SOURCE: BluePhoenix Solutions

BluePhoenix Solutions

August 22, 2013 16:05 ET

BluePhoenix Solutions Keeps Pace With Turnaround, Reports Second Quarter 2013 Results

Continued Progress Is Shown in Q2 as Reflected by a Consistent Expense Run Rate and Reduction of Cash Burn

SEATTLE, WA--(Marketwired - August 22, 2013) - BluePhoenix Solutions (NASDAQ: BPHX), the leader in legacy platform modernization, today announced financial results for the second quarter of 2013. The results displayed a consistent trend quarter over quarter in revenue and in controlling expenses.

Second quarter 2013 operating loss was $0.7 million compared to second quarter 2012 loss of $1.1 million. Second quarter 2013 non-GAAP operating loss was $0.5 million compared to second quarter 2012 loss of $0.6 million. Second quarter 2013 non-GAAP operating expenses had a minimal increase to $1.8 million from $1.7 million in the first quarter of 2013. Second quarter 2013 non-GAAP loss per share was at $0.05 per diluted share compared to a loss of $0.08 in first quarter 2013 and a loss of $0.15 in the second quarter 2012. Ending cash decreased $0.2 million to $1.9 million in the second quarter of 2013 compared to $2.2 million in the first quarter of 2013.

Matt Bell, CEO of BluePhoenix said "We are pleased with the continued progress in restructuring BluePhoenix. Overall, our financial results were consistent with our restructuring plan as we continue to deliver stable quarterly revenue and to control expenses. "

BluePhoenix will go over the following numbers during the quarterly conference call today at 4:30PM Eastern US time. The call can be accessed by dialing 1-877-941-9205 within the United States, or via local US number 1-480-629-9771 if calling internationally, approximately five minutes prior to its scheduled commencement. A replay can be accessed through a link on the BluePhoenix website until September 5, 2013.

             
             
GAAP Results (in thousands US$)    Q2 2013      Q1 2013      Q2 2012*  
                         
Revenues     2,363       2,198       2,863  
                         
Operating profit (loss)     (739 )     97       (1,097 )
                         
Net loss     (755 )     (600 )     (4,108 )
                         
Loss per share, diluted*   ($ 0.07 )   ($ 0.06 )   ($ 0.62 )
                         
                         
             
Non-GAAP Results (in thousands US$)    Q2 2013      Q1 2013      Q2 2012*  
                         
Revenues     2,363       2,198       2,863  
                         
Operating profit (loss)     (523 )     (527 )     (588 )
                         
Net loss     (577 )     (823 )     (958 )
                         
Loss per share, diluted*   ($ 0.05 )   ($ 0.08 )   ($ 0.15 )
                         
                         

Notes:
 
* The results for Q2 2012 are presented after reclassification of Liacom Systems Ltd. and BridgeQuest Inc. as discontinued operation.

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 leader in legacy platform modernization. The BluePhoenix portfolio includes a comprehensive suite of tools and services for automated database and application migration. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to minimize risk and provide a clear path from legacy platforms like COBOL, Natural/Adabas and others to modern solutions like SQL, DB2, Java and more. BluePhoenix customers come from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. BluePhoenix has 6 offices in the USA, UK, Italy, Romania, and Israel.

Cautionary Statement Regarding Forward-Looking Statements

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.

Contact Information

  • Rick Oppedisano
    Vice-President, Product R&D and Marketing
    BluePhoenix Solutions
    ricko@bphx.com