|
Thursday August 10, 1:58 pm Eastern Time
Crystal Announces Second Quarter And Six Months Results
Provides Increased Workforce Productivity and Customer Satisfaction
HERZLIYA, Israel--(BUSINESS WIRE)--Aug. 9, 2000--Crystal System
Solutions Ltd. (NASDAQ: CRYS - news), a leading provider of cross- platform
software renovation and porting solutions, today announced its
financial results for the second quarter and the 6 months ended June
30, 2000.
Revenues for the second quarter ended June 30,2000 were
US$12-million, the same as in the first quarter ended March 31, 2000.
Operating profit, excluding amortization of goodwill, rose to
US$736,000 as compared to operating profit, excluding amortization of
goodwill, of US$424,000 in the previous quarter ended March 31,2000.
EPS for the three months ended June 30, 2000 was US $0.06 and for the
six months ended June 30, was US $ 0.17.
All revenues this quarter were generated from the Company's core
business: cross-platform renovation and porting solutions, as compared
to 85% in the first quarter this year. This reflects the Company's
effort to focus on the most promising solutions based on its
proprietary software, while profitably disposing non-core business
activities in order to exploit the clear growth of identified demand
for the Company's tools and expertise.
The Company is continuously allocating resources to further
development, and to extensive marketing and sales efforts devoted to
the new suite of conversion tools. The Company intends to further
increase its market penetration by expanding its business activities
with its direct customers, and by increasing market coverage through
VAR's and strategic partners.
Highlights of recent significant events:
- MainSoft advances ahead of planned
During this quarter, MainSoft enriched its already prestigious
customer base by adding among others: Wind River Systems, C-Gate
Software, Lockheed Martin Corp. and MobileQ.
Global leading application developers view MainWin as a "Solution
of Choice" to enable Windows NT applications to run natively on
Unix and Linux.
In order to increase market penetration and to expand the tools'
offerings to vertical markets, while achieving broader scale of
adaptation, MainSoft is allocating R&D efforts to expand MainWin's
capabilities.
The enhanced tool is planned to increase the ease of use and
accessibility, while minimizing the deployment time.
Based on the fast growth and the evaluation of the market response
to the new tools, the Company will consider financial and
structural opportunities to capitalize on the enhanced value.
- Deployment of Crystal's technology by leading American
telecommunication carriers for System, Database and Application
renovations, as well as data-modeling and business rule mining.
- Conduction of several large-scale legacy migration projects such
as from Bull to MVS, and from VSE to MVS.
- Expansion awarded on the Company's C-Euro projects in the
Netherlands, UK and Germany.
- The Company began a conversion project from Legacy code to XML for
e-Business enabling. This large scale implementation is at a
second customer, also a large national bank in Israel.
- Agreement signed with a large German VAR to sell e-Maker and
Java-Maker.
"Six months after having started generating revenues from our
newly introduced tools, based on our generic, widely used core
technology, the Company is gaining recognition and sales engagements",
commented Mr. Gad Goldstein, Crystal's Chairman of the Board. "I am
encouraged both by the positive market response and the improved
margins, which are indicators that reinforce our strategy. I believe
that with its current suite of tools, the Company is well positioned
to pursue our goal of market leadership", added Mr. Goldstein.
Conference Call:
Crystal will host a conference call on Thursday, August 10, 2000
at 12:00PM (EST). 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 call 1-888-269-0005
- In the UK call 0-800-169-8104
- In France call 0-800-914-819
- In Israel call 1-800-286-285
(For Replay please phone Israel at +972-3-9255923)
Callers should reference "Crystal Conference Call" and the code
1404 with the conference call operator to enter the call.
