Paradigm Geophysical Announces Record 1998 Results; Revenues Up 82 Percent Year over Year; Sequential Earnings Growth of 12 percent in Q4.HERZILIA, Israel--(BUSINESS WIRE)--Jan. 27, 1999--Paradigm Geophysical ge·o·phys·icsn. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. Ltd. (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 :PGEOF) today announced revenues for the year ended December December: see month. 31, 1998 of $45.4 million, an increase of 82 percent over the $24.9 million recorded for the year ended December 31, 1997. Net income for the year ended December 31,1998 was $4.55 million ($0.49 per share), compared with a loss of $10.8 million ($4.66 loss per share) for the year ended December 31,1997. Revenues for the fourth quarter ended December 31, 1998 were $11.7 million, as compared with $12.9 million in revenues in the fourth quarter ended December 31,1997, in which the acquisition of CogniSeis Development, Inc. ("CogniSeis") occurred. Net income for the quarter was $1.57 million ($0.15 per share) compared with a loss of $11.06 million ($4.75 loss per share) in the same period last year, and 12 percent higher than third quarter levels of $1.4 million ($0.13 per share). The results of the fourth quarter of 1997 and the full year 1997 are not comparable with the results for the same periods of 1998 because of the consolidation into Paradigm's accounts of the fourth quarter 1997 operations of CogniSeis. Paradigm Geophysical Ltd. acquired CogniSeis in October October: see month. 1997. In addition, as a consequence of the acquisition, fourth quarter 1997 revenues reflect a significant backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of CogniSeis software sales that closed in that quarter and also reflect $2.3 million of hardware sales. (Paradigm has discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the CogniSeis practice of actively marketing hardware). Highlights for the Year - Product Sales Increase - Gross Margins Improve - Research and Development Commitment Increases 160 percent over 1997 Commenting on the results, Eldad Eldad (ĕl`dăd), in the Bible, one of the elders who with Moses received the gift of prophecy. Weiss, President 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. , said, "We are pleased to report 1998 as a record year in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite industry wide cuts in exploration and production spending. We are especially pleased that during this last quarter we have maintained our market position and our sales levels. It is management's belief that Paradigm's reputation as a best-of-class A product considered to be superior within a certain category of hardware or software. It does not mean absolute best overall; for example, the best-of-class in a low-priced category may be seriously inferior to the best product on the market, which could sell for ten times as much. and first choice provider has been greatly enhanced as the industry continues to recognize the increased productivity, lower costs and reduced drilling risks our solutions provide." Revenues from software products (excluding hardware sales) increased by 10 percent over third quarter levels, to $6.5 million. Maintenance and support revenue remained at the third quarter level of $2.7 million, while Geophysical Services revenue, at $2.0 million, grew by 15 percent over the third quarter. (There was a significant reduction in hardware sales during this quarter, reflecting the Company's continuing policy not to market hardware actively, but to provide hardware only at our customers' request.) Overall gross margins for the fourth quarter of 1998 were 68 percent, versus 66 percent in the third quarter of 1998. The improvement was due principally to the reduction in the hardware cost component, and maintaining lower unit costs for maintenance and support. Fourth quarter margins for Geophysical Services remained flat at 40 percent, due to the under-utilization of our services capacity, which was greatly expanded in the third quarter in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of increased demand for outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, services in 1999. Research and development expenses for the fourth quarter of 1998 were $2.0 million compared with $1.9 million in the third quarter, and $2.7 in the same quarter of last year. For the total year R&D expenses were $8.0 million, an increase of 57 percent over the $5.1 million of R&D expenditures in 1997. This reflects the Company's continuing commitment to product enhancement and the delivery of new technology and productivity solutions to the market. Other expenditures, for sales and marketing and general and administrative expenses, totaled $4.2 million, a decrease of 21 percent from the $5.3 million reported in the fourth quarter of 1997. Total 1998 expenditures for these categories were $16.4 million, an increase of 60 percent over 1997 expenditures of $10.3 million. Paradigm Geophysical Ltd. develops, markets and supports integrated computer aided exploration ("CAEX CAEX Computer Aided Exploration CAEX Computer Aided Engineering Exchange ") software systems and provides seismic data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a and interpretation services to companies engaged in oil and natural gas exploration and development. Paradigm Geophysical serves this industry with offices and sales representatives 