-- Up 42% from Q2 2008 to $1.1 million -- $0.11 EPS
-- Up 290% from first half 2008 to $2.1 million -- $0.21 EPS
-- Most profitable Q2 and first half since 2003
-- EPS figures adjusted for recent 1-for-2 reverse split
Constant currency revenue increases 8% in both second quarter and six-month
period
Bookings highlights:
-- New product offering license and services orders for first half up
258% year over year
-- New products accounted for 67% of first half license and services
bookings
-- Emerging markets customers comprise 81% of first half license and
services bookings
Record high second quarter ending license and services backlog of $9.6
million as a global business
$3 million in accelerated debt pay down in first half of 2009
Evolving Systems, Inc. (
Consolidated Statements of Operations
(In thousands except per share data)
(Unaudited) Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenue:
License fees and services $ 5,359 $ 5,342 $ 10,104 $ 10,174
Customer support 4,270 4,303 8,368 8,598
---------- ---------- ---------- ----------
Total revenue 9,629 9,645 18,472 18,772
---------- ---------- ---------- ----------
Costs of revenue and operating
expenses:
Costs of license fees and
services, excluding
depreciation and
amortization 2,065 1,902 3,742 4,126
Costs of customer support,
excluding depreciation and
amortization 1,401 1,632 2,834 3,125
Sales and marketing 1,942 2,194 3,829 4,381
General and administrative 1,399 1,236 2,832 2,661
Product development 686 950 1,381 2,018
Depreciation 158 252 314 482
Amortization 183 379 354 759
---------- ---------- ---------- ----------
Total costs of revenue and
operating expenses 7,834 8,545 15,286 17,552
---------- ---------- ---------- ----------
Income from operations 1,795 1,100 3,186 1,220
---------- ---------- ---------- ----------
Interest and other
expense, net (640) (212) (1,057) (650)
---------- ---------- ---------- ----------
Income before income taxes 1,155 888 2,129 570
Income tax expense 53 113 58 39
---------- ---------- ---------- ----------
Net income $ 1,102 $ 775 $ 2,071 $ 531
========== ========== ========== ==========
Basic income per common
share $ 0.11 $ 0.08 $ 0.21 $ 0.05
========== ========== ========== ==========
Diluted income per common
share $ 0.11 $ 0.08 $ 0.21 $ 0.05
========== ========== ========== ==========
Weighted average basic
shares outstanding 9,777 9,687 9,771 9,684
Weighted average diluted
shares outstanding 10,087 9,922 9,992 9,920
Reconciliation of Net Income to Adjusted EBITDA
(In thousands)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Net income $ 1,102 $ 775 $ 2,071 $ 531
Depreciation 158 252 314 482
Amortization 183 379 354 759
Stock-based compensation
expense 225 228 426 456
Interest expense and other,
net 640 212 1,057 650
Income tax expense (benefit) 53 113 58 39
---------- ---------- ---------- ----------
Adjusted EBITDA $ 2,361 $ 1,959 $ 4,280 $ 2,917
========== ========== ========== ==========
Evolving Systems reports its financial results in accordance with
accounting principles generally accepted in the U.S. (GAAP). In addition,
the Company is providing in this news release non-GAAP information in the
form of adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, impairment, stock compensation and gain/loss on foreign
exchange transaction). Management believes adjusted EBITDA is useful to
investors and lenders in evaluating the overall financial health of the
Company in that it allows for greater transparency of additional financial
data routinely used by management to evaluate performance. Adjusted EBITDA
relates to a covenant contained in the Company's loan agreements and
therefore can be useful for lenders as an indicator of earnings available
to service debt. Readers of this adjusted EBITDA information are reminded
that adjusted EBITDA is not a recognized term under GAAP and does not
purport to be an alternative to income (loss) from operations, an indicator
of cash flow from operations or a measure of liquidity. Not all companies
calculate adjusted EBITDA identically, so this presentation may not be
comparable to similar presentations of other companies.
Consolidated Balance Sheets
(In thousands)
(Unaudited) June 30, December 31,
2009 2008
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 4,995 $ 5,783
Contract receivables, net 9,002 11,484
Unbilled work-in-progress 2,251 1,910
Prepaid and other current assets 1,556 1,309
-------------- --------------
Total current assets 17,804 20,486
Property and equipment, net 1,285 1,277
Amortizable intangible assets, net 2,314 2,374
Goodwill 22,898 20,811
Long-term restricted cash 100 100
Other long-term assets 194 363
-------------- --------------
Total assets $ 44,595 $ 45,411
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 1,356 $ 2,021
Accounts payable and accrued
liabilities 4,421 5,218
Unearned revenue 9,960 11,445
-------------- --------------
Total current liabilities 15,737 18,684
Long-term liabilities:
Long-term debt and other obligations 3,270 6,344
Deferred foreign income taxes 388 441
-------------- --------------
Total liabilities 19,395 25,469
Stockholders' equity:
Common stock 10 10
Additional paid-in capital 82,284 81,824
Accumulated other comprehensive loss (2,543) (5,270)
Accumulated deficit (54,551) (56,622)
-------------- --------------
Total stockholders' equity 25,200 19,942
-------------- --------------
Total liabilities and stockholders'
equity $ 44,595 $ 45,411
============== ==============
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