HOLLYWOOD, Fla., May 14, 2009 (GLOBE NEWSWIRE) -- STARLIMS Technologies Ltd. (Nasdaq:LIMS), a leading provider of laboratory information management systems (LIMS), today announced financial results for the first quarter of fiscal 2009 ended March 31, 2009.
Total revenue for the first quarter of 2009 was $7.4 million, an increase of 6.4% from the $7.0 million reported in the first quarter of 2008. Product revenue for the first quarter of 2009 was $4.5 million, a decrease of 3.2% from $4.7 million reported in the same period a year ago. Services revenue for the first quarter of 2009 was $2.9 million, up 25.9% from the $2.3 million reported in the same period a year ago.
"We are pleased with our financial results for the first quarter. Our strong top-line performance benefited from a large deal signed for our newly introduced unified laboratory informatics platform. This integrated web-based platform combines STARLIMS v10 with our scientific data management (SDMS) and electronic notebook (ELN) solutions to decrease complexity in the laboratory, more efficiently manage data, processes and workflows, and reduce customers' costs and time to market," said Itschak Friedman, CEO of STARLIMS. "We believe our ability to offer innovative solutions that expand our addressable market positions us well to capture long-term growth opportunities as the economy stabilizes."
GAAP operating income for the first quarter of 2009 was $1.6 million, or 21.7% of revenue, compared to GAAP operating income $1.1 million, or 15.8% of revenue, for the first quarter of 2008. GAAP net income for the first quarter of 2009 was $1.4 million, or $0.16 per diluted share, consistent with the first quarter of 2008.
Non-GAAP operating income for the first quarter of 2009 was $1.8 million, or 23.9% of revenue, compared to $1.2 million, or 17.6% of revenue, for the first quarter of 2008. Non-GAAP net income for the first quarter of 2009 was $1.5 million, or $0.17 per diluted share, consistent with the first quarter of 2008.
The tables at the end of this press release include a reconciliation of GAAP to non-GAAP income from operations and net income for the first quarter fiscal year 2009.
Cash, cash equivalents, deposits and marketable securities amounted to $31.5 million on March 31, 2009, compared to $30.8 million on December 31, 2008. The Company generated $0.9 million in cash flow from operations for the first quarter 2009.
"Our strong revenue performance, combined with our focus on cost containment and services margin improvement, enabled us to significantly expand our operating margins," said Chaim Friedman, chief financial officer of STARLIMS. "We continue to gain market share by leveraging our strong product portfolio and balance sheet, and for the full year we believe we can achieve ongoing growth even in the current IT spending environment."
Note on Use of Non-GAAP Financial Information
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, STARLIMS uses non-GAAP measures of gross margin, net income and earnings per share, which are adjustments from results based on GAAP to exclude non recurring expenses, non-cash equity based compensation in accordance with SFAS 123(R) and amortization of intangibles related to acquisitions. Our management believes that the non-GAAP financial information provided in this release can assist investors in understanding and assessing 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. Our 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 statement of income is provided in the table below.
Conference Call and Webcast Information
STARLIMS will host a live webcast of its first quarter fiscal year 2009 financial results conference call on Thursday, May 14, 2009 at 8:30 a.m. Eastern Time (15:30 Israeli Time). The listen-only webcast can be accessed from the Investor Relations page of the company's website at http://www.starlims.com. Those interested in participating in the call and the question and answer session should dial 480-248-5081, or if calling from Israel should dial 1-809-34-4019.
The webcast will be archived on the STARLIMS Technologies Investor Relations page of the company's website at http://www.starlims.com starting at 11:00 a.m. Eastern Time (18:00 Israeli Time) on Thursday, May 14, 2009.
