Exhibit 99.1
Unify Corporation Reports Second Quarter 2004 Results; Year over Year
Six Month Total Revenue Increases 10 Percent; Software License Revenues
Up 32 Percent
SACRAMENTO, Calif.--(BUSINESS WIRE)--Nov. 25, 2003--Unify
Corporation (OTCBB:UNFY) today announced financial results for the
second quarter of fiscal 2004 ended October 31, 2003.
Total revenues in the second quarter were $2.8 million, a four
percent decrease, compared to total revenues of $2.9 million for the
second quarter of fiscal 2003. Second quarter software license
revenues were $1.4 million, a five percent increase, compared to $1.3
million in the same period of last fiscal year.
GAAP net income for the second quarter was $61,000, or $0.00
earnings per share, compared to a net loss of ($85,000), or $(0.00)
loss per share in the second quarter of the prior year. Gross margin
for the quarter was 85 percent, compared to 87 percent in the second
quarter of last year. Non-GAAP net income for the second quarter was
$114,000, compared to a net loss of ($111,000) in the second quarter
of last year. Non-GAAP net income excludes severance charges,
write-down of the Company's investments and other special charges
(recoveries).
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss):
Quarter Quarter Six Months Six Months
Ended Ended ended ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2003 2002 2003 2002
GAAP Net Income (Loss) $61,000 ($85,000) ($83,000) ($370,000)
Adjustments :
Severance charges 200,000
Write-down of other
investments 175,000 20,000
Special Charges
(Recoveries) (1) 53,000 (26,000) 102,000 (132,000)
--------- ---------- --------- -----------
Non-GAAP Net Income
(Loss) $114,000 ($111,000) $394,000 ($482,000)
========= ========== ========= ===========
(1) Special charges (recoveries) related primarily
to litigation expenses
For the six-month period ended October 31, 2003, revenue totaled
$6.1 million, a 10 percent increase, compared to total revenues of
$5.6 million for the comparable period of fiscal 2003. On a
year-to-date basis, GAAP net loss in the first six months was
($83,000) or ($0.00) loss per share, compared to GAAP net loss of
($370,000) or ($0.02) loss per share for the first six months of last
year. On a Non-GAAP basis, net income for the first six months was
$394,000, compared to a Non-GAAP net loss of ($482,000) in the same
period of the prior year.
"For the first six months of this year, revenue is up 10 percent
and, more importantly, software license revenues, a primary indicator
of new sales activity, are up 32 percent," said Todd Wille president
and CEO of Unify. "One of the reasons sales are increasing is because
Unify NXJ is gaining traction in both domestic and international
markets. This past quarter we made a record number of Unify NXJ sales
for the quarter. This is particularly encouraging as we achieved this
improved sales momentum while transitioning an entirely new sales
management team and organizational structure, and orchestrating the
launch of Unify NXJ 10."
The Company ended the second quarter with $2.6 million in cash and
cash equivalents, compared to $2.5 million at the end of the first
quarter of fiscal 2004 and $2.2 million at the end of the second
quarter of fiscal 2003. Stockholders' equity at the end of the second
quarter was $1.6 million, compared with $1.5 million at the end of the
first quarter of fiscal 2004 and $899,000 at the end of the second
quarter of fiscal 2003.
During the second quarter, Unify:
-- Added several new customers including Anite Travel Systems
Ltd., Focus Health Care Management, Hali Technology and
Mauffrey.
-- Earned repeat business from long-standing customers including
Business Console Limited, Citra, Credit Lyonnais, Layher,
McCann Erickson, PFU Tokyo, Prime Clinical Systems, Inc.,
Scholastic Inc., Triple G Systems Group and Verizon
Communications.
-- Closed 17 Unify NXJ deals to five Independent Software Vendors
and 12 corporate IT organizations.
-- Brought the total number of Unify NXJ customers to 45 since
launching the product.
-- Hired a new sales director and two new sales representatives.
-- Attended the Gartner Symposium ITxpo for marketing and lead
generation of Unify NXJ.
Business Outlook
The Company affirms its previous guidance that it expects to grow
revenues 10 to 20 percent compared to fiscal year 2003.
