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 February, 2013
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): ¨
Attached asExhibit 99.1 hereto is a copy of the registrant’s press release dated February 28, 2013, entitled “VIRYANET REPORTS FOURTH QUARTER AND YEAR-END 2012 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: | President and Chief Executive Officer | |
Date: February 28, 2013
Exhibit Index
Exhibit | Description | |
| 99.1 | Press release issued by the registrant on February 28, 2013, entitled “VIRYANET REPORTS FOURTH QUARTER AND YEAR-END 2012 RESULTS”. | |
Exhibit 99.1
ViryaNet Reports Fourth Quarter and Year-End 2012 Results
Record Annual Net Income, Annual and Quarterly Revenues Up 11% Year-Over-Year
WESTBOROUGH, MA, February 28, 2013 -ViryaNet Limited (VRYAF), a leading provider of software solutions that optimize and allow for the continuous improvement of service processes for mobile workforces, announced financial results for the fourth quarter and year-end of 2012.
For the quarter ended December 31, 2012, ViryaNet reported total revenues of $2.9 million, an 11.6% increase compared to the same period in 2011. Licenses revenues increased by 58.6%, from $0.3 million in the fourth quarter of 2011 to $0.5 million in the fourth quarter of 2012. Maintenance and services revenues increased by 5.1%, to $2.4 million in the fourth quarter of 2012 compared to $2.3 million in the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $369,000, or $0.09 basic and diluted earnings per share, compared to net income of $309,000, or $0.08 basic and diluted earnings per share, for the same period in 2011.
ViryaNet reported total revenues of $10.7 million for the fiscal year ended December 31, 2012, a 10.8% increase compared to 2011. ViryaNet reported a record net income of $911,000, or $0.23 basic and $0.21 diluted earnings per share, for 2012, compared to net loss of $219,000, or $0.06 basic and diluted loss per share, for 2011.
ViryaNet’s short and long-term bank debt balance was reduced during 2012, from $1.6 million on December 31, 2011 to $1.3 million on December 31, 2012. Cash and cash equivalents were $0.3 million on December 31, 2012, compared to $0.1 million on December 31, 2011. The Days Sales Outstanding (DSO) for ViryaNet in the fourth quarter of 2012 was 21 days.
The financial results for the fourth quarter and full year 2012 are disclosed in the attached tables.
“The fourth quarter was a strong quarter financially, a culmination of our strategy of focusing on an exceptional user experience and measurable business value for customers. The quarter was also productive in terms of building for the future,” said Memy Ish-Shalom, President and CEO, ViryaNet. “The robustness of our products and services and the capabilities of our partners continue to strengthen our position and will allow us to sustain our growth over the long term. This momentum was well reflected in the fourth quarter, in which we were awarded the business of 5 new customers in North America, EMEA and South America through our partners and direct sales.”
About ViryaNet
ViryaNet delivers mobile 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 Management™, 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, and North America’s largest auto insurer as customers. ViryaNet has strong partnerships with leading platform and system integration companies that enable it to have a global presence. Headquartered in Westborough, MA, ViryaNet has additional offices in the United States and Israel. For more information visit ourwebsite, follow us ontwitter, or call us: 800-661-7096.
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 as of the date hereof, and ViryaNet 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 ViryaNet’s products, risks associated with a slow-down in the economy, risks associated with the financial condition of ViryaNet’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 annual report on Form 20-F, filed on May 14, 2012, 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 its 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.