About STARLIMS
STARLIMS Technologies Ltd. (Nasdaq:LIMS) is a leading provider of laboratory information management systems (LIMS), with over 20 years of LIMS experience. The Company's flagship product, STARLIMS(r), improves the reliability of laboratory sampling processes, supports compliance with domestic and international regulations and industry standards, and provides comprehensive reporting, monitoring and analysis capabilities. STARLIMS software is used for quality assurance and control, testing and monitoring, and research and development in government, manufacturing and life sciences organizations. With operations in the United States, Canada, the United Kingdom, Israel and Hong Kong, the Company serves over 500 organizations in 40 countries. For more information, please see http://www.starlims.com.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions, changes in demand for products and services, the timing and amount or cancellation of orders, loss of market share and other risks detailed from time to time in STARLIMS's filings from time to time with the Securities and Exchange Commission. Such filings contain and identify these and other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today.
STARLIMS TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share data and per share data)
Dec. 31, March 31,
-----------------------
2008 2009
--------- ---------
ASSETS Audited Unaudited
Current Assets
Cash and cash equivalents 21,942 18,371
Short-term deposits 1,191 20
Restricted short-term deposits 338 178
Marketable securities 5,686 11,273
Accounts receivable (net of allowance for
doubtful accounts of $238 and $228,
respectively) 10,341 11,300
Other current assets 2,891 2,754
--------- ---------
Total current assets 42,389 43,896
--------- ---------
Long-Term Assets
Marketable securities - held-to-maturity 1,608 1,614
Other long-term assets 949 874
Fixed assets, net 1,416 1,324
Goodwill 2,227 2,205
Other intangible assets, net 213 189
--------- ---------
Total long-term assets 6,413 6,206
--------- ---------
--------- ---------
Total assets 48,802 50,102
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable 934 642
Deferred revenues 2,876 3,471
Other current liabilities and accrued
expenses 2,228 4,811
--------- ---------
Total current liabilities 6,038 8,924
--------- ---------
Long-Term Liabilities
Long-term deferred revenues 251 158
Accrued severance pay 19 34
Deferred taxes 483 368
--------- ---------
Total long-term liabilities 753 560
--------- ---------
Shareholders' Equity
Ordinary shares, NIS 1.00 par value;
authorized 15,000,000 shares; issued
9,997,919 and 9,997,919 shares,
respectively; outstanding 8,407,742
and 8,407,742 shares, respectively 3,152 3,152
Additional paid-in capital 31,355 31,495
Accumulated other comprehensive income (27) (145)
Retained earnings 12,198 10,783
Treasury stock, at cost - 1,590,177
and 1,590,177 ordinary shares,
respectively (4,667) (4,667)
--------- ---------
Total shareholders' equity 42,011 40,618
--------- ---------
--------- ---------
Total liabilities and shareholders' equity 48,802 50,102
--------- ---------
STARLIMS TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except share data and per share data)
Year ended Three months ended
Dec. 31, March 31,
--------- ---------------------
2008 2008 2009
--------- --------- ---------
Audited Unaudited Unaudited
--------- --------- ---------
Revenues
Software licensing $ 10,238 $ 3,655 $ 3,051
Maintenance 5,234 1,005 1,459
--------- --------- ---------
Total product revenues 15,472 4,660 4,510
Services 9,770 2,309 2,907
--------- --------- ---------
Total revenues 25,242 6,969 7,417
--------- --------- ---------
Cost of revenues
Cost of products 409 146 15
Cost of services 9,137 2,307 2,373
--------- --------- ---------
Total cost of revenues 9,546 2,453 2,388
--------- --------- ---------
Gross profit 15,696 4,516 5,029
--------- --------- ---------
Operating expenses
Research and development 3,408 833 897
Selling and marketing 6,299 1,681 1,599
General and administrative 3,573 904 926
--------- --------- ---------
Total operating expenses 13,280 3,418 3,422
--------- --------- ---------
Operating income 2,416 1,098 1,607
Financial income, net 1,050 550 84
--------- --------- ---------
Income before income taxes 3,466 1,648 1,691
Income tax expense 589 278 328
--------- --------- ---------
--------- --------- ---------
Net income $ 2,877 $ 1,370 $ 1,363
========= ========= =========
--------- --------- ---------
Basic earnings per share $ 0.33 $ 0.16 $ 0.16
========= ========= =========
Weighted average number of
ordinary shares used in
computing basic earnings
per share --------- --------- ---------
8,591,614 8,708,546 8,407,742
========= ========= =========
--------- --------- ---------
Diluted earnings per share $ 0.33 $ 0.16 $ 0.16
========= ========= =========
Weighted average number of
ordinary shares used in
computing diluted earnings
per share
--------- --------- ---------
8,713,394 8,830,732 8,567,663
========= ========= =========
STARLIMS TECHNOLOGIES LTD.
