Arrowpoint Technologies Plc

December 16, 2009 02:00 ET

Unaudited Interim Results for the six months ended 30 September 2009

                                                                                  16 December 2009

                                    ARROWPOINT TECHNOLOGIES PLC
                                   ("Arrowpoint" or "the Group")
               Unaudited Interim Results for the six months ended 30 September 2009

Arrowpoint  Technologies  Plc, a leading pensions and retirement benefits administration  software
provider, announces its unaudited results for the six months ended 30 September 2009.

Key Highlights:

*       Revenues increased almost 8% to $8.23m (H1 2008: $7.65m), driven largely by the success of
        the  Offshore Development Centre
*       EBITDA  increased over 10% to $0.90m (H1 2008: $0.81m), reflecting the  benefits  of  the
        Group's low cost offshore product development and customer support centres in India
*       Earnings per share of $0.0010
*       Arrowpoint announces a new one year with option to continue for another 4 years  contract
        extension worth approximately $1.7m annually from the Pension Benefit Guaranty Corporation 
       (PBGC)under their IPV4 project.

Commenting  on  the results, Santanu Nandy, Group Managing Director, said: "I am pleased  that  we
have  continued  to make good progress in the first half of 2009 with excellent  growth  from  our
Offshore Development Centre. With new business opportunities increasing and trading in the  second
half remaining encouraging, the board looks to the full year result with confidence."


Arrowpoint Technologies Plc                                                     
Santanu Nandy, Group Managing Director                                  +91 22 2598 5900
St Helens Capital Partners LLP                                          
Mark Anwyl, Duncan Vasey                                                +44 (0)20 7368 6959
Corfin Communications                                                   
Alexis Gore, Harry Chathli, Neil Thapar                                 +44 20 7977 0020


Arrowpoint  is  pleased to report its maiden interim results since its flotation  on  PLUS  on  28
October  2009. The Group achieved solid growth in the period with revenues up almost 8% to  $8.23m
(H1  2008:  $7.65m),  driven  largely by the success of the Offshore  Development  Centre.  EBITDA
increased over 10% to $0.90m (H1 2008: $0.81m).

The  results  highlight  the  success  of the Group's strategy  to  leverage  growth  by  coupling
Arrowpoint's leadership position in the US pension administration software and consulting services
sector with a proven offshore product innovation and service delivery capability based in India.

Operating Review:

Despite  challenging  financial markets, demand for the Group's automated pensions  administration
products and services continued to grow.

A  major driver of the Group's growth was the success of the Offshore Development Centre which saw
its  revenues grow by 87% to $0.81M compared to the same period last year. The Group augmented the
infrastructure of the Offshore Development Centre by installing high availability virtual  servers
for  software  development  and  testing. Arrowpoint also  implemented  many  software  tools  for
sophisticated Software Development Life Cycle Management.

We increased revenues both through repeat business and the signing up of three new customers.

Lynchval  was  awarded a re-compete contract for the Integrated Present Value of  Future  Benefits
(IPVFB)  System with the Pension Benefit Guaranty Corporation (PBGC) for a total of $1.7  million.
The  IPVFB calculates the value of future pension plan benefits and expenses that the PBGC may be,
obliged  to  pay.  This  contract also has an additional 4 year option period  available  with  an
additional  $7.2  million  of  funding. We have also been awarded an extension  in  their  Pension
Insurance  Modelling  System Project (PIMS) until 31 January, 2010 with additional  resources  and
billing.  The PIMS model helps PBGC evaluate its exposure and expected claims over the long  term,
by  simulating the flows of claims that could develop under thousands of combinations of  economic
parameters and bankruptcy rates.

In  September,  2009  Lynchval completed the conversion process for the  AMTRAK/National  Railroad
Passenger  Corporation's  defined benefit plans and the system is now  operational.   AMTRAK  will
continue to lease Lynchval's LVadmin software for 3 years.

Arrowpoint also undertook a major exercise in product development.  The asset liability management
(ALM) product, an ongoing project started in 2007, has been designed and written from ground up by
our Chief Actuary, Jeff Lane and his programming actuaries.

The  consultancy division, KeyTech, which was affected severely due to the economic recession, has
improved marginally and besides retaining our old clients, we have managed to acquire a key client
from  the  Travel  and  Tourism Industry. As the economic recession recedes the  outlook  of  this
business will improve.

Post Balance Sheet Events:

On  22  November 2009, Dr. Richard Feller and the Group amicably resolved all their legal disputes
that the two had previously been engaged in and no future legal actions will be executed by either
party.  Under  this  amicable settlement, Dr. Richard Feller agreed to  compensate  the  Group  by
surrendering  5,842,259  equity shares of the Company equivalent to  $1.2M.  Besides,  Dr.  Feller
unconditionally gave up all his claims of interest dues connected with the delay  of  the  Initial
Public Offering.

In  connection  with Dr. Feller returning 5,842,259 equity shares, the Board of Directors  on  the
advice of Appleby Trust Limited have decided that Dr. Feller has surrendered these shares and such
shares  will  be held in the custody of Appleby Trust Limited till such time it is re -  allotted,
sold or cancelled. A Board Resolution to that effect was passed on December 3, 2009 and Dr. Feller
has been informed. Therefore, the authorised and issued capital of the Group remains unchanged.
Directors Interests:

As  announced previously between 30 October and 23 November 2009, Mr. Nirmal Kedia and Mr. Santanu
Nandy  both directors of the Group sold 150,000 shares each strictly for the purpose of  liquidity
as  per  the  orderly market agreement signed by them. Both Mr. Kedia and Mr.  Nandy  have  agreed
through the necessary board resolution which was passed on December 3, 2009 to loan the money from
the sale proceeds to the Group.


Trading  in  the  second  half  has  continued to be  encouraging  and  in  line  with  management
expectations. The Group's share listing has also helped to raise its corporate profile,  resulting
in a significant increase in new business opportunities from potential new customers.  Second half
revenues  to  date are significantly ahead of the same period last year while gross and  operating
profit continue to improve.

As a result the board looks to the full year result with confidence.

The   Directors   of   Arrowpoint  are  responsible  for  the  contents  of   this   announcement.

                                    Notes          Sept                 Sept
Continuing Operations                              2009                 2008
(In thousands of U.S. dollars)
Income                                1           8,234                 7,652
Operating expenses before                         7,338                 6,839
depreciation and amortization
Earnings before interest, tax,                      896                   813
depreciation & amortization
Depreciation                                         14                    11
Amortization                                        375                   397
Operating Profit                                    507                   405
Interest payable                      2              25                   226
One time cost associated with         3             301                     0
the public offering
Tax                                   4               0                     0
Profit                                              181                   179
Earnings per                                     0.0010               179,000
Note 1                                                              
          The Group's revenue results from the provision of software
          solutions services and integration consulting
Note 2                                                              
                                                   2009      2008     
                    Bank Interest payable           250       226   
                    Deferred compensation          -225         0   
                                                     25       226       
          As part of the settlement of our claim against a former employee
          and vendor of Lynchval the interest due as deferred compensation
          on the sale of Lynchval to Arrowpoint has been waived
Note 3                                                                  
          During the period we incurred one time legal, advisory and
          accounting cost associated with our October 28, listing on the
          Plus exchange
Note 4                                                              
          No taxation charges arises in the company for both periods mainly
          due to the U.S. tax treatment of software development cost, US tax
          loss carry forwards.

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