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. , the United Kingdom, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , China, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. , and Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). . "Paradigm Geophysical(R) " is the registered trademark of Paradigm Geophysical Ltd. Paradigm's web site is www.paradigmgeo.com. "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. " statement under the 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: Statements in this release which are not historical facts are 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. and involve risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, increased investment to support product introductions, market acceptance of products, product transitions by the company and its 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. , currency fluctuations, changes in product sales mix sales mix See product mix. , and other risks described in the company's registration statement and other Securities and Exchange Commission filings. -0-
PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31,
1997 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 8,229 $ 3,463
Trade receivables ( net of
allowance for doubtful accounts -
$568 in 1997 and $ 1,222 in 1998) 16,592 19,958
Other receivables and prepaid expenses 5,409 2,470
Total current assets 30,230 25,891
LONG-TERM TRADE RECEIVABLES 446 275
SEVERANCE PAY FUNDS 500 605
FIXED ASSETS
Cost 9,537 14,997
Less - accumulated depreciation 3,471 (5,738)
6,066 9,259
OTHER ASSETS:
Computer software development
costs (net of accumulated
amortization - $ 538 in 1997 and
$ 1,041 in 1998) 1,182 679
Acquired developed technology
(net of accumulated amortization
of $ 350 in 1997 and $ 1,768 in 1998) 6,662 6,329
Other acquired technology (net
of accumulated amortization in
the amount of $110) -- 993
Other assets, net 2,797 2,104
10,641 10,105
$ 47,883 $ 46,135
PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31,
1997 1998
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $ 711 $ 1,778
Current maturities of
long-term bank loans 577 450
Trade payables 1,967 3,024
Other payables and
accrued expenses 12,564 8,770
Deferred revenues 5,603 3,674
Note payable 9,500 --
Total current liabilities 30,922 17,696
LONG-TERM BANK LOANS 483 39
BRIDGE LOAN PAYABLE 12,000 --
ACCRUED SEVERANCE PAY 1,031 1,151
DEFERRED TAX LIABILITY 807 552
SHAREHOLDERS' EQUITY
Preferred shares:
Authorized - 4,735,806 shares of NIS 0.5
par value at December 31, 1997 and 0 shares
at December 31, 1998;
Issued and outstanding - 4,735,806 shares
at December 31, 1997 and 0 shares at
December 31, 1998 765 --
Ordinary shares:
Authorized - 20,000,000 shares of NIS 0.5
par value at December 31, 1998;
Issued and outstanding - 2,328,682 shares
at December 31, 1997 and 10,514,484 shares
at December 31, 1998 521 1,758
Additional paid-in capital 19,707 39,236
Accumulated other comprehensive income (246) (742)
Accumulated deficit (18,107) (13,555)
Total shareholders' equity 2,640 26,697
$ 47,883 $ 46,135
PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except for per share data)
Year ended December 31,
1996 1997 1998
Revenues:
Products $ 5,981 $ 15,243 $ 27,491
Maintenance and support 1,737 4,736 10,583
Seismic data processing
and interpretation
services 3,884 4,886 7,288
11,602 24,865 45,362
Cost of revenues:
Products 2,438 4,139 5,479
Maintenance and support 1,302 2,492 5,783
Seismic data
processing and
interpretation
services 1,910 2,533 4,108
5,650 9,164 15,370
Gross profit 5,952 15,701 29,992
Operating expenses:
Research and
development, net 1,840 5,095 8,061
Selling and marketing, net 5,466 6,102 9,642
General and administrative 4,072 4,227 6,720
Other expenses -- 10,676 --
Total operating expenses 11,378 26,100 24,423
Operating income (loss) (5,426) (10,399) 5,569
Financial income
(expenses), net 57 (446) (661)
Income (loss) before
income taxes $ (5,369) $(10,845) $ 4,908
Income taxes -- -- (356)
Net income (loss) (5,369) (10,845) 4,552
Basic income (loss)
per share $ (2.33) $ (4.66) $ 0.66
Number of shares used
in computing basic income
(loss) per share 2,300 2,328 6,850
Diluted income
(loss) per share $ (2.33) $ (4.66) $ 0.49
Number of shares used
in computing diluted
income (loss) per share 2,300 2,328 9,306
PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except for per share data)
Three months
ended December 31,
1997 1998
Revenues:
Products $ 9,051 $ 7,055
Maintenance and support 2,888 2,670
Seismic data processing
and interpretation services 933 1,990
12,872 11,715
Cost of revenues:
Products 3,109 1,103
Maintenance and support 1,061 1,495
Seismic data processing
and interpretation services 691 1,201
4,861 3,799
Gross profit 8,011 7,916
Operating expenses:
Research and development, net 2,722 2,047
Selling and marketing, net 3,096 2,653
General and administrative 2,193 1,573
Other expenses 10,676 --
Total operating expenses 18,687 6,273
Operating income (loss) (10,676) 1,643
Financial income (expenses), net (480) 64
Income (loss) before income taxes $(11,156) $ 1,707
Income taxes (expense) 96 (136)
Net income (loss) (11,060) 1,571
Basic income (loss) per share $ (4.75) $ 0.15
Number of shares used in computing
basic income (loss) per share 2,328 10,514
Diluted income (loss) per share $ (4.75) $ 0.15
Number of shares used in computing
diluted income (loss) per share 2,328 10,607
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion