Exhibit 99.1
Unify Announces Fourth Quarter and Fiscal Year 2005 Results
SACRAMENTO, Calif., Jun 14, 2005 (BUSINESS WIRE) — Unify Corp. (OTCBB:UNFY), a leading provider of business process automation solutions including specialty vertical applications today announced financial results for the fourth quarter and fiscal year ended April 30, 2005.
Fourth quarter total revenue was $2.8 million, compared to $3.2 million in the fourth quarter of the prior year. Software licenses revenue was $1.3 million, compared to $1.7 million for the prior year comparative period.
Under U.S. generally accepted accounting principals (GAAP), the Company’s net loss for the fourth quarter was $948,000, or $0.03 loss per share, compared to a $457,000 net loss or $0.02 loss per share in the comparable period last year. Excluding certain charges that are contained in the reconciliation of GAAP net loss to non-GAAP net loss table below, pro forma net loss for the quarter was $448,000, compared to a $457,000 net loss in the comparable period last year.
For the fiscal year ended April 30, 2005, total revenue was $11.3 million, compared to $11.9 million in the prior fiscal year. Software licenses revenue for the year was $5.2 million, compared to $6.1 million in fiscal 2004. On a GAAP basis, net loss for the year was $2.7 million or $0.10 loss per share, compared to a $1.0 million loss or $0.05 loss per share in the prior year. Excluding certain charges that are contained in the reconciliation of GAAP net loss to non-GAAP net loss table below, pro forma net loss for the year was $1.5 million, compared to $525,000 in the same period last year.
The Company ended fiscal 2005 with cash and cash equivalents of $3.7 million, compared to $6.6 million at April 30, 2004.
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss:
| | Quarter
Ended
April 30,
2005 | | Quarter
Ended
April 30,
2004 | | Twelve
Months
Ended
April 30,
2005 | | Twelve
Months
Ended
April 30,
2004 | |
| | | | | | | | | |
GAAP Net Loss | | $ | (948,000 | ) | $ | (457,000 | ) | $ | (2,706,000 | ) | $ | (1,010,000 | ) |
| | | | | | | | | |
Adjustments: | | | | | | | | | |
Severance & Restructuring Charges | | 150,000 | | | | 850,000 | | 200,000 | |
Acquisition Related Expenses | | 200,000 | | | | 330,000 | | | |
Earn out and Amortization | | 150,000 | | | | 150,000 | | | |
Write-down of Other Investments | | | | | | | | 175,000 | |
Special Charges (Recoveries) (1) | | | | | | (150,000 | ) | 110,000 | |
| | | | | | | | | |
Non-GAAP Net Loss | | $ | (448,000 | ) | $ | (457,000 | ) | $ | (1,526,000 | ) | $ | (525,000 | ) |
(1) Special charges (recoveries) related primarily to litigation Expenses
“Fiscal 2005 was a year of positive developments as well as disappointments for Unify,” said Todd Wille, president and CEO. “A year ago we were well into execution of a strategy focused solely on Unify NXJ as the growth engine for the company. But we quickly learned that selling NXJ into horizontal markets didn’t scale. Businesses instead were requiring solutions to specific problems, rather than technology. We rapidly made the adjustment to a vertical market strategy that leveraged NXJ in specialty niche solutions.”
“We’re pleased with the successful acquisition and integration of Acuitrek during the quarter that enabled us to leapfrog into a new market with our comprehensive NavRisk application and solid customer base,” added Wille. “During the fourth quarter, we generated more than $400,000 in new NavRisk contract bookings, which will convert to revenue in the second quarter of fiscal 2006. Additionally, we generated more than $250,000 in contract bookings for ViaMode, our transportation labor management application that will convert to revenue over the next two quarters, further solidifying our solutions focus.”
“Our planned revenue growth in fiscal 2006 will be driven from our four customer segments, consisting of our enterprise installed base, NXJ customers, and new NavRisk and ViaMode customer wins. With the significant reductions in our cost structure during fiscal 2005 and reduced discretionary spending for fiscal 2006, we expect to be profitable in the second half of the year,” concluded Wille.
Conference Call
Unify will hold its conference call on June 14, 2005, beginning at 2 p.m. Pacific Time. Listeners should dial 800-938-0653 prior to the start of the conference call. The conference call will also be Webcast. Online listeners can visit the investor relations section at www.unify.com prior to the start of the call for login information. A replay of the conference call will be available until June 30, 2005 by dialing 877-519-4471 and entering the passcode 6080028.
About Unify
Unify (OTCBB:UNFY) provides business process automation solutions, including market leading applications for specialty markets within the insurance and transportation industries. Unify’s solutions deliver a broad set of capabilities for automating business processes, integrating existing information systems and delivering collaborative information. Through its industry expertise and market leading technologies, Unify helps organizations drive business optimization, apply governance and increase customer service. Unify is headquartered in Sacramento, Calif. with offices in London and Paris, and a worldwide network of global distributors. Contact Unify at 916-928-6400 or visit www.unify.com.