NON-GAAP CONSOLIDATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except share data and per share data)
Year ended Three months ended
Dec. 31, March 31,
---------- ----------------------
2008 2008 2009
---------- ---------- ----------
Unaudited Unaudited Unaudited
---------- ---------- ----------
Revenues
Software licensing $ 10,238 $ 3,655 $ 3,051
Maintenance 5,234 1,005 1,459
---------- ---------- ----------
Total product revenues 15,472 4,660 4,510
Services 9,770 2,309 2,907
---------- ---------- ----------
Total revenues 25,242 6,969 7,417
---------- ---------- ----------
Cost of revenues
Cost of products 409 146 15
Cost of services 8,994 2,271 2,337
---------- ---------- ----------
Total cost of revenues 9,403 2,417 2,352
---------- ---------- ----------
Gross profit 15,839 4,552 5,065
---------- ---------- ----------
Operating expenses
Research and development 3,349 819 877
Selling and marketing 6,042 1,616 1,521
General and administrative 3,493 890 896
---------- ---------- ----------
Total operating expenses 12,884 3,325 3,294
---------- ---------- ----------
Operating income 2,955 1,227 1,771
Financial income, net 1,050 550 84
---------- ---------- ----------
Income before income taxes 4,005 1,777 1,855
Income tax expense 770 299 383
---------- ---------- ----------
---------- ---------- ----------
Net income $ 3,235 $ 1,478 $ 1,472
========== ========== ==========
---------- ---------- ----------
Basic earnings per share $ 0.38 $ 0.17 $ 0.18
========== ========== ==========
Weighted average number of
ordinary shares used in
computing basic earnings
per share 8,591,614 8,708,546 8,407,742
========== ========== ==========
---------- ---------- ----------
Diluted earnings per share $ 0.37 $ 0.17 $ 0.17
========== ========== ==========
Weighted average number of
ordinary shares used in
computing diluted earnings
per share 8,713,394 8,830,732 8,567,663
========== ========== ==========
STARLIMS TECHNOLOGIES LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED
STATEMENT OF INCOME
Year ended Three months ended
Dec. 31, March 31,
---------- ----------------------
2008 2008 2009
---------- ---------- ----------
Unaudited Unaudited Unaudited
---------- ---------- ----------
GAAP total Cost of revenues 9,546 2,453 2,388
Stock based compensation expenses (143) (36) (36)
---------- ---------- ----------
NON-GAAP total cost of revenues 9,403 2,417 2,352
========== ========== ==========
GAAP Research and
Development expenses 3,408 833 897
Stock based compensation expenses (59) (14) (20)
---------- ---------- ----------
NON-GAAP Research and
Development expenses 3,349 819 877
========== ========== ==========
GAAP Selling and marketing expenses 6,299 1,681 1,599
Stock based compensation expenses (257) (65) (78)
---------- ---------- ----------
NON-GAAP Selling and marketing
expenses 6,042 1,616 1,521
========== ========== ==========
GAAP General and administrative
expenses 3,573 904 926
Stock based compensation expenses (25) (6) (6)
Issuance related expenses -- -- --
Amortization of purchased
intangible assets (55) (8) (24)
---------- ---------- ----------
NON-GAAP General and
administrative expenses 3,493 890 896
========== ========== ==========
GAAP total tax expenses 589 278 328
Stock based compensation
expenses 181 21 55
---------- ---------- ----------
NON-GAAP total tax expenses 770 299 383
========== ========== ==========
