UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2010
Commission File Number 000-31513
VIRYANET LTD.
(Translation of registrant’s name into English)
8 HaMarpe St.
Har Hotzvim
P.O. Box 45041
Jerusalem 91450 Israel
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F ¨
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.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
Attached asExhibit 99.1 hereto is a copy of the registrant’s press release dated March 22, 2010, entitled “ViryaNet reports fourth fiscal quarter and full-year 2009 financial results.”
SIGNATURES
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.
| VIRYANET LTD. | ||
By: | /S/ MEMY ISH-SHALOM | |
Name: | Memy Ish-Shalom | |
Title: | Chief Executive Officer | |
| Date: | March 22, 2010 | |
Exhibit Index
Exhibit No. | Description | |
| 99.1 | Press release issued by the registrant on March 22, 2010, entitled “ViryaNet reports fourth fiscal quarter and full-year 2009 financial results”. | |
Exhibit 99.1
VIRYANET REPORTS FOURTH FISCAL QUARTER AND FULL-YEAR 2009 FINANCIAL RESULTS
Company reports quarterly and annual net income for 2009.
Southborough, Mass. – March 22, 2009 – ViryaNet Limited (VRYAF.OB), a leading provider of software applications that optimize business processes for field service management, today announced financial results of its fourth quarter and full-year 2009.
The Company achieved net income of $144,000 for the fourth quarter of 2009, compared with a net loss of $124,000 for the comparable period in 2008, and a net income of $0.5 million for the fiscal year 2009, compared with a net loss of $2.1 million in 2008.
Total revenues for the fourth quarter, ended December 31, 2009, were $2.4 million, a 7.0% decrease from $2.6 million recorded for the fourth quarter of 2008. For fiscal year 2009, total revenues were $10.4 million, a decrease of 8.3% from the $11.4 million of revenue recorded for fiscal year 2008.
Software license revenues for the fourth quarter of 2009 were $177,000, similar to the $183,000 recorded in the fourth quarter of 2008. Maintenance and services revenues were $2.24 million in the fourth quarter of 2009, a decrease of 7.3%, compared to $2.41 million in the fourth quarter of 2008.
The Company reported a gross profit of $1.42 million for the fourth quarter of 2009, or a gross margin of 58.9%, compared to a gross profit of $1.36 million, or a gross margin of 52.5% in the fourth quarter of 2008.
Operating expenses for the fourth quarter of 2009 were $1.25 million, compared to $1.57 million for the fourth quarter of 2008.
Income from operations for the fourth quarter of 2009 was $171,000, compared to a loss from operations of $209,000 for the fourth quarter of 2008. Income from operations for the fiscal year 2009 was $656,000, compared to a loss from operations of $1.67 million for the comparable period of 2008.
Net income for the fourth quarter of 2009 was $144,000 or $0.05 per basic and $0.04 per diluted share, compared to a net loss of $124,000 or $0.05 per basic and diluted share for the fourth quarter in 2008. The net income for the fiscal year 2009 was $496,000 or $0.16 per basic and $0.14 per diluted share, compared to a net loss of $2.08M or $0.70 per basic and diluted share for fiscal year 2008.
The Company’s cash position on December 31, 2009 was $156,000, compared to $143,000 on December 31, 2008. The Company’s short-term and long-term bank debt balance was reduced, from $2.0 Million on December 31, 2008 to $1.7 Million on December 31, 2009. During 2009, the Company received from Bank Hapoalim a waiver of the Company’s bank covenants for fiscal year 2009 and for the first quarter of 2010. The Company intends to request the Bank an extension of this waiver through the end of 2010. During the third quarter of 2009, the Company obtained a factoring line of $400,000, out of which $156,000 was utilized as of December 31, 2009.
The Days Sales Outstanding (DSO) for the Company in the fourth quarter of 2009 was 21 days.
“I am pleased that our 2009 results represent 4 consecutive quarters of net income, as well as a second consecutive year of positive cash flow from operations,” said ViryaNet’s CEO Memy Ish Shalom. “The fact that 2009 profits were achieved despite a challenging economic climate, points to the strength of our strategic partnerships, the dedication of our talented employees and most importantly the confidence our growing installed base has shown in us. We look forward to continuing to improve on our performance throughout 2010,” concluded Memy.
About ViryaNet
ViryaNet is a leading provider of full service life cycle software solutions that optimize business processes for field service management in dynamic and complex operational environments. The ViryaNet G4 platform delivers patent pending, priority-based optimization technology, real-time visibility, and a highly extensible, open architecture. With these powerful capabilities, field service organizations can meet their operational and business goals with unmatched levels of workforce productivity, the lowest cost of ownership and the highest levels of customer satisfaction- enabling operational excellence.
