Re: CRYSF Announces Earnings
HERZLIA, Israel--(BUSINESS WIRE)--May 5, 1998--
Record Revenues of $8.702 million
Record EPS of $0.17 per share
Crystal Systems Solutions Ltd. (Nasdaq: CRYSF) a leading provider of conversion tools and methodologies for the MVS environment is pleased to report that first quarter 1998 revenues increased to a record US $8.702 million from US $3.564 million in the same quarter last year.
Revenues for the first quarter of 1998 increased by 144% as compared to the same quarter 1997. Net income for the first quarter of 1998 increased to a record US $1.959 or $0.17 per share as compared to a net income of 0.386 or $0.04 per share in the same period in 1997. Net income for this quarter increased 407% over net income for same quarter 1997.
"During the first quarter of 1998 the company achieved important targets" said Iris Yahal, Chief Financial Officer of Crystal Systems Solutions. "We succeeded in reducing the accounts receivables. We succeeded in expanding our strategic partnerships and direct sales efforts. And while increasing sales through our strategic partner E&Y, we successfully reduced the percentage that those sales represent in our total revenues. In the first quarter of 1998, percentage of revenues generated through E&Y decreased to 42% as compared to 68% in the first quarter of 1997."
"This is a significant quarter with regard to our expansion into related conversion technologies and markets," said Amiram Mel, Chief Executive Officer of Crystal. "As such, we have successfully entered into non-Y2K related areas such as our verification service and COBOL to Java migration technologies."
Crystal Systems Solutions is a member of the Formula Group (Nasdaq: FORTY) which is the largest public IT group in Israel. Crystal provides software tools and services that perform complex conversion projects for mainframe computer systems. Crystal's tools and conversion methodologies are designed for application changes such as Y2K, Euro currency conversion, field expansion as well as technological changes such as platform migration or language upgrades.
This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's product, successful implementation of the Company's product, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel.
CRYSTAL SYSTEMS SOLUTIONS
(An Israeli Corporation)
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
1998 1997
--------------------------
Unaudited
-----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 19,197 $ 15,652
Marketable securities 6,223 6,128
Accounts receivable:
Trade 12,977 14,241
Other current assets 1,799 1,200
------ ------
Total current assets 40,196 37,221
------ ------
NON-CURRENT TRADE RECEIVABLE 661 655
------ ------
INVESTMENTS 1,330 1,202
------ ------
FIXED ASSETS
Cost 2,712 2,398
Less - accumulated depreciation 534 425
------ ------
Total fixed assets 2,178 1,973
------ ------
OTHER ASSETS, NET 124 302
------ ------
------ ------
Total assets $ 44,489 $ 41,353
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accruals:
Trade $ 631 $ 459
Other 3,463 2,702
------ ------
Total current liabilities 4,094 3,161
------ ------
LONG-TERM LIABILITIES:
Accrued severance pay, net 562 373
------ ------
SHAREHOLDERS' EQUITY:
Share capital 21 21
Capital surplus 34,304 34,249
Retained earnings 5,508 3,549
------ ------
Total shareholders' equity 39,833 37,819
------ ------
------ ------
$ 44,489 $ 41,353
====== ======
CRYSTAL SYSTEMS SOLUTIONS
(An Israeli Corporation)
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three months ended Year ended
March 31, December 31,
-------------------- ------------
1998 1997 1997
(unaudited)
-------- --------- ---------
Revenues $ 8,702 $ 3,564 $ 24,375
Cost of revenues 4,252 1,912 12,227
----- ----- ------
Gross profit 4,450 1,652 12,148
----- ----- ------
Software development costs 941 435 3,086
Selling, general and
administrative expenses 1,576 828 4,121
----- ----- ------
Operating income 1,933 389 4,941
Financial income, net 425 101 843
Other income (loss), net -- 2 (12)
----- ----- ------
Income before taxes 2,358 492 5,772
Taxes on income 260 -- 300
----- ----- ------
2,098 492 5,472
Equity in losses of
affiliated companies (139) (106) (566)
----- ----- ------
Net income $ 1,959 $ 386 $ 4,906
====== ====== ======
Basic earnings per share $ 0.18 $0.04 $ 0.48
====== ====== ======
Diluted earnings per share $ 0.17 $ 0.04 $ 0.44
====== ====== ======
Common shares outstanding 10,720 9,080 10,123
====== ====== ======
Common shares assuming dilution 11,692 9,294 11,044
====== ====== ======
CONTACT: Crystal Systems Solutions, Herzlia
Iris Yahal, 011-972/9952-6103
Ben Levy, 011-972/9952-6102
or
For Crystal Systems Solutions
Dennis S. Dobson, Inc., Fairfield
Dennis S. Dobson, 203/255-7902
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