Unify Corporation Reports Second Quarter 2004 Results; Year over Year Six Month Total Revenue Increases 10 Percent; Software License Revenues Up 32 Percent.Business Editors 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)--Nov. 25, 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) today announced financial results for the second quarter of fiscal 2004 ended October 31, 2003. Total revenues in the second quarter were $2.8 million, a four percent decrease, compared to total revenues of $2.9 million for the second quarter of fiscal 2003. Second quarter software license revenues were $1.4 million, a five percent increase, compared to $1.3 million in the same period of last fiscal year. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income for the second quarter was $61,000, or $0.00 earnings per share, compared to a net loss of ($85,000), or $(0.00) loss per share in the second quarter of the prior year. Gross margin for the quarter was 85 percent, compared to 87 percent in the second quarter of last year. Non-GAAP net income for the second quarter was $114,000, compared to a net loss of ($111,000) in the second quarter of last year. 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 and other special charges (recoveries).
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss):
Quarter Quarter Six Months Six Months
Ended Ended ended ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2003 2002 2003 2002
GAAP Net Income (Loss) $61,000 ($85,000) ($83,000) ($370,000)
Adjustments :
Severance charges 200,000
Write-down of other
investments 175,000 20,000
Special Charges
(Recoveries) (1) 53,000 (26,000) 102,000 (132,000)
--------- ---------- --------- -----------
Non-GAAP Net Income
(Loss) $114,000 ($111,000) $394,000 ($482,000)
========= ========== ========= ===========
(1) Special charges (recoveries) related primarily
to litigation expenses
For the six-month period ended October 31, 2003, revenue totaled $6.1 million, a 10 percent increase, compared to total revenues of $5.6 million for the comparable period of fiscal 2003. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, GAAP net loss in the first six months was ($83,000) or ($0.00) loss per share, compared to GAAP net loss of ($370,000) or ($0.02) loss per share for the first six months of last year. On a Non-GAAP basis, net income for the first six months was $394,000, compared to a Non-GAAP net loss of ($482,000) in the same period of the prior year. "For the first six months of this year, revenue is up 10 percent and, more importantly, software license revenues, a primary indicator of new sales activity, are up 32 percent," 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. . "One of the reasons sales are increasing is because 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. is gaining 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. in both domestic and international markets. This past quarter we made a record number of Unify NXJ sales for the quarter. This is particularly encouraging as we achieved this improved sales momentum while transitioning an entirely new sales management Sales Management Role and Goal Importance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a team and organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , and orchestrating the launch of Unify NXJ 10." The Company ended the second quarter with $2.6 million in cash and cash equivalents, compared to $2.5 million at the end of the first quarter of fiscal 2004 and $2.2 million at the end of the second 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 second quarter was $1.6 million, compared with $1.5 million at the end of the first quarter of fiscal 2004 and $899,000 at the end of the second quarter of fiscal 2003. During the second quarter, Unify: -- Added several new customers including Anite Travel Systems Ltd., Focus Health Care Management, Hali Technology and Mauffrey. -- Earned repeat business from long-standing customers including Business Console Limited, Citra, Credit Lyonnais, Layher, McCann Erickson McCann Erickson is a global advertising agency network, with offices in over 130 countries and almost eight decades of multinational experience . McCann is a subsidiary of the Interpublic Group of Companies , 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, Prime Clinical Systems, Inc., Scholastic Inc., Triple G Systems Group and Verizon Communications. -- Closed 17 Unify NXJ deals to five Independent Software Vendors and 12 corporate IT organizations. -- Brought the total number of Unify NXJ customers to 45 since launching the product. -- Hired a new sales director and two new sales representatives. -- Attended the Gartner Symposium symposium In ancient Greece, an aristocratic banquet at which men met to discuss philosophical and political issues and recite poetry. It