netGuru, Inc. Reports Fiscal 2006 Third-Quarter Results from Continuing Operations, Excludes REI Operations Due to Sale, Board Reviewing Alternatives for Remaining Operations.YORBA LINDA Yorba Linda (yôr`bə lĭn`də), city (1990 pop. 52,422), Orange co., S Calif., in a region of citrus fruit; inc. 1967. The city has grown tremendously along with the southern California area; its population increased fivefold between , Calif. -- netGuru, Inc. (Nasdaq:NGRU) reported financial results from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for fiscal 2006 third quarter and nine months ended December December: see month. 31, 2005, which exclude REI operations due to the sale of that division during the quarter. Results from prior periods also exclude REI operations for comparative purposes. Net revenues for the quarter were $881,000, compared to $1.1 million in fiscal 2005 third quarter. Revenues from collaborative software This is a list of collaborative software (or list of groupware) applications. Wiki software is on a list of wiki software. Open source or free software The following are open source or free software applications. sales and services were $245,000, compared to $193,000 in third-quarter last year; revenues from IT and engineering business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in (EBPO EBPO Electronic Business Process Optimization ) services were $636,000, compared to $903,000. Cost of revenues totaled $523,000, compared to $637,000 in third quarter a year ago. Gross profit for the quarter was $358,000 versus $459,000. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter were $4.0 million, compared to $1.1 million in third-quarter fiscal 2005. The increase was due primarily to an 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 of $2.9 million to account for a write off of goodwill related to the IT services and collaborative software divisions. Operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter were $3.7 million, compared to operating losses of $599,000 for third quarter last year. Net losses from continuing operations for the quarter were $4.0 million, compared to net losses from continuing operations of $713,000 in third-quarter fiscal 2005. Income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the quarter was $21.8 million, which includes a $22.8 million gain on the sale of the REI operations, an estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. expense from the gain on sale of $650,000, and losses from REI operations of $327,000. Income from discontinued operations for third quarter a year ago was $478,000. Net income for the quarter was $17.8 million, or $0.93 per share on 19,117,154 shares outstanding, compared to a net loss of $235,000, or $0.01 per share on 18,865,523 shares outstanding, for third-quarter fiscal 2005. Net revenues for nine months were $2.8 million, compared to $3.5 million for nine-months fiscal 2005. Revenues from collaborative software products and services were $624,000, compared to $461,000; revenues from IT and EBPO services were $2.2 million versus $3.0 million. Cost of revenues totaled $1.7 million versus $2.1 million for the nine-month period last year. Gross profit was $1.1 million versus $1.4 million. Operating expenses for nine months were $6.0 million, compared to $3.0 million for nine-months fiscal 2005. The increase was due primarily to the $2.9 million impairment charge in the third quarter to account for a write off of goodwill related to the IT services and collaborative software divisions. Nine-month operating losses were $5.0 million, compared to operating losses of $1.6 million for nine months a year ago. Net losses from continuing operations for nine months were $5.5 million, compared to net losses from continuing operations of $1.9 million for nine-months fiscal 2005. Income from discontinued operations for nine months was $22.1 million, including the $22.2 million gain from the sale of the REI operations and $118,000 in losses from discontinued operations. Income from discontinued operations for the same period last year was $1.0 million and included a $117,000 gain on the sale of discontinued operations and $883,000 in income from discontinued operations. Net income for nine months was $16.5 million, or $0.86 per share on 19,117,154 shares outstanding, compared to a net loss of $925,000, or $0.05 per share on 18,775,554 shares outstanding, for nine-months fiscal 2005. netGuru Chairman and Chief Executive Amrit Das See direct attached storage and FDDI. DAS - Digital Analog Simulator. Represents analog computer design. commented: "We are pleased to have closed the sale of REI to Bentley Systems Bentley Systems, Incorporated, provides software for the "Design, construction and operation of the world's infrastructure". The company’s software serves the building, plant, civil, and geospatial vertical markets in the areas of architecture, engineering, construction (AEC) during the quarter and completed the partial-liquidation distribution to shareholders in January January: see month. 2006. Looking forward, the board of directors has formed a special committee, consisting of three independent board members, to evaluate the potential for divesting some or all of the remaining assets and operations of netGuru and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. the possibilities for a merger or other strategic transaction. In the interim, we will continue our efforts to reduce ongoing expenses where possible to conserve financial resources." About netGuru netGuru is an engineering services company offering engineering business process outsourcing (EBPO) services for the architecture, engineering, and construction (A/E/C A/E/C Architect/Engineer/Contractor ) industry; document/project collaboration Working together on a project. See collaborative software. software/solutions for A/E/C companies, enterprise software providers, software integrators, and other businesses engaged in document/project-centric operations; and technical services and support. netGuru offices are located 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. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and
India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . For more information, go to www.netguru.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 With the exception of historical or factual information, the matters discussed in this press release, including without limitation, plans regarding future divestitures or strategic transactions and reduction of ongoing expenses, are 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 involve risks and uncertainties. Actual future results may differ. Factors that could cause or contribute to such differences in results include, but are not limited to, the board's ability to negotiate and consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. any divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). or other strategic transaction, and netGuru's ability to identify and implement any further reductions in ongoing expenses, and other factors discussed in the "Risk Factors" Section of netGuru's Form 10-KSB for the fiscal year ended March 31, 2005, and other filings made with the U.S. Securities and Exchange Commission.