STARLIMS TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Year ended Three months ended
Dec. 31, March 31,
---------- ----------------------
2008 2008 2009
---------- ---------- ----------
Audited Unaudited Unaudited
---------- ---------- ----------
CASH FLOWS - OPERATING
ACTIVITIES
Net income $ 2,877 $ 1,370 $ 1,363
Adjustments to reconcile net
income to cash provided by (used
in) operating activities:
Depreciation and amortization 593 144 138
Stock-based compensation 488 122 140
Gains related to marketable
securities (79) (137) (38)
Increase (decrease) in accrued
severance pay (32) (3) 15
Deferred income taxes (459) (71) (225)
Capital loss from sales of fixed
assets 3 -- --
The effect of exchange rate
changes 54 (145) 21
Changes in assets and liabilities:
Increase in trade receivables (834) (1,616) (1,116)
Increase (decrease) in allowance
for doubtful accounts 46 23 (10)
Decrease (increase) in other current
assets (607) (23) 229
Increase in trade accounts payable 509 409 88
Increase in deferred revenues 783 523 502
Decrease in other current
liabilities (1,132) (1,197) (170)
---------- ---------- ----------
Net cash provided by (used in)
operating activities 2,210 (601) 937
---------- ---------- ----------
CASH FLOWS - INVESTING
ACTIVITIES
Investments in marketable
securities (4,761) (133) (6,350)
Proceeds from sale of marketable
securities 703 129 795
Investment in held-to-maturity
marketable securities (428) (385) --
Proceeds from redemption of
held-to-maturity securities 466 -- --
Investments in deposits, net (1,245) 33 1,331
Loans to employees, net (281) 11 128
Purchase of fixed assets (374) (122) (27)
Proceeds from sale of fixed
assets 11 -- --
Acquisition of subsidiaries, net
of cash acquired, and
business operation (950) -- (251)
Purchase of other intangible
assets (75) -- (25)
----------------------------------
Net cash used in investing
activities (6,934) (467) (4,399)
----------------------------------
CASH FLOWS - FINANCING
ACTIVITIES
Purchase of treasury stocks by the
Company (1,943) (681) --
Proceeds from sale of treasury
stock against exercise of options 23 -- --
Dividends paid (2,918) -- --
----------------------------------
Net cash provided by (used in)
financing activities (4,838) (681) --
----------------------------------
THE EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND CASH
EQUIVALENTS (200) 10 (109)
---------- ---------- ----------
Increase (decrease) in cash
and cash equivalents (9,762) (1,739) (3,571)
---------- ---------- ----------
Cash and cash equivalents at
the beginning of the period 31,704 31,704 21,942
---------- ---------- ----------
Cash and cash equivalents at
the end of the period $ 21,942 $ 29,965 $ 18,371
========== ========== ==========
NOTE 1 - SEGMENTAL DISCLOSURE
Revenues by geographical areas
Year ended Three months ended
Dec. 31, March 31,
---------- ----------------------
2008 2008 2009
---------- ---------- ----------
Audited Unaudited Unaudited
---------- ---------- ----------
North America $ 17,203 $ 5,283 $ 5,195
Latin America 956 208 175
Europe 3,089 708 1,459
Asia 3,800 740 563
Israel 194 30 25
---------------------- ----------
$ 25,242 $ 6,969 $ 7,417
====================== ==========
NOTE 2 - DISTRIBUTION OF CASH DIVIDEND
In March, the Company declared a cash dividend in the amount of
approximately $0.33 per share or approximately $2.8 million in the
aggregate. The dividend was paid on April 21, 2009.