Unify Corporation Announces Second Quarter 2002 Results.
Business Editors
SACRAMENTO, Calif.--(BUSINESS WIRE)--Nov. 20, 2001--Unify
Corporation (OTCBB:UNFY), a leading provider of software for the
development and deployment of business application solutions, today
announced its financial results for the second quarter ended Oct. 31,
2001.
Total revenue for the second quarter was $3.3 million, compared to
$3.0 million for the first quarter of fiscal 2002, an 8 percent
increase, and $3.6 million for the second quarter of the prior year,
an 8 percent decrease. Net income for the second quarter was $66,000,
compared to net income of $14,000 in the first quarter of fiscal 2002
and a net loss of $4.6 million for the second quarter of the prior
year. Earnings per share, basic and diluted, was less than one cent,
which is consistent with earnings per share of less than one cent in
the first quarter of fiscal 2002 and compared with a ($0.24) loss per
basic share for the second quarter of the prior year.
Software license revenue was $1.7 million, compared to $1.9
million for the same quarter of the prior year, a 10 percent decrease.
Services revenue was $1.6 million, compared to $1.7 million for the
second quarter of the prior year, a 5 percent decrease. Gross margin
was 84 percent, compared with gross margin of 78 percent in the second
quarter of the prior year. Additionally, cash and investments totaled
$2.8 million at Oct. 31, 2001.
For the first six months of fiscal 2002, revenue totaled $6.3
million, compared with $6.4 million for the first six months of fiscal
2001, a decrease of one percent. Net income for the first six months
was $80,000 or less than one cent per basic and diluted share,
compared with a net loss of $8.2 million, or ($0.43) loss per basic
share, for the same six month period of the prior year.
"We are pleased to report a solid quarter in revenue growth over
the first quarter, another consecutive quarter of profitability and
continued improvement in our balance sheet," said Todd Wille,
president, chief executive officer and chairman of Unify. "Our focus
over the quarter was to grow revenue and maintain customer confidence,
to tightly manage operating expenses and to continue to execute on our
strategic plan. We were successful on all three fronts and are well
positioned in the market with competitive product offerings,
technology innovation and a well-established worldwide customer base."
Customers
During the second quarter, Unify had a number of wins across
vertical and geographic markets including ATEA, Business Console Ltd.,
Canon Ltd., Delta Business Services, Inc., Datamatics, Factor Forms
West, Ltd., Fiat Auto Contracts, Ltd., Glaxo, Gummiwerk Kraiburg GmbH
& Co., Miroku Information Service, National Weather Service, Procura
and Raytheon Corp.
Litigation and OTCBB
The Company continues to be involved with mediation efforts to
settle the class action and related derivative lawsuits. While the
Company remains optimistic that these actions will be settled, there
can be no assurance that the cases will be settled or that the court,
having jurisdiction over these cases, will approve such settlement.
Additionally, as previously disclosed, the Company has pursued
listing on the Over-the-Counter Bulletin Board (OTCBB). However, the
Company has been unable to secure the sponsorship of an authorized
OTCBB market marker to become listed on the OTCBB primarily due to the
ongoing litigation and the stockholders' deficit on its balance sheet.
The Company will work to seek the sponsorship of a market maker upon
settlement of the litigation, but cautions there can be no assurance
that an OTCBB listing is imminent.
Business Outlook
The following represents forward-looking statements that are
subject to risks and uncertainties described at the end of this press
release. The following statements are estimates based on management's
expectations on Nov. 20, 2001. For the third quarter of fiscal 2002,
the Company anticipates modest revenue growth of 10 percent, which
will allow the Company to continue to attain profitability.
Conference Call
Unify will hold its conference call, open to all interested
parties, on Tues., Nov. 20, 2001 at 5 p.m. Eastern Time. Listeners
should dial 800-275-3939 prior to the start of the conference call.
The conference call will also be Webcast. Online listeners should
visit www.unify.com/investors 15 minutes prior to the start of the
call. A replay of the conference call will be available until Nov. 30,
2001 by dialing 877-519-4471 and entering the passcode 2955334.
This press release contains "forward-looking statements" as that
term is defined in Section 21E of the Securities Exchange Act of 1934
as amended. Forward looking statements are denoted by such phrases as
"the Company is optimistic that these actions will be settled..."
"will work to seek the sponsorship of a market maker upon settlement
of the litigation..." "revenues are expected to be in the range of..."
