Exhibit 99.1
Unify Reports Second Quarter Fiscal 2006 Profit
SACRAMENTO, Calif.--(BUSINESS WIRE)--Nov. 29, 2005--Unify Corp.
(OTCBB:UNFY) today announced financial results for its second quarter
of fiscal 2006 ended Oct. 31, 2005. For the quarter, Unify achieved a
$5,000 profit, its first quarterly profit since the second quarter of
fiscal 2004.
Total revenues in the second quarter of fiscal 2006 were $2.7
million, a four percent decrease, compared to $2.8 million in the
second quarter of fiscal 2005. Software licenses revenue was $1.2
million, an eight percent decrease, compared to $1.3 million for the
same quarter last fiscal year. Net income was $5,000 or $0.00 earnings
per basic and diluted share, compared to a net loss of $634,000 or
$0.02 loss per share in the second quarter of fiscal 2005.
For the first six months, total revenues were $5.4 million, a two
percent decrease compared to $5.5 million for the comparable period
last year. Year to date net loss was $107,000 or $0.00 loss per share,
compared to a net loss of $1.1 million or $0.04 loss per share in six
months ended last fiscal year.
Unify ended the second quarter with total cash and cash
equivalents of $3.2 million and stockholders' equity of $2.6 million.
"While our second quarter revenue results were less than expected,
we were pleased with our discipline on the expense side which enabled
us to generate a profit for the quarter," said Todd Wille, president
and CEO of Unify. "Going forward we are committed to strategically
investing in those areas that will drive bookings and revenue growth
for the Insurance Risk Management division and securing key technology
partnerships for our Unify NXJ platform."
"We were pleased with the industry recognition we receive with our
NavRisk product," added Wille. "NavRisk was named a finalist in the
industry-leading A.M. Best's E-Fusion Awards competition for
underwriting solutions. This industry accolade adds validation to the
momentum we're seeing with NavRisk with year-to-date bookings of
$910,000 and tracking to reach our target of $2 million for the year."
Conference Call
Unify's quarterly conference call begins at 1:30 Pacific Time
today and is open to all interested parties. Listeners should dial
800-683-1575 prior to the start of the conference call. The conference
call will also be Webcast. Online listeners should visit www.unify.com
prior to the start of the call for login information. A replay of the
conference call will be available until Dec. 9, 2005 by dialing
877-519-4471 and entering the passcode 6700648.
About Unify Corporation
Unify provides business process automation solutions, including
market leading applications for specialty markets within the
alternative insurance risk management 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 insurance industry, 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, April 30,
2005 2005
----------- -----------
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,223 $ 3,675
Accounts receivable, net 1,861 2,611
Prepaid expenses & other current assets 406 656
Contracts in progress 205 --
----------- -----------
Total current assets 5,695 6,942
Property and equipment, net 347 429
Other investments 214 214
Goodwill and intangible assets, net 1,678 1,739
Other assets, net 190 166
----------- -----------
Total assets $ 8,124 $ 9,490
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 418 $ 739
Short-term borrowings and current portion of
long-term debt 800 166
Other accrued liabilities 705 1,336
Accrued compensation and related expenses 608 721
Deferred revenue 2,298 3,220
----------- -----------
Total current liabilities 4,829 6,182
Other long-term liabilities 703 741
Commitments and contingencies -- --
Stockholders' equity:
Common stock 29 28
Additional paid-in capital 63,766 63,588
Accumulated other comprehensive income 26 73
Accumulated deficit (61,229) (61,122)
----------- -----------
Total stockholders' equity 2,592 2,567
----------- -----------
Total liabilities and stockholders' equity $ 8,124 $ 9,490
=========== ===========
UNIFY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
October 31, October 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues:
Software licenses $ 1,246 $ 1,301 $ 2,415 $ 2,465
Services 1,415 1,509 2,972 3,078
--------- --------- --------- ---------
Total revenues 2,661 2,810 5,387 5,543
--------- --------- --------- ---------
Cost of Revenues:
Software licenses 121 85 260 168
Services 398 362 725 726
--------- --------- --------- ---------
Total cost of revenues 519 447 985 894
--------- --------- --------- ---------
Gross profit 2,142 2,363 4,402 4,649
--------- --------- --------- ---------
Operating Expenses:
Product development 612 743 1,313 1,432
Selling, general and
administrative 1,539 2,261 3,204 4,322
--------- --------- --------- ---------
Total operating expenses 2,151 3,004 4,517 5,754
--------- --------- --------- ---------
Loss from operations (9) (641) (115) (1,105)
Other income, net 14 17 8 1
--------- --------- --------- ---------
Income (loss) before income
taxes 5 (624) (107) (1,104)
Provision for income taxes -- 10 -- 4
--------- --------- --------- ---------
Net income (loss) $ 5 $ (634) $ (107) $(1,108)
========= ========= ========= =========
Net income (loss) per share:
Basic $ 0.00 $ (0.02) $ 0.00 $ (0.04)
Dilutive $ 0.00 $ (0.02) $ 0.00 $ (0.04)
Shares used in computing net
income (loss) per share:
Basic 28,851 27,629 28,736 27,576
Dilutive 29,218 27,629 28,736 27,576
CONTACT: Unify Corporation
Deb Thornton, 916-928-6379
deb@unify.com