Unify Corporation Reports Fiscal Year 2001 Results.Business Editors/High-Tech Writers SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. Calif.--(BUSINESS WIRE)--June 19, 2001 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/. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). System:UNFY), a leading provider of software that enables companies to quickly and cost-effectively develop and deploy successful business solutions, today reported results for fiscal year 2001, ended April 30, 2001. Revenue for the twelve months ended April 30, 2001 totaled $14.3 million, compared to $21.1 million in the twelve months ended April 30, 2000. Net loss for the twelve months ended April 30, 2001 was $11.8 million, or $0.62 loss per basic share, compared to a net loss of $7.7 million, or $0.42 loss per basic share for the same period last year, an increase in net loss of 54%. For fiscal 2001, overall license revenues totaled $7.2 million versus $12.6 million from the prior year, a 43% decrease from the prior year as a result of the medical leave of absence of the former 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. , turnover in the sales team and the significant distractions to the Company as a result of the Company's Audit Committee financial and legal investigation during the first half of the year. Support and consulting revenues totaled $7.1 million for fiscal 2001 versus $8.5 million in fiscal 2000. The gross margin percentage remained constant year to year at 74% of total revenue, but decreased 33% in absolute dollars to $10.6 million compared to $15.7 million in fiscal 2000 as a result of the decrease in total revenue in fiscal 2001. The Company also incurred significant one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges in fiscal 2001. These charges include approximately $2.9 million for financial investigators, legal and additional audit fees relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an investigation by the Audit Committee into the Company's revenue recognition practices and internal controls during prior periods, and a $3.7 million impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge on an investment with a strategic partner. As previously disclosed, the Company is involved in mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, to settle the consolidated class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax and shareholder derivative actions A lawsuit brought by a shareholder of a corporation on its behalf to enforce or defend a legal right or claim, which the corporation has failed to do. A derivative action, more popularly known as a Stockholder's Derivative Suit, is derived from the primary right of the . These reported results above do not reflect any estimated costs to settle these lawsuits or adjustments in accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. legal expenses as a result of such settlement. "Thankfully thank·ful adj. 1. Aware and appreciative of a benefit; grateful. 2. Expressive of gratitude: a thankful smile. , Unify 1. (database, product) Unify - A relational database produced by Unify Corporation. 2. (algorithm) unify - To perform unification. ended its tumultuous 2001 year with a small profit in the fourth quarter. We faced a number of significant challenges throughout the year, but we were able to keep focused on selling and developing software that continued to meet our customer's business needs," 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 chief executive officer of Unify. "Over the year, we implemented a series of actions designed to improve financial performance and position the Company for future growth. Our Company size and organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. were realigned to increase productivity and better suit the needs of our customers. We put a seasoned and focused executive management team in place and developed action plans to revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. the performance of each of the functional teams within the company. We reduced expenses to be in line with our revenues and increased our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: each quarter. We've we've Contraction of we have. we've have dramatically improved our business processes, including improving our sales distribution and product development operations, to better focus on satisfying the needs of our current customers and securing new customers." Quarterly Results For the fourth quarter of fiscal 2001, total revenues were $4.2 million, compared to $4.6 million for the fourth quarter of the prior year, representing a decrease of 9%. The Company reported net income for the fourth quarter of $0.4 million, compared to a net loss of $3.1 million in the same quarter of the prior year. Earnings per share were $.02 per basic and 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 for the fourth quarter, compared to ($0.16) loss per basic and diluted share in the same quarter of the prior year. Total revenues for the third quarter of fiscal 2001 were $3.7 million, compared to $5.3 million for the third quarter of the prior year, representing a decrease of 30%. Net loss was $4.1 million compared to a loss of $0.8 million in the same quarter of the prior year. Loss per share was ($0.21) per basic share for the third quarter, compared to ($0.05) loss per basic share in the same quarter of the prior year. The net loss for the third quarter of fiscal 2001 was significantly increased by the impairment charge on an investment with a strategic partner. Fiscal 2001 second quarter total revenues were $3.6 million, compared to $5.8 million for the second quarter of the prior year, representing a decrease of 38%. Net loss for the second quarter was $4.6 million compared to a loss of $1.3 million in the same quarter of the prior year. Loss per share was ($0.24) per basic share for the second quarter, compared to ($0.07) loss per basic share in the same quarter of the prior year. The net loss for the second quarter of fiscal 2001 was significantly increased by the special charges incurred for the financial investigators, legal and additional audit fees. Total revenues for the first quarter of fiscal 2001 were $2.9 million, compared to $5.4 million for the first