Crystal Systems Solutions Ltd. Today Announces Fourth Quarter and Year-End 2001 Results.Business Editors HERZELIA, Israel--(BUSINESS WIRE)--Feb. 14, 2002 Crystal Systems Solutions Ltd. (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 global provider of leading software products and tools for the modernization modernization 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, of existing legacy applications, today released financial results for the fourth quarter and year ended December December: see month. 31, 2001. Revenues for the fourth quarter were US$8.1 million and the 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 was US$470 thousand. Compared to previous quarters' losses of US$1.3 million and US$877 thousand in the second and third quarters respectively, this represents a sequential One after the other in some consecutive order such as by name or number. EBITDA recovery trend. The Company's as-reported net loss for the quarter, which includes amortization effects and special items, was US$6.8 million, or US$0.69 loss per share. For the year ended December 31, 2001, revenues were US$38.4 million as compared to US$49.2 million in the previous year. Pro-forma loss was US$6.6 million as compared to a pro-forma profit of US$2.1 million in the previous year. The as-reported net loss for the year was US$14.7 million as compared to a net income of US$3.1 million in the comparable year. The Company's as-reported FY 2001 results, presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , were materially affected by the implementation of its 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). plan, resulting in non-recurring special expenses that include: US$2.8 million of restructuring costs, write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of an investment of US$2.5 million, and goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of US$1.7 million related to an acquisition. "The results of the fourth quarter summarize sum·ma·rize intr. & tr.v. sum·ma·rized, sum·ma·riz·ing, sum·ma·riz·es To make a summary or make a summary of. sum a turn-around year for Crystal. The Company has gone through an intense positioning and restructuring process based on its market analysis and evaluation of its technological strengths," said 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 is now focused on providing leading software products and tools for the modernization and e-development of legacy information systems, enabling its customers to maintain a high return on IT investment and progress towards achieving a competitive edge. Through its subsidiary Mainsoft, the Company specifically targets the growing demand for enabling software to run on a variety of deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. platforms. Using Mainsoft's porting products, 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. issues are addressed during the application development process. Leading Web Services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. platforms such as Microsoft's .NET and Sun's J2EE (Java 2 Platform, Enterprise Edition) A platform from Sun for building distributed enterprise applications. J2EE services are performed in the middle tier between the user's machine and the enterprise's databases and legacy information systems. generate the demand for bridging the gap between different architectures, and Mainsoft has the expertise to address this growing need of the software development industry. Commenting on Crystal's financial results, Mr. Goldstein said: "Over the last year, the Company gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. withdrew from low margin and short term activities not related to its core technology. Fourth quarter revenues, although being lower than in the previous quarter, were all generated from projects based on its generic Generic Describes the characteristics and/or experience of the total universe of a coupon of MBS sector type; that is, in contrast to a specific pool or collateral group, as in a specific CMO issue. products and tools. Fourth quarter revenues do not include any business directly related to euro currency conversions, or to any other "narrow window" opportunities. Crystal and its subsidiary Mainsoft are now intensely focused on the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of their high potential "order pipe-line Pipe´-line` v. t. 1. To convey by a pipe line; to furnish with a pipe line or pipe lines. ," which includes large global and national financial and insurance institutions as well as leading international software vendors." "In addition, FY 2001 was a year of cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. . The Company went through a restructuring process that resulted in a revised expense structure, which reduced the operating breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level. We believe that the measures taken in FY 2001 established the elements for our sound and stable positioning and will enable Crystal to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. its model, and better focus on its business development targets. Our FY 2002 goals are to achieve market awareness, leading to improved margins and profitability," concluded Mr. Goldstein. Conference Call Details: Gad Goldstein, Chairman of the Board, and Iris Yahal, Chief Financial Officer, will discuss the fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results and will be available to answer questions. The conference call will be held on: Thursday Thursday: see week. , February February: see month. 14, 2002 at 12:00 P.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: 888/273-9891 Outside the US call: 612/332-0720 Callers should reference "Crystal Systems Solutions Fourth 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 February 14th 10:30 P.M. until February 16th at 11:59 P.M. (EST). To access the replay, please call (USA) 800/475-6701 (International) 320/365-3844 and enter Crystal's access code of 627461. About Crystal Systems Solutions Crystal Systems Solutions Ltd. is a global provider of leading software products and tools for the modernization and e-development of existing information systems. Crystal enables organizations to increase revenues and reduce costs by facilitating a better understanding of their IT environment, automated transformation of existing IT assets and enabling new technology-based business channels Business channels are TV channels that concentrate on business news. List of channels
Crystal Systems Solutions Ltd. has more than a decade of experience in transforming and modernizing legacy environments to today's technologies. Crystal has built its renovation and modernization expertise, based on in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. developed technologies, through the successful completion of projects for many prestigious, Fortune 1000 companies, establishing its competency COMPETENCY, evidence. The legal fitness or ability of a witness to be heard on the trial of a cause. This term is also applied to written or other evidence which may be legally given on such trial, as, depositions, letters, account-books, and the like. 2. and achieving global recognition and presence. 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. For more information, please visit our web site at http://www.crystal-sys.com. 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 RECRUIT. A newly made soldier. and train software personnel, and the ability to develop new business lines. Note to Editors: All names and trademarks are their owner's property.
