RA'ANANA, Israel, March 17, 2009 (GLOBE NEWSWIRE) -- Retalix(r) Ltd. (Nasdaq:RTLX), a global provider of software solutions for retailers and distributors, today announced results for the fourth quarter and the full year ended December 31, 2008.
Summarized financial highlights for the fourth quarter and 12 month period ended December 31, 2008:
* Total Revenues for the full year reached a Company record of $221.6 million, compared to $221.4 million in 2007. Total Revenues in the fourth quarter of 2008 were $52.2 million, compared to $55.2 million in the fourth quarter of 2007. * Income from Operations (GAAP) for the full year was $1.1 million compared to a loss of $(1.5) million for the full year 2007. In the fourth quarter of 2008, Retalix recorded a loss from operations (GAAP) of $1 million versus a loss of $3.1 million from operations in the fourth quarter of 2007. These GAAP results are unaudited and are subject to change. As discussed below, the Company reported that GAAP results will include a non-cash impairment charge which will range between $50 million to $70 million based on management's current assessment as it nears finalization of testing. * Adjusted Income from Operations (Non-GAAP)* for the full year was $9.2 million compared to $6.7 million for the full year 2007. In the fourth quarter of 2008 Retalix recorded an adjusted income from operations (Non-GAAP)* of $0.7 million versus an adjusted operations loss of $(2.1) million in the fourth quarter of 2007. * GAAP Net Income for the full year was $4.1 million, or $0.20 per diluted share, subject to change according to the final results of our impairment testing described below. This is compared to a loss of $(0.5) million, or a loss of $(0.02) per diluted share in the full year 2007. GAAP Net Income in the fourth quarter of 2008 was $2 million, or $0.10 per diluted share, subject to change according to the final results of our impairment testing described below, and compared to a loss of $(1.7) million, or a loss of $(0.09) per diluted share, in the fourth quarter of 2007. * Impairment of Goodwill: Each year the Company is required under SFAS 142 and SFAS 144 to review the value of its long-lived assets, including the goodwill and other intangible assets carried on its balance sheet. Due to recent economic conditions, which resulted in both a decline in the Company's market capitalization and a decline in the Company's estimated forecasted cash flows, Retalix management performed an impairment test, which showed an indication of impairment. Retalix is currently conducting the second step of is impairment test to determine the amount of impairment.
Retalix management expects to recognize a GAAP non-cash impairment charge in the range of $50 to $70 million net of tax, against its goodwill and other intangible assets. These non-cash GAAP charges affecting goodwill acquired in the past will be reflected in the Company's reported GAAP earnings and per share earnings which will be included in Retalix's annual report to be filed on Form 20-F with the U.S. Securities Exchange Commission (SEC).
* Adjusted Net Income (Non-GAAP)* for the full year was $10.4 million, or $0.51 per diluted share, compared to $6.1 million, or $0.31 per diluted share, in the full year 2007. Adjusted Net Income (Non-GAAP)* in the fourth quarter was $3.3 million, or $0.16 per diluted share, compared to a loss of $(0.9) million, or a loss of $(0.05) per diluted share, in the fourth quarter of 2007. The adjusted, non-GAAP net income will not be impacted by the results of the impairment charge described above. * Cash Flow: During the full year 2008 the Company generated $13.2 million from Operating Activities, compared to a negative cash flow of $(23.8) million used in Operating Activities in 2007. During the fourth quarter the Company generated $12.3 million from Operating Activities, compared to a negative cash flow of $(16.9) million used in Operating Activities in the fourth quarter of 2007. As of December 31, 2008, the Company had $37.6 million in cash and equivalents and marketable securities and less than a million dollars in debt.
Barry Shaked, President and CEO of Retalix, said: "The results for the full year 2008 demonstrate the progress of our turnaround efforts over the past year. Despite the uncertainty that overtook the global economy in the fourth quarter of 2008, we significantly improved our performance and our cash flow from operations. Our efforts to improve operating efficiencies strengthened our performance while also ensuring that we were able to meet customers' needs and address the changes in the global economy."
"Recent global economic and financial market conditions caused our recording of a non-cash GAAP goodwill impairment charge in relation to goodwill resulted from acquisitions made in past years. These charges do not affect our cash position, as this is a non-cash charge. We have the capital liquidity and flexibility needed to weather the current economic storm, though we had to adjust our book value to the current market levels," Shaked added.
Retalix highlighted a number of other factors that impacted the financial results of the Company:
* As a result of changes in the Israeli taxation, the Company reported during the fourth quarter a tax benefit which included $5.8 million related to prior years' taxes. * Financial expenses in the amount of $2.6 million were recorded in the fourth quarter, as a result of currency exchange rate fluctuations, primarily due to the strengthening of the U.S. Dollar relative to the British Pound and Israeli Shekel, as well as a write-down charge in the amount of $0.7 million of Auction Rate Securities (ARS) held by Retalix. * During 2008, Retalix reduced its global workforce by 219 people, through a combination of not replacing employees who resigned and selective reductions in force. Due to the decline in the value of its severance funds caused by the global financial crisis, Retalix incurred additional severance expenses in an amount of $0.8 million.
Hugo Goldman, EVP and CFO of Retalix, said: "The improvements in our operating results for the full year were achieved despite the impact of the weak US Dollar on our operating expenses for most of the year. During the fourth quarter we experienced rapid changes in the global economy, an appreciation of the Dollar relative to the British Pound and Israeli Shekel, together with other unplanned financial expenses due to the decline in the financial markets. However, we were able to generate more than $13 million in cash flow from operations this year, mainly due to our strong collection efforts, continued cost control and focus on profitability. At the end of 2008, our balance sheet had over $37.6 million in cash, cash equivalents and marketable securities and less than a million dollars in debt, giving us a solid foundation from which to continue to manage our business."
Shaked added, "During the fourth quarter we were able to successfully complete some of the licensing agreements that had been deferred during the third quarter while other customers continued to review their technology investments in view of the continued economic uncertainties that overtook the global markets. We believe that retailers will continue to be very cautious in their technology investments, seeking out specific solutions that provide operating enhancements and meaningful and quick returns on their investments. We are working closely with our broad global base of customers, many of which with whom we have longstanding relationships, focusing on our applications that help retailers manage their operations smarter, improve efficiencies and increase customer loyalty."
Outlook for FY 2009
"In view of the continued uncertainty in the global economy, we are taking a more conservative approach to the outlook for 2009, where our main focus will be to continue our efforts to restrain our cost structure and to maintain and enhance our profitability," commented Shaked. "While the pipeline remains healthy, we are experiencing longer approval processes for new assignments, as retailers and distributors move cautiously on new technology investments. Our plans for 2009 are designed to help us maintain profitability even if the tough economic conditions persist, and to allow us to grow revenues and improve our profitability in the event the economy picks up as 2009 progresses."
Retalix currently expects FY 2009 revenues to be between $180 million and $200 million, Non-GAAP* net income to be between $5 million and $11 million and GAAP net income to be between $1 million and $6 million.
Conference Call and Webcast Information
The Company will be holding a conference call to discuss results for the fourth quarter and full year 2008 on Tuesday, March 17, 2009 at 9:00 am Eastern Time (3:00 pm Israeli Time). This conference can be accessed by all interested parties through the Company's web site at http://www.retalix.com/conference-call.cfm. For those unable to participate during the live broadcast, a replay will be available shortly after the call on the Retalix site.
About Retalix
Retalix is an independent provider of software solutions to retailers and distributors worldwide. Retalix solutions serve the needs of grocery chains, convenience and fuel retailers, food and consumer goods distributors and independent grocers. The Company offers a portfolio of software applications that automate and synchronize essential retail and supply chain operations, encompassing stores, headquarters and warehouses. The company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas. For more information about Retalix, please visit http://www.retalix.com.
The Retalix Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5937
* Note on Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Retalix uses non-GAAP measures of net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation in accordance with SFAS 123(R), amortization of intangibles related to acquisitions, impairment of goodwill and other intangibles. Retalix's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management also uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.