NETGURU, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------------- ------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net revenues:
Collaborative
software
products and
services $ 245 $ 193 $ 624 $ 461
IT services 636 903 2,153 3,012
----------- ----------- ----------- -----------
Total net
revenues 881 1,096 2,777 3,473
----------- ----------- ----------- -----------
Cost of revenues:
Collaborative
software
products and
services 38 1 40 72
IT services 485 636 1,659 2,024
----------- ----------- ----------- -----------
Total cost of
revenues 523 637 1,699 2,096
----------- ----------- ----------- -----------
Gross profit 358 459 1,078 1,377
----------- ----------- ----------- -----------
Operating
expenses:
Selling, general
and
administrative 897 828 2,242 2,224
Research and
development 106 135 397 408
Bad debt expense 32 - 253 156
Depreciation 83 95 232 234
Impairment charge 2,924 - 2,924 -
----------- ----------- ----------- -----------
Total operating
expenses 4,042 1,058 6,048 3,022
----------- ----------- ----------- -----------
Operating loss (3,684) (599) (4,970) (1,645)
----------- ----------- ----------- -----------
Other expense
(income):
Interest, net 343 123 593 339
Other (38) (9) (44) (67)
----------- ----------- ----------- -----------
Total other
expense 305 114 549 272
----------- ----------- ----------- -----------
Loss from
continuing
operations before
income taxes (3,989) (713) (5,519) (1,917)
Income tax expense 3 - 10 8
----------- ----------- ----------- -----------
Loss from
continuing
operations (3,992) (713) (5,529) (1,925)
----------- ----------- ----------- -----------
Discontinued
operations:
(Loss) income from
discontinued
operations (327) 478 (118) 883
Gain on sale of
business, net of
taxes 22,168 - 22,168 117
----------- ----------- ----------- -----------
Income from
discontinued
operations 21,841 478 22,050 1,000
----------- ----------- ----------- -----------
Net income
(loss) $ 17,849 $ (235) $ 16,521 $ (925)
=========== =========== =========== ===========
Basic and diluted
income (loss) per
common share:
Loss per common
share from
continuing
operations $ (0.21) $ (0.04) $ (0.29) $ (0.10)
Income from
discontinued
operations 1.14 0.03 1.15 0.05
----------- ----------- ----------- -----------
Basic income
(loss) per
common share $ 0.93 $ (0.01) $ 0.86 $ (0.05)
=========== =========== =========== ===========
Common equivalent
shares used in
computing basic
and diluted net
loss per common
share: 19,117,154 18,865,523 19,117,154 18,775,554
NETGURU, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
December 31, March 31,
2005 2005
(Unaudited)
--------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 20,540 $ 3,681
Restricted cash 1,070 -
Accounts receivable (net of
allowance for doubtful accounts of
$180 and $199, as of December 31,
2005, and March 31, 2005,
respectively) 853 1,568
Income tax receivable 8 11
Notes and related party loans
receivable 2 12
Deposits 85 96
Prepaid expenses and other current
assets 736 923
Current assets held for sale 164 4,062
--------------- --------------
Total current assets 23,458 10,353
Property, plant and equipment, net 1,046 1,065
Goodwill - 2,931
Other assets 128 144
--------------- --------------
$ 24,632 $ 14,493
=============== ==============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt,
net of discount of $15 and $222
as of December 31, 2005, and March
31, 2005, respectively $ 66 $ 1,297
Related party loans payable - 100
Current portion of capital lease
obligations 138 133
Accounts payable 248 173
Accrued expenses 563 542
Income taxes payable 660 29
Cash distribution payable 16,250 -
Deferred revenues 174 409
Other liabilities 39 63
Liabilities held for sale 220 3,334
--------------- --------------
Total current liabilities 18,358 6,080
Long-term debt, net of current
portion and net of discount of $7
and $200, as of December 31, 2005,
and March 31, 2005, respectively 28 2,108
Capital lease obligations, net of
current portion 221 342
Deferred gain on sale-leaseback 625 678
--------------- --------------
Total liabilities 19,232 9,208
--------------- --------------
Stockholders' equity:
Preferred stock, par value $.01
(Authorized 5,000,000 shares; no
shares issued and outstanding) - -
Common stock, par value $.01;
(Authorized 150,000,000 shares;
19,117,154 shares outstanding as
of December 31, 2005, and March
31, 2005) 191 191
Additional paid-in capital 20,619 36,869
Accumulated deficit (14,711) (31,232)
Accumulated other comprehensive
loss:
Cumulative foreign currency
translation adjustments (699) (543)
--------------- --------------
Total stockholders' equity 5,400 5,285
--------------- --------------
$ 24,632 $ 14,493
=============== ==============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion