ISG INTERNATIONAL SOFTWARE GROUP LTD. THIRD QUARTER RESULTS.HAIFA Haifa (hī`fä), city (1994 pop. 246,700), NW Israel, a port on the Mediterranean Sea, at the foot of Mt. Carmel. Haifa is the chief city of N Israel and the country's principal oil refining center. , 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. , Jan. 20, 1995--(BUSINESS WIRE)--ISG INTERNATIONAL SOFTWARE GROUP, LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (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 NMS See NetWare Management System. :SISGF) today reported improved results for the third quarter ended September 30, 1994 as its net loss decreased to $204,000 from $1,232,000 in the second quarter of 1994. Total revenues increased to $3,676,000 in the 1994 third quarter from $3,570,000 in the second quarter of 1994 but declined from $4,466,000 in the third quarter of 1993. The decrease in revenues is mainly attributable to the reorganization of Cortex Corporation ("Cortex") and Meyad Computers Company Ltd. ("Meyad"), which companies were acquired in late 1993 and in early 1994. The Company's cost of revenues decreased to $2,207,000 in the 1994 period from $2,486,000 1993. This decrease reflects the effects of the reorganization undertaken in both Meyad and Cortex. Gross profit decreased to $1,469,000 in the 1994 period compared with $1,980,000 in 1993. In the third quarter of 1994 the Company had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $754,000 as compared to 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 $232,000 in 1993. As a result of an income tax benefit of $123,000 and a gain of $417,000 arising from the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt incurred with respect to the Cortex acquisition, the Company incurred a net loss in the third quarter of 1994 of $204,000 compared with a net profit of $248,000 in the third quarter of 1993. The loss in the 1994 period is mainly attributable to losses incurred by Cortex. Arie Gonen, President and Chief Executive Officer of ISG ISG Iraq Study Group ISG Iraq Survey Group ISG International Steel Group ISG Integrated Security Gateway ISG Information Systems Group ISG Information Systems Group (IBM) ISG Integrated Starter/Generator , said, "As part of the implementation of our reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. , expenses in the third quarter decreased by 11% compared with the second quarter. Expenses are expected to continue to decline into the first quarter of 1995 while revenues are expected to increase slightly. As a result of the mounting operating losses in Meyad, beginning in the fourth quarter of 1993, management of the Company implemented a reorganization of Meyad's operations, which included a reduction in employees from 70 to 40, the replacement of senior management and changes in internal management and operational procedures The detailed methods by which headquarters and units carry out their operational tasks. . These actions began in the second quarter of 1994 and the process is expected to be completed in the first quarter of 1995. As a result of the implementation of these steps, Meyad operated on a break-even basis in the third quarter of 1994." Mr. Gonen also noted, "After the March 18, 1994 acquisition of Cortex, which had a history of losses, we immediately began the implementation of a reorganization plan that included the appointment of Mr. Steven Fisch, former Vice President and General Manager at ComputerVision, as President of our U.S. subsidiary and the appointment of Mr. John Stevens John Stevens is the name of a number of prominent people:
Mr. Gonen added, "We are preparing the Company for growth, reducing the redundant expenses accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. in our recent acquisitions, freshening the management team, and building a suite of competitive products. Fourth quarter 1994 results will reflect a continued improvement in operating results and we are confident that our actions will result in increased revenues and improved operating results in 1995." Dr. Ike Sagie, Vice President Research and Development, said, "We are planning to release CorVision 5.2U (a UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). client/server version), the windows version of OptiView and APTuser 3.6 by mid- mid- pref. Middle: midbrain. 1995. We have also started the development of a database middleware Software that functions as a conversion or translation layer. It is also a consolidator and integrator. Custom-programmed middleware solutions have been developed for decades to enable one application to communicate with another that either runs on a different platform or comes from a product and have appointed Prof. Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. Reither, former senior manager at Microsoft Corp., as the product development manager. This new product will be sold on a stand-alone basis as well as integrated with CorVision and APTuser. The release of the first version of this product is expected by the end of 1995." Dr. Sagie also noted that "Net research and development expenses rose to $626,000 in the third quarter of 1994 compared with $586,000 in the 1993 period. Net research and development expenses increased to $1,804,000 in the first nine months of 1994 as compared to $1,743,000 in the 1993 period. Mr. Gonen also announced the resignation of Mr. Ronen Yellin, a founder of the Company and one of its principal shareholders, as both an officer and director. ISG International Software Group Ltd. develops, markets and supports computer software application development tools and system utilities. The Company's principal products are CorVision--a highly efficient client/server repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. based application generator Software that generates application programs from descriptions of the problem rather than by traditional programming. It is at a higher level and easier to use than a high-level programming language such as C/C++ or COBOL. , APTuser, a report generator Same as report writer. that enables programmers This is a list of programmers notable for their contributions to software, either as original author or architect, or for later additions. See also: Game programmer, List of computer scientists as well as end-users to access multiple databases concurrently and present such data in a user-defined format and OptiView--computer output to laser disk (COLD) software products. The Company also develops, markets and supports Mancal 2000, a financial and logistics application software package which utilizes the APTuser report generator. A portion of ISG's revenues is derived from the provision of consulting, maintenance and training services to its customers. The Company also distributes various computer products manufactured by Bull S.A. and others. ISG has sales offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Israel, Europe, S.E. Asia, People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China and Australia and conducts operations in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. . -0-
ISG International Software Group Ltd.