Reconciliation between GAAP to non-GAAP financial measures is provided in the table below for our FY 2009 outlook. Further reconciliations for historical non-GAAP financial measures appear later in this press release.
------------------------------------------
FY 2009 Outlook
------------------------------------------
U.S. $, Millions
------------------------------------------
Total Revenues 180-200
------------------------------------------
GAAP Net Income 1-6
------------------------------------------
(a) 2-2.8
------------------------------------------
(b) 2-2.2
------------------------------------------
Non-GAAP Net Income 5-11
------------------------------------------
(a) The effect of stock-based compensation - SFAS 123(R), net of
tax effect
(b) The effect of amortization of intangible assets and acquisition
related expenses, net of tax effect
Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. For example, the statements regarding our "Outlook for FY 2009" including our expected results and reactions to changes in our markets and our potential to sign deals currently being worked on, and the anticipated results of impairment testing, all involve forward looking statements. These statements include comments regarding the guidance about revenues and net income, expectations about our closing license deals on which we are working, our ability to improve cash flow and profitability and to cut expenses, anticipated demand for the Company's software products, pipeline of prospective customers, our liquidity and flexibility to weather the current economic storm and Management's expectations as to the Company's future financial performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements or other guidance or outlooks expressed or implied by such forward-looking statements. Such factors include risks relating to Retalix's anticipated future financial performance and growth, continued roll-outs with existing customers, continued interest in Retalix's new platforms, the perception by leading retailers of Retalix's reputation, the potential benefits to food and fuel retailers and distributors, expansion into new geographic markets, worldwide recessionary conditions and uncertainties regarding the scope and duration of the global financial crisis, and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including Retalix's Annual Report on Form 20-F for the year ended December 31, 2007, for a discussion of these and other important risk factors. Retalix undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
RETALIX LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(U.S. $ in thousands, except share and per share data)
Year ended Three months ended
December 31 December 31
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
(Unaudited) (Audited) (Unaudited)
---------- ---------- ----------------------
REVENUES:
Product sales 72,907 80,511 18,112 20,178
Service 148,720 140,900 34,063 34,998
---------- ---------- ---------- ----------
Total revenues 221,627 221,411 52,175 55,176
---------- ---------- ---------- ----------
COST OF REVENUES:
Cost of product sales 45,201 39,132 9,371 11,214
Cost of service 88,078 65,281 21,260 18,679
---------- ---------- ---------- ----------
Total cost of
revenues 133,279 104,413 30,631 29,893
---------- ---------- ---------- ----------
GROSS PROFIT 88,348 116,998 21,544 25,283
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Research and
development - net 38,357 58,653 8,429 12,252
Selling and marketing 23,623 31,617 6,926 7,469
General and
administrative 25,677 27,539 7,524 8,695
Other (income)
expenses - net (376) 643 (312) (8)
---------- ---------- ---------- ----------
Total operating
expenses 87,281 118,452 22,567 28,408
---------- ---------- ---------- ----------
INCOME (LOSS) FROM
OPERATIONS 1,067 (1,454) (1,023) (3,125)
FINANCIAL INCOME
(EXPENSES), net (1,978) 1,032 (2,599) 656
---------- ---------- ---------- ----------
LOSS BEFORE TAXES ON
INCOME (911) (422) (3,622) (2,469)
TAX BENEFIT 5,446 435 5,396 846
---------- ---------- ---------- ----------
INCOME (LOSS) AFTER
TAXES ON INCOME 4,535 13 1,774 (1,623)
SHARE IN INCOME (LOSS)
OF AN ASSOCIATED
COMPANY 54 (3) 19 --
MINORITY INTERESTS IN
GAINS (LOSSES) OF
SUBSIDIARIES (537) (508) 208 (107)
