Exhibit 99.1
Unify Announces Third Quarter Fiscal 2006 Financial Results
SACRAMENTO, Calif.--(BUSINESS WIRE)--March 14, 2006--Unify Corp.
(OTCBB:UNFY) today announced financial results for its third quarter
of fiscal 2006 ended Jan. 31, 2006. In addition, Unify and HALO
Technology Holdings announced earlier today a definitive agreement for
HALO to acquire Unify (see press release, HALO Technology Holdings to
Acquire Unify Corp. for Approximately $21 Million, dated March 14,
2006).
Unify's total revenues in the third quarter of fiscal 2006 were
$2.4 million, compared to $3.0 million in the third quarter of fiscal
2005. Software licenses revenue was $1.0 million, compared to $1.5
million for the same quarter last fiscal year. Services revenue was
$1.4 million for the quarter, compared to $1.5 million for the same
quarter of the prior year. Net loss was $688,000 or $0.02 loss per
share, compared to a net loss of $651,000 or $0.02 loss per share in
the third quarter of fiscal 2005.
For the first nine months, total revenues were $7.8 million,
compared to $8.5 million for the comparable period last year. Year to
date net loss was $795,000 or $0.03 loss per share, compared to a net
loss of $1.8 million or $0.06 loss per share in nine months ended last
fiscal year.
Unify ended the third quarter with total cash and cash equivalents
of $2.7 million. Deferred revenue increased to $3.4 million from $3.2
million in the third quarter of fiscal 2005.
"We are disappointed that the investments we've been making to
grow the business have not yet paid off," said Todd Wille, CEO of
Unify. "We have made significant progress and continue to see
potential for growth in our three initiatives of NavRisk, Lotus Notes
migration solutions and our ViaMode driver performance software.
However, it has taken longer than we anticipated to ramp sales and
sign deals, and as a result, we had a disappointing revenue quarter."
Wille added, "We are excited about the merger we announced today
with HALO. The acquisition is highly complementary to Unify by giving
us access to greater resources, cross selling opportunities among a
larger installed base of customers and eliminating the operating costs
of being a publicly traded company. Additionally, HALO's acquisition
strategy will enable Unify to more rapidly execute on growth
initiatives, particularly within the Insurance Risk Management
market."
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 March 22, 200 by dialing
877-519-4471 and entering the passcode 7075757.
About Unify Corporation
Unify provides business automation solutions including specialty
insurance risk management and driver performance applications. 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 is a registered trademark Unify Corporation. All other
trademarks and registered trademarks are the properties of their
respective owners.
UNIFY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, April 30,
2006 2005
----------- ---------
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $2,729 $3,675
Accounts receivable, net 2,674 2,611
Prepaid expenses & other current assets 502 656
Contracts in progress 116 --
----------- ---------
Total current assets 6,021 6,942
Property and equipment, net 301 429
Other investments 214 214
Goodwill and intangible assets, net 1,648 1,739
Other assets, net 198 166
----------- ---------
Total assets $8,382 $9,490
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 161 $ 739
Short-term borrowings and current portion of
long-term debt 812 166
Other accrued liabilities 724 1,336
Accrued compensation and related expenses 598 721
Deferred revenue 3,365 3,220
----------- ---------
Total current liabilities 5,660 6,182
Other long-term liabilities 700 741
Commitments and contingencies -- --
Stockholders' equity:
Common stock 29 28
Additional paid-in capital 63,886 63,588
Accumulated other comprehensive income 24 73
Accumulated deficit (61,917) (61,122)
----------- ---------
Total stockholders' equity 2,022 2,567
----------- ---------
Total liabilities and stockholders' equity $8,382 $9,490
=========== =========
UNIFY CORPORATION
UNAUDITED CONSENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Nine Months
Ended Ended
January 31, January 31,
--------------- ----------------
2006 2005 2006 2005
------- ------- ------- --------
Revenues:
Software licenses $1,029 $1,469 $3,444 $3,934
Services 1,393 1,518 4,365 4,596
------- ------- ------- --------
Total revenues 2,422 2,987 7,809 8,530
------- ------- ------- --------
Cost of Revenues:
Software licenses 95 96 355 264
Services 634 351 1,359 1,077
------- ------- ------- --------
Total cost of revenues 729 447 1,714 1,341
------- ------- ------- --------
Gross profit 1,693 2,540 6,095 7,189
------- ------- ------- --------
Operating Expenses:
Product development 755 678 2,068 2,110
Selling, general and administrative 1,641 2,544 4,846 6,866
------- ------- ------- --------
Total operating expenses 2,396 3,222 6,914 8,976
------- ------- ------- --------
Loss from operations (703) (682) (819) (1,787)
Other income, net 15 34 24 35
------- ------- ------- --------
Loss before income taxes (688) (648) (795) (1,752)
Provision for income taxes -- 3 -- 7
------- ------- ------- --------
Net loss $(688) $(651) $(795) $(1,759)
======= ======= ======= ========
Net loss per share:
Basic $(0.02) $(0.02) $(0.03) $(0.06)
Dilutive $(0.02) $(0.02) $(0.03) $(0.06)
Shares used in computing net loss per
share:
Basic 29,148 27,692 29,065 27,606
Dilutive 29,148 27,692 29,065 27,606
CONTACT: Unify Corporation
Deb Thornton, 916-928-6379
deb@unify.com