"the Company expects to achieve profitability in the third quarter..."
and similar words and phrases that refer to anticipated future events
or performance of the business of the Company. These forward looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by
our forward looking statements. Such risks and uncertainties include,
but are not limited to, the risk that the Company cannot settle, or
cannot settle on acceptable terms, the pending shareholder class
actions and derivative lawsuits, general economic conditions in the
computer and software industries, domestically and worldwide, the
Company's ability to keep up with technological innovations in
relation to its competitors, product defects or delays, developments
in the Company's relationships with its customers, distributors and
suppliers, changes in pricing policies of the Company or its
competitors and the Company's ability to attract and retain employees
in key positions. In addition, Unify's forward looking statements
should be considered in the context of other risks and uncertainties
discussed in our SEC filings available for viewing on our web site at
"Investor Relations", "SEC filings" or from the SEC at www.sec.gov.
About Unify Corporation
Unify Corporation is a leading provider of software for the
development and deployment of business application solutions. Unify
software allows VARS, ISVs, application developers and system
integrators to productively and affordably build, deploy and manage
business applications across a broad array of platforms. Headquartered
in Sacramento, Unify has offices in Europe and Japan, in addition to a
worldwide network of distributors. Further information is available at
www.unify.com and www.unifyewave.com.
Note to Editors: Unify and the Unify logo are registered
trademarks of Unify Corporation.
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UNIFY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
2001 2000 2001 2000
------ ------ ------ ------
Revenues
Software Licenses $ 1,661 $ 1,850 $ 3,090 $ 3,337
Services 1,626 1,712 3,243 3,075
-------- -------- -------- --------
Total revenues 3,287 3,562 6,333 6,412
-------- -------- -------- --------
Cost of Revenues
Software licenses 146 106 314 316
Services 392 685 769 1,887
-------- -------- -------- --------
Total cost of revenues 538 791 1,083 2,203
Gross profit 2,749 2,771 5,250 4,209
-------- -------- -------- --------
Operating Expenses
Product development 996 1,596 2,109 3,212
Selling, general
and administrative 1,376 3,210 2,892 6,398
Special charges 202 2,168 61 2,538
-------- -------- -------- --------
Total operating expenses 2,574 6,974 5,062 12,148
-------- -------- -------- --------
Income (loss)
from operations 175 (4,203) 188 (7,939)
Other expenses, net (94) (358) (71) (258)
-------- -------- -------- --------
Income (loss)
before income taxes 81 (4,561) 117 (8,197)
Provision for income taxes 15 14 37 27
-------- -------- -------- --------
Net income (loss) $ 66 $ (4,575) $ 80 $ (8,224)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.00 $ (0.24) $ 0.00 $ (0.43)
Dilutive $ 0.00 $ (0.24) $ 0.00 $ (0.43)
Shares used in computing
net income (loss) per share:
Basic 19,665 18,938 19,564 18,909
Dilutive 20,123 18,938 20,009 18,909
UNIFY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
October 31, April 30,
2001 2001
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 2,620 $ 2,984
Restricted cash 167 118
Investments - 100
Accounts receivable, net 2,259 2,815
Prepaid expense & other assets 311 600
---------- ----------
Total current assets 5,357 6,617
Property and equipment, net 552 744
Other investments 1,850 1,850
Other assets 111 133
---------- ----------
Total assets $ 7,870 $ 9,344
========== ==========
Liabilities and Stockholders' Deficit
Current liabilities
Account payable $ 1,345 $ 1,877
Notes payable to minority interest stockhoders 328 528
Accrued compensation and related expenses 948 1,013
Other accrued liabilities 3,364 3,406
Deferred revenue 2,833 3,722
---------- ----------
Total current liabilities 8,818 10,546
Stockholders' deficit
Common stock 10 9
Paid in capital 59,012 58,934
Note receivable from stockholder (60) (60)
Accumulated other comprehensive loss (556) (651)
Accumulated deficit (59,354) (59,434)
---------- ----------
Total stockholders' deficit (948) (1,202)
---------- ----------
Total liabilities and stockholders' deficit $ 7,870 $ 9,344
========== ==========
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CONTACT: Unify Corporation
Deb Micciche, 916/928-6379
deb@unify.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: SOFTWARE EARNINGS
SOURCE: Unify Corporation
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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