6-K 1 zk41112.htm 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934


For the Month of November 2004

BLUEPHOENIX SOLUTIONS LTD.
(Translation of Registrant’s Name into English)

8 Maskit Street, Herzlia 46120, Israel
(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.....................

        Attached to the Registrant’s Form 6-K for the month of November 2004 and incorporated by reference herein is the Registrant’s immediate report dated November 10, 2004.

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BLUEPHOENIX SOLUTIONS LTD.
(Registrant)

BY: /S/ Iris Yahal
——————————————
Iris Yahal
Chief Financial Officer

Dated: November 10, 2004

BLUEPHOENIX SOLUTIONS (NASDAQ:BPHX) Announces Nine months and Third
Quarter Results

– Growing Revenues

Herzlia, Israel – November 10th, 2004 – BluePhoenix Solutions Ltd. (NASDAQ:BPHX), today announced the results of the nine months and third quarter ended on September 30, 2004.

For the nine months that ended on September 30, 2004, BluePhoenix reported sales of $42.6 million, up 6% from $40.3 million in the same period in the previous year. The Company reported operating income of $2.7 million as compared to $1.1 million in the comparable nine months of 2003. The net income for the first nine months of 2004 was $2.2 million, or $0.16 per share, compared with $929,000 or $0.07 per share in the first nine months of last year.

For the third quarter of fiscal 2004, BluePhoenix reported sales of $14.3 million, up 7% from $13.4 million in the comparable third quarter of 2003. Operating income for the third quarter was $712,000, compared with $669,000 in the third quarter of 2003. Net income for the third quarter was $337,000, or $0.02 per share, as compared to $615,000, or $0.05 per share in the third quarter of 2003.

“Our successful deliveries together with the growing interest in our tools create an environment conducive to long-term success. During the next year, we plan to launch a variety of new niche tools, mainly in the area of database migrations. These new additions to our portfolio will complete our wide offering to this growing market,” said Arik Kilman, Chief Executive Officer of BluePhoenix Solutions. “We have been able to position ourselves as a true leader in the Legacy Modernization space. Our innovative solutions meet the evolving requirements of enterprises to adapt their IT systems to new business needs. I believe that we will see a rapid growth in demand for our modernization solutions by the middle of next year.”

“The positive technology analyst reports provide reassurance to our ‘tool expansion strategy.’ Our solid technology base guarantees that our customers will efficiently achieve their modernization goals. We continuously invest in the development of new tools, in order to round out our offering of a cohesive legacy migration service. Our suite of solutions provides customers with a one-stop-shop offering for any integration requirements they may have, and creates for us a compelling opportunity to grow our business as we go forward.” added Mr. Kilman.

Mr. Kilman, BluePhoenix CEO, and Iris Yahal, Chief Financial Officer, will discuss nine months and third quarter results, and will be available to answer questions in a conference call.

Conference Call Details:
The conference call will be held on

Wednesday, November 10th, 2004 at 10:00 A.M. (EST)

Interested parties are welcome to call the telephone numbers listed below, 5–10 minutes prior to the start of the conference call.

In the US call: (877) 209-0397
Outside the US call: (612) 332-1025

Callers should reference “BluePhoenix Solutions Third Quarter Results 2004” to the AT&T conference call operator.

An automated replay of the conference call will be available from November 10th at 02:00 P.M. until November 12th at 11:59 P.M. (EST).

To access the replay call (USA) (800) 475-6701, (International) (320) 365-3844, and enter the BluePhoenix Solutions access code of 754320.

About BluePhoenix Solutions
BluePhoenix Solutions leads the IT Modernization market by developing unique solutions that enable companies to automate the process of modernizing and upgrading their mainframe and distributed IT infrastructure, thus quickly and cost-effectively extending the ROI of their existing IT systems. The Company’s comprehensive suite of tools and services (including technology for Understanding, Presentment, Migration, Remediation, and Redevelopment) reduces the cost of renovation and speeds up the renewal process. BluePhoenix has 12 offices throughout the world, including locations in the US, UK, Denmark, Germany, Italy, The Netherlands, Israel, and Australia.

