Crystal Systems Solutions Reports Strongly Improved Results for Six Months and Second Quarter.Business Editors/High-Tech Writers HERZLIA Herzlia: see Herzliya, Israel. , Israel--(BUSINESS WIRE)--Aug. 7, 2003 Second Quarter and Six Month Revenues Rose 80% and 72%, Respectively; Profitability Versus Break-Even and Loss, Respectively; On Track Towards Objectives 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 market leader in providing 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. IT 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, and cross platform re-hosting solutions, today announced significantly improved operating and financial results for the six months and second quarter ended June June: see month. 30, 2003. For the second quarter of fiscal 2003, Crystal reported sales of $13.5 million, an 80% increase over 2002 second quarter sales of $7.5 million. 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 $359,000 as compared to $96,000 in the second quarter of 2002, and $34,000 in the first quarter of 2003. Net income for the second quarter of 2003 was $252,000 or $0.02 per share, compared with $26,000 in the second quarter last year, and $62,000 in the prior quarter. For the first half of fiscal 2003, Crystal reported sales of $26.8 million, up 72% from $15.6 million in the same period a year ago. The Company reported operating income of $393,000 as compared to $308,000 in the comparable six months of 2002. The net income for the first half of 2003 was $314,000, or $0.02 per share, compared with a net loss of $212,000, or ($0.02) per share, in the first six months of last year. "We are pleased with our second quarter and mid-year performance, especially given the overall market conditions," said Arik Arik is a given name, and may refer to: In sports:
-- The completion of our integration with BluePhoenix Solutions, resulting in streamlined and enhanced capabilities for each geographic business unit while increasing the Company's overall efficiency. -- The training of all our sales force to sell the consolidated company's expanded suite of tools and solutions. -- The continuous efforts of our R&D department to rapidly enhance our existing tools in order to meet customers' evident needs, while leveraging our technological superiority. This resulted in the launch of the IT Discovery solution for Mergers & Acquisitions, an enhanced version customized specifically to the needs of enterprises undergoing M&A activity. This version is largely based on customers' feedback and input following the successful implementation of the basic tool application on several sites. -- The addition of new strategic partners that increase our exposure to new markets, such as our agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Japan, where its direct sales force will resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. AppBuilder as a Vendor Licensed Product. In addition, we have expanded the relationship between our subsidiary, Mainsoft, and HP. As part of the agreement, HP shall promote Visual MainWin for HP Itanium The CPU family from Intel that is based on its next-generation, 64-bit IA-64 architecture. The operating systems that are available for Itanium computers are Windows Server 2003, HP-UX and Linux. 2-based servers supporting the 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. 11i operating system environment by referring Windows application A program that is written to run under Microsoft's Windows operating system. Such applications typically run under all 32-bit versions of Windows, but earlier applications might also run under the 16-bit versions (Windows 3.x) as well. See Windows. developers to Mainsoft. "Our results are encouraging and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our 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. prospects. There is a proven market for our tools and solutions, and we have created the infrastructure to successfully support this existing need. We clearly have the technological advantage to be a leader in the Enterprise IT Modernization industry. Our business and technological targets are now clear and visible to us. With a few more organizational milestones to achieve, we believe that the refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of the Company will result in increased shareholder value," concluded Mr. Kilman. Mr. Kilman, 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, Crystal's Chief Financial Officer, will discuss second quarter and mid-year results, and will be available to answer questions in a conference call on Thursday Thursday: see week. , August 7, 2003 at 11 A.M. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) / 6 P.M. 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. time. Interested parties are invited to participate by calling the telephone numbers listed below, five to ten minutes prior to the start of the conference call. Callers should reference "Crystal Systems Solutions First Quarter Results" to the AT&T conference call operator. In the US call: (888) 273-9890 Outside the US call: (612) 332-0725 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 August 7th at 08:30 P.M. until August 9th at 11:59 P.M.(EST EST electroshock therapy. EST abbr. electroshock therapy ). To access the replay, please call (USA) 1-800-475-6701 (International) 1-320-365-3844 and enter Crystal's access code of 694290. About Crystal Crystal Systems Solutions Ltd. (Nasdaq:CRYS) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. BluePhoenix Solutions develop and market cost effective Enterprise IT Modernization products and solutions that enable clients to extend 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 systems through Understanding, Migration, Transformation and Development. The companies have offices throughout the world including 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, Italy, Netherlands, Israel, Cyprus and Romania. For more information, please visit our web site at www.crystal-sys.com or www.bphx.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. 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. This press release is also available at www.crystal-sys.com All names and trademarks are their owners' property.