Conference Call
Unify will hold its quarterly conference call, open to all
interested parties, on Nov. 25, 2003, beginning at 2 p.m. Pacific
Time. Listeners should dial 800-231-5571 prior to the start of the
conference call. The conference call will also be Webcast. Online
listeners should visit www.unify.com/investors prior to the start of
the call for login information. A replay of the conference call will
be available until Dec. 12, 2003 by dialing 877-519-4471 and entering
the pass code 4300988.
About Unify
Unify Corporation (OTCBB:UNFY), is a global enterprise software
company. Leveraging 23 years of software innovation to more than 2,000
customers and 300 ISV partners worldwide, Unify delivers the market's
only comprehensive, vendor-independent application platform that is
easy, powerful and open. With Unify solutions, customers are able to
deliver applications that significantly enhance revenue opportunities,
improve operational effectiveness and enrich customer relationships.
Customers include bioMerieux, Inc., Boeing, Credit Lyonnais, Citigroup
Inc., Fannie Mae, GlaxoSmithKline, Heineken, PCN, Travel Centers of
America, Triple G Systems Group and Wells Fargo. Founded in 1980,
Unify is headquartered in Sacramento, Calif., and has offices in the
UK and France, in addition to a worldwide network of distributors.
Visit Unify at 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 our 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 our SEC filings available for viewing
on its web site at "Investor Relations," "SEC filings" or from the SEC
at www.sec.gov.
Note to Editors: Trademarks
Unify is a registered trademark of Unify Corporation. Unify NXJ is
a trademark of Unify Corporation. Java, and J2EE are registered
trademarks of Sun Microsystems, Inc., in the United States and other
countries. Other brands or product names shown are trademarks of their
respective owners.
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, April 30,
2003 2003
Assets
Current assets:
Cash and cash equivalents $ 2,634 $ 3,030
Accounts receivable, net 2,353 2,504
Prepaid expense & other current assets 393 290
--------- ---------
Total current assets 5,380 5,824
Property and equipment, net 319 345
Other investments 214 392
Other assets 124 114
--------- ---------
Total assets $ 6,037 $ 6,675
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 625 $ 556
Current portion of long term debt 190 200
Other accrued liabilities 700 822
Accrued compensation and related expenses 634 652
Deferred revenue 2,193 2,936
--------- ---------
Total current liabilities 4,342 5,166
Long-term debt 46 0
Stockholders' equity:
Common stock 22 21
Paid in capital 59,461 59,339
Note receivable from stockholder 0 (60)
Accumulated other comprehensive loss (3) (43)
Accumulated deficit (57,831) (57,748)
--------- ---------
Total stockholders' equity 1,649 1,509
--------- ---------
Total liabilities and stockholders'
equity $ 6,037 $ 6,675
========= =========
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
October 31, October 31,
2003 2002 2003 2002
-------- --------- --------- --------
Revenues:
Software Licenses $ 1,406 $ 1,343 $ 3,242 $ 2,448
Services 1,398 1,588 2,863 3,121
-------- --------- --------- --------
Total revenues 2,804 2,931 6,105 5,569
-------- --------- --------- --------
Cost of Revenues:
Software licenses 101 66 187 134
Services 328 305 648 539
-------- --------- --------- --------
Total cost of revenues 429 371 835 673
Gross margin 2,375 2,560 5,270 4,896
-------- --------- --------- --------
Operating Expenses:
Product development 672 1,063 1,679 2,189
Selling, general and
administrative 1,580 1,611 3,384 3,182
Write-down of other
investments 0 0 175 20
Special charges
(recoveries) 53 (26) 102 (132)
-------- --------- --------- --------
Total operating expenses 2,305 2,648 5,340 5,259
-------- --------- --------- --------
Income (loss) from
operations 70 (88) (70) (363)
Other income (expense), net (1) 16 (3) 6
-------- --------- --------- --------
Income (loss) before
income taxes 69 (72) (73) (357)
Provision for income taxes 8 13 10 13
-------- --------- --------- --------
Net income (loss) $ 61 $ (85) $ (83) $ (370)
======== ========= ========= ========
Net income (loss) per
share:
Basic $ 0.00 $ (0.00) $ (0.00) $ (0.02)
Dilutive $ 0.00 $ (0.00) $ (0.00) $ (0.02)
Shares used in computing
net income (loss)
per share:
Basic 21,474 20,873 21,408 20,764
Dilutive 22,594 20,873 21,408 20,764
CONTACT: Unify Corporation
Deb Thornton, 916-928-6379
deb@unify.com