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Press Contact:
Dolores Fallon
ViryaNet, Ltd
508-490-8600, ext 5917
Dolores.Fallon@viryanet.com
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
| December 31, 2011 | December 31, 2012 | |||||||
| Audited | Unaudited | |||||||
| Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 104 | $ | 335 | ||||
Restricted cash deposits | 140 | 164 | ||||||
Trade receivables | 878 | 682 | ||||||
Other accounts receivable and prepaid expenses | 271 | 216 | ||||||
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Total current assets | 1,393 | 1,397 | ||||||
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NON-CURRENT ASSETS: | ||||||||
Severance pay fund | 1,001 | 1,044 | ||||||
Long-term receivable | 183 | 125 | ||||||
Other | 25 | 38 | ||||||
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Total non-current assets | 1,209 | 1,207 | ||||||
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PROPERTY AND EQUIPMENT, net | 93 | 70 | ||||||
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GOODWILL | 6,516 | 6,516 | ||||||
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Total assets | $ | 9,211 | $ | 9,190 | ||||
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VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
| December 31, 2011 | December 31, 2012 | |||||||
| Audited | Unaudited | |||||||
| Liabilities and shareholders’ equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit | $ | 115 | $ | 160 | ||||
Current maturities of long-term bank loans | 498 | 646 | ||||||
Trade payables | 717 | 360 | ||||||
Deferred revenues | 2,587 | 2,809 | ||||||
Convertible debt | — | 352 | ||||||
Other accounts payable and accrued expenses | 2,004 | 1,388 | ||||||
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Total current liabilities | 5,921 | 5,715 | ||||||
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LONG-TERM LIABILITIES: | ||||||||
Long-term bank loan, net of current maturities | 1,001 | 497 | ||||||
Convertible debt | 502 | — | ||||||
Long-term deferred revenues | — | 232 | ||||||
Long-term deferred rent payable | 82 | 70 | ||||||
Accrued severance pay | 1,435 | 1,374 | ||||||
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Total long-term liabilities | 3,020 | 2,173 | ||||||
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SHAREHOLDERS’ EQUITY: | ||||||||
Share capital | 4,655 | 4,817 | ||||||
Additional paid-in capital | 116,338 | 116,297 | ||||||
Accumulated deficit | (120,723 | ) | (119,812 | ) | ||||
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Total shareholders’ equity | 270 | 1,302 | ||||||
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Total liabilities and shareholders’ equity | $ | 9,211 | $ | 9,190 | ||||
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VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
| Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| Unaudited | Unaudited | Audited | Unaudited | |||||||||||||
Revenues: | ||||||||||||||||
Software licenses | $ | 319 | $ | 506 | $ | 1,549 | $ | 1,154 | ||||||||
Maintenance and services | 2,309 | 2,427 | 8,122 | 9,559 | ||||||||||||
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Total revenues | 2,628 | 2,933 | 9,671 | 10,713 | ||||||||||||
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Cost of revenues: | ||||||||||||||||
Software licenses | 19 | 56 | 56 | 122 | ||||||||||||
Maintenance and services | 872 | 1,058 | 3,513 | 4,101 | ||||||||||||
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Total cost of revenues | 891 | 1,114 | 3,569 | 4,223 | ||||||||||||
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Gross profit | 1,737 | 1,819 | 6,102 | 6,490 | ||||||||||||
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Operating expenses: | ||||||||||||||||
Research and development | 306 | 244 | 1,614 | 1.100 | ||||||||||||
Selling and marketing | 761 | 629 | 2,847 | 2,650 | ||||||||||||
General and administrative | 478 | 472 | 1,708 | 1,606 | ||||||||||||
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Total operating expenses | 1,545 | 1,345 | 6,169 | 5,356 | ||||||||||||
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Income (loss) from operations | 192 | 474 | (67 | ) | 1,134 | |||||||||||
Financial income (expenses), net | (38 | ) | (97 | ) | (129 | ) | (196 | ) | ||||||||
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Income (loss) from continuing operations before taxes | 154 | 377 | (196 | ) | 938 | |||||||||||
Taxes on income | — | 8 | 9 | 27 | ||||||||||||
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Income (loss) from continuing operations | $ | 154 | $ | 369 | $ | (205 | ) | $ | 911 | |||||||
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Net income (loss) from discontinued operations | 155 | — | (14 | ) | — | |||||||||||
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Net income (loss) | $ | 309 | $ | 369 | $ | (219 | ) | $ | 911 | |||||||
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Basic income (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.04 | $ | 0.09 | $ | (0.06 | ) | $ | 0.23 | |||||||
Discontinued operations | 0.04 | — | 0.00 | — | ||||||||||||
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Net income (loss) | $ | 0.08 | $ | 0.09 | $ | (0.06 | ) | $ | 0.23 | |||||||
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Diluted income (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.04 | $ | 0.09 | $ | (0.06 | ) | $ | 0.21 | |||||||
Discontinued operations | 0.04 | — | 0.00 | — | ||||||||||||
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Net income (loss) | $ | 0.08 | $ | 0.09 | $ | (0.06 | ) | $ | 0.21 | |||||||
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Weighted average number of shares used in computation of basic income (loss) per share | 3,738,898 | 3,899,611 | 3,671,547 | 3,896,018 | ||||||||||||
Weighted average number of shares used in computation of diluted income (loss) per share | 4,128,584 | 4,314,593 | 3,671,547 | 4,279,961 | ||||||||||||