Crystal Systems Solutions Ltd.: Financial Results for the Quarter Ending March 31, 2001.Business Editors HERZLIA Herzlia: see Herzliya, Israel. , Israel--(BUSINESS WIRE)--May 16, 2001 Crystal Systems Solutions (Nasdaq: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 software renovation tools, today announced financial results for the quarter ending March 31, 2001. Revenues for the first quarter were $11 million, and the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss, excluding amortization of goodwill and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses, was $1.7 million. In the comparable first quarter of 2000, revenues were $12 million and the pro forma EBITDA was $775 thousand. The Company's net loss for the quarter, which includes amortization of goodwill, and restructuring and non-recurring charges, was $3.4 million or $0.34 loss per share. In the comparable first quarter of 2000, the net income was $1.2 million or $0.12 per share. Uncertainties in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market influenced the purchasing patterns of leading software developers who delayed their planned orders. This market behavior mainly affected the revenues of our subsidiary, Mainsoft. Orders from some large software developers have been delayed, while other developers have reduced the amount of their planned license commitment. As an outcome from investments in R&D, Mainsoft has recently announced the general availability of Visual MainWin for multiple operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. platforms. Visual MainWin is designed to enable the rapid deployment of applications simultaneously on Windows, AIX (Advanced Interactive eXecutive) IBM's Unix-based operating system which runs on its Intellistation workstations and pSeries, p5, iSeries and i5 server families. , Solaris A multitasking, multiprocessing operating system from Sun that runs on SPARC and x86-based computers. In 2005, Sun made Solaris free and open source. Known for its robustness and scalability, Solaris provides an enterprise-wide Unix environment that can manage thousands of nodes from one , HP-UX HP's version of Unix that runs on its 9000 family. It is based on SVID and incorporates features from BSD Unix along with several HP innovations. (operating system) HP-UX - The version of Unix running on Hewlett-Packard workstations. and Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. , and to focus engineering resources on the development and maintenance of a single code base that provides equal functionality across multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. . "In order to meet the challenges of the new economic environment, the Company has characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. the revised needs of its potential customers, and is adjusting its business model," stated 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. "Crystal has started during the first quarter to implement a strategic initiative to better position the Company towards those market needs. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the plan, Crystal is consolidating its business lines and restructuring its workforce. These proactive measures In antiterrorism, measures taken in the preventive stage of antiterrorism designed to harden targets and detect actions before they occur. are executed with the objective of sequential One after the other in some consecutive order such as by name or number. quarterly improvements in the Company's financial results." Mr. Goldstein continued, "As IT spendings become more cautious, organizations tend to seek efficiency both in maintaining their current software systems as well as in developing new applications. Crystal's suite of solutions serves both challenges. Therefore the more IT managers become price sensitive and work under tight budgets, the more need they will have to use our tool portfolio. Our legacy renewal tools enable the organization 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>. their existing systems, and save the unnecessary spendings related to the development and implementation of new software. Mainsoft's porting solutions allow developers to quickly serve their markets with fully functional applications operating on various platforms, while using minimal resources. "I believe that our efficient solutions together with our strategy provide Crystal the opportunity to achieve our long term goals." Conference Call Details: Gad Goldstein, Chairman of the Board, and Iris Yahal, Chief Financial Officer will discuss the first quarter results and will be available to answer questions. The conference call will be held on Wednesday Wednesday: see week. , May 16th, 2001 at 11:30 A.M. (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 (888) 273-9890 Outside the US call (612) 332-0107 Callers should reference "Crystal Systems Solutions First Quarter Results" 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 May 16th 03:00 P.M. until May 18 at midnight. To access the replay please call (USA) 1-800-475-6701 (Outside the US) 1-320-365-3844 and enter Crystal's access code of 587063. About Crystal Systems Solutions Crystal Systems Solutions Ltd. (NASDAQ: CRYS) develops and markets software tools and provides end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. transformation projects for e-Business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. enabling of legacy systems, 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. migration, and consolidation of information systems. Crystal provides comprehensive enterprise products spanning mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, , 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 An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). computing platforms See platform. . Crystal has enhanced its expertise through the successful completion of projects for Fortune 1000 prestigious organizations, establishing solid credibility Believability. The major legal application of the term credibility relates to the testimony of a witness or party during a trial. Testimony must be both competent and credible if it is to be accepted by the trier of fact as proof of an issue being litigated. , 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 http://www.crystal-sys.com. Crystal Systems Solutions 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 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" developing proprietary software products, and providing computer-based solutions. 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. All names and trademarks are their owners' property.