About Crystal
Crystal Systems Solutions Ltd. has been providing proprietary
software technologies and services for Fortune 1000 companies since
1987. Crystal develops and markets software tools and provides
consulting services for e-Business enabling of legacy systems, cross
-platform migration, and consolidation of information systems. Crystal
provides comprehensive enterprise products spanning mainframe,
midrange and client/server computing platforms. Crystal has enhanced
its expertise through the successful completion of projects for many
prestigious organizations, establishing solid credibility and
achieving global recognition and presence. Crystal is totally
committed to supporting its customers, both directly and via its
partners, offering end-to-end solutions through consultancy,
assistance and service in conjunction with its wide variety of
proprietary software tools. For more information, please visit our web
site at: www.crystal-sys.com
About Formula
Crystal, is a member of the Formula Group (Nasdaq: FORTY - news).
The Formula Group is an international information technology
company principally engaged, through its subsidiaries and affiliates,
in providing software consulting services, developing proprietary
software products and providing computer-based business solutions.
Certain statements contained 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. All names and trademarks are their owners' property.
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
ASSETS Unaudited Audited
CURRENT ASSETS:
Cash and cash equivalents $ 16,103 $ 24,232
Marketable securities 7,118 7,513
Accounts receivable:
Trade 16,807 15,098
Other current assets 2,939 3,479
Total current assets 42,967 50,322
INVESTMENTS 7,629 3,253
FIXED ASSETS
Cost 9,736 8,523
Less - accumulated depreciation 5,354 4,440
Total fixed assets 4,382 4,083
OTHER ASSETS, NET 13,382 10,441
Total assets $ 68,360 $ 68,099
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $ 917 3,309
Accounts payable and accruals:
Trade 2,907 3,598
Other 8,954 8,149
Total current liabilities 12,778 15,056
LONG-TERM LIABILITIES:
Accrued severance pay, net 756 718
Loans from banks and others 159 171
Total long-term liabilities 915 889
MINORITY INTEREST 3,045 4,410
SHAREHOLDERS' EQUITY:
Share capital 23 21
Capital surplus 40,114 37,513
Retained earnings 22,572 20,792
62,709 58,326
Cost of Company shares
held by subsidiaries (1,296,500 shares) (11,087) (10,582)
Total shareholders' equity $ 51,622 $ 47,744
Total Liabilities $ 68,360 $ 68,099
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Six months ended Three months ended Year ended
June 30, June 30, December 31,
2000 1999 2000 1999 1999
(unaudited) (unaudited)
Revenues $ 24,041 $ 22,532 $ 12,037 $ 11,502 $ 45,907
Cost of revenues 9,910 10,817 4,757 5,550 20,924
Gross profit 14,131 11,715 7,280 5,952 24,983
Software
development
costs 5,025 2,413 2,688 1,277 6,037
Selling,
general and
administrative
expenses 7,946 3,719 3,856 1,974 9,053
1,160 5,583 736 2,701 9,893
Amortization
of goodwill 652 143 361 77 514
Operating
income 508 5,440 375 2,624 9,379
Financial
income, net 1,009 635 461 328 1,020
Other income
(loss), net 1,595 (71) 610 (27) (69)
Income before
taxes 3,112 6,004 1,446 2,925 10,330
Taxes
on income 71 369 71 169 646
3,041 5,635 1,375 2,756 9,684
Minority
interest (881) (450) (607) (243) (876)
Equity in
losses of
affiliated
companies (380) (499) (159) (197) (843)
Net income $ 1,780 $ 4,686 $ 609 $ 2,316 $ 7,965
Basic
earnings
per share $ 0.08 $ 0.47 $ 0.06 $ 0.24 $ 0.81
Diluted
earnings
per share $ 0.17 $ 0.46 $ 0.06 $ 0.23 $ 0.79
Common
shares
outstanding 10,135 9,941 10,296 9,779 9,802
Common
shares
assuming
dilution 10,471 10,290 10,424 10,022 10,106
Contact:
Crystal Systems Solutions
Iris Yahal or David De Zwirek
Tel: 972-9-9526110
Fax: 972-9-9526111
info@crystal-sys.com
 
|
 |
