Crystal Systems Solutions Ltd. Today Announced Preliminary Results for the First Quarter and Trends for 2001.Business Editors TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--April 9, 2001 Crystal Systems Solutions (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) a leading provider of software renovation tools, today announced that, based on preliminary estimations, the first quarter revenues are in the range of US$ 10.5 to US$ 11 million, and the 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 is in the range of loss between US$ 1.5 million to US$ 1.9 million. The decline of US$ 1.5 million in revenues is mainly attributable to its subsidiary Mainsoft, due to commitments for products that were not signed within the quarter. The company reports that the US economic turbulence had affected some of Mainsoft's customers. Towards the end of the first quarter, large software developers delayed technology purchase decisions, due to the current uncertainty in the market. Leading software developers and vendors in the US were increasingly cautious with regard to purchase decisions, delaying planned orders from Mainsoft. In addition Mainsoft increased its allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. to reflect the change in market conditions, and is doing the necessary adjustments in order to create a healthier account base. "Mainsoft had recently completed the build up of its professional management team," said Mr. Gad Goldstein, Crystal's Chairman of the Board. "We have full confidence that the management team will successfully lead Mainsoft through the implementation of its promising business model, and perform the needed adjustments to get back to profitability. The advanced technology combined with the proven market need, will enable Mainsoft to reach its long term projected growth, and recuperate re·cu·per·ate v. To return to health or strength; recover. the anticipated results. We keep trusting the unique strategy of Mainsoft, and maintain our full support including making available the required financial resources when needed." "I am satisfied with Crystal's legacy business which keeps being on track with our plans" added Mr. Goldstein. "In fact, in tough economic times, organizations tend to renovate their legacy systems rather than purchase new ones. When IT budgets become scarce, rationalization rationalization, in psychology: see defense mechanism. of spending is expected. This trend provides Crystal with the opportunity to further strengthen its position as a leader in the software renovation market." "Our sound technology, combined with the market trends, enable Crystal to maintain its long term projected growth. Based on information available to the company at this point, revenues for the second quarter 2001 are anticipated to demonstrate sequential growth over the first quarter, as well as returning to positive results from operations, and profitability," commented Mr. Goldstein. About Crystal Systems Solutions Crystal Systems Solutions Ltd. (NASDAQ:CRYS) develops and markets software tools and provides end-to-end transformation projects 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 Fortune 1000 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 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 owner's property. |
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