-- Orders up 10% to $5.5 million from $5.0 million in 2007
-- Backlog grows to $7.1 million from $6.5 million in Q4
-- Revenue up 21% to $4.8 million vs. $4.0 million in 2007
Evolving Systems, Inc. (
Consolidated Statements of Operations
(In thousands except per share data)
(Unaudited) Three months ended
March 31,
2008 2007
---- ----
Revenue:
License fees and services $ 4,832 $ 3,991
Customer support 4,295 4,470
------- -------
Total revenue 9,127 8,461
------- -------
Costs of revenue and operating expenses:
Costs of license fees and services,
excluding depreciation and amortization 2,224 1,924
Costs of customer support,
excluding depreciation and amortization 1,493 1,493
Sales and marketing 2,187 2,040
General and administrative 1,425 1,550
Product development 1,068 549
Depreciation 230 288
Amortization 380 388
Restructuring and other expense (recovery) - (1)
------- -------
Total costs of revenue and operating expenses 9,007 8,231
------- -------
Income from operations 120 230
------- -------
Interest and other expense, net (438) (416)
------- -------
Loss before income taxes (318) (186)
Income tax expense (benefit) (74) 140
------- -------
Net loss $ (244) $ (326)
======= =======
Basic and diluted loss per common share $ (0.01) $ (0.02)
======= =======
Weighted average basic and diluted shares
outstanding 19,362 19,153
Reconciliation of Net Loss to Adjusted EBITDA
(In thousands)
(Unaudited)
Three months ended
March 31,
2008 2007
---- ----
Net loss $(244) $(326)
Depreciation 230 288
Amortization 380 388
Stock-based compensation 228 249
Interest and other expense, net 438 416
Income tax expense (benefit) (74) 140
----- -----
Adjusted EBITDA 958 1,155
===== =====
Evolving Systems reports its financial results in accordance with
accounting principles generally accepted in the U.S. (GAAP). In addition,
the Company is providing in this news release non-GAAP information in the
form of Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock compensation, gain/loss on debt extinguishment and
gain/loss on foreign exchange transactions). Management believes Adjusted
EBITDA is useful to investors and lenders in evaluating the overall
financial health of the Company in that it allows for greater transparency
of additional financial data routinely used by management to evaluate
performance. Adjusted EBITDA relates to a covenant contained in the
Company's loan agreements and therefore can be useful for lenders as an
indicator of earnings available to service debt. Readers of this Adjusted
EBITDA information are reminded that Adjusted EBITDA is not a recognized
term under GAAP and does not purport to be an alternative to income (loss)
from operations, an indicator of cash flow from operations or a measure of
liquidity. Not all companies calculate Adjusted EBITDA identically, so
this presentation may not be comparable to similar presentations of other
companies.
Consolidated Balance Sheets
(In thousands)
(Unaudited) March 31, December 31,
2008 2007
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $ 6,737 $ 7,271
Contract receivables, net 6,448 10,959
Unbilled work-in-progress 1,555 922
Prepaid and other current assets 1,629 1,335
-------- --------
Total current assets 16,369 20,487
Property and equipment, net 1,678 1,677
Intangible assets, net 4,301 4,687
Goodwill 26,395 26,417
Other long-term assets 446 459
-------- --------
Total assets $ 49,189 $ 53,727
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 2,021 $ 2,520
Accounts payable and accrued liabilities 5,749 5,937
Unearned revenue 9,766 10,635
-------- --------
Total current liabilities 17,536 19,092
Long-term liabilities:
Long-term debt and other obligations 7,329 10,242
Deferred foreign income tax 811 878
-------- --------
Total liabilities 25,676 30,212
Preferred stock - 5,587
Stockholders' equity:
Common stock 19 18
Additional paid-in capital 81,147 75,317
Accumulated comprehensive income 2,142 2,144
Accumulated deficit (59,795) (59,551)
-------- --------
Total stockholders' equity 23,513 17,928
-------- --------
Total liabilities and stockholders' equity $ 49,189 $ 53,727
======== ========
Contact Information: Investor Relations Jay Pfeiffer Pfeiffer High Investor Relations, Inc. 303.393.7044 Press Relations Sarah Hurp Marketing Communications Manager Evolving Systems +44 1225 478060