EX-99.1 2 a05-4190_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Unify Corporation

2101 Arena Blvd.

Sacramento, CA 95834

916-928-6400

www.unify.com

 

 

Unify Reports Third Quarter 2005 Results

 

Quarter over Quarter Software License Revenues Increased 24 Percent

 

SACRAMENTO, Calif., — Feb. 22, 2005 — Unify Corporation (OTC BB: UNFY) today announced financial results for the third quarter of fiscal 2005 ended Jan. 31, 2005.

 

Total revenues in the third quarter were $3.0 million, a 13 percent increase, compared to total revenues of $2.6 million for the third quarter of fiscal 2004.  Third quarter software license revenues increased 24 percent to $1.5 million, compared to $1.2 million in the same period last year.  Services revenues increased four percent to $1.5 million for the quarter, compared to $1.5 million in the third quarter last year.

 

GAAP net loss for the third quarter was $651,000, or $0.02 loss per share, compared to third quarter fiscal 2004 net loss of $470,000, or $0.02 loss per share. Gross margin for the quarter was 85 percent, compare to 80 percent in the same period last year.  Third quarter non-GAAP net income was $29,000, compared to a non-GAAP net loss of $462,000 in the third quarter of fiscal 2004.  Non-GAAP net income excludes severance and restructuring charges, acquisition related expenses and special charges (recoveries).  

 

Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss):

 

 

 

 

 

Quarter Ended
Jan 31, 2005

 

Quarter Ended
Jan 31, 2004

 

Nine Months ended
Jan 31, 2005

 

Nine Months ended
Jan 31, 2004

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Income (Loss)

 

$

(651,000

)

$

(470,000

)

$

(1,759,000

)

$

(553,000

)

 

 

 

 

 

 

 

 

 

 

Adjustments :

 

 

 

 

 

 

 

 

 

Severance & Restructuring Charges

 

700,000

 

 

 

700,000

 

200,000

 

Acquisition related expenses

 

130,000

 

 

 

130,000

 

 

 

Write-down of Other Investments

 

 

 

 

 

 

 

175,000

 

Special Charges (Recoveries) (1)

 

(150,000

)

8,000

 

(150,000

)

110,000

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net Income (Loss)

 

$

29,000

 

$

(462,000

)

$

(1,079,000

)

$

(68,000

)

 

 

 

 

 

 

 

 

 

 

(1) Special charges (recoveries) related primarily to litigation expenses

 


 

“We had a good execution this quarter including the expansion of our strategy into specialty vertical markets,” said Todd Wille, CEO of Unify.  “We had renewed investments in our technology from some long-time customers, reorganized our European operations and planned for the acquisition of Acuitrek.  We are confident and excited about our prospects in the coming year.”

 

The Company had $3.9 million in cash and cash equivalents at Jan. 31, 2005, up from $2.8 million at January 31, 2004, but down from $6.6 million as of April 30, 2004.  Stockholders’ equity at January 31, 2005 was $2.9 million, compared to $1.3 million at January 31, 2004, and compared to $4.5 million at April 30, 2004.

 

For the nine months ended January 31, 2005, total revenues were $8.5 million, a two percent decrease, compared to $8.7 million for the same nine-month period last year. GAAP net loss for the first nine months was $1.8 million or $0.06 loss per share, compared to a GAAP net loss of $553,000 or $0.03 loss per share for the first nine months of last year.  On a Non-GAAP basis, net loss for the first nine months was $1.1 million, compared to a Non-GAAP net loss of $68,000 for same nine-month period last year.

 

During the third quarter, Unify:

·         Executed on its expanded strategy to target specialty vertical markets with its business process automation technology.

·         Centralized its European sales and support operations into a European headquarters in Paris.

·         Announced the creation of Unify Business Solutions focused on building and sustaining active partnerships with independent software vendors (ISVs) resellers (VARs) and global distributors.

·         Earned business from several long-standing customers including Business Console, CNA Insurance Group, Credit Lyonnaise Group Management, Glaxo, Pan Systems, SE Software Engineering, GE Healthcare, and Vision Data Equipment Corp.

 

Conference Call

 

Unify will hold its quarterly conference call, open to all interested parties, on Feb. 22, 2005, beginning at 2 p.m. Pacific Time.  Listeners should dial 800-370-0740 prior to the start of the conference call.  The conference call will also be Webcast.  Online listeners should visit www.unify.com/investors prior to the start of the call for login information.  A replay of the conference call will be available until March 4, 2005 by dialing 877-519-4471 and entering the passcode 5674828.

