Pulled back after the earnings explosion. Took a position today.
Ram
Just be careful. The volume is a little low for me. Te charts look good, If you buy too many shares you may have trouble getting out. Just y opinion. I'm really not that great, I am just starting and I learnec this through experience.
Good luck, Happy trading! Sandirose
I have a feeling that this one will close above $10 today, as long as $COMP doesn't crap at the close.
Ram
Hit $10 a day earlier.
Ram
http://stockcharts.com/h-sc/ui?s=BPHX&p=D&b=5&g=0&id=p59191861522
Lots of NEWS and this; does anyone here ever HOLD anything longer than a couple weeks?
BluePhoenix Solutions Reports Record Q3 Financials
Monday October 29, 8:05 am ET
Record Revenues of $23 Million. Non-GAAP Results: Operating Income $4 Million, Net Income $3.4 Million, EPS $0.18
Nine Month Revenues of $64 Million. Non-GAAP Results: Operating Income $9.6 Million, Net Income $8.2 Million, EPS $0.47
HERZLIYA, Israel
HERZLIYA, Israel, October 29 /PRNewswire-FirstCall/ -- BluePhoenix Solutions (NASDAQ: BPHX - News), the leader in value-driven legacy modernization, today announced record financial results for the third quarter and nine month period ending September 30, 2007.
For the third quarter of 2007, BluePhoenix reported record revenues of $23.0 million, up 34% from $17.1 million in the third quarter of 2006, and up 9.4% as compared to $21.0 million in the prior quarter. This was the eleventh consecutive quarter of sequential growth.
Operating income on a Non-GAAP basis for the third quarter was a record $4.0 million, up 86% from $2.1 million in the third quarter of 2006 and up 27% from $3.1 million in the prior quarter. As a percentage of revenues, the Non-GAAP operating income for the third quarter was 17%.
Net income on a Non-GAAP basis for the third quarter was a record high of
$3.4 million, or $0.18 per share, as compared to $1.7 million, or $0.12 per
share, in the third quarter of 2006, and $2.8 million, or $0.16 per share, in
the prior quarter.
Non-GAAP Results Q3/2007 Q2/2007 Q3/2006
Sales 22,952 20,984 17,111
Operating profit 3,976 3,113 2,133
Net Income 3,413 2,830 1,678
GAAP Results Q3/2007 Q2/2007 Q3/2006
Sales 22,952 20,984 17,111
Operating profit 1,449 (594) 2,002
Net Income 742 (1,765) 1,242
The GAAP based net profit for the third quarter was $742,000, or $0.04 per share, as compared to a net profit of $1.2 million, or $0.09 per share, in the third quarter of 2006. Non-GAAP results exclude restructuring, acquisition related and integration charges, amortization and capitalization of intangible assets, the effect of stock-based compensation and non-cash financial expenses mainly related to convertible debentures. Reconciliation between GAAP and Non-GAAP operating results and net income is provided below.
"BluePhoenix is pleased to report great performance for the eleventh consecutive quarter, which reflects the ongoing adoption of our modernization solutions in the growing market," said Arik Kilman, CEO of BluePhoenix Solutions. "Our solutions continue to achieve broad market acceptance both amongst our customers as well as with our partners including market leaders such as Microsoft, Oracle, IBM and Sun. The excellent results we have achieved reflect an increase in demand for legacy modernization as legacy maintenance and support costs continue to rise and as the workforce of available professionals constricts even further. BluePhoenix is well positioned to meet this demand."
"BluePhoenix continues to pursue our acquisition strategy," continued Kilman. "During the quarter we successfully completed the acquisition of ASNA, the leading modernization company in the midrangeAS/400 and iSeries market. We are very excited about this opportunity and look forward to working closely with ASNA to provide solutions to the multitude of iSeries customers around the world who are facing the mounting challenge of modernizing their RPG-based applications."
Other Financial Highlights
Company cash flow from operating activities in the third quarter was $5.8 million;
Cash and cash equivalents increased to $24.3 million in September 2007 from $19.0 million in June 2007 and $11.6 million in December 2006;
Company financial debt is $34.0 million in September, 2007, compared to $30.8 million in June 2007 and $39.2 million in December 2006;
DSOs increased to 113 in the third quarter of 2007 from 110 in the second quarter of 2007 and 118 in the first quarter of 2007;
Shareholder's equity increased by $22.6 million since December 31, 2006;
Business Highlights:
The following business highlights were announced during the quarter:
- Acquisition of Amalgamated Software North America Inc. (ASNA), a private company based in San Antonio, Texas, which focuses on iSeries modernization solutions;
- Successful completion of a strategic upgrade project for Scarborough Building Society, migrating mainframe applications and an IDMS database to Microsoft SQL Server and .NET;
- Successful completion of major database and application migration from IMS DL/1 to DB2 environment for one of Italy's major travel companies, Alpitour Group;
- Key $2.5m project win to convert Cool:Gen finance systems to COBOL/DB2 for a leading European bank;
- Enhanced solution for migrating mainframe customers to COBOL language environment (LE) helping customers resolve support challenge;
- Opened a new regional office in Seoul, South Korea as a base for marketing and sales in the region and to provide support and services to the Company's growing Asian customer base;
Conference Call Details:
Arik Kilman, Chief Executive Officer, Varda Sagiv, Chief Financial Officer and David Leichner, Chief Marketing Officer will discuss the third quarter results and will be available to answer questions. The conference call will be held on Monday October 29th, 2007 at 10am EST (16:00 Israel Time).
