TOKYO, Feb. 13, 2014 (GLOBE NEWSWIRE) -- UBIC, Inc. (Nasdaq:UBIC) (TSE:2158) ("UBIC" or "the Company"), a leading provider of Asian-language eDiscovery solutions and services, today announced its unaudited financial results for the fiscal third quarter ended December 31, 2013 ("fiscal third quarter 2014"). All figures are prepared in accordance with the generally accepted accounting principles of Japan ("Japanese GAAP"). Third Quarter (for the year ending March 2014 ) Financial Highlights
- Net sales increased by 29.5% quarter-over-quarter to JPY1,103 million.
- Gross profit increased by 93.7% quarter-over-quarter to JPY544 million.
"We hope to maintain our growth momentum heading into the fiscal fourth quarter, and look forward to ending fiscal year 2014 on an optimistic note. Going forward, our key focus will be closing large accounts through effective technology branding and the validation of our predictive coding technology, as well as a continued focus on building out relationships with U.S. law firms. We are proud of the recent success in our multiple business lines, and believe we are well-positioned going forward as we continue to develop our brand and technology in order to support our evolution from 'fact discovery to future discovery'."Third Quarter Financial Results for the year ending March 2014 SALES : Net sales for the fiscal third quarter 2014 were JPY1,103 million, compared to JPY852 million in the prior quarter period and JPY1,186 million in the prior year period. The quarter-over-quarter increase in net sales was primarily attributable to growth in the hosting service as well as the process and review service. GROSS PROFIT: Gross profit for the fiscal third quarter 2014 was JPY544 million, compared to JPY281 million in the prior quarter period and JPY696 million in the prior year period. Gross margin was 49% compared with 33% in the prior quarter period and 59% in the prior year period. The significant quarter-over-quarter increase in gross profit was primarily attributable to the leverage in the business model realized from sales growth and earlier cost reduction efforts. OPERATING EXPENSES AND INCOME /LOSS : Total operating expenses for the fiscal third quarter 2014 were JPY617 million, compared to JPY627 million in the prior quarter period and JPY517 million in the prior year period. Operating loss was JPY73 million, compared to an operating loss of JPY347 million in the prior quarter period and an operating profit of JPY178 million in the prior year period. NET INCOME /LOSS : Net loss for the fiscal third quarter 2014 was JPY43 million, compared to a net loss of JPY278 million in the prior quarter period and a net profit of JPY159 million in the prior year period. EARNING PER SHARE: Net loss per ordinary share for the first nine months of the year ending March 31, 2014 was JPY93.70. As of December 31, 2013, the Company had a total of 3,441,136 ordinary shares outstanding, or the equivalent of 17,205,680 ADSs. As of December 31, 2013, each share of the Company's common stock represented five ADSs.
BALANCE SHEET : As of December 31, 2013, the Company's cash and deposits were JPY1.5 billion.Recent Developments
- In December 2013, Masami Yaguchi, previously UBIC's Corporate Controller, assumed the joint position of Chief Financial Officer (CFO) and Chief Administrative Officer (CAO), replacing Seitaro Ishii, who served the Company since 2010 and will continue to serve as an Advisor.
- In January 2014, the Company announced it will conduct a ten-for-one stock split for its common shares effective Tuesday, April 1, 2014. The stock split will result in the ADS-to-common share ratio changing to 1 ADS = 2 common shares from 1 ADS = 1/5 common shares.
CONTACT: Investor Relations Contact: UBIC, Inc. (North America) Dan Charnas Tel: +1 646-308-1561 Email: email@example.com ICR, Inc. Jeremy Peruski Tel: +1 646-308-1561 Email: firstname.lastname@example.org