-- Most profitable year as global company -- Non-GAAP net income up 28% to $6.2 million -- $0.61 EPS -- Adjusted EBITDA up 28% to $8.9 million -- highest as public companyNew product sales in emerging markets drive third consecutive year of revenue growth
-- 163% increase in new products revenue -- 64% increase in emerging markets revenue -- License and services revenue of $21.6 million is highest as global company2009 bookings highlights:
-- New products account for 47% of license fees and services orders -- Emerging markets account for 63% of license fees and services ordersYear-end backlog of $20.8 million is highest as global company Subordinated debt retired 18 months ahead of schedule strengthens balance sheet Evolving Systems, Inc. (
Consolidated Statements of Operations
(In thousands except per share data)
(Unaudited) Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenue:
License fees and services $ 5,621 $ 5,611 $ 21,561 $ 20,324
Customer support 4,191 4,409 16,635 17,497
---------- ---------- ---------- ----------
Total revenue 9,812 10,020 38,196 37,821
---------- ---------- ---------- ----------
Costs of revenue and
operating expenses:
Costs of license fees
and services, excluding
depreciation and
amortization 1,916 1,713 7,642 7,816
Costs of customer
support, excluding
depreciation and
amortization 1,257 1,398 5,543 6,103
Sales and marketing 1,835 2,114 7,696 8,500
General and administrative 1,359 1,735 5,737 5,676
Product development 1,230 797 3,530 3,607
Depreciation 158 176 632 847
Amortization 184 234 732 1,363
---------- ---------- ---------- ----------
Total costs of revenue and
operating expenses 7,939 8,167 31,512 33,912
---------- ---------- ---------- ----------
Income from operations 1,873 1,853 6,684 3,909
---------- ---------- ---------- ----------
Other income (expense):
Interest income 1 16 25 161
Interest expense 16 (274) (547) (1,171)
Other income - 57 - 57
Loss on extinguishment of debt - - - (290)
Foreign currency exchange gain
(loss) (138) 552 (574) 823
---------- ---------- ---------- ----------
Other income (expense) (121) 351 (1,096) (420)
---------- ---------- ---------- ----------
Income before income taxes 1,752 2,204 5,588 3,489
Income tax expense 327 399 764 560
---------- ---------- ---------- ----------
Net income $ 1,425 $ 1,805 $ 4,824 $ 2,929
========== ========== ========== ==========
Basic income per common
share $ 0.14 $ 0.19 $ 0.49 $ 0.30
========== ========== ========== ==========
Diluted income per common
share $ 0.14 $ 0.18 $ 0.48 $ 0.30
========== ========== ========== ==========
Weighted average basic
shares outstanding 9,927 9,718 9,816 9,695
Weighted average diluted
shares outstanding 10,507 9,798 10,145 9,878
Consolidated Balance Sheets
(In thousands)
(Unaudited) December 31, December 31,
2009 2008
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 5,369 $ 5,783
Contract receivables, net 11,344 11,484
Unbilled work-in-progress 1,720 1,910
Prepaid and other current assets 1,917 1,309
------------ ------------
Total current assets 20,350 20,486
Property and equipment, net 1,196 1,277
Amortizable intangible assets, net 1,864 2,374
Goodwill 22,295 20,811
Long-term restricted cash 50 100
Other long-term assets 82 363
------------ ------------
Total assets $ 45,837 $ 45,411
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 357 $ 2,021
Accounts payable and accrued liabilities 4,531 5,218
Unearned revenue 10,688 11,445
------------ ------------
Total current liabilities 15,576 18,684
Long-term liabilities:
Long-term debt and other obligations 1,535 6,344
Deferred foreign income taxes 257 441
------------ ------------
Total liabilities 17,368 25,469
Stockholders' equity:
Common stock 10 10
Additional paid-in capital 83,499 81,824
Accumulated other comprehensive loss (3,242) (5,270)
Accumulated deficit (51,798) (56,622)
------------ ------------
Total stockholders' equity 28,469 19,942
------------ ------------
Total liabilities and stockholders' equity $ 45,837 $ 45,411
============ ============
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Non-GAAP net income and
income per share data
GAAP net income $ 1,425 $ 1,805 $ 4,824 $ 2,929
Amortization of
intangible assets 184 234 732 1,363
Stock-based compensation
expense 215 194 864 839
Income tax adjustment
for non-GAAP* (70) (68) (268) (312)
---------- ---------- ---------- ----------
Non-GAAP net income $ 1,754 $ 2,165 $ 6,152 $ 4,819
========== ========== ========== ==========
Diluted net income per share
GAAP $ 0.14 $ 0.18 $ 0.48 $ 0.30
========== ========== ========== ==========
Non-GAAP $ 0.17 $ 0.22 $ 0.61 $ 0.49
========== ========== ========== ==========
Shares used to compute
diluted EPS 10,507 9,798 10,145 9,878
*The estimated income tax for non-GAAP net income is adjusted by the amount
of additional expense that the Company would accrue if it used non-GAAP
results instead of GAAP results in the calculation of its tax liability,
taking into account in which tax jurisdiction each of the above
adjustments would be made and the tax rate in that jurisdiction.
Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Adjusted EBITDA
Net income $ 1,425 $ 1,805 $ 4,824 $ 2,929
Depreciation 158 176 632 847
Amortization 184 234 732 1,363
Stock-based compensation
expense 215 194 864 839
Interest expense and
other (benefit), net 121 (351) 1,096 420
Income tax expense 327 399 764 560
---------- ---------- ---------- ----------
Adjusted EBITDA $ 2,430 $ 2,457 $ 8,912 $ 6,958
========== ========== ========== ==========
Contact Information: Investor Relations Jay Pfeiffer Pfeiffer High Investor Relations, Inc. 303.393.7044 Press Relations Sarah Hurp Marketing Manager Evolving Systems +44 1225 478060