---------- ---------- ---------- ----------
NET INCOME (LOSS) 4,052 (498) 2,001 (1,730)
========== ========== ========== ==========
EARNINGS (LOSSES) PER
SHARE - in U.S. $:
Basic 0.20 (0.02) 0.10 (0.09)
========== ========== ========== ==========
Diluted 0.20 (0.02) 0.10 (0.09)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES USED IN
COMPUTATION OF
EARNINGS PER SHARE -
in thousands:
Basic 20,265 19,851 20,348 19,967
========== ========== ========== ==========
Diluted 20,305 19,851 20,389 19,967
========== ========== ========== ==========
RETALIX LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. $ in thousands)
December 31
----------------------
2008 2007
---------- ----------
(Unaudited) (Audited)
---------- ----------
----------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents 33,546 22,484
Marketable securities 3,239 3,455
Accounts receivable:
Trade 71,017 81,429
Other 14,644 5,485
Inventories 1,037 1,289
Deferred income taxes 3,838 8,286
---------- ----------
Total current assets 127,321 122,428
---------- ----------
NON-CURRENT ASSETS:
Marketable securities 862 1,657
Deferred income taxes 13,423 7,050
Long-term receivables 3,382 5,681
Amounts funded in respect of employee rights
upon retirement 8,663 8,806
Other 963 795
---------- ----------
Total non current assets 27,293 23,989
---------- ----------
PROPERTY, PLANT AND EQUIPMENT, net 14,734 12,568
---------- ----------
GOODWILL 108,842 108,926
---------- ----------
OTHER INTANGIBLE ASSETS, net of accumulated
amortization:
Customer base 15,399 16,450
Other 2,400 4,229
---------- ----------
17,799 20,679
---------- ----------
Total assets 295,989 288,590
========== ==========
December 31
----------------------
2008 2007
---------- ----------
(Unaudited) (Audited)
---------- ----------
----------------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Short-term bank credit -- 11
Current maturities of long-term bank loans 249 258
Accounts payable and accruals:
Trade 8,672 15,410
Employees and employee institutions 8,783 8,977
Accrued expenses 6,527 6,393
Other 2,125 3,005
Deferred revenues 19,135 16,763
---------- ----------
Total current liabilities 45,491 50,817
---------- ----------
LONG-TERM LIABILITIES:
Long-term bank loans, net of current
maturities 523 786
Employee rights upon retirement 13,860 14,362
Deferred income taxes 286 219
Institutions 1,112 1,097
---------- ----------
Total long-term liabilities 15,781 16,464
---------- ----------
Total liabilities 61,272 67,281
---------- ----------
MINORITY INTERESTS 3,327 2,791
---------- ----------
SHAREHOLDERS' EQUITY:
Share capital -Ordinary shares of NIS 1.00
par value (authorized): December 31, 2008
(unaudited) and December 31, 2007 (audited)
- 30,000,000 shares; issued and outstanding:
December 31, 2008 (unaudited) - 20,389,771
Shares; December 31, 2007 (audited) -
20,001,382 shares; 5,380 5,273
Additional paid in capital 175,435 166,752
Retained earnings 50,247 46,195
Accumulated other comprehensive income 328 298
---------- ----------
Total shareholders' equity 231,390 218,518
---------- ----------
Total liabilities and shareholders equity 295,989 288,590
========== ==========
RETALIX LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended Three months ended
December 31 December 31
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
(Unaudited) (Audited) (Unaudited)
---------- ---------- ----------------------
U.S. $ in thousands
----------------------------------------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) 4,052 (498) 2,001 (1,729)
Adjustments required
to reconcile net
income (loss) to net
cash provided by
(used in) operating
activities:
Minority interests in
gains (losses)
of subsidiaries 537 508 (208) 118
Depreciation and
amortization 6,219 6,947 1,613 1,627
Share in loss (income)
of an associated
company (54) 3 (19) --
Stock based
compensation expenses 4,777 3,889 850 175
Changes in accrued
liability for
employee rights upon
retirement (396) 2,739 (1,361) 290
Losses (gains) on
amounts funded in
respect of employee
rights upon
retirement 303 (950) 1,596 (470)
Deferred income taxes
- net (1,856) (6,570) 767 (1,405)
Net decrease (increase)
in trading securities 984 (216) 1,063 11
Amortization of
discount on