The Company’s major shareholder is the Formula Group (NADSAQ:FORTY), an international Information Technology company principally engaged in providing software products, solutions, and services in various vertical markets.

For more information, please visit our web site at www.bphx.com

(Tables to Follow)

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.

Company Contact: Iris Yahal +972-9-9526110

BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three months ended
September 30,
 Nine months ended
September 30,
 Year ended
December 31,
2004
 2003
 2004
 2003
 2003
Unaudited Unaudited
 
Revenues     $ 14,333   $ 13,443   $ 42,643   $ 40,259   $ 54,340  

Cost of revenues		    6,044    5,815    18,046    18,089    24,115  
Gross profit    8,289    7,628    24,597    22,170    30,225  

Software development costs, net		    2,012    1,987    6,073    6,077    8,138  

Selling, general and administrative expenses		    5,225    4,640    14,809    14,045    18,847  
     1,052    1,001    3,715    2,048    3,240  

Depreciation		    340    332    1,035    986    1,293  
Operating income    712    669    2,680    1,062    1,947  

Financial income, net		    (369 )  (49 )  (928 )  98    165  

Other income, net		    704    188    1,087    628    943  
Income before taxes    1,047    808    2,839    1,788    3,055  

Taxes on income		    --    3    5    147    152  
     1,047    805    2,834    1,641    2,903  

Minority interest		    (604 )  (11 )  (196 )  (84 )  (154 )

Equity in losses of affiliated companies		    (106 )  (179 )  (424 )  (628 )  (898 )
Net income    337    615    2,214    929    1,851  

Basic earnings per share		    0.02    0.05    0.16    0.07    0.14  

Diluted earnings per share		    0.02    0.05    0.16    0.07    0.14  

Common shares outstanding		    13,525    13,449    13,519    13,449    13,451  

Common shares assuming dilution		    14,836    13,665    14,713    13,544    13,644  

BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)

CONSOLIDATED BALANCE SHEETS
(in thousands)

September 30,
2004
 December 31
2003
Unaudited

        ASSETS		            

        CURRENT ASSETS:		  
        Cash and cash equivalents   $ 9,693   $ 11,105  
        Marketable securities    222    406  
        Accounts receivable:  
        Trade    17,902    12,617  
        Other    3,023    1,899  
        Total current assets    30,840    26,027  
  
        INVESTMENTS    1,879    3,794  
  
        FIXED ASSETS  
        Cost    10,499    8,920  
        Less - accumulated depreciation    7,723    6,121  
        Total fixed assets    2,776    2,799  
  
        OTHER ASSETS, NET    56,573    48,200  
  
        Total assets   $ 92,068   $ 80,820  
  
  
        LIABILITIES AND SHAREHOLDERS' EQUITY  
  
        CURRENT LIABILITIES:  
        Short-term bank credit   $ 6,354   $ 8,342  
        Accounts payable and accruals:  
        Trade    3,744    3,425  
        Deffered revenue    3,913    3,034  
        Other    8,551    10,980  
        Total current liabilities    22,562    25,781  
  
        LONG-TERM LIABILITIES:  
        Convetible debentures    5,110    --  
        Loans from banks and others and convertible debt    8,546    2,065  
        Accrued severance pay, net    1,006    915  
        Provision for losses in formerly-consolidated subsidiary    1,971    1,971  
      Total long-term liabilities    16,633    4,951  

        MINORITY INTEREST		    4,916    4,690  
  
        SHAREHOLDERS' EQUITY  
       (net of cost of 1,870,565 shares held by subsidiaries)    47,957    45,398  
  
        Total liabilities and shareholders' equity   $ 92,068   $ 80,820