Unify Corporation Reports First Quarter 2004 Results; First Quarter Revenues Increase 25 Percent Year Over Year; License Revenues Up 66 Percent.Business Editors/High-Tech Writers SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 26, 2003 Unify Corporation (company) Unify Corporation - Developers of the Unify relational database. At one time, before Sybase, they were a competitor of Oracle, et al. http://unify.com/. ftp://ftp.unify.com/. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :UNFY), a leading provider of business application platform solutions, today announced financial results for the first quarter of fiscal 2004 ended July 31, 2003. Total revenues in the first quarter were $3.3 million, a 25 percent increase, compared to total revenues of $2.6 million for the first quarter of fiscal 2003. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for the first quarter was $144,000, or $(0.01) loss per basic share, compared to a net loss of $285,000, or $(0.01) loss per basic share, in the same period of the prior year. Non-GAAP net income was $280,000, or $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 a net loss of $371,000, or $(0.02) loss per diluted share, in the first quarter of fiscal 2003. Non-GAAP net income excludes severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges, write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the Company's investments in other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and other special charges or recoveries. First quarter gross margin was 88 percent, compared to 89 percent in the first quarter of fiscal 2003.
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss):
Quarter Quarter
Ended Ended
July 31, July 31,
2003 2002
GAAP Net Loss ($144,000) ($285,000)
Adjustments :
Severance Charges 200,000 --
Write-down of Investments in Other Assets 175,000 20,000
Special Charges (Recoveries) 49,000 (106,000)
---------- ----------
Non-GAAP Net Income (Loss) $280,000 ($371,000)
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"We are pleased with our significant year over year revenue growth," said Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. Wille, 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. of Unify 1. (database, product) Unify - A relational database produced by Unify Corporation. 2. (algorithm) unify - To perform unification. . "This quarter we saw a 66 percent increase in software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. revenue compared to Q1 of last year, which we believe is representative of our increased sales and marketing focus. Unify NXJ A business application platform from Unify Corporation, Sacramento, CA (www.unify.com) for building J2EE-based Web applications. Unify NXJ is the company's flagship software product. See UNIFY 2000 and Unify VISION. continued to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. with new customers, as NXJ offers the most efficient and cost-effective product solution available for delivering Java-based Web applications. We are excited about the momentum we're seeing from Unify NXJ and our plans, including hiring additional sales reps, for driving license revenue growth 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. this fiscal year." The Company ended the first quarter with $2.5 million in cash and cash equivalents, compared to $3 million at the end of the fourth quarter and $2.8 million at the end of the first quarter of fiscal 2003. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at the end of the first quarter was $1.5 million, compared with $1.5 million at the end of the fourth quarter and $971,000 at the end of the first quarter of fiscal 2003. During the first quarter, Unify: -- Added several new customers including Century Rayon rayon, synthetic fibers made from cellulose or textiles woven from such fibers; more rayon is manufactured than any other synthetic fiber. The name was adopted (1924), in preference to "artificial silk," by the U.S. Dept. , Documentum, McCann-Erickson, Perot Systems Perot Systems Corporation NYSE: PER is an information technology services provider based in Plano, Texas. Peter Altabef has served as president, chairman, and chief executive officer since 2004. Corp., Sacramento Technology Group and the University of Mississippi The University of Mississippi, also known as Ole Miss, is a public, coeducational research university located in Oxford, Mississippi. Founded in 1848, the school is composed of the main campus in Oxford and three branch campuses located in Booneville, Tupelo, and Southaven. . -- Earned repeat business from existing customers including Business Console Limited, Celebrity Software, CITRA CITRA Center for International Regulatory Assistance CITRA Conférence Internationale de la Table ronde des Archives CITRA Charity IT Resource Alliance (Charity Technology Trust; UK) CITRA Cornell Institute for Translational Research on Aging , GEAC (Geac Computer Corporation Limited, Markham, Ontario, www.geac.com) A major Canadian software company acquired in early 2006 by Golden Gate Capital. Founded in 1971, and originally specializing in library automation, Geac is best known for its SmartStream financial, payroll and human Computers Int., Global Turnkey Systems A complete system of hardware and software delivered to the customer ready-to-run. In other words, just "turn the key" and go.  