Genesys Conferencing Reports Second Quarter Results for 2006.VIENNA, Virginia Vienna is a town in Fairfax County, Virginia, United States. The population was 14,453 at the 2000 census and it has grown by about 3% since[1]. In July of 2005, CNN/Money and Money & MONTPELLIER Montpellier (môNpĕlyā`), city (1990 pop. 210,866), capital of Hérault dept., S France, near the Mediterranean coast. It is a great commercial center. , France -- Genesys Conferencing  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] Eurolist: FR0004270270) (NASDAQ NASDAQin 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 : GNSY), a global multimedia conferencing See videoconferencing and data conferencing. service leader, today reported financial results for the second quarter ended June June: see month. 30, 2006. All results are reported under International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ). Revenue and Margin In the second quarter of 2006, total volume increased to 569.5 million minutes compared to 510.5 million minutes in the second quarter of 2005. On a sequential One after the other in some consecutive order such as by name or number. basis compared to the first quarter of 2006, total volume increased by an additional 17.3 million minutes. Genesys Meeting Center volume increased to 534.6 million minutes, of which over 68.0% was generated under the Multimedia Minute program. In the second quarter of 2006, revenue(1) was EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 35.9 million compared to revenue of EUR 36.2 million in the second quarter of 2005. In U.S. dollars, revenue was USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 45.1 million compared to USD 45.6 million in the second quarter of 2005. Strong revenue growth from new and existing customers significantly offset the effect of the previously announced loss of a major customer at the end of 2005. "Our strong volume growth continues to demonstrate the appeal of our value proposition to large enterprises," said Francois Legros, Chairman and 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. of Genesys Conferencing. "This quarter, volume based on the Multimedia Minute reached over five million minutes daily, reflecting new business wins as well as our ability to effectively drive enterprise-wide adoption of our collaboration Working together on a project. See collaborative software. solutions by this demanding market segment." Gross profit for the second quarter of 2006 was EUR 24.1 million, resulting in a gross margin of 67.2%. Excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. federal excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. credit of approximately EUR 1.4 million, gross profit was EUR 22.7 million compared to gross profit of EUR 23.8 million in the second quarter of 2005. Gross margin, excluding the one-time credit, was 63.1% in the second quarter of 2006, and, while down compared to a gross margin of 65.5% in the second quarter of 2005, it remained stable compared to the first quarter of 2006. Profitability Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the second quarter of 2006 were EUR 18.9 million compared to EUR 19.7 million in the second quarter of 2005. These costs were comprised of: research and development expenses of EUR 1.1 million in the second quarter of 2006 compared to EUR 0.6 million in the second quarter of 2005; selling and marketing expenses of EUR 10.4 million in both the second quarter of 2006 and 2005; and general and administrative expenses of EUR 7.4 million in the second quarter of 2006 compared to EUR 8.7 million in the second quarter of 2005. Excluding a EUR 0.6 million benefit recorded this period in connection with a reevaluation Noun 1. reevaluation - the evaluation of something a second time (or more) rating, valuation, evaluation - an appraisal of the value of something; "he set a high valuation on friendship" of a balance sheet reserve, operating expenses were EUR 19.5 million in the second quarter of 2006 compared to EUR 19.7 million in the second quarter of 2005 and reflect the company's efforts to stabilize stabilize See peg. total operating costs operating costs npl → gastos mpl operacionales while consistently reinvesting in growth initiatives. "Our investment in research and development reflects our commitment to technological innovation, such as Voice over IP. Our expanded R&D capability enables us to respond quickly to customer requirements and to be well positioned to leverage the market's growth," Legros said. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Net income for the second quarter of 2006 was EUR 1.0 million, or EUR 0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of EUR 1.0 million, or EUR 0.06 per diluted share, in the second quarter of 2005. Liquidity As of June 30, 2006, the company's net cash(3) was EUR 4.4 million and its net debt was EUR 25.3 million compared to net debt of EUR 72.0 million as of December December: see month. 31, 2005. Conference Call and Webcast Chairman and CEO Francois Legros and EVP/Chief Financial Officer Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. E. Savage will host a conference call on Monday Monday: see week. , August 14, 2006, at 5:30 p.m. Central European Time Central European Time Noun the standard time adopted by Western European countries one hour ahead of Greenwich Mean Time, corresponding to British Summer Time Abbrev: (CET) or 11:30 a.m. Eastern Time to discuss second- quarter 2006 financial results. The conference may be accessed at: http://events.webeventservices.com/genesys/2006/08/14/. A replay of the call will be available at http://www.genesys.com.
