Unify Corporation Reports Second Quarter 2004 Results
Tuesday November 25, 4:10 pm ET
Year over Year Six Month Total Revenue Increases 10 Percent
Software License Revenues Up 32 Percent
SACRAMENTO, Calif.--(BUSINESS WIRE)--Nov. 25, 2003--Unify Corporation (OTCBB:UNFY - News) today announced financial results for the second quarter of fiscal 2004 ended October 31, 2003.
Total revenues in the second quarter were $2.8 million, a four percent decrease, compared to total revenues of $2.9 million for the second quarter of fiscal 2003. Second quarter software license revenues were $1.4 million, a five percent increase, compared to $1.3 million in the same period of last fiscal year.
GAAP net income for the second quarter was $61,000, or $0.00 earnings per share, compared to a net loss of ($85,000), or $(0.00) loss per share in the second quarter of the prior year. Gross margin for the quarter was 85 percent, compared to 87 percent in the second quarter of last year. Non-GAAP net income for the second quarter was $114,000, compared to a net loss of ($111,000) in the second quarter of last year. Non-GAAP net income excludes severance charges, write-down of the Company's investments and other special charges (recoveries).
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss):
Quarter Quarter Six Months Six Months
Ended Ended ended ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2003 2002 2003 2002
GAAP Net Income (Loss) $61,000 ($85,000) ($83,000) ($370,000)
Adjustments :
Severance charges 200,000
Write-down of other
investments 175,000 20,000
Special Charges
(Recoveries) (1) 53,000 (26,000) 102,000 (132,000)
--------- ---------- --------- -----------
Non-GAAP Net Income
(Loss) $114,000 ($111,000) $394,000 ($482,000)
========= ========== ========= ===========
(1) Special charges (recoveries) related primarily
to litigation expenses
For the six-month period ended October 31, 2003, revenue totaled $6.1 million, a 10 percent increase, compared to total revenues of $5.6 million for the comparable period of fiscal 2003. On a year-to-date basis, GAAP net loss in the first six months was ($83,000) or ($0.00) loss per share, compared to GAAP net loss of ($370,000) or ($0.02) loss per share for the first six months of last year. On a Non-GAAP basis, net income for the first six months was $394,000, compared to a Non-GAAP net loss of ($482,000) in the same period of the prior year.
"For the first six months of this year, revenue is up 10 percent and, more importantly, software license revenues, a primary indicator of new sales activity, are up 32 percent," said Todd Wille president and CEO of Unify. "One of the reasons sales are increasing is because Unify NXJ is gaining traction in both domestic and international markets. This past quarter we made a record number of Unify NXJ sales for the quarter. This is particularly encouraging as we achieved this improved sales momentum while transitioning an entirely new sales management team and organizational structure, and orchestrating the launch of Unify NXJ 10."
The Company ended the second quarter with $2.6 million in cash and cash equivalents, compared to $2.5 million at the end of the first quarter of fiscal 2004 and $2.2 million at the end of the second quarter of fiscal 2003. Stockholders' equity at the end of the second quarter was $1.6 million, compared with $1.5 million at the end of the first quarter of fiscal 2004 and $899,000 at the end of the second quarter of fiscal 2003.
During the second quarter, Unify:
Added several new customers including Anite Travel Systems Ltd., Focus Health Care Management, Hali Technology and Mauffrey.
Earned repeat business from long-standing customers including Business Console Limited, Citra, Credit Lyonnais, Layher, McCann Erickson, PFU Tokyo, Prime Clinical Systems, Inc., Scholastic Inc., Triple G Systems Group and Verizon Communications.
Closed 17 Unify NXJ deals to five Independent Software Vendors and 12 corporate IT organizations.
Brought the total number of Unify NXJ customers to 45 since launching the product.
Hired a new sales director and two new sales representatives.
Attended the Gartner Symposium ITxpo for marketing and lead generation of Unify NXJ.
Business Outlook
The Company affirms its previous guidance that it expects to grow revenues 10 to 20 percent compared to fiscal year 2003.
Conference Call
Unify will hold its quarterly conference call, open to all interested parties, on Nov. 25, 2003, beginning at 2 p.m. Pacific Time. Listeners should dial 800-231-5571 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 Dec. 12, 2003 by dialing 877-519-4471 and entering the pass code 4300988.
About Unify
Unify Corporation (OTCBB:UNFY - News), is a global enterprise software company. Leveraging 23 years of software innovation to more than 2,000 customers and 300 ISV partners worldwide, Unify delivers the market's only comprehensive, vendor-independent application platform that is easy, powerful and open. With Unify solutions, customers are able to deliver applications that significantly enhance revenue opportunities, improve operational effectiveness and enrich customer relationships. Customers include bioMerieux, Inc., Boeing, Credit Lyonnais, Citigroup Inc., Fannie Mae, GlaxoSmithKline, Heineken, PCN, Travel Centers of America, Triple G Systems Group and Wells Fargo. Founded in 1980, Unify is headquartered in Sacramento, Calif., and has offices in the UK and France, in addition to a worldwide network of distributors. Visit Unify at www.unify.com. |
