Consolidated Statements of Operations
(In thousands except per share data)
(Unaudited) Three months ended Years ended
December 31, December 31,
2010 2009 2010 2009
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Revenue:
License fees and services $ 4,067 $ 5,621 $20,251 $21,561
Customer support 4,536 4,191 17,055 16,635
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Total revenue 8,603 9,812 37,306 38,196
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Costs of revenue and operating expenses:
Costs of license fees and
services, excluding depreciation
and amortization 2,028 1,916 8,099 7,642
Costs of customer support,
excluding depreciation and
amortization 1,158 1,257 4,694 5,543
Sales and marketing 1,744 1,835 7,265 7,696
General and administrative 1,160 1,359 5,431 5,737
Product development 1,011 1,230 4,322 3,530
Depreciation 146 158 592 632
Amortization 176 184 688 732
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Total costs of revenue and operating
expenses 7,423 7,939 31,091 31,512
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Income from operations 1,180 1,873 6,215 6,684
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Other income (expense):
Interest income 3 1 13 25
Interest expense (21) 16 (102) (547)
Foreign currency exchange loss (35) (138) (121) (574)
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Other income (expense), net (53) (121) (210) (1,096)
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Income before income taxes 1,127 1,752 6,005 5,588
Income tax expense
(benefit) (36) 327 652 764
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Net income $ 1,163 $ 1,425 $ 5,353 $ 4,824
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Basic income per common share $ 0.11 $ 0.14 $ 0.53 $ 0.49
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Diluted income per common share $ 0.10 $ 0.14 $ 0.49 $ 0.48
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Weighted average basic shares
outstanding 10,495 9,927 10,174 9,816
Weighted average diluted shares
outstanding 11,107 10,507 10,815 10,145
Consolidated Balance Sheets
(In thousands)
(Unaudited) December 31, December 31,
2010 2009
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 10,801 $ 5,369
Contract receivables, net 12,073 11,344
Unbilled work-in-progress 2,245 1,720
Prepaid and other current assets 1,328 1,917
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Total current assets 26,447 20,350
Property and equipment, net 999 1,196
Amortizable intangible assets, net 1,123 1,864
Goodwill 21,830 22,295
Long-term restricted cash 50 50
Other long-term assets 2 82
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Total assets $ 50,451 $ 45,837
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 27 $ 357
Accounts payable and accrued liabilities 4,310 4,531
Unearned revenue 10,298 10,688
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Total current liabilities 14,635 15,576
Long-term liabilities:
Long-term debt and other obligations 8 1,535
Deferred foreign income taxes 51 257
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Total liabilities 14,694 17,368
Stockholders' equity:
Common stock 11 10
Additional paid-in capital 87,435 83,499
Accumulated other comprehensive loss (3,704) (3,242)
Accumulated deficit (47,985) (51,798)
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Total stockholders' equity 35,757 28,469
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Total liabilities and stockholders'
equity $ 50,451 $ 45,837
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Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except per share data)
(Unaudited)
Three months ended Years ended
December 31, December 31,
2010 2009 2010 2009
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Non-GAAP net income and income
per share data
GAAP net income $ 1,163 $ 1,425 $ 5,353 $ 4,824
Amortization of intangible assets 176 184 688 732
Stock-based compensation expense 206 215 943 864
Income tax adjustment for non-GAAP* (69) (70) (273) (268)
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Non-GAAP net income $ 1,476 $ 1,754 $ 6,711 $ 6,152
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Diluted net income per share
GAAP $ 0.10 $ 0.14 $ 0.49 $ 0.48
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Non-GAAP $ 0.13 $ 0.17 $ 0.62 $ 0.61
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Shares used to compute diluted
EPS 11,107 10,507 10,815 10,145
*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 Years ended
December 31, December 31,
2010 2009 2010 2009
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Adjusted EBITDA
Net income $ 1,163 $ 1,425 $ 5,353 $ 4,824
Depreciation 146 158 592 632
Amortization 176 184 688 732
Stock-based compensation expense 206 215 943 864
Interest expense and other
(benefit), net 53 121 210 1,096
Income tax expense (36) 327 652 764
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Adjusted EBITDA $ 1,708 $ 2,430 $ 8,438 $ 8,912
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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