A Turnkey Video System , Inc., National Australian Bank, The Medstat Group, and Triple G System Group, Inc. -- Closed nine Unify NXJ deals. -- Entered into a strategic partnership with the JBoss Group. -- Hired Jim Kanir as the new vice president of worldwide sales and marketing and Clive Radford as the Director of Sales for the UK. -- Aligned the Company to invest additional resources in sales and marketing. Business Outlook For the fiscal year ending April 30, 2004, the Company expects revenues to grow 10 to 20 percent from the previous fiscal year. Conference Call Unify will hold its quarterly conference call, open to all interested parties, on Aug. 26, 2003, beginning at 2 p.m. Pacific Time. Listeners should dial 800-231-5571 prior to the start of the conference call. The conference call will also be Webcast. Online listeners should visit www.unify.com/investors prior to the start of the call for login Signing in and gaining access to a network server, Web server or other computer system. The process (the noun) is a "login" or "logon," while the act of doing it (the verb) is to "log in" or to "log on. information. A replay of the conference call will be available until Sept. 5, 2003 by dialing 877-519-4471 and entering the pass code 4097573. About Unify Corporation Unify Corporation (OTCBB: UNFY) is a global provider of software product solutions that helps companies deliver robust and reliable Web and business applications in less time, at a lower cost and with significantly reduced maintenance. More than 2,000 organizations around the world use Unify solutions to deliver applications that enhance revenue opportunities, improve operational effectiveness, and enrich customer relationships. Unify's customers include AT&T, Boeing, Credit Lyonnais, Citigroup Inc., Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Fuji Electric Co. Ltd, GlaxoSmithKline, Heineken, Sescoi, Triple G Systems Group and Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. . Founded in 1980, Unify is headquartered in Sacramento, Calif., and has offices in the UK and France, in addition to a worldwide network of distributors. Further information is available at www.unify.com. This press release contains "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. " as that term is defined in Section 21E of the Securities Exchange Act of 1934 as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Forward looking statements are denoted by words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," and other variations of such words and similar expressions are intended to identify such forward-looking statements. 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 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 its web site at "Investor Relations Investor relations The process by which the corporation communicates with its investors. ," "SEC filings" or from the SEC at www.sec.gov.
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, April 30,
2003 2003
Assets
Current assets:
Cash and cash equivalents $ 2,479 $ 3,030
Accounts receivable, net 2,206 2,504
Prepaid expense & other current assets 248 290
-------- ---------
Total current assets 4,933 5,824
Property and equipment, net 320 345
Other investments 217 392
Other assets 118 114
-------- ---------
Total assets $ 5,588 $ 6,675
======== =========
Liabilities and Stockholders' Equity
Current liabilities:
Account payable $ 351 $ 556
Current portion of long term debt 140 200
Other accrued liabilities 615 822
Accrued compensation and related expenses 566 652
Deferred revenue 2,443 2,936
-------- ---------
Total current liabilities 4,115 5,166
Commitments and contingencies
Stockholders' equity:
Common stock 21 21
Paid in capital 59,414 59,339
Note receivable from stockholder (60) (60)
Accumulated other comprehensive loss (10) (43)
Accumulated deficit (57,892) (57,748)
-------- ---------
Total stockholders' equity 1,473 1,509
-------- ---------
Total liabilities and stockholders' equity $ 5,588 $ 6,675
======== =========
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
July 31,
2003 2002
-------- --------
Revenues:
Software Licenses $ 1,836 $ 1,105
Services 1,465 1,533
-------- --------
Total revenues 3,301 2,638
-------- --------
Cost of Revenues:
Software licenses 86 68
Services 320 234
-------- --------
Total cost of revenues 406 302
Gross margin 2,895 2,336
-------- --------
Operating Expenses:
Product development 1,007 1,126
Selling, general and administrative 1,804 1,571
Write-down of other investments 175 20
Special charges (recovery) 49 (106)
-------- --------
Total operating expenses 3,035 2,611
-------- --------
Loss from operations (140) (275)
Other expense, net (2) (10)
-------- --------
Loss before income taxes (142) (285)
Provision for income taxes 2 0
-------- --------
Net loss $ (144) $ (285)
======== ========
Net loss per share:
Basic $ (0.01) $ (0.01)
Dilutive $ (0.01) $ (0.01)
Shares used in computing net loss per share:
Basic 21,344 20,639
Dilutive 21,344 20,639
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