quarter of the prior year, representing a decrease of 46%. Net loss for the first quarter was $3.6 million compared to a loss of $2.4 million in the same quarter of the prior year. Loss per share was ($0.19) per basic share for the first quarter, compared to ($0.14) loss per basic share in the same quarter of the prior year. The attached summary of financial highlights compares the fiscal year and the first, second, third and fourth quarter results of fiscal 2001 to the same periods of the prior year. Company Liquidity Unify ended fiscal 2001 with approximately $3.2 million in cash and investments. The Company's account receivable account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. balance reflects a DSO See CSO. (daily sales outstanding) of 61 for the fourth quarter of fiscal 2001 which is significantly decreased from 104 DSO for the same quarter of the prior year. The Company's current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. slightly exceed the Company's current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. excluding the deferred revenue balance resulting in a positive pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma working capital balance. Additionally, the Company has established payment terms with several vendors such that portions of the accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. balances will be repaid over next 12 months in order to accommodate the Company's current cash flow situation. The Company was cash flow positive for the third and fourth quarters of fiscal 2001. Partial List of Customer Deployments During the year, Unify saw significant deployments within many established organizations in a diverse range of industries and geographic regions. Unify customer's include: Athene Software, AT&T, Auburn University Auburn University, main campus at Auburn, Ala.; land-grant and state supported; opened 1859 as East Alabama Male College, reorganized 1872 as the Agricultural and Mechanical College of Alabama; became coeducational 1892; renamed Alabama Polytechnic Institute 1899, , Bear Sterns & Co., Bell Atlantic, Cannon, County of Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Credit Lyonnais Lyonnais (lyônā`), region and former province, E central France, now divided into the Rhône and Loire depts. It included Lyonnais proper (the region around Lyons, its capital), which Philip IV acquired c. , Digitrade Inc., Eurogen Systems Ltd., Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Federal Express, Harte-Hanks Data Technologies, Hitachi Europe, Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. , McKesson HBOC HBOC HBO & Co of Georgia HBOC Hereditary Breast and Ovarian Cancer HBOC Hemoglobin-Based Oxygen Carrier HBOC Hawke's Bay Orienteering Club (New Zealand) HBOC Hunter Bird Observers Club HBOC Horse Breeders and Owners Conference , Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. International, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98).NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , North Power (Australia), PFU PFU plaque-forming unit; in virology, areas of cell lysis (CPE) in monolayer cell culture, under overlay conditions, initiated by infection with a single virus particle. Tokyo, Pixxures Canada Inc., Sherwood International Systems (UK), Triple G (Canada), US Marshals Services and Verizon Wireless Cellco Partnership, doing business as Verizon Wireless, owns and operates the second largest wireless telecommunications network in the United States, based on total wireless customers. . Business Outlook The following represents 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. that are subject to risks and uncertainties described at the end of this press release. For the first quarter of fiscal 2002 ending July 31, 2001, revenues are expected to be in the range of $3.5 million to $4.0 million. For the full year of fiscal 2002, revenues are expected to be in the range of $17 million to $19 million. The Company expects to be near break-even in the first and second quarters and generate profits in the third and fourth quarters. Fiscal 2001 Conference Call Unify will host its fiscal 2001 conference call, open to all interested parties at 2 p.m. Pacific Time, on Wednesday, June 20, 2001. Listeners should dial 888/868-9080 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 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 June 29, 2001 by dialing 877/519-4471 and entering the passcode 2661128. This press release contains "forward-looking statements" 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 such phrases as "portions of the accounts payable and accrued liabilities balances will be repaid over the next twelve months"....."Business Outlook"...."revenues are expected to be"....."The Company expects to be near break even.........and generate profits" and similar words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. 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 previously disclosed shareholder class actions and derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. lawsuits currently pending and currently subject to ongoing mediation efforts, 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, developments in patents, copyright or other intellectual property rights, 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, the Company's ability to attract and retain employees in key positions and the success of the Company's realignments of its organizational structure. 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 Investor relations The process by which the corporation communicates with its investors. ", "SEC filings" or from the SEC at www.sec.gov. About Unify Corporation Unify Corporation is a leading provider of software that enables companies to cost-effectively develop and deploy successful business solutions. Unify's proven technology, unparalleled customer support, experienced consulting organization, and strong partnerships form the comprehensive solution companies need to take their business to the next level. Headquartered in Sacramento, Unify has offices in Europe and Japan, in addition to a worldwide network of distributors. Additional information and product downloads are available at www.unify.com and www.unifyewave.com.
