Niklas Bjorkman wrote: Firstly I agree with your conclusion. NewSQL takes the best of the traditional databases and NoSQL databases to combine the benefits of both worlds. I do not agree that NewSQL vendors focus on giving scale-out features to transactional data. The NewSQL market is focusing on giving true ACID support combined with extreme performance, stepping away from the traditional relational structures in databases. A lot of developers appreciate the ease of accessing data using SQL and I think we will see more and more databases supporting standard SQL.
As you said - NewSQL databases often maintain the...
BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy
modernization, today announced financial results for the third quarter
of 2012. The turnaround efforts are showing results with revenues
holding steady while debt was reduced and burn rate was brought under
control.
Net Income on a non-GAAP basis for Q3 improved 85% and while the number
still shows a loss of $182 K BPHX is closely approaching breakeven.
Additional achievements in Q3 include the significant reduction in total
financial debt which dropped from $7.9 M to just $556 K. Earnings per
share improved 89% in the third quarter with a non-GAAP loss of $(0.02)
per diluted share, compared to net loss of $(0.18) per diluted share in
the previous quarter. Net cash burn is down 78% in Q3 to only $314 K
compared to $1,416 million in Q2.
Matt Bell, CEO of BluePhoenix said, “We are making great progress on our
plan to restructure the company, strengthen the balance sheet, and sell
off less profitable and non-strategic businesses. Our timing appears
good as the market for our core business is picking up because companies
postponed projects over the last few years. A lack of knowledge in
running legacy systems, higher licensing prices, and a move toward cloud
technology are also fueling our demand.”
BluePhoenix will go over the following numbers during their quarterly
conference call today at 4:30PM Eastern US time. The call can be
accessed by dialing 1-888-668-9141 within the United States, or via
+972-3-9180610 if calling internationally, approximately five minutes
prior to its scheduled commencement. A live Veidan Broadcasting and a
replay can be accessed through a link that will be available via the
BluePhoenix website.
Non-GAAP Results (in thousands US$)
Q3 2012
Q2 2012
Q3/2011 **
Sales
3,978
4,237
6,539
Operating profit (loss)
(89)
(791)
376
Net (Loss) Income
(182)
(1,171)
111
Earnings (Loss) per share, diluted*
(0.02)
(0.18)
0.02
GAAP Results (in thousands US$)
Q3 2012
Q2 2012
Q3 2011
Sales
3,978
4,237
6,539
Operating profit (loss)
(748)
(1,301)
(3,248)
Net loss
(3,686)
(4,108)
(3,206)
Loss per share, diluted*
(0.46)
(0.62)
(0.51)
Notes:
* On December 28, 2011 the company performed a one-for-four reverse
split of its outstanding shares.
** Presented after reclassification of Liacom Ltd. as discontinued
operation.
At present, following the completion of the sale of AppBuilder business,
an amount of $2 million is held in escrow accounts to secure certain
company obligations under the sale agreement.
Non-GAAP financial measures
The release includes non-GAAP diluted earnings per share and other
non-GAAP financial measures, including non-GAAP operating income and
non-GAAP net income. These non-GAAP measures exclude the following items:
Amortization of intangible assets;
Stock-based compensation;
Onetime expenses related to cost saving plan and one time charges;
Revaluation of derivatives and discount amortization;
Gain on sales of subsidiaries and Appbuilder;
Net loss from discontinued operation.
The presentation of these non-GAAP financial measures should be
considered in addition to BluePhoenix' GAAP results and is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. BluePhoenix'
management believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding certain charges and gains that may not be indicative of
BluePhoenix' core business operating results. BluePhoenix believes that
both management and investors benefit from referring to these non-GAAP
financial measures in assessing BluePhoenix' performance. These non-GAAP
financial measures also facilitate comparisons to BluePhoenix'
historical performance. BluePhoenix includes these non-GAAP financial
measures because management believes they are useful to investors in
allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision-making. Non-GAAP measures are reconciled to comparable GAAP
measures in the table entitled "Unaudited Reconciliation of GAAP to
Non-GAAP."
About BluePhoenix Solutions
BluePhoenix Solutions Ltd. (NASDAQ: BPHX) is the leading provider of
legacy IT modernization conversion solutions. The BluePhoenix portfolio
includes a comprehensive suite of tools and services from global IT
asset assessment and impact analysis to automated database and
application migration. Leveraging over 20 years of best-practice domain
expertise, BluePhoenix works closely with its customers to ascertain
which assets should be migrated, redeveloped, or wrapped for reuse as
services or business processes, to protect and increase the value of
their business applications and legacy systems with minimized risk and
downtime.
