BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy modernization, today announced financial results for the third quarter of 2012. The turnaround efforts are showing results with revenues holding steady while debt was reduced and burn rate was brought under control.
Net Income on a non-GAAP basis for Q3 improved 85% and while the number still shows a loss of $182 K BPHX is closely approaching breakeven. Additional achievements in Q3 include the significant reduction in total financial debt which dropped from $7.9 M to just $556 K. Earnings per share improved 89% in the third quarter with a non-GAAP loss of $(0.02) per diluted share, compared to net loss of $(0.18) per diluted share in the previous quarter. Net cash burn is down 78% in Q3 to only $314 K compared to $1,416 million in Q2.
Matt Bell, CEO of BluePhoenix said, “We are making great progress on our plan to restructure the company, strengthen the balance sheet, and sell off less profitable and non-strategic businesses. Our timing appears good as the market for our core business is picking up because companies postponed projects over the last few years. A lack of knowledge in running legacy systems, higher licensing prices, and a move toward cloud technology are also fueling our demand.”
BluePhoenix will go over the following numbers during their quarterly conference call today at 4:30PM Eastern US time. The call can be accessed by dialing 1-888-668-9141 within the United States, or via +972-3-9180610 if calling internationally, approximately five minutes prior to its scheduled commencement. A live Veidan Broadcasting and a replay can be accessed through a link that will be available via the BluePhoenix website.
|Non-GAAP Results (in thousands US$)||Q3 2012||Q2 2012||Q3/2011 **|
|Operating profit (loss)||(89)||(791)||376|
|Net (Loss) Income||(182)||(1,171)||111|
|Earnings (Loss) per share, diluted*||(0.02)||(0.18)||0.02|
|GAAP Results (in thousands US$)||Q3 2012||Q2 2012||Q3 2011|
|Operating profit (loss)||(748)||(1,301)||(3,248)|
|Loss per share, diluted*||(0.46)||(0.62)||(0.51)|