with the conference call operator to enter the call. About Crystal: Crystal Systems Solutions Ltd. has been providing proprietary software technologies and services for Fortune 1000 companies since 1987. Crystal develops and markets software tools and provides consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" for e-Business enabling of legacy systems, cross -platform migration, and consolidation of information systems. Crystal provides comprehensive enterprise products spanning mainframe, midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually and client/server computing platforms See platform. . Crystal has enhanced its expertise through the successful completion of projects for many prestigious organizations, establishing solid credibility and achieving global recognition and presence. Crystal is totally committed to supporting its customers, both directly and via its partners, offering end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. through consultancy, assistance and service in conjunction with its wide variety of proprietary software tools. For more information, please visit our web site at: www.crystal-sys.com About Formula: Crystal, is a member of the Formula Group (Nasdaq: FORTY). The Formula Group is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions. Certain statements contained 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. All names and trademarks are their owners' property.
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
ASSETS Unaudited Audited
CURRENT ASSETS:
Cash and cash equivalents $ 16,103 $ 24,232
Marketable securities 7,118 7,513
Accounts receivable:
Trade 16,807 15,098
Other current assets 2,939 3,479
Total current assets 42,967 50,322
INVESTMENTS 7,629 3,253
FIXED ASSETS
Cost 9,736 8,523
Less - accumulated depreciation 5,354 4,440
Total fixed assets 4,382 4,083
OTHER ASSETS, NET 13,382 10,441
Total assets $ 68,360 $ 68,099
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $ 917 3,309
Accounts payable and accruals:
Trade 2,907 3,598
Other 8,954 8,149
Total current liabilities 12,778 15,056
LONG-TERM LIABILITIES:
Accrued severance pay, net 756 718
Loans from banks and others 159 171
Total long-term liabilities 915 889
MINORITY INTEREST 3,045 4,410
SHAREHOLDERS' EQUITY:
Share capital 23 21
Capital surplus 40,114 37,513
Retained earnings 22,572 20,792
62,709 58,326
Cost of Company shares
held by subsidiaries (1,296,500 shares) (11,087) (10,582)
Total shareholders' equity $ 51,622 $ 47,744
Total Liabilities $ 68,360 $ 68,099
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Six months ended Three months ended Year ended
June 30, June 30, December 31,
2000 1999 2000 1999 1999
(unaudited) (unaudited)
Revenues $ 24,041 $ 22,532 $ 12,037 $ 11,502 $ 45,907
Cost of revenues 9,910 10,817 4,757 5,550 20,924
Gross profit 14,131 11,715 7,280 5,952 24,983
Software
development
costs 5,025 2,413 2,688 1,277 6,037
Selling,
general and
administrative
expenses 7,946 3,719 3,856 1,974 9,053
1,160 5,583 736 2,701 9,893
Amortization
of goodwill 652 143 361 77 514
Operating
income 508 5,440 375 2,624 9,379
Financial
income, net 1,009 635 461 328 1,020
Other income
(loss), net 1,595 (71) 610 (27) (69)
Income before
taxes 3,112 6,004 1,446 2,925 10,330
Taxes
on income 71 369 71 169 646
3,041 5,635 1,375 2,756 9,684
Minority
interest (881) (450) (607) (243) (876)
Equity in
losses of
affiliated
companies (380) (499) (159) (197) (843)
Net income $ 1,780 $ 4,686 $ 609 $ 2,316 $ 7,965
Basic
earnings
per share $ 0.08 $ 0.47 $ 0.06 $ 0.24 $ 0.81
Diluted
earnings
per share $ 0.17 $ 0.46 $ 0.06 $ 0.23 $ 0.79
Common
shares
outstanding 10,135 9,941 10,296 9,779 9,802
Common
shares
assuming
dilution 10,471 10,290 10,424 10,022 10,106
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