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 June, 2011
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 June 1, 2011, entitled “VIRYANET REPORTS RESULTS FOR THE FIRST FISCAL QUARTER OF 2011”.
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: June 1, 2011
Exhibit Index
Exhibit | Description | |
| 99.1 | Press release issued by the registrant on June 1, 2011, entitled “VIRYANET REPORTS RESULTS FOR THE FIRST FISCAL QUARTER OF 2011”. | |
VIRYANET REPORTS RESULTS FOR THE FIRST FISCAL QUARTER OF 2011
Southborough, MA, June 1, 2011 - ViryaNet Limited (OTCQB: VRYAF) (“ViryaNet” or the “Company”), a leading provider of software solutions that optimize the planning, execution & monitoring of service processes for mobile field service workforces, announced today its financial results for the first quarter of 2011.
ViryaNet reported revenues of $2.5 million for the quarter ended March 31, 2011, an 8.5% decrease compared to the same period in 2010. Loss from operations for the first quarter of 2011 was $183,000, compared to income from operations in the corresponding period in 2010 of $93,000. Net loss for the first quarter of 2011 was $245,000, or basic and diluted loss per share of $0.07, compared to net income of $32,000, or basic and diluted earnings per share of $0.01 for the corresponding period in 2010. Software license revenues for the first quarter of 2011 were $240,000, compared to $277,000 recorded in the first quarter of 2010. Maintenance and services revenues were $2.3 million in the first quarter of 2011, reflecting a decrease relative to $2.5 million in the first quarter of 2010.
The Company’s cash balances on March 31, 2011 were $132,000, compared to $97,000 on December 31, 2010. The Company’s short-term and long-term bank debt balance was reduced, from $1.4 million on December 31, 2010 to $1.3 million on March 31, 2011. During 2010, the Company received from Bank Hapoalim a waiver of the Company’s bank covenants for fiscal year 2010 and for the first quarter of 2011. The Company intends to request from the bank an extension of this waiver through the end of 2011.
The Days Sales Outstanding (DSO) for the Company in the first quarter of 2011 was 31 days.
“After eight consecutive profitable quarters, we are disappointed not to achieve net income in the first quarter of 2011” stated Memy Ish-Shalom, Chief Executive Officer. “In the first quarter of 2011, we have experienced delays in decision making by customers, for the majority of the Q1 deals we worked on. We will continue to pursue these deals in the coming quarters. In addition, we have increased our sales and marketing investments as well as made a few organizational changes that we expect will help us to close the gap opened in the first quarter of 2011.”
About ViryaNet
ViryaNet deliversmobile workforce management solutions that intelligently guide, automate, and optimize both simple and complex field service work, resulting in measurable business benefits. ViryaNet’s products, pre-packaged solutions and people are recognized within the industry as innovative which in turn enables its’ customers to be viewed as leaders within their respective industries.ViryaNet’s G4 products specialize in the functions of scheduling and dispatching resources and enabling mobile field communication and are delivered in industry specific configurations. Embedding industry best practices and utilizing innovative technologies like ViryaNet’s BPM Blueprint for Mobile Workforce ManagementTM, Microsoft InfoPath® and device agnostic mobile solutions enable ViryaNet’s products to be rapidly deployed and extended to support virtually any business process across a wide range of industries. ViryaNet is proud to call many of the world’s leading utilities, the United States’ largest pure rural telecommunications firm, the supermarkets most respected retailer, North America’s largest auto insurer and 5 of the top 10 Australian water utilities ascustomers. ViryaNet has strong partnerships with leading platform and system integration companies that enable it to have a global presence. Headquartered in Southborough, MA, ViryaNet has additional offices in the United States, Israel and Australia. For more information visit ourwebsite, ourblog, or follow us ontwitter.
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 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, filed on July 15, 2010, and the other reports filed by ViryaNet 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:
Aviram Hinenzon
ViryaNet, Ltd
508-490-8600, ext 3025
Aviram.Hinenzon@viryanet.com
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| December 31, 2010 | March 31, 2011 | |||||||
Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 97 | $ | 132 | ||||
Trade receivables | 1,066 | 849 | ||||||
Other accounts receivable and prepaid expenses | 200 | 146 | ||||||
Total current assets | 1,363 | 1,127 | ||||||
NON-CURRENT ASSETS: | ||||||||
Severance pay fund | 1,018 | 1,062 | ||||||
Other | 20 | 27 | ||||||
Total non-current assets | 1,038 | 1,089 | ||||||
PROPERTY AND EQUIPMENT,net | 106 | 97 | ||||||
GOODWILL | 7,253 | 7,265 | ||||||
Total assets | $ | 9,760 | $ | 9,578 | ||||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| December 31, 2010 | March 31, 2011 | |||||||
Liabilities and shareholders’ equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit | $ | 288 | $ | 329 | ||||
Current maturities of long-term bank loans | 500 | 500 | ||||||
Trade payables | 386 | 449 | ||||||
Deferred revenues | 3,356 | 3,393 | ||||||
Other accounts payable and accrued expenses | 1,872 | 1,993 | ||||||
Convertible debt | 517 | 513 | ||||||
Loan from related party | 79 | 79 | ||||||
Total current liabilities | 6,998 | 7,256 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term bank loan, net of current maturities | 589 | 464 | ||||||
Long-term deferred revenues | 317 | 175 | ||||||
Accrued severance pay | 1,499 | 1,546 | ||||||
Total long-term liabilities | 2,405 | 2,185 | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Share capital | 4,350 | 4,429 | ||||||
Additional paid-in capital | 116,456 | 116,397 | ||||||
Accumulated other comprehensive income | 55 | 60 | ||||||
Accumulated deficit | (120,504 | ) | (120,749 | ) | ||||
Total shareholders’ equity | 357 | 137 | ||||||
Total liabilities and shareholders’ equity | $ | 9,760 | $ | 9,578 | ||||
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
| Three months ended March 31 | ||||||||
| 2010 | 2011 | |||||||
REVENUES: | ||||||||
Software licenses | $ | 277 | $ | 240 | ||||
Maintenance and services | 2,468 | 2,272 | ||||||
Total revenues | 2,745 | 2,512 | ||||||
COST OF REVENUES: | ||||||||
Software licenses | 54 | 19 | ||||||
Maintenance and services | 1,064 | 1,032 | ||||||
Total cost of revenues | 1,118 | 1,051 | ||||||
GROSS PROFIT | 1,627 | 1,461 | ||||||
OPERATING EXPENSES: | ||||||||
Research and development | 307 | 495 | ||||||
Selling and marketing | 766 | 686 | ||||||
General and administrative | 461 | 463 | ||||||
Total operating expenses | 1,534 | 1,644 | ||||||
INCOME (LOSS) FROM OPERATIONS | 93 | (183 | ) | |||||
FINANCIAL INCOME (EXPENSES), net | (61 | ) | (62 | ) | ||||
NET INCOME (LOSS) | $ | 32 | $ | (245 | ) | |||
BASIS NET EARNINGS (LOSS) PER SHARE | $ | 0.01 | $ | (0.07 | ) | |||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTING BASIC NET EARNINGS (LOSS) PER SHARE | 3,351,973 | 3,592,739 | ||||||
DILUTED NET EARNINGS (LOSS) PER SHARE | $ | 0.01 | $ | (0.07 | ) | |||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTING DILUTED NET EARNINGS (LOSS) PER SHARE | 3,792,878 | 3,592,739 | ||||||