marketable debt
securities -- 11 -- 1
Other (18) (109) (61) 243
Changes in operating
assets and
liabilities:
Decrease (increase) in
accounts receivable:
Trade (including the
non-current portion) 12,395 (34,700) 14,311 (17,139)
Other (including long
term other tax
payables) (9,152) 1,278 (4,867) 216
Increase (decrease) in
accounts payable and
accruals:
Trade (6,655) 3,537 (4,584) 3,823
Employees, employee
institutions and
other (584) (2,290) (143) (4,532)
Decrease (Increase) in
inventories 247 (118) 554 (21)
Increase in long-term
institutions -- -- -- 406
Increase in deferred
revenues (including
the non-current
portion) 2,381 2,810 746 1,445
---------- ---------- ---------- ----------
Net cash provided by
(used in) operating
activities - forward 13,180 (23,729) 12,258 (16,941)
========== ========== ========== ==========
RETALIX LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended Three months ended
December 31 December 31
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
(Unaudited) (Audited) (Unaudited)
---------- ---------- ----------------------
U.S. $ in thousands
----------------------------------------------
Net cash provided by
(used in) operating
activities - brought
forward 13,180 (23,729) 12,258 (16,941)
---------- ---------- ---------- ----------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Maturity of marketable
debt securities held
to maturity 433 9,743 63 --
Investment in
marketable debt
securities held to
maturity (207) (9,047) (8) --
Acquisition of
subsidiaries or
activities
consolidated for the
first time(a) (824) (1,370) (89) (20)
Purchase of property,
plant, equipment and
other assets (5,055) (4,676) (1,609) (492)
Proceeds from sale of
property, plant and
equipment 55 69 17 65
Amounts funded in
respect of employee
rights upon
retirement, net (168) (1,097) 192 (124)
Long-term loans
collected from
(granted to)
employees 36 17 19 (2)
---------- ---------- ---------- ----------
Net cash used in
investing activities (5,730) (6,361) (1,415) (573)
---------- ---------- ---------- ----------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Repayment of long-term
bank loans (241) (352) (125) (123)
Issuance of share
capital to employees
resulting from
exercise of options 4,012 2,402 17 1,347
Short-term bank
credit - net (11) (4,731) -- (1,366)
---------- ---------- ---------- ----------
Net cash provided by
(used in) financing
activities 3,760 (2,681) (108) (142)
---------- ---------- ---------- ----------
EFFECT OF EXCHANGE RATE
CHANGES ON CASH (148) 69 (113) (53)
---------- ---------- ---------- ----------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS 11,062 (32,702) 10,622 (17,709)
BALANCE OF CASH AND
CASH EQUIVALENTS AT
BEGINNING OF PERIOD 22,484 55,186 22,924 40,193
---------- ---------- ---------- ----------
BALANCE OF CASH AND
CASH EQUIVALENTS AT
END OF PERIOD 33,546 22,484 33,546 22,484
========== ========== ========== ==========
RETALIX LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Year ended
----------------------
December 31,
----------------------
2008 2007
---------- ----------
(Unaudited) (Audited)
---------- ----------
U.S. $ in thousands
----------------------
(a) Net fair value of the assets acquired and
liabilities assumed at the date of
acquisition:
Assets and liabilities of the subsidiaries
at the date of acquisition:
Working capital (excluding cash and cash
equivalents) -- 174
Property, plant, equipment and other
assets, net -- (6)
Goodwill and other intangible assets
arising on acquisition (824) (1,679)
Increase in account payable - other -- 141
---------- ----------
(824) (1,370)
========== ==========
(b) Supplemental information on investing activities not involving
cash flows:
On April 1, 2005, the Company acquired substantially all of the
assets of Integrated Distribution Solutions Inc.("IDS"), in
consideration for cash, as well as the issuance of 290,128 ordinary
shares. In addition, shareholders of IDS were issued additional
207,236 shares valued at $3,973,129 that were released from escrow as
certain customer retention milestones agreed upon were met as of
April 1, 2007. 69,481 shares and approximately $1.1 million in cash
are still being held in escrow pending third party claim that has not
yet been resolved.