CRYSTAL SYSTEMS SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per-share data)
Excluding Amortization of Goodwill, Goodwill
impairment, Restructuring costs & Non-recurring
expenses, Write-down of an investment and
capital gains
Three months ended Year ended
December 31 December 31
2001 2000 2001 2000
-------- -------- -------- --------
Unaudited Unaudited
Revenues $8,097 $12,612 $38,438 $49,245
Cost of revenues 3,481 5,105 17,722 20,065
-------- -------- -------- --------
Gross profit 4,616 7,507 20,716 29,180
Software development costs 1,912 2,157 8,868 9,487
Selling, general and
administrative expenses 3,174 3,662 16,199 14,650
-------- -------- -------- --------
(470) 1,688 (4,351) 5,043
Depreciation 310 408 1,495 1,427
-------- -------- -------- --------
Operating income (loss) (780) 1,280 (5,846) 3,616
Financial income
(expenses), net (13) (10) (62) 1,370
Other income (loss), net 15 16 (149) 66
-------- -------- -------- --------
Income (loss) before taxes (778) 1,286 (6,057) 5,052
Taxes on income 37 97 115 184
-------- -------- -------- --------
(815) 1,189 (6,172) 4,868
Minority interest (122) (229) 863 (1,700)
Equity in losses of
affiliated companies, net (526) (215) (1,304) (1,114)
-------- -------- -------- --------
Net income (loss) (1,463) $745 (6,613) $2,054
======== ======== ======== ========
Basic earnings per share $(0.15) $0.07 $(0.67) $0.20
======== ======== ======== ========
Diluted earnings per share $(0.15) $0.07 $(0.67) $0.20
======== ======== ======== ========
Common shares outstanding 9,842 10,101 9,872 10,149
======== ======== ======== ========
Common shares assuming
dilution 9,842 10,177 9,893 10,363
======== ======== ======== ========
CRYSTAL SYSTEMS SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31
Audited
ASSETS 2001 2000
-------- --------
CURRENT ASSETS:
Cash and cash equivalents $9,374 $12,086
Marketable securities 574 5,074
Accounts receivable:
Trade 12,171 21,640
Other 2,253 4,706
-------- --------
Total current assets 24,372 43,506
-------- --------
INVESTMENTS 8,053 7,898
-------- --------
FIXED ASSETS
Cost 9,799 10,175
Less - accumulated
depreciation 6,449 5,972
-------- --------
Total fixed assets 3,350 4,203
-------- --------
OTHER ASSETS, NET 18,892 13,530
-------- --------
Total assets $54,667 $69,137
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $1,827 $1,015
Accounts payable and accruals:
Trade 4,252 3,841
Other 6,930 8,134
Restructuring accrual 734 --
-------- --------
Total current liabilities 13,743 12,990
-------- --------
LONG-TERM LIABILITIES:
Accrued severance pay, net 702 818
Loans from banks and others 734 34
-------- --------
Total long-term liabilities 1,436 852
-------- --------
MINORITY INTEREST 3,956 3,886
-------- --------
Share capital 23 23
Capital surplus 40,785 40,632
Retained earnings 9,194 23,906
-------- --------
50,002 64,561
Cost of Company shares
held by subsidiaries
(1,766,100 shares) (14,470) (13,152)
-------- --------
35,532 51,409
-------- --------
Total liabilities and
shareholders' equity $54,667 $69,137
======== ========
CRYSTAL SYSTEMS SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per-share data)
Three months ended Year ended
December 31 December 31
2001 2000 2001 2000
-------- -------- -------- --------
Unaudited Audited
Revenues $8,097 $12,612 $38,438 $49,245
Cost of revenues 3,481 5,105 17,722 20,065
-------- -------- -------- --------
Gross profit 4,616 7,507 20,716 29,180
Software development costs 1,912 2,157 8,868 9,487
Selling, general and
administrative expenses 3,174 3,662 16,199 14,650
-------- -------- -------- --------
(470) 1,688 (4,351) 5,043
Depreciation 310 408 1,495 1,427
Amortization of goodwill 489 364 1,825 1,384
Goodwill impairment,
Restructuring costs &
Non-recurring expenses 2,356 -- 4,467 --
-------- -------- -------- --------
Operating income (loss) (3,625) 916 (12,138) 2,232
Financial income
(expenses), net (13) (10) (62) 1,370
Write-down of an investment (2,500) -- (2,500) --
Other income, net 15 346 544 2,510
-------- -------- -------- --------
Income (loss) before taxes (6,123) 1,252 (14,156) 6,112
Taxes on income 37 97 115 184
-------- -------- -------- --------
(6,160) 1,155 (14,271) 5,928
Minority interest (122) (229) 863 (1,700)
Equity in losses of
affiliated companies, net (526) (215) (1,304) (1,114)
-------- -------- -------- --------
Net income (loss) (6,808) $711 (14,712) $3,114
======== ======== ======== ========
Basic earnings per share $(0.69) $0.07 $(1.49) $0.31
======== ======== ======== ========
Diluted earnings per share $(0.69) $0.07 $(1.49) $0.30
======== ======== ======== ========
Common shares outstanding 9,842 10,101 9,872 10,149
======== ======== ======== ========
Common shares
assuming dilution 9,842 10,177 9,893 10,363
======== ======== ======== ========
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