Orchestream Holdings plc Announces Q1 2001 Results: Revenues increase by 98% over previous quarter.Business Editors LONDON--(BUSINESS WIRE)--May 17, 2001 Orchestream Holdings plc (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 :OCHS) (LSE LSE - Language Sensitive Editor :OCH.), a leading provider of services activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. and performance management software to global telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. operators, today announces its results for the first quarter of financial year 2001 (three months ended 31 March 2001). Key Highlights - Revenues of 2.2m pounds sterling for quarter one 2001 up 98% on Q4 2000; - Significant new customers acquired in quarter 1 including Telstra, Teleglobe and Torch Telecom. - Management team strengthened in quarter two with the recent appointments of Curtis Begley as President of North American Operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. and Andy Charalambous as Senior Vice President of Global Sales (see separate release). - Continue to strengthen relationships with key telecom equipment vendors Juniper juniper, any tree or shrub of the genus Juniperus, aromatic evergreens of the family Cupressaceae (cypress family), widely distributed over the north temperate zone. Many are valuable as a source of lumber and oil. and Avici The Avici (sometimes Avichi) Hell is considered to be among the lowest realms of Hell within Buddhism. People reborn into this Hell have generally committed one or more of the Five Grave Offenses:
- Acquisition of CrossKeys Crosskeys is a small village in South East Wales. Located near to the confluence of the Ebbw River and the River Sirhowy, it was originally called Pont-y-cymer. The name 'Crosskeys' is taken from the name of the local hotel. Systems Corporation successfully completed on 11 April, 2001. Product integration is under way and will be demonstrated at Supercomm in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. during June June: see month. . - Successfully completed listing on NASDAQ with trading commencing on 12 April, 2001. Ashley Ward Ashley Ward (born November 24, 1970 in Middleton, Manchester) is a retired English footballer. He was a centre forward, noted for his strength and ability to retain control of the ball. Biography Ward was born the son of a coal mining engineer, and raised in Middleton. , Chief Executive Officer of Orchestream commented: "We have made good progress across the business since the start of the year. Customer interest has increased over recent months as service providers look for new ways to unlock the revenue potential of their networks. This is reflected in the new customer wins but more so in the promising outlook. "We have now completed the acquisition of CrossKeys, which has greatly strengthened our North American operations and significantly enhances our position as a global player in the network management software market. The integration of the two businesses is well advanced and we are starting to see the benefits of the acquisition on both the sales and product development fronts. I am particularly pleased with the quality and enthusiasm of the people who have joined us from CrossKeys. "We are making great strides in the pursuit of our strategy and the recent appointments of Curtis Begley as President of North American Operations and Andy Charalambous as Head of Global Sales have further strengthened the team that will deliver this strategy. I remain confident that we will continue to make good progress in delivering the full potential that Orchestream undoubtedly offers." For more information about Orchestream see www.orchestream.com Orchestream Holdings plc First quarter financial year 2001 Orchestream announces revenues for the first quarter, 2001 of 2.2 million pounds sterling, representing growth of 98% over Q4 2000. 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. before exceptional items and share option costs were 5.1 million pounds sterling for the first quarter compared with 4.8 million pounds sterling for the previous quarter, reflecting further investment in the company's sales capability. The company recorded a net loss of 2.2 million pounds sterling for the quarter, after costs of NASDAQ listing incurred up to 31 March, 2001 of 0.5 million pounds sterling, a credit in respect of share option costs of 0.4 million pounds sterling and net interest receivable of 0.8 million pounds sterling. This compares to a net loss for the fourth quarter of 2000 of 1.9 million pounds sterling. Further costs associated with the NASDAQ are expected in quarter two. Cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. remain strong at 53.1 million pounds sterling at the end of the quarter compared to 58.3 pounds sterling at the end of the fourth quarter of 2000. Operating review The first quarter of 2001 was an exceptional one for Orchestream. Not only did we increase our revenues by 98% over the fourth quarter of 2000, we did so while working through the completion of our acquisition of CrossKeys Systems. This achievement points to the focus that our employees have on executing our strategy and the value that our service provider customers place on our software, which allows them to profitably grow revenues from their networks. During Q1 we added 9 new customers to bring our total customer base to 35. New customer wins include Telstra, Teleglobe and Torch Telecom. Throughout the quarter we continued to announce significant partnering activities with our peers in the OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. space and with equipment manufacturers. In March, we were pleased to announce that Orchestream was one of the first members of the Micromuse MicroMuse was a 1990s MUD which allowed members to interact in a virtual environment, as well as create objects to modify their environment. Like most other MUDs, MicroMuse was conceived as an environment to allow people in far-flung locations to interact with each other and Developers Alliance jointly delivering a live product offering in a service provider's network. Also in March, we partnered