-- Up 124% from Q3 2008 to $1.3 million -- $0.13 EPS
-- Up 202% nine months YTD to $3.4 million -- $0.34 EPS
-- Most profitable Q3 and first nine months since 2003
Non-GAAP net income:
-- Up 56% from Q3 2008 to $1.7 million -- $0.16 EPS
-- Up 65% nine months YTD to $4.4 million -- $0.44 EPS
Revenue:
-- Up 10% from Q3 2008 to $9.9 million
-- 330% increase in new products revenue from Q3 2008, 180% YTD
-- 100% increase in emerging markets revenue from Q3 2008, 52% YTD
Bookings highlights:
-- New products account for 56% of YTD license fees and services bookings
-- Emerging markets account for 74% of YTD license fees and services
orders
License and services backlog up 44% to $9.3 million year over year
Evolving Systems, Inc. (
Consolidated Statements of Operations
(In thousands except per share data)
(Unaudited) Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Revenue:
License fees and services $ 5,836 $ 4,539 $ 15,940 $ 14,713
Customer support 4,077 4,490 12,445 13,088
-------- -------- -------- --------
Total revenue 9,913 9,029 28,385 27,801
-------- -------- -------- --------
Costs of revenue and operating
expenses:
Costs of license fees and
services, excluding
depreciation and amortization 1,984 1,977 5,726 6,103
Costs of customer support,
excluding depreciation and
amortization 1,452 1,581 4,286 4,706
Sales and marketing 2,032 2,004 5,861 6,385
General and administrative 1,546 1,281 4,378 3,942
Product development 919 792 2,300 2,810
Depreciation 160 189 474 671
Amortization 194 371 548 1,130
-------- -------- -------- --------
Total costs of revenue and
operating expenses 8,287 8,195 23,573 25,747
-------- -------- -------- --------
Income from operations 1,626 834 4,812 2,054
-------- -------- -------- --------
Other income (expense):
Interest income 1 29 24 146
Interest expense (145) (278) (563) (897)
Loss on extinguishment of debt - - - (290)
Foreign currency exchange
gain (loss) 226 130 (436) 272
-------- -------- -------- --------
Other income (expense), net 82 (119) (975) (769)
-------- -------- -------- --------
Income before income taxes 1,708 715 3,837 1,285
Income tax expense 380 122 438 161
-------- -------- -------- --------
Net income $ 1,328 $ 593 $ 3,399 $ 1,124
======== ======== ======== ========
Basic income per common share $ 0.14 $ 0.06 $ 0.35 $ 0.12
======== ======== ======== ========
Diluted income per common share $ 0.13 $ 0.06 $ 0.34 $ 0.11
======== ======== ======== ========
Weighted average basic shares
outstanding 9,797 9,693 9,780 9,687
Weighted average diluted
shares outstanding 10,249 9,873 10,024 9,904
Consolidated Balance Sheets
(In thousands)
(Unaudited) September 30, December 31,
2009 2008
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 5,153 $ 5,783
Contract receivables, net 8,266 11,484
Unbilled work-in-progress 2,195 1,910
Prepaid and other current assets 1,599 1,309
---------- ----------
Total current assets 17,213 20,486
Property and equipment, net 1,264 1,277
Amortizable intangible assets, net 2,042 2,374
Goodwill 22,288 20,811
Long-term restricted cash 50 100
Other long-term assets 130 363
---------- ----------
Total assets $ 42,987 $ 45,411
========== ==========
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 857 $ 2,021
Accounts payable and accrued liabilities 4,885 5,218
Unearned revenue 7,431 11,445
---------- ----------
Total current liabilities 13,173 18,684
Long-term liabilities:
Long-term debt and other obligations 3,351 6,344
Deferred foreign income taxes 330 441
---------- ----------
Total liabilities 16,854 25,469
Stockholders’ equity:
Common stock 10 10
Additional paid-in capital 82,684 81,824
Accumulated other comprehensive loss (3,338) (5,270)
Accumulated deficit (53,223) (56,622)
---------- ----------
Total stockholders’ equity 26,133 19,942
---------- ----------
Total liabilities and stockholders’ equity $ 42,987 $ 45,411
========== ==========
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Non-GAAP net income and income per
share data
GAAP net income $ 1,328 $ 593 $ 3,399 $ 1,124
Amortization of intangible assets 194 371 548 1,130
Stock-based compensation expense 223 189 649 645
Income tax adjustment for non-GAAP* (67) (74) (191) (231)
-------- -------- -------- --------
Non-GAAP net income $ 1,678 $ 1,079 $ 4,405 $ 2,668
======== ======== ======== ========
Diluted net income per share
GAAP $ 0.13 $ 0.06 $ 0.34 $ 0.11
======== ======== ======== ========
Non-GAAP $ 0.16 $ 0.11 $ 0.44 $ 0.27
======== ======== ======== ========
Shares used to compute
diluted EPS 10,249 9,873 10,024 9,904
*The estimated income tax for non-GAAP net income is adjusted by the amount
of additional expense that the Company would accrue if it used non-GAAP
results instead of GAAP results in the calculation of its tax liability,
taking into account in which tax jurisdiction each of the above adjustments
would be made and the tax rate in that jurisdiction.
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Adjusted EBITDA
Net income $ 1,328 $ 593 $ 3,399 $ 1,124
Depreciation 160 189 474 671
Amortization 194 371 548 1,130
Stock-based compensation expense 223 189 649 645
Interest expense and other
(benefit), net (82) 119 975 769
Income tax expense 380 122 438 161
-------- -------- -------- --------
Adjusted EBITDA $ 2,203 $ 1,583 $ 6,483 $ 4,500
======== ======== ======== ========
Contact Information: Investor Relations Jay Pfeiffer Pfeiffer High Investor Relations, Inc. 303.393.7044 Press Relations Sarah Hurp Marketing Manager Evolving Systems +44 1225 478060