(1) Please refer to the paragraph "Impact of Exchange Rates" below for
information regarding the calculation of U.S. dollar amounts.
(2) See attached note to consolidated statements of operations for
reconciliation of Operating Income and EBITDA. The company
believes that EBITDA is a meaningful measure of performance,
because it presents the company's results of operations without
the non-cash impact of depreciation and amortization. EBITDA is
reported excluding stock-based compensation expense.
(3) Net cash includes cash and cash equivalents less bank overdrafts.
Impact of Exchange Rates The company serves large enterprises on a worldwide basis. As a result, the company has extensive international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and, thus, significant exposure to exchange rate fluctuations, in particular those of the U.S. dollar. In 2003, the U.S. dollar declined significantly compared to the euro, and its value further fluctuated during 2004 and 2005. As a result, the comparability of the company's revenues and results of operations expressed in euros was significantly impacted. 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. This release contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are statements other than historical information or statements of current condition. These statements appear in a number of places in this release and include statements concerning the parties' intent, belief or current expectations regarding future events and trends affecting the parties' financial condition or results of operations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Some of these factors are described in the Form 20-F that was filed by Genesys with the Securities and Exchange Commission on May 18, 2006. Although Genesys' management believe that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. Except to the extent required by law, the parties undertake no obligation to revise or update any of them to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release, or to reflect new information or the occurrence of unanticipated events. About Genesys Conferencing Genesys Conferencing is a leading provider of integrated Web, audio and video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. services to thousands of organizations worldwide, including more than 200 of the Fortune Global 500. The company's services are designed to meet the full range of communication needs within the large enterprise, from collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. team meetings to high-profile online events. The company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Genesys Meeting Center, provides a single-platform multimedia conferencing solution that is easy to use and available on demand. With offices in more than 20 countries across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia Pacific,
the company offers an unmatched global presence and strong local
support. Genesys Conferencing is publicly traded on Euronext Eurolist in
France (FR0004270270) and on the NASDAQ in the U.S. (GNSY). Additional
information is available at www.genesys.com.
GENESYS CONFERENCING
Consolidated Balance Sheets
(IFRS, in thousands of euros, except share data)
December 31, 2005 June 30, 2006
----------------- -----------------
Unaudited
ASSETS
Non current assets
Goodwill, customer lists and
technology EUR 33,330 EUR 35,246
Other intangible assets, net 5,663 6,490
Tangible assets, net 16,011 16,034
Financial assets, net 1,074 1,389
Deferred tax assets 2,488 1,668
Investments in affiliated
companies 278 -
----------------- -----------------
Total non current assets 58,844 60,827
Current assets
Accounts receivable, less
allowances (EUR 1,547 and
EUR 1,087 at December 31, 2005
and June 30, 2006,
respectively) 27,692 26,995
Prepaid expenses and other
current assets 9,072 10,679
Marketable securities 45 15
Cash at bank 5,870 6,847
----------------- -----------------
Total current assets 42,679 44,536
----------------- -----------------
