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 November, 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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate be check mark weather 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 November 16, 2010, entitled “ViryaNet Reports Third Quarter 2010 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: November 16, 2010
Exhibit Index
Exhibit No. | Description | |
| 99.1 | Press release issued by the registrant on November 16, 2010, entitled “ViryaNet Reports Third Quarter 2010 Results”. | |
VIRYANET REPORTS THIRD QUARTER 2010 RESULTS
November 16, 2010
Quarterly Net Income increases, Revenues Up 6% and License Revenues Up 25% Year-Over-Year
Reports 60% Year-Over-Year Increase in Net Income for the First Nine-Months in 2010
Southborough, MA, November 16, 2010 - ViryaNet Limited (VRYAF.OB), a leading provider of mobile workforce management solutions that optimize the full cycle of scheduling and dispatch processes for field service management announced financial results for the third quarter of 2010.
For the third quarter ended September 30, 2010, ViryaNet reported revenues of $2,793 thousand, a 5.7% increase compared to the same period in 2009. Net income for the third quarter was $151 thousand or $0.04 basic and diluted earnings per share, compared to a net income of $71 thousand or $0.02 per basic and diluted earnings share for the same period in 2009. Software license revenues for the third quarter of 2010 were $396 thousand, compared to $318 thousand recorded in the third quarter of 2009. Maintenance and services revenues were $2,397 thousand in the third quarter of 2010, compared to $2,324 thousand in the third quarter of 2009.
For the nine months period ended September 30, 2010, ViryaNet reported revenues of $8,468 thousand, a 5.7% increase compared to the same period in 2009. Net income for the nine months period in 2010 was $561 thousand, compared to a net income of $351 thousand in the same period in 2009.
“Our continued investments in developing and delivering innovative products for the marketplace have resulted in a solid financial base as measured in continued increases in our net profitability and an 18% increase in bookings year-over-year,” stated Memy Ish-Shalom, Chief Executive Officer. “These achievements have enabled us to expand on our channel sales strategy and have us positioned for accelerated growth moving forward.”
About ViryaNet
ViryaNet provides packaged industry solutions that intelligently guide, automate, and optimize both simple and complex field service work, resulting in operational excellence. ViryaNet’s field service management software solutions specialize in the functions of scheduling and dispatching resources and enabling mobile field communication. Embedding industry best practices and utilizing a powerful workflow engine, web architecture, and visibility suite, the ViryaNet solutions allow companies to outperform their competition, better the customer experience, improve financial performance, and address regulatory compliance. ViryaNet possesses an impressive track record in the field service space, a vast number of customers across a variety of industries, and strong partnerships with 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, visit www.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 July 15, 2010 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, 2009 | September 30, 2010 | |||||||
| Audited | Unaudited | |||||||
Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 156 | $ | 136 | ||||
Trade receivables | 547 | 1,021 | ||||||
Other accounts receivable and prepaid expenses | 97 | 196 | ||||||
Total current assets | 800 | 1,353 | ||||||
NON-CURRENT ASSETS: | ||||||||
Severance pay fund | 912 | 935 | ||||||
Other | 60 | 32 | ||||||
Total non-current assets | 972 | 967 | ||||||
PROPERTY AND EQUIPMENT,net | 89 | 111 | ||||||
GOODWILL | 7,169 | 7,217 | ||||||
OTHER INTANGIBLE ASSETS,net | ||||||||
Customer relationship | 138 | — | ||||||
Other | 73 | — | ||||||
Total intangible assets | 7,380 | 7,217 | ||||||
Total assets | $ | 9,241 | $ | 9,648 | ||||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| December 31, 2009 | September 30, 2010 | |||||||
| Audited | Unaudited | |||||||
Liabilities and shareholders’ equity (deficiency) | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit | $ | 380 | $ | 235 | ||||
Current maturities of long-term bank loans | 400 | 500 | ||||||
Trade payables | 530 | 428 | ||||||
Deferred revenues | 2,961 | 3,218 | ||||||
Other accounts payable and accrued expenses | 2,061 | 1,826 | ||||||
Loan from related party | 79 | 79 | ||||||
Total current liabilities | 6,411 | 6,286 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term bank loan, net of current maturities | 889 | 714 | ||||||
Long-term convertible debt | 530 | 520 | ||||||
Long-term deferred revenues | 641 | 492 | ||||||
Accrued severance pay | 1,376 | 1,445 | ||||||
Total long-term liabilities | 3,436 | 3,171 | ||||||
SHAREHOLDERS’ EQUITY (DEFICIENCY): | ||||||||
Share capital | 3,961 | 4,299 | ||||||
Additional paid-in capital | 116,603 | 116,471 | ||||||
Accumulated other comprehensive income | 3 | 33 | ||||||
Accumulated deficit | (121,173 | ) | (120,612 | ) | ||||
Total shareholders’ equity (deficiency) | (606 | ) | 191 | |||||
Total liabilities and shareholders’ equity (deficiency) | $ | 9,241 | $ | 9,648 | ||||
| �� | ||||||||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
| Three months ended September 30 | Nine Months ended September 30 | |||||||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
REVENUES: | ||||||||||||||||
Software licenses | $ | 318 | $ | 396 | $ | 1,330 | $ | 1,274 | ||||||||
Maintenance and services | 2,324 | 2,397 | 6,680 | 7,194 | ||||||||||||
Total revenues | 2,642 | 2,793 | 8,010 | 8,468 | ||||||||||||
COST OF REVENUES: | ||||||||||||||||
Software licenses | 62 | 13 | 163 | 136 | ||||||||||||
Maintenance and services | 1,005 | 1,127 | 3,016 | 3,216 | ||||||||||||
Total cost of revenues | 1,067 | 1,140 | 3,179 | 3,352 | ||||||||||||
GROSS PROFIT | 1,575 | 1,653 | 4,831 | 5,116 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 286 | 245 | 865 | 765 | ||||||||||||
Selling and marketing | 670 | 718 | 2,116 | 2,250 | ||||||||||||
General and administrative | 449 | 447 | 1,366 | 1,363 | ||||||||||||
Total operating expenses | 1,405 | 1,410 | 4,347 | 4,378 | ||||||||||||
INCOME FROM OPERATIONS | 170 | 243 | 484 | 738 | ||||||||||||
FINANCIAL EXPENSES, net | 99 | 92 | 133 | 177 | ||||||||||||
NET INCOME | $ | 71 | $ | 151 | $ | 351 | $ | 561 | ||||||||
BASIC NET EARNINGS PER SHARE | $ | 0.02 | $ | 0.04 | $ | 0.11 | $ | 0.16 | ||||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTION OF BASIC NET EARNINGS PER SHARE | 3,215,346 | 3,523,185 | 3,174,072 | 3,443,962 | ||||||||||||
DILUTED NET EARNINGS PER SHARE | $ | 0.02 | $ | 0.04 | $ | 0.10 | $ | 0.15 | ||||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTION OF DILUTED NET EARNINGS PER SHARE | 3,578,982 | 3,921,358 | 3,537,708 | 3,861,693 | ||||||||||||