Crystal Systems Solutions Ltd. (an Israeli Corporation)
Pro Forma Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)
Excluding amortization of goodwill and non-recurring expenses
Three months ended Year ended
March 31 December 31
------------------------------------------------
2001 2000 2000
------------------------------------------------
unaudited
Revenues 11,014 12,004 49,245
Cost of revenues 5,334 5,153 20,065
------------------------------------------------
Gross profit 5,680 6,851 29,180
Software development
costs 2,375 2,337 9,487
Selling, general and
administrative
expenses 4,963 3,739 14,650
------------------------------------------------
(1,658) 775 5,043
Depreciation 410 351 1,427
------------------------------------------------
Operating income (2,068) 424 3,616
Financial income
(expenses), net (150) 548 1,370
Other income (loss),
net (7) 985 2,510
------------------------------------------------
Income before taxes (2,225) 1,957 7,496
Taxes on income 78 184
------------------------------------------------
(2,303) 1,957 7,312
Minority interest 455 (274) (1,700)
Equity in losses of
affiliated companies (340) (221) (1,114)
------------------------------------------------
Net income (2,188) 1,462 4,498
================================================
Basic earnings per
share -0.22 0.12 0.31
================================================
Diluted earnings per
share -0.22 0.11 0.30
================================================
Common shares
outstanding 9,946 9,974 10,149
================================================
Common shares
assuming dilution 10,030 10,520 10,363
================================================
Crystal Systems Solutions Ltd. (an Israeli Corporation)
Consolidated Balance Sheets (in thousands)
March 31, December 31,
2001 2000
-------------------------------------
Unaudited
-------------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $13,025 $12,086
Marketable securities 216 5,074
Accounts receivable:
Trade 19,832 21,085
Other current assets 4,429 4,706
----- -----
Total current assets 37,502 42,951
------ ------
INVESTMENTS 7,637 7,898
----- -----
FIXED ASSETS
Cost 10,424 10,175
Less - accumulated depreciation 6,361 5,972
----- -----
Total fixed assets 4,063 4,203
----- -----
OTHER ASSETS, NET 17,148 14,085
------ ------
Total assets $66,350 $69,137
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $898 $1,015
Accounts payable and accruals:
Trade 4,498 3,841
Other 9,318 8,134
Restructuring accrual 452
------- -------
------- -------
Total current liabilities 15,166 12,990
------- -------
LONG-TERM LIABILITIES:
Accrued severance pay, net 901 818
Loans from banks and others 25 34
-- --
Total long-term liabilities 926 852
--- ---
MINORITY INTEREST 3,076 3,886
----- -----
Share capital 23 23
Capital surplus 40,785 40,632
Retained earnings 20,492 23,906
------ ------
61,300 64,561
Cost of Company shares held by
subsidiaries (1,698,500 shares) (14,118) (13,152)
-------- --------
47,182 51,409
------ ------
Total liabilities and
shareholders' equity $66,350 $69,137
======= =======
Crystal Systems Solutions Ltd. (an Israeli Corporation)
Consolidated Statements of Income
(in thousands, except per share data)
Three months ended Year ended
March 31 December 31
-------------------------------------
2001 2000 2000
-------------------------------------
unaudited
Revenues $11,014 $12,004 $49,245
Cost of revenues 5,334 5,153 20,065
-------------------------------------
Gross profit 5,680 6,851 29,180
Software development costs 2,375 2,337 9,487
Selling, general and
administrative expenses 4,963 3,739 14,650
-------------------------------------
(1,658) 775 5,043
Depreciation 410 351 1,427
Amortization of goodwill 356 291 1,384
Restructuring costs &
Non-recurring expenses 870
-------------------------------------
Operating income (3,294) 133 2,232
Financial income (expenses), net (150) 548 1,370
Other income (loss), net (7) 985 2,510
-------------------------------------
Income before taxes (3,451) 1,666 6,112
Taxes on income 78 184
-------------------------------------
(3,529) 1,666 5,928
Minority interest 455 (274) (1,700)
Equity in losses of affiliated
companies (340) (221) (1,114)
-------------------------------------
Net income (3,414) 1,171 3,114
=====================================
Basic earnings per share -0.34 0.12 0.31
=====================================
Diluted earnings per share -0.34 0.11 0.30
=====================================
Common shares outstanding 9,946 9,974 10,149
=====================================
Common shares assuming dilution 10,030 10,520 10,363
=====================================
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