Interested parties are welcome to call the telephone numbers listed below, five to ten minutes prior to the start of the conference call.
In the US: 800-230-1951 and outside the US: +1-612-332-0718.
Callers should reference "Third Quarter Results on October 29th, 2007" to the AT&T conference call operator.
An automated replay of the conference call will be available from October 29th at 3:15pm until October 31st at 11:59 PM (EST). To access the replay please call US: 800-475-6701 outside the US: +1-320-365-3844 and enter BluePhoenix Solution's access code of 890530.
Non-GAAP
To supplement BluePhoenix' consolidated financial statements presented in accordance with GAAP, BluePhoenix provides Non-GAAP operating income (loss), Non-GAAP net income (loss) and Non-GAAP net income (loss) per share data. The presentation of these Non-GAAP financial measures should be considered in addition to BluePhoenix' GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. BluePhoenix' management believes that these Non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains and tax effects that may not be indicative of BluePhoenix' core business operating results. BluePhoenix believes that both management and investors benefit from referring to these Non-GAAP financial measures in assessing BluePhoenix' performance. These Non-GAAP financial measures also facilitate comparisons to BluePhoenix' historical performance and its competitors' operating results. BluePhoenix includes these Non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled "Reconciliation of GAAP to Non-GAAP."
About BluePhoenix Solutions
BluePhoenix Solutions (NASDAQ: BPHX - News) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, DaimlerChrysler, Danish Commerce and Companies Agency, Europe Assistance, Lawson Products, Los Angeles County Employees Retirement Association, Merrill Lynch, SDC Udvikling, and TEMENOS. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.
SAFE HARBOR: Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements. These risks and uncertainties include but are not limited to: market demand for the Company's tools, successful implementation of the Company's tools, competitive factors, the ability to manage the Company's growth, the ability to recruit and retrain additional software personnel, and the ability to develop new business lines. This press release is also available at http://www.bphx.com. All names and trademarks are their owners' property.
BluePhoenix Solutions Ltd.
(In thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
----------------------------------------------
2007 2006 2007 2006
----------------------------------------------
Unaudited Unaudited
Revenues $22,952 $17,111 $64,001 $49,714
Cost of revenues 9,730 7,249 27,132 20,841
----------------------------------------------
Gross profit 13,222 9,862 36,869 28,873
Software development 3,490 2,327 9,374 6,813
costs, net
Selling, general and 8,078 5,533 23,548 16,485
administrative
expenses
Restructuring 205 -- 694 --
----------------------------------------------
Operating income 1,449 2,002 3,253 5,575
Financial expenses, (835) (832) (4,050) (2,447)
net
Other income, net 133 -- 133 282
----------------------------------------------
Income (loss) before
taxes 747 1,170 (664) 3,410
Taxes on income 12 178 54
----------------------------------------------
735 1,170 (842) 3,356
Minority interest 7 72 (56) (62)
----------------------------------------------
Net income (loss) $742 $1,242 ($898) $3,294
==============================================
Basic earnings per
share $0.04 $0.09 ($0.05) $0.24
====== ====== ====== ======
Diluted earnings per
share $0.04 $0.09 ($0.05) $0.23
====== ====== ====== ======
Common shares
outstanding 17,967 13,913 16,425 13,822
====== ====== ====== ======
Common shares
assuming dilution 19,288 14,446 17,488 14,333
====== ====== ====== ======
RECONCILIATION OF GAAP TO NON-GAAP
(In thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
-------------------------------------------
2007 2006 2007 2006
-------------------------------------------
Unaudited Unaudited
GAAP operating income $1,449 $2,002 $3,253 $5,575
(loss)
Restructuring 205 -- 694 --
Acquisition related and 592 -- 1,468 --
integration charges
Amortization of intangible 2,569 1,736 6,836 5,328
assets
Capitalization of software (1,113) (1,869) (4,968) (5,203)
development
Depreciation of fixed -- 254 199 654
assets (*)
Stock-based compensations 274 10 323 30
One time non-cash executive
compensation related to the
Formula saleof
shareholdings in
BluePhoenix, offset against
paid-in capital. -- -- 1,769 --
-------------------------------------------
Total adjustments to GAAP 2,527 131 6,321 809
operating income
-------------------------------------------
Non-GAAP Operating income $3,976 $2,133 $9,574 $6,384
============================================
GAAP net income (loss) $742 $1,242 ($898) $3,294
Restructuring 205 -- 694 --
Acquisition related and 592 -- 1,468 --
integration charges
Amortization of intangible 2,569 1,736 6,836 5,328
assets
Capitalization of software (1,113) (1,869) (4,968) (5,203)
development
Depreciation of fixed -- 254 199 654
assets (*)
Stock-based compensations 274 10 323 30
One time non-cash executive -- -- 1,769 --
compensation related to the
Formula sale of
shareholdings in
BluePhoenix, offset against
paid-in capital.