BluePhoenix provides modernization solutions to companies from diverse
industries and vertical markets such as automotive, banking and
financial services, insurance, manufacturing, and retail. BluePhoenix
has 9 offices in the USA, UK, Italy, Romania, Russia, and Israel.
Certain statements contained in this release may be deemed
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 and
other Federal Securities laws. You can identify these and other
forward-looking statements by the use of words such as “may,” “will,”
“plans,” “believes,” “estimates,” “expects," “predicts”, “intends,” the
negative of such terms, or other comparable terminology. Because such
statements deal with future events, plans, projections, or future
performance of the Company, they are subject to various risks and
uncertainties that could cause actual results to differ materially from
the Company’s current expectations. These risks and uncertainties
include but are not limited to: the effects of the global economic and
financial trends; market demand for the Company’s products; successful
implementation of the Company’s products; changes in the competitive
landscape, including new competitors or the impact of competitive
pricing and products; and such other risks and uncertainties as
identified in BluePhoenix’s most recent Annual Report on Form 20-F and
other reports filed by it with the SEC. Except as otherwise required by
law, BluePhoenix undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
This press release is also available at www.bphx.com.
All names and trademarks are their owners’ property.
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
Nine months ended
September 30,
September 30,
2012
2011*
2012
2011*
Unaudited
Unaudited
Revenues
$3,978
$6,539
$11,815
$20,736
Cost of revenues
2,234
4,413
8,532
15,690
Gross profit
1,744
2,126
3,283
5,046
Research and development costs
340
1,066
1,255
3,422
Selling, general and administrative expenses
2,253
4,308
7,637
12,097
Gain on sales of subsidiaries and Appbuilder
(101)
-
(346)
-
Total operating expenses
2,492
5,374
8,546
15,519
Operating loss
(748)
(3,248)
(5,263)
(10,473)
Financial expenses, net
2,840
374
5,335
765
Other income
-
-
(580)
-
Loss before taxes
(3,588)
(3,622)
(10,018)
(11,238)
Taxes on income
28
23
174
78
Net loss from continued operation
(3,616)
(3,645)
(10,192)
(11,316)
Net loss (profit) from discontinued operation
-
(276)
673
(97)
Net loss
(3,616)
(3,369)
(10,865)
(11,219)
Net result attributable to noncontrolling interests
70
(163)
175
(121)
Loss attributed to BluePhoenix shareholders
($3,686)
($3,206)
($11,040)
($11,098)
Loss per share:
From continued operation- basic and diluted
($0.46)
($0.56)
($1.48)
($1.83)
From discontinued operation- basic and diluted
$ 0.00
$ 0.05
($0.10)
$ 0.02
Attritubed to the shareholders
($0.46)
($0.51)
($1.58)
($1.81)
Shares used in per share calculation:
Basic and diluted **
7,972
6,235
7,006
6,122
* Presented after reclassification of Liacom Ltd. as discontinued
operation.