with Avici Systems, a leading provider of core routing solutions, to allow network operators to deploy Orchestream software on Avici routers, alongside other network devices to deliver new IP services. Earlier this week, Juniper announced that Orchestream are one of a small number of vendors working with them to deliver MPLS (1) (MultiProtocol Lambda Switching) The earlier name for GMPLS. See GMPLS. (2) (MultiProtocol Label Switching) A standard from the IETF for including routing information in the packets of an IP network. support for Juniper hardware. Strategic outlook The market capitalisations Noun 1. market capitalisation - an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share market capitalization of many providers in the telecom sector have been impacted in recent months due to concerns about the service providers ability to turn network infrastructure investment into profitable revenue growth. These carriers have also found that they do not have the unfettered access to investment capital that they had 12 months ago, further reinforcing re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. the need to focus on profitable revenue growth. As a result, we are observing that service providers are focusing on providing better economic returns on previous network investment. Orchestream's software has a key role to play in this process and so we remain comfortable with the market expectations for our business and do not expect current market conditions to significantly impact our outlook. Orchestream set out in 2001 to expand our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market and visibility both in terms of product offerings and geography. We have made substantial progress towards these objectives since the start of the year. Our acquisition of CrossKeys was successfully completed on 11 April, 2001 and received the overwhelming support of CrossKeys security holders with 99.7% voting in favour Favor or favour (see spelling differences) may be
We are well on our way to integrating our service activation solution, Service Activator activator /ac·ti·va·tor/ (ak´ti-va?ter) 1. a substance that combines with an enzyme to increase its catalytic activity. 2. a substance that stimulates the development of a specific structure in the embryo. , with CrossKeys' performance management solution, Resolve. The integration of these software products will enable us to provide the market with a complete, integrated IP service activation and SLA (1) (StereoLithography Apparatus) See 3D printing. (2) (Service Level Agreement) A contract between the provider and the user that specifies the level of service expected during its term. management solution, which addresses a key requirement for Service Providers to simplify the IP OSS purchasing process Purchasing Purchasing is the formal process of buying goods and services. The Purchasing Process can vary from one organization to another but there are some key elements that are common throughout The process usually starts with a 'Demand' or requirements . Our goal is to demonstrate an early version of this integration at Supercommm, a major industry trade event in Atlanta in early June 2001. We have also completed our NASDAQ listing and began trading on 12 April, 2001. This listing of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. Shares, under the symbol OCHS, provides Orchestream with expanded visibility to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. capital markets. We are also extremely pleased to have been able to strengthen our management team with the appointment of two senior executives, with significant experience in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sector. In April we announced that Curtis Begley had joined the company as President of North American Operations. Curtis comes to us from OSS vendor HarmonyCom where he was president, establishing the company's US operations and led their drive to acquire venture capital funding. Curtis will be responsible for driving our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" in 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. during the year. Today we also announced that Andy Charalambous has been appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the company as Senior Vice President of Global Sales. Andy brings to Orchestream a significant amount of experience selling to large service providers. His most recent appointment was Vice President of Sales for 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). , Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) with
Unisphere Networks Unisphere Networks was a leading networking equipment manufacturer founded in 1998 and later acquired by Juniper Networks in June of 2002. Unipshere was inititally comprised of three other key networking equipment manufacturers: We are making great strides in the pursuit of our strategy. The integration of CrossKeys is well advanced and we are already starting to see the benefits of the acquisition on both the sales and product development fronts. This, together with the strengthened management team and the increased pressure on service providers to deliver profitable revenue growth from their networks, gives us confidence that we will continue to make good progress in delivering the potential that Orchestream undoubtedly offers. Ashley Ward Chief Executive Officer 17 May 2001 This news release may contain statements of a forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. nature relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. financial performance of Orchestream Holdings plc. Such statements are based upon the information currently available to management, and they necessarily involve risk because actual results could differ materially from current expectations. Among the many factors that could cause actual results to differ from those set forth in the Company's 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. are changes in general economic conditions, actions taken by customers or competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , and the receipt of more or fewer orders than expected.