 

About Unify
Unify (OTCBB: UNFY) provides business process automation solutions, including market leading applications for specialty markets within the insurance, retail and transportation industries.  Unify’s solutions deliver a broad set of capabilities for

 


 

automating business processes, integrating existing information systems and delivering collaborative information.  Through its industry expertise and market leading technologies, Unify helps organizations drive business optimization, apply governance and increase customer service. For more than 25 years, Unify has served more than 2,000 agencies, corporations and independent software vendors. Unify is headquartered in Sacramento, Calif. with offices in London and Paris, and a worldwide network of global distributors. Contact Unify at 916-928-6400 or visit www.unify.com.

 

This press release contains “forward-looking statements” as that term is defined in Section 21E of the Securities Exchange Act of 1934 as amended. Forward looking statements are denoted by words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, and other variations of such words and similar expressions are intended to identify such forward-looking statements.  These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by our forward looking statements. Such risks and uncertainties include, but are not limited to general economic conditions in the computer and software industries, domestically and worldwide, the Company’s ability to keep up with technological innovations in relation to its competitors, product defects or delays, developments in the Company’s relationships with its customers, distributors and suppliers, changes in pricing policies of the Company or its competitors and the Company’s ability to attract and retain employees in key positions. In addition, Unify’s forward looking statements should be considered in the context of other risks and uncertainties discussed in our SEC filings available for viewing on its web site at “Investor Relations,” “SEC filings” or from the SEC at www.sec.gov.

 

# # #

 


 

UNIFY CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

January 31, 2005

 

April 30, 2004

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,915

 

$

6,606

 

Accounts receivable, net

 

3,259

 

2,848

 

Prepaid expense & other current assets

 

691

 

543

 

Total current assets

 

7,865

 

9,997

 

 

 

 

 

 

 

Property and equipment, net

 

385

 

338

 

Other investments

 

214

 

214

 

Other assets

 

177

 

194

 

Total assets

 

$

8,641

 

$

10,743

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long term debt

 

$

161

 

$

146

 

Account payable

 

341

 

523

 

Other accrued liabilities

 

1,148

 

1,340

 

Accrued compensation and related expenses

 

736

 

812

 

Deferred revenue

 

3,301

 

3,360

 

Total current liabilities

 

5,687

 

6,181

 

 

 

 

 

 

 

Other long term liabilities

 

79

 

70

 

 

 

 

 

 

 

Long term debt

 

12

 

—

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

28

 

27

 

Additional paid in capital

 

63,275

 

63,205

 

Accumulated other comprehensive loss

 

77

 

18

 

 

 

 

 

 

 

Accumulated deficit

 

(60,517

)

(58,758

)

Total stockholders’ equity

 

2,863

 

4,492

 

Total liabilities and stockholders’ equity

 

$

8,641

 

$

10,743

 

 


 

UNIFY CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

Three Months Ended

January31,

 

Nine Months Ended

January 31,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Software Licenses

 

$

1,469

 

$

1,185

 

$

3,934

 

$

4,427

 

Services

 

1,518

 

1,459

 

4,596

 

4,322

 

Total revenues

 

2,987

 

2,644

 

8,530

 

8,749

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenues:

 

 

 

 

 

 

 

 

 

Software licenses

 

96

 

226

 

264

 

413

 

Services

 

351

 

302

 

1,077

 

950

 

Total cost of revenues

 

447

 

528

 

1,341

 

1,363

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2,540

 

2,116

 

7,189

 

7,386

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Product development

 

678

 

618

 

2,110

 

2,297

 

Selling, general and administrative

 

2,544

 

1,968

 

6,866

 

5,454

 

Write-down of other investments

 

—

 

—

 

—

 

175

 

Total operating expenses

 

3,222

 

2,305

 

8,976

 

7,926

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(682

)

(470

)

(1,787

)

(540

)

Other income (expense), net

 

34

 

(4

)

35

 

(7

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(648

)

(474

)

(1,752

)

(547

)

Provision (recovery) for income taxes

 

3

 

(4

)

7

 

6

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(651

)

$

(470

)

$

(1,759

)

$

(553

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.02

)

$

(0.02

)

$

(0.06

)

$

(0.03

)

Dilutive

 

$

(0.02

)

$

(0.02

)

$

(0.06

)

$

(0.03

)

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

27,692

 

21,596

 

27,606

 

21,471

 

Dilutive

 

27,692

 

21,596

 

27,606

 

21,471