CONSOLIDATED STATEMENT OF OPERATION
(in thousands)
(UNAUDITED)
Three months ended September 30,
1994 1993
Revenues $3,676 $4,466 Cost of revenues 2,207 2,486 Gross profit 1,469 1,980 Operating expenses Research and development (net) 626 586 Selling expenses, General & administration reorganization expenses 1,597 1,171 Operating income (loss) (754) 223 Financial income (loss) 7 (2) Loss before taxes (747) 221 Taxes (123) 14 Loss before minority interest (624) 207 Minority interest 3 (48) Net gain (loss) before gain from early extinguishment of debt $(621) $159 Gain from early extinguishment of debt $417 $89 Net gain (loss) $(204) $248 Loss per share before gain from extinguishment of debt (0.12) 0.05 Gain from early extinguishment of debt 0.08 0.03 Loss per share (0.04) 0.08 Weighted average number of shares outstanding 4,861 3,191
ISG International Software Group Ltd.
CONSOLIDATED STATEMENT OF OPERATION
(in thousands)
(UNAUDITED)
Nine months ended September 30,
1994 1993
Revenues $11,037 $12,065 Cost of revenues 6,428 7,783 Gross profit 4,609 4,282 Operating expenses Research and development (net) 1,804 1,747 Selling expenses, general and administration and reorganization expenses 7,542 4,704 Operating income (loss) 4,737 (2,169) Financial income (loss) (379) 605 Loss before income taxes (5,116) (1,564) Taxes --- 135 Loss before minority interest (5,116) (1,699) Minority interest (47) 13 Net loss before gain from early extinguishment of debt (5,163) (1,686) Gain from early extinguishment of debt 417 89 Net loss $(4,746) $(1,597) Loss per share before gain from extinguishment of debt (1.06) (0.50) Gain from early extinguishment of debt 0.08 -- Loss per share (0.98) (0.50) Weighted average number of shares outstanding 4,861 3,191
ISG International Software Group Ltd.
BALANCE SHEET
(in thousands)
(UNAUDITED)
Sept. 30, Dec. 31,
1994 1993
Current assets:
Cash and cash equivalents and $2,196 $4,120
Restricted cash 969 199
Marketable securities 534 4,327
Accounts receivable Trade 4,455 5,471
Prepaid Expenses 433 227
Other receivables 417 --
Inventory and work in progress 297 496
Total current assets 9,301 14,840
Fixed assets (net) 1,943 1,642
Other assets
Computer software (net) 1,326 860
Goodwill (net) 601 678
Other -- 55
1,927 1,593
$13,171 $18,075
Current liabilities:
Short-term debts $1,102 $1,054
Current maturities of
long-term debts 443 782
Trade payable 1,722 2,031
Deferred revenues 1,929 2,213
Accrued expenses and
other liabilities 2,280 2,407
Total current liabilities 7,476 8,487
Long-term debt 478 3,191
Deferred income tax 50 42
Accrued severance pay 109 87
Minority share 47 --
Shareholder Equity
Share capital 266 256
Capital surplus 26,928 23,384
Accumulated deficit (22,227) (17,481)
Foreign currency translation
adjustment 44 109
Total shareholders' equity 5,011 6,268
$13,171 $18,075
CONTACT: Arie Gonen ISG INTERNATIONAL SOFTWARE GROUP 011-972-4-324-536 OR Gordon H. Wolfe or Stephen D. Axelrod Ax·el·rod , Julius 1912-2004. American biochemist and pharmacologist. He shared a 1970 Nobel Prize for studies of the ways in which different substances affect neural impulses. WOLFE AXELROD ASSOCIATES 212-370-4500 |
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