ViryaNet, over the past 22 years, has delivered solutions that are being utilized by over 35,000 users across a variety of industries-Utility, Telecommunications, Insurance and Retail. ViryaNet delivers total solutions by aligning its “best of breed” technology with global partnerships that include leading platform and system integration companies. Headquartered in Southborough, MA, ViryaNet enjoys a worldwide presence with offices and customers located in North America, Europe, and the Pacific Rim. For more information, visitwww.viryanet.com
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding ViryaNet’s expectations, beliefs, intentions, or strategies regarding the capabilities of its products, its relationships with its customers, its customer purchases, its future operational plans and objectives including integration of other businesses, its future business prospects, its future financial performance, its future cash position, and its future prospects for profitability. All forward-looking statements included in this document are based upon information available to ViryaNet Ltd. as of the date hereof, and ViryaNet Ltd. assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to ViryaNet’s business include market acceptance of and demand for the Company’s products, risks associated with a slow-down in the economy, risks associated with the financial condition of the company’s customers, risks associated with competition and competitive pricing pressures, risks associated with increases in costs and operating expenses, risks in technology development and commercialization, the risk of operating losses, risks in product development, risks associated with international sales, and other risks that are set forth in ViryaNet’s Form 20-F, dated October 30, 2009 and the other reports filed from time to time with the Securities and Exchange Commission. Reported results should not be considered an indication of future performance. You should not place undue reliance on these forward-looking statements, which speak only as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
#####
Press Contact:
Yoni Mozeson
ViryaNet, Ltd.
508-490-8600, ext 3025
Yoni.mozeson@viryanet.com
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| December 31, | ||||||
| 2008 | 2009 | |||||
Assets | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 143 | $ | 156 | ||
Trade receivables | 781 | 547 | ||||
Other accounts receivable and prepaid expenses | 113 | 97 | ||||
Total current assets | 1,037 | 800 | ||||
NON-CURRENT ASSETS: | ||||||
Severance pay fund | 961 | 912 | ||||
Other | 64 | 60 | ||||
Total non-current assets | 1,025 | 972 | ||||
PROPERTY AND EQUIPMENT, net | 167 | 89 | ||||
GOODWILL | 7,022 | 7,169 | ||||
OTHER INTANGIBLE ASSETS, net | ||||||
Customer relationship | 367 | 138 | ||||
Other | 184 | 73 | ||||
Total intangible assets | 7,573 | 7,380 | ||||
Total assets | $ | 9,802 | $ | 9,241 | ||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| December 31, | ||||||||
| 2008 | 2009 | |||||||
Liabilities and shareholders’ equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit | $ | 280 | $ | 380 | ||||
Current maturities of long-term bank loans | 450 | 400 | ||||||
Trade payables | 729 | 530 | ||||||
Deferred revenues | 3,367 | 2,961 | ||||||
Other accounts payable and accrued expenses | 1,963 | 2,061 | ||||||
Loan from related party | 78 | 79 | ||||||
Total current liabilities | 6,867 | 6,411 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term bank loan, net of current maturities | 1,289 | 889 | ||||||
Long-term convertible debt | 543 | 530 | ||||||
Long-term deferred revenues | 932 | 641 | ||||||
Accrued severance pay | 1,546 | 1,376 | ||||||
Total long-term liabilities | 4,310 | 3,436 | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Share capital | 3,748 | 3,961 | ||||||
Additional paid-in capital | 116,660 | 116,603 | ||||||
Accumulated other comprehensive income (loss) | (114 | ) | 3 | |||||
Accumulated deficit | (121,669 | ) | (121,173 | ) | ||||
Total shareholders’ equity | (1,375 | ) | (606 | ) | ||||
Total liabilities and shareholders’ equity | $ | 9,802 | $ | 9,241 | ||||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
| Three months ended December 31 | Year ended December 31 | |||||||||||||||
| 2008 | 2009 | 2008 | 2009 | |||||||||||||
REVENUES: | ||||||||||||||||
Software licenses | $ | 183 | $ | 177 | $ | 1,380 | $ | 1,508 | ||||||||
Maintenance and services | 2,414 | 2,239 | 9,990 | 8,919 | ||||||||||||
Total revenues | 2,597 | 2,416 | 11,370 | 10,427 | ||||||||||||
COST OF REVENUES: | ||||||||||||||||
Software licenses | 52 | 43 | 275 | 206 | ||||||||||||
Maintenance and services | 1,182 | 951 | 5,586 | 3,967 | ||||||||||||
Total cost of revenues | 1,234 | 994 | 5,861 | 4,173 | ||||||||||||
GROSS PROFIT | 1,363 | 1,422 | 5,509 | 6,254 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 278 | 211 | 1,753 | 1,076 | ||||||||||||
Selling and marketing | 804 | 584 | 3,119 | 2,700 | ||||||||||||
General and administrative | 490 | 456 | 2,303 | 1,822 | ||||||||||||
Total operating expenses | 1,572 | 1,251 | 7,175 | 5,598 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | (209 | ) | 171 | (1,666 | ) | 656 | ||||||||||
FINANCIAL INCOME (EXPENSES), net | 85 | (27 | ) | (414 | ) | (160 | ) | |||||||||
NET INCOME (LOSS) | $ | (124 | ) | $ | 144 | $ | (2,080 | ) | $ | 496 | ||||||
BASIS NET EARNINGS (LOSS) PER SHARE | $ | (0.05 | ) | $ | 0.05 | $ | (0.70 | ) | $ | 0.16 | ||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF BASIC NET EARNINGS (LOSS) PER SHARE | 3,065,068 | 3,212,098 | 2,992,752 | 3,176,831 | ||||||||||||
DILUTED NET EARNINGS (LOSS) PER SHARE | $ | (0.05 | ) | $ | 0.04 | $ | (0.70 | ) | $ | 0.14 | ||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF DILUTED NET EARNINGS (LOSS) PER SHARE | 3,065,068 | 3,575,734 | 2,992,752 | 3,540,467 | ||||||||||||
