STAMFORD, Conn., June 16, 2014 (GLOBE NEWSWIRE) -- Peerless Systems Corporation (Nasdaq:PRLS) today reported financial results for its first fiscal quarter that ended April 30, 2014.
First Quarter Results
Revenues were $547,000 for the three months ended April 30, 2014, compared to $1,101,000 for the three months ended April 30, 2013. This 50.3% decrease in revenue is primarily attributable to a large customer whose revenue dropped significantly during the three months ended April 30, 2014 when compared to the same period in 2013. The decrease in revenue is also attributable in part to the declining revenue trajectory from our other OEM customers.
Our gross margins were 85.8% and 88.4% for the three months ended April 30, 2014 and April 30, 2013, respectively. The decrease in gross margins was the result of more fees being paid to third parties due to the change in the product mix generating licensing revenues.
Income from operations was $204,000 for the three months ended April 30, 2014, compared to $635,000 for the three months ended April 30, 2013. This 67.9% decrease in income from operations is primarily attributable to the 50.3% decrease in revenue.
Other loss, net was a loss of $119,000 for the three months ended April 30, 2014 as compared to a loss of $414,000 for the three months ended April 30, 2013, due to lower realized losses on sales of marketable securities in the current period.
Our net income for the three months ended April 30, 2014 was approximately $51,000 or $0.02 per basic and per diluted share, compared to a net income of approximately $135,000, or $0.05 per basic share and $0.04 per diluted share, for the three months ended April 30, 2013.
Peerless will hold its annual meeting of stockholders on July 1, 2014. Stockholders of record on May 5, 2014 are entitled to vote at the meeting. Further information about the meeting is included in the proxy statement filed with the Securities and Exchange Commission ("SEC") on May 12, 2014.
About Peerless Systems Corporation
Founded in 1982, Peerless historically licensed imaging and networking technologies to the digital document markets. Effective April 30, 2008, Peerless sold its imaging and networking technologies and certain other assets to Kyocera-Mita Corporation. Peerless retains certain rights to continue licensing these technologies to customers in the digital document markets. Peerless is seeking to maximize the value of its licensing business and is exploring various alternatives to enhance stockholder value, potentially through establishing a new venture or acquiring an existing business, as well as through other investment opportunities.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
Some statements included in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and, therefore, involve uncertainties or risks that could cause actual results to differ materially there from. These statements may contain words such as "desires," "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. These statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and other important factors that could cause actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Such statements include, but are not limited to, the Company's ability to maximize the value of its licensing business or to enhance stockholder value, potentially through establishing a new venture or acquiring an existing business, or through other investment opportunities. Additional information regarding factors that could cause results to differ materially from management's expectations is found in the section entitled "Risk Factors" in the Company's 2014 Annual Report on Form 10-K filed with the SEC on April 30, 2014. The Company intends that the forward-looking statements included herein be subject to the above-mentioned statutory safe harbors. Investors are cautioned not to rely on forward-looking statements. The Company disclaims any obligation to update forward-looking statements.
| PEERLESS SYSTEMS CORPORATION | ||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
| (In thousands except per share amounts) | ||
| Three Months Ended | ||
| April 30, | ||
| 2014 | 2013 | |
| Revenues | $ 547 | $ 1,101 |
| Cost of revenues | 78 | 128 |
| Gross margin | 469 | 973 |
| Operating expenses | 265 | 338 |
| Income from operations | 204 | 635 |
| Other loss, net | (119) | (414) |
| Income before income taxes | 85 | 221 |
| Provision for income taxes | 34 | 86 |
| Net income | $ 51 | $ 135 |
| Basic earnings per share | $ 0.02 | $ 0.05 |
| Diluted earnings per share | $ 0.02 | $ 0.04 |
| Weighted average common shares - outstanding — basic | 2,549 | 2,910 |
| Weighted average common shares - outstanding — diluted | 2,679 | 3,031 |
| PEERLESS SYSTEMS CORPORATION | ||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands) | ||||
| April 30, 2014 | January 31, 2014 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 11,353 | $ 7,962 | ||
| Marketable securities | -- | 4,301 | ||
| Trade accounts receivable, net | 958 | 1,186 | ||
| Deferred tax assets | 48 | 137 | ||
| Income tax receivable | 385 | 416 | ||
| Prepaid expenses and other current assets | 44 | 58 | ||
| Total current assets | 12,788 | 14,060 | ||
| Other assets | 6 | 6 | ||
| Total assets | $ 12,794 | $ 14,066 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accrued wages and compensated absences | $ 63 | $ 60 | ||
| Accrued product licensing costs | 127 | 137 | ||
| Other current liabilities | 64 | 1,457 | ||
| Total current liabilities | 254 | 1,654 | ||
| Other liabilities | ||||
| Tax liabilities | 287 | 285 | ||
| Total liabilities | 541 | 1,939 | ||
| Stockholders' equity: | ||||
| Common stock, $.001 par value, 30,000 shares authorized, 19,680 issued at April 30, 2014 and January 31, 2014 | 20 | 20 | ||
| Additional paid-in capital | 58,561 | 58,535 | ||
| Retained earnings | 5,819 | 5,768 | ||
| Accumulated other comprehensive loss, net of taxes | -- | (134) | ||
| Treasury stock, 16,933 at April 30, 2014 and 16,910 at January 31, 2014 | (52,147) | (52,062) | ||
| Total stockholders' equity | 12,253 | 12,127 | ||
| Total liabilities and stockholders' equity | $ 12,794 | $ 14,066 | ||