This press release contains “forward-looking statements” as that term is defined in Section 21E of the Securities Exchange Act of 1934 as amended. Forward looking statements are denoted by words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, and other variations of such words and similar expressions are intended to identify such forward-looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the Company’s forward looking statements. Such risks and uncertainties include, but are not limited to general economic conditions in the computer and software industries, domestically and worldwide, the Company’s ability to keep up with technological innovations in relation to its competitors, product defects or delays, developments in the Company’s relationships with its customers, distributors and suppliers, changes in pricing policies of the Company or its competitors and the Company’s ability to attract and retain employees in key positions. In addition, Unify’s forward looking statements should be considered in the context of other risks and uncertainties discussed in the Company’s SEC filings available for viewing on its web site at “Investor Relations,” “SEC filings” or from the SEC at www.sec.gov.
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| | April 30,
2005 | | April 30,
2004 | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 3,675 | | $ | 6,606 | |
Accounts receivable, net | | 2,611 | | 2,848 | |
Prepaid expense & other current assets | | 656 | | 543 | |
Total current assets | | 6,942 | | 9,997 | |
| | | | | |
Property and equipment, net | | 429 | | 338 | |
Other investments | | 214 | | 214 | |
Deferred royalty expense | | 425 | | | |
Intangible assets | | 970 | | | |
Other assets | | 166 | | 194 | |
Total assets | | $ | 9,147 | | $ | 10,743 | |
| | | | | |
Liabilities and Stockholders’ Equity | | | | | |
Current liabilities: | | | | | |
Line of credit | | $ | — | | $ | — | |
Current portion of long term debt | | 166 | | 146 | |
Account payable | | 739 | | 523 | |
Other accrued liabilities | | 1,336 | | 1,340 | |
Accrued compensation and related expenses | | 721 | | 812 | |
Deferred revenue | | 3,220 | | 3,360 | |
Total current liabilities | | 6,182 | | 6,181 | |
| | | | | |
Long term royalty payable | | 514 | | | |
Long term support obligations | | 123 | | | |
Other long term liabilities | | 103 | | 70 | |
Total long term liabilities | | 740 | | 70 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity: | | | | | |
Common stock | | 38 | | 27 | |
Additional paid in capital | | 63,578 | | 63,205 | |
Accumulated other comprehensive loss | | 73 | | 18 | |
Accumulated deficit | | (61,465 | ) | (58,758 | ) |
Total stockholders’ equity | | 2,224 | | 4,492 | |
Total liabilities and stockholders’ equity | | $ | 9,147 | | $ | 10,743 | |
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| | Three Months
Ended April 30, | | Twelve Months
Ended April 30, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Revenues: | | | | | | | | | |
Software Licenses | | $ | 1,255 | | $ | 1,684 | | $ | 5,205 | | $ | 6,111 | |
Services | | 1,518 | | 1,492 | | 6,098 | | 5,814 | |
Total revenues | | 2,773 | | 3,176 | | 11,303 | | 11,925 | |
| | | | | | | | | |
Cost of Revenues: | | | | | | | | | |
Software licenses | | 81 | | 182 | | 345 | | 595 | |
Services | | 249 | | 349 | | 1,326 | | 1,299 | |
Total cost of revenues | | 330 | | 531 | | 1,671 | | 1,894 | |
| | | | | | | | | |
Gross profit | | 2,443 | | 2,645 | | 9,632 | | 10,031 | |
| | | | | | | | | |
Operating Expenses: | | | | | | | | | |
Product development | | 704 | | 699 | | 2,814 | | 2,996 | |
Selling, general and administrative | | 2,694 | | 2,386 | | 9,560 | | 7,840 | |
Write-down of other investments | | — | | — | | — | | 175 | |
Total operating expenses | | 3,398 | | 3,085 | | 12,374 | | 11,011 | |
| | | | | | | | | |
Loss from operations | | (956 | ) | (440 | ) | (2,742 | ) | (980 | ) |
Other income (expense), net | | 9 | | (20 | ) | 44 | | (27 | ) |
Loss before income taxes | | (947 | ) | (460 | ) | (2,698 | ) | (1,007 | ) |
Provision (recovery) for income taxes | | 1 | | (3 | ) | 8 | | 3 | |
Net loss | | $ | (948 | ) | $ | (457 | ) | $ | (2,706 | ) | $ | (1,010 | ) |
| | | | | | | | | |
Net loss per share: | | | | | | | | | |
Basic | | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.05 | ) |
Dilutive | | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.05 | ) |
Shares used in computing net loss per share: | | | | | | | | | |
Basic | | 28,287 | | 21,821 | | 28,145 | | 21,558 | |
Dilutive | | 29,188 | | 21,821 | | 29,169 | | 21,558 | |