Orchestream Holdings plc
Consolidated unaudited profit and loss account For the three
months ended 31 March 2001
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Turnover 2,205.6 317.9 2,746.2
Cost of sales - - (5.0)
----------- ----------- -----------
Gross profit 2,205.6 317.9 2,741.2
Administration expenses
Before cost of share options
and exceptional item (5,074.0) (2,191.5) (14,339.2)
Cost of share options 362.2 - (1,042.9)
Exceptional item - Cost of
NASDAQ Listing (500.1) - -
----------- ----------- -----------
(5,211.9) (2,191.5) (15,382.1)
----------- ----------- -----------
Operating loss (3,006.3) (1,873.6) (12,640.9)
Interest receivable and
similar income 818.0 155.2 2,111.3
Interest payable and
similar charges (1.8) (3.6) (11.7)
----------- ----------- -----------
Loss on ordinary activities
before taxation (2,190.1) (1,722.0) (10,541.3)
Tax on loss on ordinary
Activities - - -
----------- ----------- -----------
Loss for the financial period (2,190.1) (1,722.0) (10,541.3)
----------- ----------- -----------
----------- ----------- -----------
Loss per share
Basic 2.0p 2.5p 11.9p
Diluted 1.8p 2.3p 10.4p
The consolidated results for each
of the periods shown above are
derived from continuing operations
Consolidated statement of total
recognised gains and losses
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Loss for the financial period (2,190.1) (1,722.0) (10,541.3)
Exchange profit/(loss) on
retranslation of foreign
net assets 32.1 (18.8) (228.1)
----------- ----------- -----------
Total recognised gains and
losses relating to the
financial period (2,158.0) (1,740.8) (10,769.4)
----------- ----------- -----------
----------- ----------- -----------
Orchestream Holdings plc
Consolidated unaudited balance sheet
31 March 2001
31 March 31 March Year ended
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Fixed assets
Tangible assets 2,432.3 538.0 1,879.3
Investment in own shares 4,780.9 - 4,780.9
----------- ----------- -----------
7,213.2 538.0 6,660.2
Current assets
Debtors 6,978.6 624.2 3,448.7
Cash at bank and in hand 53,140.3 8,749.9 58,295.6
----------- ----------- -----------
60,118.9 9,374.1 61,744.3
Creditors: amounts falling due
within one year (4,260.8) (1,008.4) (2,853.3)
----------- ----------- -----------
Net current assets 55,858.1 8,365.7 58,891.0
----------- ----------- -----------
Total assets less current
Liabilities 63,071.3 8,903.7 65,551.2
Creditors: amounts falling due
after more than one year (29.6) (73.0) (40.4)
Provisions for liabilities
and charges (437.1) - (879.5)
----------- ----------- -----------
Net assets 62,604.6 8,830.7 64,631.3
----------- ----------- -----------
----------- ----------- -----------
Share capital and reserves
Called up share capital 12,233.4 34.7 12,207.7
Share premium account 59,381.4 19,857.0 59,355.9
Merger reserve 12,909.6 - 12,909.6
Profit and loss account (21,919.8) (11,061.0) (19,841.9)
----------- ----------- -----------
Equity shareholders' funds 62,604.6 8,830.7 64,631.3
----------- ----------- -----------
----------- ----------- -----------
Orchestream Holdings plc
Consolidated unaudited cash flow statement For the three months
ended 31 March 2001
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Cash flow from operating
Activities (5,201.8) (1,689.0) (12,169.7)
Returns on investments and
servicing of finance 804.7 179.9 2,185.2
Capital expenditure (798.9) (180.2) (1,968.3)
----------- ----------- -----------
Cash outflow before management
of liquid resources and
financing (5,196.0) (1,689.3) (11,952.8)
Management of liquid resources 5,161.2 1,836.4 (47,484.3)
Financing 40.7 2.2 59,811.3
----------- ----------- -----------
Increase in cash in the period 5.9 149.3 374.2
----------- ----------- -----------
----------- ----------- -----------
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Reconciliation of operating loss
to operating cash flows
Operating loss (3,006.3) (1,873.6) (12,640.9)
Depreciation charges 246.0 46.2 466.8
Loss on sale of fixed assets - - 26.0
Discount on options issued 80.1 - 243.5
Increase in debtors (3,518.3) (114.1) (3,024.2)
Increase in creditors 1,439.0 252.5 1,879.6
(Decrease) / increase
in provisions (442.3) - 879.5
----------- ----------- -----------
(5,201.8) (1,689.0) (12,169.7)
----------- ----------- -----------
----------- ----------- -----------
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2001 2000 2000
Unaudited Unaudited Audited
'000 pounds '000 pounds '000
pounds
sterling sterling sterling
Analysis of financing cash flows
Issue of ordinary share capital 51.2 5.8 67,463.9
Expenses paid in connection
with share issue - - (7,658.1)
New finance leases entered into - - 77.3
Capital element of finance
lease rental payments (10.5) (3.6) (71.8)
----------- ----------- -----------
40.7 2.2 59,811.3
