|
Monday November 13, 8:52 am Eastern Time
Crystal Systems Solutions Announces Third Quarter and Nine Month Results
HERZLIA, Israel--(BUSINESS WIRE) - Crystal Systems Solutions Ltd. (NASDAQ: CRYS - news) leading provider of cross-platform software renovation and porting solutions, today announced its financial results for the third quarter and 9 months ended September 30, 2000.
Revenues for the third quarter ended September 30, 2000 reached a record of $12.6 Million. Operating profit, excluding amortization of goodwill, rose to $1.176 Million representing a 59% growth over the previous quarter when operating profit, excluding amortization of goodwill, was $736,000. EPS for the three months ended September 30, 2000 was $0.06.
Quarter Highlights
Product development
During the first half of this year the Company was reassured of the increasing demand for its unique product portfolio. The vast investments in research and development in the past 12 months enable the Company to penetrate new markets with sophisticated and attractive tools, targeting a variety of technically challenging conversion tasks that large organizations face. The Company's development resources continue to be highly dedicated to the next generation of Legacy To Web tools, which is planned to be launched in the first half of 2001.
Increasing expertise
During the third quarter of 2000, the Company's sales force, while obtaining orders to provide its comprehensive solution tools, also increased the pipeline of potential new business. Based upon this positive market response, the Company is currently recruiting new professionals, to be trained in Crystal's suite of tools along with Crystal's strategic partners' experts. The duration of this training is planned to take between three and four months.
Euro currency devaluation
The constant devaluation of the European currency, the euro, compared to the US Dollar and to the Israeli Shekel, has impacted the Company's operating profit. European revenues are generated in euro while expenses, such as salaries, are paid in Israeli Shekel. This factor causes a reduction in margins from Europe originated revenues. The operating damage caused by the monetary devaluation was compensated by strong operating margins in other parts of the world. This, in aggregate resulted in Crystal's operating profit, excluding amortization of goodwill, to grow from $436,000 in the first quarter this year to $1.2 Million in the third quarter.
Mainsoft's e-porting
Mainsoft is revolutionizing the porting industry by its commitment to deliver application porting as a Web service. With this innovative technology, developers will be able to access Mainsoft's Porting Centers on the Internet to port their Windows software to multiple operating systems without having to own or administer the targeted hardware platform. In October, Mainsoft launched Visual MainWin, the first step in the execution of the e-porting strategy. Visual MainWin enables developers to simultaneously develop applications within Visual Studio for Windows and all UNIX platforms. With this new product, porting has transformed from a serial process, where code written for one platform is translated to run on another, to a parallel process where the same Windows source code is compiled on Windows and UNIX at the same time, all from within Microsoft's Visual Studio.
"I am pleased with these results, which I believe contain the positive operational indicators to confirm the continuous growth of Crystal." said Gad Goldstein, Chairman of the Board. "Based upon the positive market reaction to Mainsoft's e-Porting strategy, Crystal is considering to further increase its position in Mainsoft. This demonstrates our belief in the business potential of this product line."
Conference Call Details:
Gad Goldstein, Chairman of the Board, and Iris Yahal, Chief Financial Officer will discuss the third quarter results and will be available to answer questions. The conference call will be held on Monday, November 13 at 12:00 P.M. (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 1-800-230-1085
Outside the US call the US at +1-612-332-0820
Callers should reference "Crystal Systems Solutions Third Quarter Results" to the AT&T conference call operator.
An automated replay of the conference call will be available from Nov. 13, 2:30 P.M. until Nov. 16 at midnight. To access the replay please call 1-320-365-3844 and enter Crystal's company code of 548789.
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 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.
All names and trademarks are their owners' property.
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2000 1999
------------- ------------
Unaudited Audited
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $15,201 $ 24,232
Marketable securities 6,397 7,513
Trade accounts receivable 18,080 15,098
Other current assets 4,429 3,479
------ ------
Total current assets 44,107 50,322
------ ------
INVESTMENTS 6,758 3,253
------ ------
FIXED ASSETS
Cost 10,093 8,523
Less - accumulated depreciation 5,740 4,440
------ ------
Total fixed assets 4,353 4,083
------ ------
OTHER ASSETS, NET 13,075 10,441
------ ------
Total assets $ 68,293 $ 68,099
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit
Accounts payable and accruals: 880 3,309
Trade 3,428 3,598
Other 7,477 8,149
------ ------
Total current liabilities 11,785 15,056
------ ------
LONG-TERM LIABILITIES:
Accrued severance pay, net 779 718
Loans from banks and others 594 171
------ ------
Total long-term liabilities 1,373 889
------ ------
MINORITY INTEREST 3,651 4,410
------ ------
SHAREHOLDERS' EQUITY:
Share capital 23 21
Capital surplus 40,114 37,513
Retained earnings 23,195 20,792
------ ------
63,332 58,326
Cost of Company shares held by
subsidiaries (1,379,500 shares) (11,848) (10,582)
------ ------
Total shareholders' equity $ 51,484 $ 47,744
------ ------
$ 68,293 $ 68,099
====== ======
CRYSTAL SYSTEMS SOLUTIONS LTD.
(An Israeli Corporation)
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Nine months ended Three months ended Year ended
September 30, September 30, December 31,
------------------- ------------------ ------------
2000 1999 2000 1999 1999
---- ---- ---- ---- ----
(unaudited) (unaudited)
Revenues $36,633 $33,677 $12,592 $11,145 $45,907
Cost of
revenues 14,960 15,913 5,050 5,096 20,924
------ ------ ----- ----- ------
Gross profit 21,673 17,764 7,542 6,049 24,983
------ ------ ----- ----- ------
Software
development
costs 7,330 3,799 2,305 1,386 6,037
Selling, general
and
administrative
expenses 12,007 5,144 4,061 1,841 9,053
------ ----- ------ ----- ------
2,336 8,821 1,176 2,822 9,893
Amortization of
goodwill 1,020 848 368 289 514
------ ----- ------ ----- ------
Operating
income 1,316 7,973 808 2,533 9,379
Financial
income, net 1,380 834 371 199 1,020
Other income
(loss), net 2,164 (62) 569 9 (69)
------ ----- ------ ----- ------
Income before
taxes 4,860 8,745 1,748 2,741 10,330
Taxes on income 87 552 16 183 646
------ ----- ------ ----- ------
4,773 8,193 1,732 2,558 9,684
Minority
interest (1,471) (639) (590) (189) (876)
Equity in losses
of affiliated
companies (899) (700) (519) (201) (843)
------ ------ ------ ----- ------
Net income $2,403 $6,854 $623 $2,168 $7,965
====== ====== ====== ===== ======
Basic earnings
per share $0.24 $0.70 $0.06 $0.22 $0.81
====== ====== ====== ====== ======
Diluted
earnings
per share $0.23 $0.67 $0.06 $0.22 $0.79
====== ====== ====== ====== ======
Common shares
outstanding 10,164 9,836 10,223 9,755 9,802
====== ====== ====== ====== ======
Common shares
assuming
dilution 10,423 10,260 10,328 9,961 10,106
====== ====== ====== ====== ======
Contact:
Crystal Systems Solutions
Iris Yahal, +972-9-9526103
 
|
 |