** On December 28, 2011 the company performed a one-for-four reverse
split of its outstanding shares.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
Three months ended
Nine months ended
September 30,
September 30,
2012
2011
2012
2011
Unaudited
Unaudited
GAAP Gross Profit
$1,744
$2,126
$3,283
$5,046
Amortization of intangible assets
317
886
1,265
2,950
Expenses related to cost saving planand one time charges
-
913
36
4,237
Non-GAAP gross profit
$2,061
$3,925
$4,584
$12,233
GAAP operating loss
($748)
($3,248)
($5,263)
($10,473)
Amortization of intangible assets
317
886
1,265
2,950
Expenses related to cost saving planand one time charges
-
2,433
87
9,337
Stock-based compensation
443
305
1,408
947
Gain on sales of subsidiaries and Appbuilder
(101)
-
(346)
-
Non-GAAP operating income (loss)
($89)
$376
($2,849)
$2,761
GAAP Net loss attributable to BluePhoenix
($3,686)
($3,206)
($11,040)
($11,098)
Amortization of intangible assets
317
886
1,265
2,950
Expenses related to cost saving planand one time charges
-
2,433
87
9,337
Stock-based compensation
443
305
1,408
947
Gain on sales of subsidiaries and Appbuilder
(101)
-
(346)
-
Revaluation of derivatives and discount amortization
2,845
(31)
4,824
(288)
Net loss from discontinued operation
-
(276)
673
(97)
Non-GAAP Net income (loss) attributable to BluePhoenix
($182)
$111
($3,129)
$1,751
Shares used in diluted earnings per share calculation
7,972
6,252
7,006
6,224
Non - GAAP Diluted Earnings per share
($0.02)
$0.02
($0.45)
$0.28
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30,
December 31,
2012
2011*
Unaudited
ASSETS
Current Assets:
Cash and cash equivalents
$1,925
$3,997
Restricted cash
79
-
Trade accounts receivable, net
2,992
7,675
Other current assets
642
1,041
Total Current Assets
5,638
12,713
Non-Current Assets:
Restricted cash
-
3,428
Property and equipment, net
648
1,021
Goodwill
12,501
14,238
Intangible assets and other, net
755
3,000
Total Non-Current Assets
13,904
21,687
TOTAL ASSETS
$19,542
$34,400
LIABILITIES AND EQUITY
Current Liabilities:
Short-term bank credit
$275
$6,983
Trade accounts payable
1,418
3,403
Deferred revenues
571
739
Other current liabilities
1,206
3,272
Total Current Liabilities
3,470
14,397
Non-Current Liabilities
Accrued severance pay, net
425
410
Loans from banks and others
281
3,945
Derivative liabilities - Warrants
326
53
Total Non-Current Liabilities
1,032
4,408
Total Equity
15,040
15,595
TOTAL LIABILITIES AND EQUITY
$19,542
$34,400
* Presented after reclassification of Liacom Ltd. as discontinued
operation.
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three months ended
Nine months ended
September 30,
September 30,
2012
2011*
2012
2011*
Unaudited
Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
($3,616)
($3,369)
($10,865)
($11,219)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization
358
1,048
1,558
3,415
Decrease in accrued severance pay, net
18
(164)
(16)
(720)
Stock–based compensation
443
305
1,408
947
Change in fair value of derivatives and discount amortization
2,845
(31)
4,824
(288)
Gain on sales of subsidiaries and Appbuilder
(101)
-
361
-
Loss on sale of property and equipment
-
-
12
-
Deferred income taxes, net
-
(14)
-
(14)
Long term receivable
-
(33)
-
(20)
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables
45
(66)
755
5,025
Decrease (increase) in other current assets
161
37
(691)
(334)
Decrease in trade payables
(411)
(427)
(1,106)
(1,371)
Decrease in other current liabilities and deferred revenues
(56)
(1,263)
(249)
(1,828)
Net cash used in operating activities
(314)
(3,977)
(4,009)
(6,407)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash
-
-
4,031
-
Purchase of property and equipment
-
(20)
(60)
(161)
Proceeds from sale of property and equipment
9
32
50
32
Additional consideration of previously acquired subsidiaries
-
-
-
(1,163)
Proceeds from sales of subsidiaries and Appbuilder
101
-
2,950
-
Net cash provided by (used) in investing activities
110
12
6,971
(1,292)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short term bank credit and convertible notes, net
(117)
(1,186)
(1,601)
(6,054)
Issuance of shares and loan
-
-
-
5,000
Exercise of warrants
120
-
120
-
Repayment of long-term loans
(66)
-
(3,553)
(426)
Dividend paid to noncontrolling interest
-
(76)
-
(217)
Net cash used in financing activities
(63)
(1,262)
(5,034)
(1,697)
NET CASH DECREASE FROM CONTINUED OPERATION
(267)
(5,227)
(2,072)
(9,396)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
2,192
8,114
3,997
12,295
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$1,925
$2,887
$1,925
$2,899
* Presented after reclassification of Liacom Ltd. as discontinued
operation.
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A recent study by analyst firm IDC reports that in 2012, 1.7 million cloud computing-related roles across the globe could not be filled due to the lack of training, certification and experience in the applicant pool. As the global demand for cloud and big data expertise increases...
“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jer...
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In their session at the 12th International Cloud Expo, Frank Nydam, Director of Healthcare Solutions at VMware, and Ken Ziegler, CEO of Logicworks,...
In the face of rapidly increasing amounts of unstructured data, industry is investing heavily to turn machines into services and connect them to analytics engines that will extract an extraordinary amount of value and unleash a productivity revolution for both businesses and cons...
