FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For February 22, 2005
BLUEPHOENIX SOLUTIONS LTD.
(Translation of Registrant’s Name into English)
8 Maskit Street, Herzlia 46120, Israel
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-Fx Form 40-Fo
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yeso Nox
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.....................
Attached to the Registrant’s Form 6-K for February 22, 2005 and incorporated by reference herein is the Registrant’s immediate report dated February 22, 2005.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BLUEPHOENIX SOLUTIONS LTD. (Registrant) BY: /S/ Iris Yahal —————————————— Iris Yahal Chief Financial Officer |
Dated: February 22, 2005
BLUEPHOENIX SOLUTIONS REPORTS FOURTH QUARTER AND YEAR END RESULTS
Herzlia, Israel – February 22, 2005 – BluePhoenix Solutions Ltd. (NASDAQ:BPHX), the leader in Enterprise IT Modernization, today announced financial results for fourth quarter and year ended December 31, 2004.
For the year ended December 31, 2004, BluePhoenix reported record sales of $57.2 million, up 5% from $54.3 million in the previous year. The Company reported operating income of $3.5 million as compared to $1.9 million in 2003. The net income for 2004 was $2.8 million, or $0.21 per share, compared with $1.9 million or $0.14 per share in 2003.
For the fourth quarter of fiscal 2004, BluePhoenix reported sales of $14.5 million, up 3% from $14.1 million in the comparable fourth quarter of 2003. Operating income for the fourth quarter was $810,000, compared to $885,000 in the fourth quarter of 2003. Net income for the fourth quarter was $632,000, or $0.05 per share, as compared to $922,000, or $0.07 per share, in the fourth quarter of 2003.
“During 2004, we successfully managed to expand and improve our suite of modernization tools, while improving the overall performance of the Company. The market for our tools has been proven. We are constantly receiving reassurance of the strong demand for our capabilities, from customers as well as leading technological and market analysts. Part of this year’s revenue growth is attributable to the early results of our increased marketing and promotional activities,” said Arik Kilman, Chief Executive Officer of BluePhoenix Solutions.
“I am very optimistic about the future growth of the modernization market, and believe that our company’s road map will lead us to reap the long-term seeds we have been planting. We are receiving a growing number of initial orders from new customers, where we are required to demonstrate the high-performance capabilities of our various tools. Underlying these orders are large-scale modernization deals. We believe that the successful delivery of these projects, although sometimes at lower margins, helps us address the large potential of this market. Our current orders and pipeline stream is proof of the need for our solutions. Our near-term success will be measured by the growth in the number of new orders. The measurable results will follow the introduction of new and improved automated modernization tools, and are expected to materialize in the second half of 2005 and forward.” concluded Mr. Kilman.
Arik Kilman, BluePhoenix Chief Executive Officer, and Iris Yahal, Chief Financial Officer, will discuss twelve month and forth quarter results, and will be available to answer questions in a conference call.
Conference Call Details:
The conference call will be held on
Tuesday, February 22nd, 2005 at 10:00 A.M. (EST)
Interested parties are welcome to call the telephone numbers listed below, 5–10 minutes prior to the start of the conference call.
In the US call: Outside the US call: | (800) 288-8975 +1 (612) 332-0228 |
Callers should reference “BluePhoenix Solutions Fourth Quarter and Year End Results 2004” to the AT&T conference call operator.
An automated replay of the conference call will be available from February 22nd at 01:00 P.M. until February 24th at 11:59 P.M. (EST).
To access the replay call (USA) (800) 475-6701, (International) 1-(320) 365-3844, and enter the BluePhoenix Solutions access code of 770835.
About BluePhoenix Solutions
BluePhoenix Solutions leads the IT Modernization market by developing unique solutions that enable companies to automate the process of modernizing and upgrading their mainframe and distributed IT infrastructure, thus quickly and cost-effectively extending the ROI of their existing IT systems. The Company’s comprehensive suite of tools and services (including technology for Understanding, Presentment, Migration, Remediation, and Redevelopment) reduces the cost of renovation and speeds up the renewal process. BluePhoenix has 12 offices throughout the world, including locations in the US, UK, Denmark, Germany, Italy, The Netherlands, Israel, and Australia.
