Arrowpoint Technologies Plc
LSE : ARWP

November 01, 2011 03:00 ET

Unaudited Interim Results for the six months ended 30 September 2011

                                                                                                1 November 2011
                                                                                                   IM00B3VBZX00


                                          ARROWPOINT TECHNOLOGIES PLC
                 ("Arrowpoint" or the "Company"; together with its subsidiaries, the "Group")
                                                       
                     Unaudited Interim Results for the six months ended 30 September 2011

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 2011.

Highlights:

*   Income down approximately 4.6% at USD7.02 million (September 2010: USD7.35 million);
*   EBIDTA increased more than 15 times to USD796,000 (September 2010: USD52,000);
*   Net profit of USD127,000 (Sept. 2010: Loss USD660,000);
*   Increased revenues  from  the  Group's  largest client, the Pension Benefit Guaranty Corporation  ("PBGC")
    were  offset by a decrease in revenues from AST and Coty. Our consulting business, Keytech, which had been
    severely impacted by the economic recession, has seen considerable improvement in recent months;
*   Increased  margins  and  profit  are  due  to the Company's off-shore delivery model, whereby most of  the
    actuarial plan conversion work is undertaken in Arrowpoint's office in Chennai, India;
*   Profit per share of USD0.0007 (Sept. 2010: loss of USD0.0034).

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

"The  first six months of the current year were very satisfactory. Although our clients continue to suffer from
the  ongoing economic uncertainties, our increased efficiency in off-shore delivery of services and expenditure
optimization  enabled the Group to return to profitability in the period. Our consulting  business,  Key  Tech,
which  was  hit  hard  last  year, saw major improvements during this six months trading  period.  Our  pension
business, Lynchval Systems Worldwide, Inc, made significant advances in product development and client delivery
and  achieved increased revenues from one of its key customers, PBGC. Since the end of September 2011, we  have
continued  to implement a more focussed marketing strategy and have hired key senior management to provide  the
necessary  direction.  We  are  confident  that Arrowpoint's results  for  the  full  year  will  maintain  the
satisfactory trends demonstrated in the first half of the year."

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 2011


                                                                                   6 months ended     6 months ended
                                                                                     30 September       30 September
                                                                                             2011               2010
                                                                                          USD'000            USD'000
                                                                                                                    
INCOME                                                                                      7,021              7,347
                                                                                                                    
Administrative expenses excluding depreciation and amortisation                            (6,225)            (7,295)
                                                                                     --------------     --------------
Earnings before interest, tax, depreciation                                                                           
and amortisation                                                                              796                 52
                                                                                     --------------     --------------
                                                                                                                    
Depreciation                                                                                  (42)               (65)
Amortisation                                                                                 (404)              (374)
                                                                                    --------------     --------------
OPERATING PROFIT/(LOSS)                                                                       350               (387)
                                                                                                                    
Interest payable and similar charges                                                         (219)              (235)
                                                                                     --------------     --------------
PROFIT/(LOSS) BEFORE TAX                                                                      131               (622)
                                                                                                                    
Tax on profit/(loss) on ordinary activities                                                    (4)               (38)
                                                                                     --------------     --------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER TAX                                                127               (660)
                                                                                            =======            =======
                                                                                                                    
Earnings/(loss) per ordinary share (USD)                                                                              
Basic                                                                                   USD0.0007         USD(0.0034)
Diluted                                                                                 USD0.0007         USD(0.0034)
                                                                                                                    

All amounts relate to continuing operations.



ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2011



                                                                                  6 months ended     6 months ended
                                                                                    30 September       30 September
                                                                                            2011               2010
                                                                                         USD'000            USD'000
Fixed assets                                                                                                      
Intangible assets                                                                         17,041             17,898
Tangible assets                                                                              275                292
                                                                                 ---------------      -------------
                                                                                          17,316             18,190
                                                                                   -------------      -------------
                                                                                                                  
Current assets

Debtors                                                                                    2,571              2,975
Cash at bank and in hand                                                                     411                240
                                                                                   -------------      -------------
                                                                                           2,982              3,215
                                                                                                                  
Creditors: amounts falling due within one year                                            (2,250)            (2,986)
                                                                                   -------------      -------------
Net current assets                                                                           732                229
                                                                                   -------------      -------------
                                                                                                                  
Creditors: amounts falling due after more than one year                                 (11,207)            (10,912)
                                                                                   -------------     --------------
NET ASSETS                                                                                6,841               7,507
                                                                                          ======            =======
                                                                                                                  
Called up share capital                                                                   2,947              2,947
Share premium                                                                             5,242              5,242
Merger reserve                                                                             (275)              (275)
Profit and loss reserve                                                                  (1,073)              (407)
                                                                                   -------------      -------------
EQUITY AND RESERVES                                                                       6,841              7,507
                                                                                          ======             ======
                                                                                                                  

ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 SEPTEMBER 2011



                                                                              6 months ended        6 months ended
                                 
                                                                                30 September          30 September
                                 
                                                                                        2011                  2010
                                 
                                                                                     USD'000               USD'000
                                                                                                                                 
Operating profit/(loss)                                                                  350                  (387)

Amortisation of intangible fixed assets                                                  404                   374

Depreciation charges                                                                      42                    65
Foreign exchange movements                                                              (101)                 (114)
Increase in debtors                                                                     (618)                 (602)
Increase in creditors                                                                    179                   178
                                                                                ------------          ------------
Net cash utilised from operating activities                                              256                  (486)
                                                                                                                  
Returns on investments and servicing of finance                                                                   
Interest paid                                                                           (219)                 (235)
                                                                                 -----------           -----------
Net return on investments and servicing of finance                                      (219)                 (235)
                                                                                                                  
Taxation                                                                                  (4)                   38
                                                                                                                  
Capital expenditure and financial investment                                                                      
Capitalised expenditure on software development                                            -                  (427)
Purchase of tangible fixed assets                                                         (7)                  (26)
                                                                               -------------         -------------
Net capital expenditure and financial investments                                         (7)                 (453)
                                                                                                                  
Financing                                                                                                         
Loans from ultimate parent company                                                         -                   508
                                                                               -------------         -------------
                                                                                           -                   508
                                                                                                                  
Net increase/(decrease) in cash and cash equivalents                                      26                  (628)
At the beginning of the period                                                           318                   665
                                                                               -------------         -------------
At the end of the period                                                                 344                    37
                                                                                      ======                ======
                                                                                                                  
                                                                                                                  
                                                                                                                  

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