TOTAL ASSETS EUR 101,523 EUR 105,363
================= =================
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Shareholders' equity (deficit)
Ordinary shares, nominal value
of EUR 1 per share
18,307,756 shares issued and
outstanding at December 31,
2005 and 69,798,286 shares
issued and outstanding at
June 30, 2006 EUR 18,308 EUR 69,798
Common shares to be issued 139 136
Additional paid-in capital 185,080 179,706
Additional paid-in capital to
be issued 3,831 3,780
Reserve for Stock-based
compensation 2,605 2,944
Accumulated deficit (223,429) (218,432)
Net income (loss) for the
period 4,544 306
Currency translation
adjustments 668 2,917
----------------- -----------------
Total shareholders' equity
(deficit) (8,254) 41,155
Provisions for risks and charges 779 515
Long-term debt
Long-term portion of long-term
debt 62,474 28,528
Long-term portion of
capitalized lease obligations 39 277
----------------- -----------------
Total long-term debt and other
liabilities 63,292 29,320
Current liabilities
Bank overdrafts 1,851 2,462
Accounts payable and accrued
liabilities 13,254 14,848
Other taxes payable and
deferred compensation 9,493 10,276
Income taxes payable 3,148 1,952
Current portion of provision
for risks and charges 907 709
Current portion of long-term
debt 13,483 765
Current portion of capitalized
lease obligations 4 88
Other current liabilities 4,345 3,788
----------------- -----------------
Total current liabilities 46,485 34,888
----------------- -----------------
LIABILITIES AND SHAREHOLDERS'
EQUITY EUR 101,523 EUR 105,363
================= =================
GENESYS CONFERENCING
Consolidated Statements of Operations
Unaudited
(IFRS, in thousands of euros, except share and per share data)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2005 2006 2005 2006
------------- ------------- ------------- -----------
Revenue
Services EUR 36,246 EUR 35,902 EUR 70,368 EUR 72,280
Cost of Revenue
Services 12,486 11,786 24,776 25,143
------------- ------------- ------------- -----------
Gross Profit 23,760 24,116 45,592 47,137
Operating
expenses
Research and
development 679 1,142 1,330 2,344
Selling and
marketing 10,356 10,394 19,656 21,887
General and
administrative 8,708 7,392 16,478 15,239
Restructuring
charge (88) - 238 -
Amortization of
intangibles 683 626 1,382 1,374
------------- ------------- ------------- -----------
20,338 19,554 39,084 40,844
------------- ------------- ------------- -----------
Operating income 3,422 4,562 6,508 6,293
Interest income 22 7 42 58
Interest expense (1,479) (428) (3,446) (1,642)
Foreign exchange
gain (loss) (627) (2,213) (552) (1,650)
Other income
(expense) (88) (386) 19 (881)
Equity in income
of affiliated
companies 32 - 37 -
Income tax
credit
(expense) (261) (505) (243) (1,872)
------------- ------------- ------------- -----------
Net income
(loss) EUR 1,021 EUR 1,037 EUR 2,365 EUR 306
------------- ------------- ------------- -----------
Basic and
diluted net
income (loss)
per share EUR 0.06 EUR 0.01 EUR 0.13 EUR 0.01
============= ============= ============= ===========
Number of
outstanding
shares used in
computing basic
and diluted net
income (loss)
per share 18,372,841 69,936,981 18,372,841 55,144,122
GENESYS CONFERENCING
Note to the Consolidated Financial Statements
Unaudited
(In thousands of euros)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
NOTE A- EBITDA
calculation 2005 2006 2005 2006
------------- ------------- ------------ ------------
Operating
income EUR 3,422 EUR 4,562 EUR 6,508 EUR 6,293
Amortization of
identifiable
intangible
assets 683 626 1,382 1,374
Depreciation 2,203 2,263 4,378 4,311
------------- ------------- ------------ ------------
EBITDA EUR 6,308 EUR 7,451 EUR 12,268 EUR 11,978
------------- ------------- ------------ ------------
Stock-based
compensation 327 63 650 364
EBITDA before
stock-based
compensation EUR 6,635 EUR 7,514 EUR 12,918 EUR 12,342
============= ============= ============ ============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion