|
Wednesday February 14, 11:03 am Eastern Time
Crystal Systems Solutions Ltd. Announces Year 2000 Fourth Quarter and Year End Financial Results
HERZLIYA, Israel--(BUSINESS WIRE)--Feb. 14, 2001--Crystal Systems
Solutions Ltd. (Nasdaq:CRYS - news), a leading provider of cross-platform
software renovation and porting solutions, today announced its
financial results for the fourth quarter and year ended December 31,
2000.
The company's revenues for the year 2000 reached a record of
US$49.2 million as compared to US$45.9 million in 1999. The company
achieved a sequential growth in its operating profits excluding
amortization of goodwill, that grew from US$0.4 million representing a
margin of 4% in the first quarter, to US$1.3 million representing a
margin of 10% in the fourth quarter.
The growth in the operating margins in the fourth quarter is
mainly attributable to the completion of the company's accelerated
Product Development Plan, which was conducted during the fourth
quarter of 1999 through the first three quarters of 2000. This
accelerated development plan was critical to meet the challenge of the
integration of Crystal's generic, technology based tools in new
markets.
Highlights of recent significant events:
"The year 2000 was a transition year for Crystal," said Gad
Goldstein, Chairman of the Board. "The company opened the year facing
challenges of repositioning its technology-based tool portfolio, and
increasing its market coverage by expanding relations with current and
new business partners. Crystal has successfully met these challenges,
without compromising its revenue growth and its profitability
targets."
"The current economic environment causes companies to change their
IT spending model. Nowadays, companies tend to prefer incremental
evolution of their IT systems, while preserving their previous
investments, rather than replacing and rewriting their software
systems from scratch. I believe that Crystal will benefit from this
spending pattern that increases the demand for Crystal's tools. Our
suite of tools enables organizations to improve the efficiency,
effectiveness and functionality of their software systems to meet
technological and business challenges, while leveraging their previous
investments in their existing systems. Crystal today is well equipped
to meet the market demand, and I believe that we are on track with our
strategic long term plan," added Mr. Goldstein.
About Crystal
Crystal Systems Solutions Ltd. develops and markets software tools
and provides end-to-end transformation projects 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 Fortune 1000 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: http://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.
Conference Call Details
Crystal will host a conference call on Wednesday, February 14,
2001 at 11:00 a.m. Eastern Standard Time (18:00 p.m. Israel Time).
Interested parties are welcome to call the telephone numbers listed
below, five to ten minutes prior to the start of the conference.
In the U.S. call 1-800-230-1096.
Outside the U.S. call the U.S. at +1-612-332-0632.
Callers should reference "Crystal Systems Solutions Fourth Quarter
Results" to the AT&T conference call operator.
An automated replay of the conference call will be available from
Feb.14, 2:30 P.M. until Feb. 16 at midnight. To access the replay
please call (USA) 1-800-475-6701 (International) 1-320-365-3844 and
enter Crystal's company code of 570669.
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.
Note to Editors: All names and trademarks are their owners'
property.
CRYSTAL SYSTEMS SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31
audited
ASSETS 2000 1999
---- ----
CURRENT ASSETS:
Cash and cash equivalents $12,086 $24,232
Marketable securities 5,074 7,513
Accounts receivable:
Trade 21,640 15,098
Other current assets 4,706 3,479
----- -----
Total current assets 43,506 50,322
------ ------
INVESTMENTS 7,898 3,253
----- -----
FIXED ASSETS
Cost 10,175 8,523
Less - accumulated depreciation 5,972 4,440
----- -----
Total fixed assets 4,203 4,083
----- -----
OTHER ASSETS, NET 13,530 10,441
------ ------
Total assets $69,137 $68,099
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $1,015 $3,309
Accounts payable and accruals:
Trade 3,841 3,598
Other 8,134 8,149
----- -----
Total current liabilities 12,990 15,056
------ ------
LONG-TERM LIABILITIES:
Accrued severance pay, net 818 718
Loans from banks and others 34 171
-- ---
Total long-term liabilities 852 889
--- ---
MINORITY INTEREST 3,886 4,410
----- -----
Share capital 23 21
Capital surplus 40,632 37,513
Retained earnings 23,906 20,792
------ ------
64,561 58,326
Cost of Company shares
held by subsidiaries
(1,560,000 shares) (13,152) (10,582)
-------- --------
51,409 47,744
------ ------
Total liabilities and
shareholders' equity $69,137 $68,099
======= =======
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three months ended Year ended
December 31 December 31
2000 1999 2000 1999
--------------- ----------------
unaudited audited
Revenues $12,612 $12,230 $49,245 $45,907
Cost of revenues 5,105 5,011 20,065 20,924
----- ----- ------ ------
Gross profit 7,507 7,219 29,180 24,983
----- ----- ------ ------
Software development
costs 2,157 2,238 9,487 6,037
Selling, general and
administrative expenses 4,070 3,493 16,077 9,053
----- ----- ------ -----
1,280 1,488 3,616 9,893
Amortization of goodwill 364 82 1,384 514
--- -- ----- ---
Operating income 916 1,406 2,232 9,379
Financial income
(expenses), net (10) 186 1,370 1,020
Other income (loss), net 346 (7) 2,510 (69)
--- --- ----- ----
Income before taxes 1,252 1,585 6,112 10,330
Taxes on income 97 94 184 646
-- -- --- ---
1,155 1,491 5,928 9,684
Minority interest (229) (237) (1,700) (876)
Equity in losses of
affiliated companies (215) (143) (1,114) (843)
----- ----- ------- -----
Net income $711 $1,111 $3,114 $7,965
==== ====== ====== ======
Basic earnings
per share $0.07 $0.22 $0.31 $0.81
===== ===== ===== =====
Diluted earnings
per share $0.07 $0.22 $0.30 $0.79
====== ===== ====== =====
Common shares outstanding 10,101 9,755 10,149 9,802
====== ===== ====== =====
Common shares
assuming dilution 10,177 9,961 10,363 10,106
====== ===== ====== ======
Contact:
Crystal Systems Solutions Ltd.
Iris Yahal, 972 9 9526110 or 972 9 9600233
 
|
 |
