BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy modernization, announced financial results for the second quarter of 2012 on September 6 th after the closing bell. Revenue for the second quarter of 2012 was $4.2 million compared to $3.6 million in the previous quarter, a 17.7% increase.
BluePhoenix has been going through a major restructuring effort on gaining control over their balance sheet and positioning the company for growth in their core business of Legacy Modernization. As a result, two noncore businesses which had a negative impact on the companies financials were sold; Liacom in April and Knowledge Management Systems business in June. BluePhoenix has lowered fixed costs significantly by reducing headcount from a peak of 730 employees in January 2010 to only 105 in the core Legacy Modernization business as of today.
Matt Bell, CEO of BluePhoenix said, “We are proud the company increased revenue, is nearly debt free, lowered fixed costs, is building cash and is in control of our balance sheet for the first time in many years. Our projected expenses for 2012 will be $10.8 million and we are forecasting to breakeven. We think we can continue to reduce expenses by another 10% reinvesting that money in sales and marketing to set ourselves up for significant growth in 2013.”
About BluePhoenix SolutionsBluePhoenix Solutions Ltd. (NASDAQ: BPHX) is the leading provider of legacy IT modernization conversion solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.