Non-cash financial expenses 55 260 2,604 862
Minority interest 89 45 211 (40)
-------------------------------------------
Total adjustments to GAAP
net income 2,671 436 9,136 1,631
-------------------------------------------
Non-GAAP net income $3,413 $1,678 $8,238 $4,925
============================================
Non - GAAP Diluted Earning
per share $0.18 $0.12 $0.47 $0.34
============================================
Shares used in diluted
Earning per share
calculation- GAAP 19,288 14,446 17,488 14,333
============================================
(*) Was reconciled until March 31, 2007
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2007 2006
---------------------------
ASSETS
Current Assets:
Cash and cash equivalents $24,348 $11,627
Marketable securities 31 1,053
Trade accounts receivable 28,923 26,489
Other current assets 2,340 3,096
---------------------------
Total Current Assets 55,642 42,265
Non-Current Assets:
Long-term trade receivable 683 1,390
Investment in affiliated
company 214 -
Property, net 2,377 2,147
Intangible assets, net 91,989 81,664
---------------------------
Total Non-Current Assets 95,263 85,201
---------------------------
TOTAL ASSETS $150,905 $127,466
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term credit from banks $6,617 $609
Current portion of long term
convertible debentures 445 4,482
Trade accounts payable 5,767 4,594
Deferred revenues 6,241 7,790
Other current liabilities 12,784 6,929
---------------------------
Total Current Liabilities 31,854 24,404
Non-Current Liabilities
Convertible debentures 1,334 14,049
Accrued severance pay, net 2,157 1,718
Provision for losses in
formerly-consolidated
subsidiary 1,971 1,971
Loans from banks and others 25,605 20,027
Minority interests 5,404 5,348
---------------------------
Total Non-Current Liabilities 36,580 43,113
---------------------------
Shareholders' Equity 82,936 59,949
---------------------------
---------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $150,905 $127,466
===========================
BluePhoenix Solutions Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine months ended Three months ended
September 30,
---------------------------
2007 2007
---------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($898) $742
Adjustments to reconcile net income to
net cash provided by operating activities:
Minority interests in profits of
subsidiaries 56 (7)
Depreciation and amortization 7,527 2,853
Increase (decrease) in accrued
severance pay, net 254 (61)
Loss on sale of property 9 1
Change in value of long
term-loans and convertible
debentures 2,304 665
Stock - based and non cash
compensations 2,093 274
Changes in operating assets and
liabilities: 0
Marketable securities 1,022 13
Increase in trade receivables (409) (2,196)
Decrease in other current assets 879 1,099
Increase in trade payables 816 1,164
Decrease (increase) in other
current liabilities and deferred
revenues (500) 1,227
---------------------------
Net cash provided by operating
activities 13,153 5,774
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property (635) (289)
Proceeds from sale of property 8 0
Capitalization of software
development costs (4,968) (1,113)
Additional consideration of
previously acquired subsidiaries
and purchase of activity (1,508) (929)
Investment in newly-consolidated
subsidiaries and purchase of
new-activity (7,260) (5,220)
---------------------------
Net cash used in investing
activities (14,363) (7,551)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term bank credit, net 2,561 (1,838)
Repayment of long-term loans (19,957) (13,923)
Receipts of long-term loans 27,938 21,938
Exercise of employee share
options and warrants 3,389 912
---------------------------
Net cash provided by financing
activities 13,931 7,089
---------------------------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 12,721 5,312
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 11,627 19,036
---------------------------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $24,348 $24,348
===========================
Company Contact
Varda Sagiv
BluePhoenix Solutions
+972-9-9526110
[email protected] Investor Contact
Paul Holm
H.L. Lanzet
+1-212-888-4570
[email protected]