Arrowpoint Technologies Plc
LSE : ARWP

December 09, 2010 02:00 ET

Interim Results

                                                                                                9 December 2010
                                                                                                   IM00B3VBZX00


                                          ARROWPOINT TECHNOLOGIES PLC
                 ("Arrowpoint" or the "Company"; together with its subsidiaries, the "Group")
                                                       
                     Unaudited Interim Results for the six months ended 30 September 2010

Arrowpoint  Technologies Plc, a leading pensions and retirement benefits administration software  provider,  is
pleased to announce its unaudited results for the six months ended 30 September 2010.

Highlights:

*       Income down approximately 11% at $7.34 million (H1 2009: $8.23 million);
*       Increased  revenues from the Group's largest client, the Pension Benefit Guaranty  Corporation  (PBGC)
        were offset by a material decrease in revenues at KeyTech, Arrowpoint's consulting business;
*       Revenue decrease resulted in EBITDA of $0.05m (H1 2009: $0.90m);
*       Loss per share of $0.003 (H1 2009 earnings per share of $0.0010).

Commenting on the results, Santanu Nandy, Group Managing Director of Arrowpoint, said:

"The  first  six months of the current year were, unsurprisingly, very challenging, given the ongoing  economic
concerns.  Our  consulting  and staffing business was most badly affected, as many  clients  imposed  a  hiring
freeze.  However,  our pension business saw major improvements in product development and client  delivery  and
achieved  increased revenues from one of our key customers, PBGC. Since the end of September we have  continued
to  implement  appropriate cost controls and other measures designed to increase our revenue. We are  confident
that Arrowpoint's  results for the full year will be satisfactory."

Enquiries:

Arrowpoint Technologies Plc                                                     
Santanu Nandy, Group Managing Director                                                       +91 22 2598 5900
                                                              
St Helens Capital Partners LLP                                          
Mark Anwyl or Duncan Vasey                                                                  +44 (0)20 7368 6959
                                                                        

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

ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

SIX MONTHS ENDED 30 SEPTEMBER 2010


                                                                                 6 months ended     6 months ended
                                                                                  30 September       30 September
                                                                                      2010               2009
                                                                                      $'000              $'000
                                                                                                   
INCOME                                                                                7,347              8,234
                                                                                                           
Administrative expenses excluding depreciation and amortisation                      (7,295)            (7,338)
                                                                                 --------------     --------------
Earnings  before public offering costs, interest, tax,  depreciation                   52                 896
and amortisation
                                                                                --------------     --------------
                                                                                                   
One time cost associated with the public offering                                       -                (301)
Depreciation                                                                          (65)               (14)
Amortisation                                                                          (374)              (375)
                                                                                 --------------     --------------
OPERATING (LOSS)/PROFIT                                                               (387)               206
                                                                                                           
Interest payable and similar charges                                                  (235)              (25)
                                                                                 --------------     --------------
(LOSS)/PROFIT BEFORE TAX                                                              (622)               181
                                                                                                           
Tax on (loss)/profit on ordinary activities                                           (38)                 -
                                                                                 --------------     --------------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES AFTER TAX                                        (660)               181
                                                                                     =======            =======
                                                                                                           
(Loss)/earnings per ordinary share ($)                                                                     
Basic                                                                               $(0.0034)           $0.0010
Diluted                                                                             $(0.0034)           $0.0010
                                                                                                           

All amounts relate to continuing operations.








ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2010



                                                                            6 months ended       6 months ended
                                                                             30 September         30 September
                                                                                 2010                 2009
                                                                                $'000                $'000
Fixed assets                                                                                            
Intangible assets                                                               17,898               17,360
Tangible assets                                                                     292                  329
                                                                            -------------        -------------
                                                                                18,190               17,689
                                                                            -------------        -------------
Current assets                                                                                          
Debtors                                                                          2,975                3,462
Cash at bank and in hand                                                            240                  195
                                                                            -------------        -------------
                                                                                 3,215                3,657
                                                                                                        
Creditors: amounts falling due within one year                                  (2,986)              (3,347)
                                                                            -------------        -------------
Net current assets                                                                  229                  310
                                                                            -------------        -------------
                                                                                                        
Creditors: amounts falling due after more than one year                        (10,912)               (9,740)
                                                                            -------------        -------------
NET ASSETS                                                                       7,507                 8,259
                                                                               ========             ========
                                                                                                        
Called up share capital                                                          2,947                 2,947
Share premium                                                                    5,242                 5,242
Merger reserve                                                                     (275)                 (275)
Profit and loss reserve                                                            (407)                  345
                                                                            -------------        -------------
EQUITY AND RESERVES                                                              7,507                  8,259
                                                                               ========             ========
                                                                                               









ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 SEPTEMBER 2010

                                                                                  6 months ended      Year ended
                                                                                   30 September        31 March
                                                                                       2010              2010
                                                                                       $'000             $'000
                                                                                                           
Operating (loss)/profit                                                                (387)              727
Amortisation of intangible fixed assets                                                 374               807
Adjustment of intangible fixed assets                                                    -               1,200
Depreciation charges                                                                    65                80
Foreign exchange movements                                                             (114)              192
Increase in debtors                                                                    (602)             (329)
Increase/(decrease) in creditors                                                        178             (8,098)
                                                                                   ------------      ------------
Net cash utilised from operating activities                                            (486)            (5,421)
                                                                                                           
Returns on investments and servicing of finance                                                            
Interest paid                                                                          (235)             (545)
                                                                                    -----------       -----------
Net return on investments and servicing of finance                                     (235)             (545)
                                                                                                           
Taxation                                                                                38               (40)
                                                                                                           
Capital expenditure and financial investment                                                               
Capitalised expenditure on software development                                        (427)            (1,829)
Purchase of intangible software applications                                             -                (8)
Purchase of tangible fixed assets                                                      (26)              (119)
                                                                                   -------------     -------------
Net capital expenditure and financial investments                                      (453)            (1,956)
                                                                                                           
Financing                                                                                                  
Loans from ultimate parent company                                                      508              1,393
Bank loans obtained in the period                                                        -               1,000
Issue of share capital (net of costs)                                                    -               6,082
                                                                                   -------------     -------------
                                                                                        508              8,475
                                                                                                           
Net (decrease)/increase in cash and cash equivalents                                   (628)              513
At the beginning of the period                                                          665               152
                                                                                   -------------     -------------
At the end of the period                                                                37                665
                                                                                      ======            ======
                                                                                                     
The interim results have not been reviewed by the Company's auditor.
END

Contact Information

  • Arrowpoint Technologies Plc