RETALIX LTD.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
The following tables reflect selected Retalix' non-GAAP results
reconciled to GAAP results:
Year ended Three months ended
December 31 December 31
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Unaudited (*) Unaudited Unaudited
U.S. $ in thousands
(except per share data)
------------------------------------------
OPERATING INCOME (LOSS)
GAAP Operating income
(loss)(***) 1,067 (1,454) (1,023) (3,125)
Plus:
Amortization of
acquisition-related
intangible assets 3,308 3,576 830 861
Stock based compensation
expenses 4,775 3,889 848 175
Other acquisition-related
operating expenses(**) -- 700 -- --
--------- --------- --------- ---------
Non-GAAP Operating income
(loss) 9,150 6,711 655 (2,089)
========= ========= ========= =========
NET INCOME (LOSS) 4,052 (498) 2,001 (1,730)
GAAP Net income (loss)(***)
Plus:
Amortization of
acquisition-related
intangible assets 3,308 3,576 830 861
Stock based compensation
expenses 4,775 3,889 848 175
Other acquisition-related
operating expenses(**) -- 700 -- --
Less:
Income tax effect of
amortization of
acquisition-related
intangible assets (1,262) (1,287) (336) (348)
Expenses (income) tax
effect of stock based
compensation expenses (456) (70) (44) 125
Income tax effect of other
acquisition-related
operating expenses -- (161) -- --
--------- --------- --------- ---------
Non-GAAP Net income (loss) 10,417 6,149 3,299 (917)
========= ========= ========= =========
NET INCOME (LOSS) PER
DILUTED SHARE
GAAP Net income (loss) per
diluted share 0.20 (0.03) 0.10 (0.09)
Plus:
Amortization of
acquisition-related
intangible assets 0.16 0.18 0.04 0.04
Stock based compensation
expenses 0.23 0.20 0.04 0.01
Other acquisition-related
operating expenses(**) 0.03
Less:
Income tax effect of
amortization of
acquisition-related
intangible assets (0.06) (0.06) (0.02) (0.02)
Income tax effect of
stock based compensation
expenses (0.02) (0.00) (0.00) 0.01
Income tax effect of other
acquisition-related
operating expenses -- (0.01) -- --
--------- --------- --------- ---------
Non-GAAP Net income (loss)
per diluted share 0.51 0.31 0.16 (0.05)
========= ========= ========= =========
Shares used in computing
diluted net income per
share 20,305 19,851 20,389 19,967
========= ========= ========= =========
(*) The 2007 figures were extracted from the audited consolidated
financial statements for year 2007.
(**) Pre-acquisition costs from potential transactions that have not
materialized.
(***) FY08 GAAP results are subject to change according to the final
results of our goodwill impairment testing as discussed above.
RETALIX LTD.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
The following table shows the classification of stock-based
compensation expense:
Year ended Three months ended
December 31 December 31
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Unaudited (*) Unaudited Unaudited
U.S. $ in thousands
------------------------------------------
Cost of product sales 174 60 49 1
Cost of services 1,847 707 359 (14)
Research and development -
net 1,029 1,407 172 (37)
Selling and marketing 360 450 50 13
General and administrative 1,365 1,265 218 212
--------- --------- --------- ---------
Total 4,775 3,889 848 175
========= ========= ========= =========
The following table shows the classification of amortization of
acquisition-related intangible assets:
Year ended Three months ended
December 31 December 31
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Unaudited (*) Unaudited Unaudited
U.S. $ in thousands
------------------------------------------
Cost of product sales 2,211 2,260 561 551
Cost of services 786 962 196 215
Selling and marketing 3 92 -- 1
General and administrative 308 262 73 94
--------- --------- --------- ---------
Total 3,308 3,576 830 861
========= ========= ========= =========
(*) The 2007 figures were extracted from the audited consolidated
financial statements for year 2007.