The Company’s major shareholder is the Formula Group (NADSAQ:FORTY), an international Information Technology company principally engaged in providing software products, solutions, and services in various vertical markets.
For more information, please visit our web site atwww.bphx.com
(Tables to Follow)
SAFE HARBOR: 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.
Company Contact: Iris Yahal +972-9-9526110
BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,except per share amounts)
Three months ended December 31, | Year ended December 31, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Unaudited | ||||||||||||||
Revenues | $ | 14,543 | $ | 14,081 | $ | 57,186 | $ | 54,340 | ||||||
Cost of revenues | 6,207 | 6,026 | 24,253 | 24,115 | ||||||||||
Gross profit | 8,336 | 8,055 | 32,933 | 30,225 | ||||||||||
Software development costs, net | 1,982 | 2,061 | 8,055 | 8,138 | ||||||||||
Selling, general and | ||||||||||||||
administrative expenses | 5,172 | 4,802 | 19,981 | 18,847 | ||||||||||
1,182 | 1,192 | 4,897 | 3,240 | |||||||||||
Depreciation | 372 | 307 | 1,407 | 1,293 | ||||||||||
Operating income | 810 | 885 | 3,490 | 1,947 | ||||||||||
Financial income, net | 46 | 67 | (882 | ) | 165 | |||||||||
Other income, net | -- | 315 | 1,087 | 943 | ||||||||||
Income before taxes | 856 | 1,267 | 3,695 | 3,055 | ||||||||||
Taxes on income | 255 | 5 | 260 | 152 | ||||||||||
601 | 1,262 | 3,435 | 2,903 | |||||||||||
Minority interest | 123 | (70 | ) | (73 | ) | (154 | ) | |||||||
Equity in losses of affiliated companies | (92 | ) | (270 | ) | (516 | ) | (898 | ) | ||||||
Net income | 632 | 922 | 2,846 | 1,851 | ||||||||||
Basic earnings per share | 0.05 | 0.07 | 0.21 | 0.14 | ||||||||||
Diluted earnings per share | 0.05 | 0.07 | 0.21 | 0.14 | ||||||||||
Common shares outstanding | 13,534 | 13,458 | 13,523 | 13,451 | ||||||||||
Common shares assuming dilution | 14,752 | 13,949 | 14,679 | 13,644 | ||||||||||
BLUEPHOENIX SOLUTIONS LTD.
(AN ISRAELI CORPORATION)
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31 2004 | December 31 2003 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 9,363 | $ | 11,105 | ||||
Marketable securities | 177 | 406 | ||||||
Accounts receivable: | ||||||||
Trade | 15,814 | 12,617 | ||||||
Other | 2,175 | 1,899 | ||||||
Total current assets | 27,529 | 26,027 | ||||||
INVESTMENTS | -- | 3,578 | ||||||
FIXED ASSETS | ||||||||
Cost | 10,614 | 8,920 | ||||||
Less - accumulated depreciation | 7,921 | 6,121 | ||||||
Total fixed assets | 2,693 | 2,799 | ||||||
OTHER ASSETS, NET | 60,268 | 48,416 | ||||||
Total assets | $ | 90,490 | $ | 80,820 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit | $ | 7,214 | $ | 8,342 | ||||
Accounts payable and accruals: | ||||||||
Trade | 4,382 | 3,425 | ||||||
Deferred revenue | 2,583 | 3,034 | ||||||
Other | 6,993 | 10,980 | ||||||
Total current liabilities | 21,172 | 25,781 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Convertible debentures | 5,149 | -- | ||||||
Loans from banks and others and convertible debt | 7,736 | 2,065 | ||||||
Accrued severance pay, net | 961 | 915 | ||||||
Provision for losses in formerly-consolidated subsidiary | 1,971 | 1,971 | ||||||
Total long-term liabilities | 15,817 | 4,951 | ||||||
MINORITY INTEREST | 4,870 | 4,690 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
(net of cost of 1,870,565 shares held by subsidiaries) | 48,631 | 45,398 | ||||||
Total liabilities and shareholders' equity | $ | 90,490 | $ | 80,820 | ||||