----------- ----------- -----------
----------- ----------- -----------
Orchestream Holdings plc Notes to the quarterly statements 1. Basis of preparation. The quarterly statements have been prepared under the historical cost convention, and 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 the Group's accounting policies as set out in the Annual Report and Accounts for the year ended 31 December December: see month. 2000. The financial information set out above for the three month periods ended 31 March 2001 and 31 March 2000 is unaudited. The financial information set out for the year ended 31 December 2000 does not constitute, but has been derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from, the statutory accounts for that period, on which the Company's auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations. gave a report which was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. These statutory accounts have been filed with the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . 2. Basis of consolidation. The quarterly statements include the financial statements of Orchestream Holdings plc and its subsidiary undertakings made up to 31 March 2001. The quarterly statements have been prepared under merger accounting principles in relation to the group reconstruction Reconstruction, 1865–77, in U.S. history, the period of readjustment following the Civil War. At the end of the Civil War, the defeated South was a ruined land. which occurred on 30 May 2000 and resulted in Orchestream Holdings plc becoming the parent company of the group. Under merger accounting, the results and cashflows of group companies are combined from the beginning of the financial period in which the group reconstruction occurred and profit and loss, cash flow and balance sheet comparatives are restated on the combined basis. 3. Earnings per share. Earnings per ordinary share is based on the Group's loss for the financial period of 2,190,100 pounds sterling (3 months ended 31 March 2000: 1,722,000 pounds sterling; year ended 31 December 2000: 10,541,300 pounds sterling). The weighted average number of shares used in the calculation is: - basic 107,464,392 (3 months ended 31 March 2000: 69,815,882; year ended 31 December 2000: 88,798,082) - 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. 120,068,158 (3 months ended 31 March 2000: 74,805,692; year ended 31 December 2000: 101,694,724) 4. Cost of share options. Gains arising on the exercise of unapproved un·ap·proved adj. Not approved or sanctioned: an unapproved vaccine; an unapproved protest march. share options granted to United Kingdom based employees since 6 April 1999 attract employers National Insurance. Full provision has been made for the estimated National Insurance on all outstanding options at 31 March 2001 that had been granted since 6 April 1999 based upon the market value of the Company's share price at the balance sheet date, which was 1.315 pounds sterling. The Orchestream Holdings plc ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). currently holds in addition to shares required to satisfy options granted to employees and ex-employees prior to admission to the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , further shares issued to it on the condition that it will meet the Company's liability to employer's National Insurance (up to a maximum rate of 12.2%) in respect of these options. It is intended that on the exercise of any of these options, sale of additional shares by the ESOP would provide sufficient funds to meet the National Insurance liability arising. 5. Exceptional item - Cost of NASDAQ Listing. On 12 April 2001, American Depository Shares of the company were listed on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. . The costs of the Listing process incurred in the three months to 31 March 2001 have been separately disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). as an exceptional item. 6. Debtors. Included within total debtors as at 31 March 2001 of 6,978,600 pounds sterling is 1,089,100 pounds sterling relating to transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). incurred up to that date associated with the acquisition of CrossKeys Systems Corporation. The completion date for the acquisition was 11 April 2001. 7. Creditors. Included within total creditors falling due within one year as at 31 March 2001 of 4,260,800 pounds sterling is 1,141,100 pounds sterling relating to unpaid transaction costs at that date associated with both the NASDAQ Listing and the acquisition of CrossKeys Systems Corporation. 8. Copies of the interim statement are being sent to all shareholders and are available to the public on application to the Company's registered office. |
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