June 30, Dec. 31
2003 2002
--------- --------
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $13,731 $15,306
Marketable securities 430 640
Accounts receivable:
Trade 11,487 10,811
Other 3,126 2,924
--------- --------
Total current assets 28,774 29,681
--------- --------
INVESTMENTS 5,935 3,475
--------- --------
FIXED ASSETS
Cost 10,828 11,173
Less - accumulated depreciation 7,837 7,601
--------- --------
Total fixed assets 2,991 3,572
--------- --------
OTHER ASSETS 46,038 50,753
--------- --------
Total assets $83,738 $87,481
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $8,323 $7,473
Accounts payable and accruals:
Trade 4,001 3,738
Deferred revenue 4,773 3,094
Other 12,441 14,066
--------- --------
Total current liabilities 29,538 28,371
--------- --------
LONG-TERM LIABILITIES:
Accrued severance pay, net 872 931
Provision for losses in formerly-
consolidated subsidiary 2,512 2,512
Loans from banks and others 2,452 2,652
--------- --------
Total long-term liabilities 5,836 6,095
--------- --------
MINORITY INTEREST 4,577 6,294
--------- --------
SHAREHOLDERS' EQUITY
(net of cost of 1,870,565 shares held
by subsidiaries) 43,787 46,721
--------- --------
Total liabilities and shareholders'
equity $83,738 $87,481
========= ========
Six months Three months Year
ended ended ended
June 30, June 30, Dec. 31,
--------- -------- --------- ------- --------
2003 2002 2003 2002 2002
--------- -------- --------- ------- --------
Unaudited Unaudited
Revenues $26,816 $15,568 $13,510 $7,515 $36,668
Cost of revenues 12,274 6,137 6,140 2,946 15,220
--------- -------- --------- ------- --------
Gross profit 14,542 9,431 7,370 4,569 21,448
Software development
costs, net 4,090 3,701 2,052 1,828 7,387
Selling, general and
administrative
expenses 9,405 4,830 4,643 2,351 11,994
--------- -------- --------- ------- --------
1,047 900 675 390 2,067
Depreciation 654 592 316 294 1,251
Restructuring costs &
non-recurring expenses -- -- -- -- 472
--------- -------- --------- ------- --------
Operating income 393 308 359 96 344
Financial income
(expense), net 147 92 79 159 (195)
Other income (expense),
net 440 105 156 (1) (1,581)
--------- -------- --------- ------- --------
Income (loss) before
taxes 980 505 594 254 (1,432)
Taxes on income 144 55 2 24 (160)
--------- -------- --------- ------- --------
836 450 592 230 (1,592)
Minority interest (73) (244) (42) 12 (702)
Equity in losses of
affiliated companies (449) (418) (298) (216) (1,336)
--------- -------- --------- ------- --------
Net income (loss) 314 (212) 252 26 (3,630)
========= ======== ========= ======= ========
Basic earnings (loss)
per share 0.02 (0.02) 0.02 0.00 (0.35)
========= ======== ========= ======= ========
Diluted earnings (loss)
per share 0.02 (0.02) 0.02 0.00 (0.35)
========= ======== ========= ======= ========
Common shares
outstanding 13,449 10,062 13,449 10,074 10,517
========= ======== ========= ======= ========
Common shares assuming
dilution 13,449 10,062 13,449 10,074 10,517
========= ======== ========= ======= ========
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