UNIFY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
April 30, April 30,
2001 2000
ASSETS
Current assets
Cash and cash equivalents $ 3,102 $ 7,525
Investments 100 3,669
Accounts receivable, net 2,815 5,313
Prepaid expense & other assets 600 834
Total current assets 6,617 17,341
Property and equipment, net 744 1,033
Other investments 1,850 3,370
Other assets 133 48
Total assets $ 9,344 $ 21,792
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Account payable $ 1,877 $ 1,125
Notes payable to minority
interest stockhoders 528 471
Accrued compensation and
related expenses 1,013 1,412
Other accrued liabilities 2,906 3,075
Deferred revenue 3,722 5,423
Total current liabilities 10,046 11,506
Stockholders, equity (deficit)
Common stock 9 9
Paid in capital 58,934 58,272
Notes receivable from stockholders (60) --
Accumulated other comprehensive loss (651) (892)
Accumulated deficit (58,934) (47,103)
Total stockholders' equity (deficit) (702) 10,286
Total Liability and stockholders'
equity (deficit) $ 9,344 $ 21,792
UNIFY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
Year Ended
April 30,
2001 2000
Revenues
Software Licenses $ 7,229 $ 12,576
Services 7,074 8,475
Total revenues 14,303 21,051
Cost of Revenues
Software licenses 662 1,342
Services 3,085 4,037
Total cost of revenues 3,747 5,379
Gross margin 10,556 15,672
Operating Expense
Product development 4,912 6,696
Selling, general and administrative 10,697 16,835
Special charges 2,856 --
Total operating expenses 18,465 23,531
Loss from operations (7,909) (7,859)
Other income (expense), net (213) 367
Write-down of other investments (3,650) --
Loss before income taxes (11,772) (7,492)
Provision for income taxes 59 192
Net loss $(11,831) $ (7,684)
Net loss per share:
Basic $ (0.62) $ (0.42)
Dilutive $ (0.62) $ (0.42)
Shares used in computing net loss per share:
Basic 19,008 18,127
Dilutive 19,008 18,127
UNIFY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
Three Months Ended Three Months Ended
July 31, October 31,
2000 1999 2000 1999
Revenues
Software Licenses $ 1,487 $ 3,158 $ 1,850 $ 3,692
Services 1,363 2,235 1,712 2,127
Total revenues 2,850 5,393 3,562 5,819
Cost of Revenues
Software licenses 210 229 106 210
Services 1,202 1,129 685 1,129
Total cost of
revenues 1,412 1,358 791 1,339
Gross margin 1,438 4,035 2,771 4,480
Operating Expense
Product development 1,616 1,564 1,596 1,719
Selling, general and
administrative 3,188 4,909 3,210 4,094
Special charges 370 -- 2,168 --
Total operating
expenses 5,174 6,473 6,974 5,813
Loss from operation (3,736) (2,438) (4,203) (1,333)
Other income
(expense), net 100 128 (358) 122
Write-down of other
investments -- -- -- --
Loss before
income taxes (3,636) (2,310) (4,561) (1,211)
Provision for income
taxes 13 101 14 96
Net loss $ (3,649) $ (2,411) $ (4,575) $ (1,307)
Net loss per share:
Basic $ (0.19) $ (0.14) $ (0.24) $ (0.07)
Dilutive $ (0.19) $ (0.14) $ (0.24) $ (0.07)
Shares used in computing
net loss per share:
Basic 18,779 17,501 18,938 17,767
Dilutive 18,779 17,501 18,938 17,767
Three Months Ended Three Months Ended
January 31 April 30,
2001 2000 2001 2000
Revenues
Software Licenses $ 1,611 $ 3,089 $ 2,281 $ 2,637
Services 2,118 2,165 1,881 1,948
Total revenues 3,729 5,254 4,162 4,585
Cost of Revenues
Software licenses 160 222 186 681
Services 669 772 529 1,007
Total cost of
revenues 829 994 715 1,688
Gross margin 2,900 4,260 3,447 2,897
Operating Expense
Product development 860 1,562 840 1,851
Selling, general and
administrative 2,266 3,546 2,033 4,286
Special charges 140 -- 178 --
Total operating
expenses 3,266 5,108 3,051 6,137
Income (loss) from
operation (366) (848) 396 (3,240)
Other income
(expense), net (18) 78 63 39
Write-down of other
investments (3,650) -- -- --
Income (loss) before
income taxes (4,034) (770) 459 (3,201)
Provision for
income taxes 20 74 12 (79)
Net income (loss) $ (4,054) $ (844) $ 447 $ (3,122)
Net income (loss)
per share:
Basic $ (0.21) $ (0.05) $ 0.02 $ (0.16)
Dilutive $ (0.21) $ (0.05) $ 0.02 $ (0.16)
Shares used in
computing net income
(loss) per share:
Basic 18,959 18,143 19,083 18,621
Dilutive 18,959 18,143 19,639 18,621
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