began as a warrior feast. Rooms were designed specifically for the proceedings. ITxpo for marketing and lead generation of Unify NXJ. Business Outlook The Company affirms its previous guidance that it expects to grow revenues 10 to 20 percent compared to fiscal year 2003. Conference Call Unify will hold its quarterly conference call, open to all interested parties, on Nov. 25, 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 Dec. 12, 2003 by dialing 877-519-4471 and entering the pass code 4300988. About Unify Unify Corporation (OTCBB:UNFY), is a global enterprise software company. Leveraging 23 years of software innovation to more than 2,000 customers and 300 ISV (Independent Software Vendor) A person or company that develops software. It implies an organization that specializes in software only and is not part of a computer systems or hardware manufacturer. partners worldwide, Unify delivers the market's only comprehensive, vendor-independent application platform that is easy, powerful and open. With Unify solutions, customers are able to deliver applications that significantly enhance revenue opportunities, improve operational effectiveness and enrich customer relationships. Customers include bioMerieux, Inc., Boeing, Credit Lyonnais, Citigroup Inc., Fannie Mae Fannie Mae: see Federal National Mortgage Association. , GlaxoSmithKline, Heineken, PCN 1. PCN - Program Composition Notation. 2. (communications) PCN - Personal Communication Network. , Travel Centers of America, 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. Visit Unify 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. Note to Editors: Trademarks Unify is a registered trademark of Unify Corporation. Unify NXJ is a trademark of Unify Corporation. Java, and J2EE (Java 2 Platform, Enterprise Edition) A platform from Sun for building distributed enterprise applications. J2EE services are performed in the middle tier between the user's machine and the enterprise's databases and legacy information systems. are registered trademarks of Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Inc., 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. and other countries. Other brands or product names shown are trademarks of their respective owners.
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, April 30,
2003 2003
Assets
Current assets:
Cash and cash equivalents $ 2,634 $ 3,030
Accounts receivable, net 2,353 2,504
Prepaid expense & other current assets 393 290
--------- ---------
Total current assets 5,380 5,824
Property and equipment, net 319 345
Other investments 214 392
Other assets 124 114
--------- ---------
Total assets $ 6,037 $ 6,675
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 625 $ 556
Current portion of long term debt 190 200
Other accrued liabilities 700 822
Accrued compensation and related expenses 634 652
Deferred revenue 2,193 2,936
--------- ---------
Total current liabilities 4,342 5,166
Long-term debt 46 0
Stockholders' equity:
Common stock 22 21
Paid in capital 59,461 59,339
Note receivable from stockholder 0 (60)
Accumulated other comprehensive loss (3) (43)
Accumulated deficit (57,831) (57,748)
--------- ---------
Total stockholders' equity 1,649 1,509
--------- ---------
Total liabilities and stockholders'
equity $ 6,037 $ 6,675
========= =========
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
October 31, October 31,
2003 2002 2003 2002
-------- --------- --------- --------
Revenues:
Software Licenses $ 1,406 $ 1,343 $ 3,242 $ 2,448
Services 1,398 1,588 2,863 3,121
-------- --------- --------- --------
Total revenues 2,804 2,931 6,105 5,569
-------- --------- --------- --------
Cost of Revenues:
Software licenses 101 66 187 134
Services 328 305 648 539
-------- --------- --------- --------
Total cost of revenues 429 371 835 673
Gross margin 2,375 2,560 5,270 4,896
-------- --------- --------- --------
Operating Expenses:
Product development 672 1,063 1,679 2,189
Selling, general and
administrative 1,580 1,611 3,384 3,182
Write-down of other
investments 0 0 175 20
Special charges
(recoveries) 53 (26) 102 (132)
-------- --------- --------- --------
Total operating expenses 2,305 2,648 5,340 5,259
-------- --------- --------- --------
Income (loss) from
operations 70 (88) (70) (363)
Other income (expense), net (1) 16 (3) 6
-------- --------- --------- --------
Income (loss) before
income taxes 69 (72) (73) (357)
Provision for income taxes 8 13 10 13
-------- --------- --------- --------
Net income (loss) $ 61 $ (85) $ (83) $ (370)
======== ========= ========= ========
Net income (loss) per
share:
Basic $ 0.00 $ (0.00) $ (0.00) $ (0.02)
Dilutive $ 0.00 $ (0.00) $ (0.00) $ (0.02)
Shares used in computing
net income (loss)
per share:
Basic 21,474 20,873 21,408 20,764
Dilutive 22,594 20,873 21,408 20,764
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