Exhibit 99.1
Unify Announces Fourth Quarter and Fiscal Year 2006 Financial Results
SACRAMENTO, Calif.--(BUSINESS WIRE)--July 28, 2006--Unify Corp.
(OTCBB:UNFY), a leading provider of business automation solutions
including specialty vertical applications, today announced financial
results for the fourth quarter and fiscal year ended April 30, 2006.
Fourth quarter total revenue was $3.4 million, compared to $2.8
million in the fourth quarter of the prior year. Software licenses
revenue was $2.1 million, compared to $1.3 million for the prior year
comparative period.
Net income for the fourth quarter was $168,000 or $0.01 earnings
per share, compared to a net loss of $605,000, or $0.02 loss per share
in the comparable period last year.
For the fiscal year ended April 30, 2006, total revenue was $11.2
million, compared to $11.3 million in the prior fiscal year. Software
licenses revenue for the year was $5.5 million, compared to $5.2
million in fiscal 2005. Net loss for the year was $628,000 or $0.02
loss per share, compared to a loss of $2.4 million or $0.09 loss per
share in the prior year.
The Company ended fiscal 2006 with cash and cash equivalents of
$1.9 million, compared to $3.7 million at April 30, 2005.
"Throughout fiscal 2006 we developed and maintained strong and
loyal relationships with our new and existing customers and we
continued to deliver product innovations with the launch of Unify NXJ
Composer, NavRisk Portal and NavRisk Benefits," said Todd Wille, CEO
of Unify. "Our heritage of customer satisfaction coupled with our
technology expertise will serve as the launching pad into a new era as
we prepare for the merger with HALO Technology Holdings.
"Once the merger is completed, joining forces with HALO will
provide Unify with the opportunity to extend our product offerings,
leverage synergistic, complementary customer bases, enhance an already
strong global presence, and save significant overhead costs. We look
forward to adding customers, growing revenues and expanding our
products as part of the HALO portfolio of companies."
About Unify Corporation
Unify provides business automation solutions including specialty
insurance risk management 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.
Legal Notice Regarding Forward-Looking Statements
Unify Legal Notice: 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, the Company's
ability to attract and retain employees in key positions and the risks
and uncertainties associated with a merger of two companies. 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.
Additional Information Relating to the Merger and Where to Find It
HALO and Unify will file a definitive prospectus/proxy statement
with the SEC in connection with the proposed transaction. Investors
are urged to read any such prospectus/proxy statement, when available,
which will contain important information. The prospectus/proxy
statement will be, and other documents filed by HALO and Unify with
the SEC are, available free of charge at the SEC's website
(www.sec.gov) or from HALO by directing a request to Investor
Relations at HALO Technology Holdings, 200 Railroad Ave., Greenwich,
CT 06830, 203-422-2950 or from Unify Corporation's Web site at
www.unify.com. Neither this communication nor the prospectus/proxy
statement, when available, will constitute an offer to issue HALO
common stock in any jurisdiction outside the United States where such
offer or issuance would be prohibited -- such an offer or issuance
will only be made in accordance with the applicable laws of such
jurisdiction.
HALO, Unify and their respective directors, executive officers,
and other employees may be deemed to be participating in the
solicitation of proxies from Unify stockholders in connection with the
approval of the proposed transaction. Information about HALO's
directors and executive officers is available in HALO's proxy
statement, dated October 7, 2005 for its 2005 annual meeting of
stockholders. Information about Unify's directors and executive
officers is available in Unify's proxy statement, dated August 12,
2005 for its 2005 annual meeting of stockholders. Additional
information about the interests of potential participants will be
included in the definitive prospectus/proxy statement HALO and Unify
will file with the SEC.
UNIFY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
April 30, April 30,
2006 2005
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 1,881 $ 3,675
Accounts receivable, net 3,397 2,519
Accounts receivable-related party 76 92
Prepaid expenses and other current assets 499 656
Contracts in progress 200 -
--------- ---------
Total current assets 6,053 6,942
Property and equipment, net 267 429
Other investments 214 214
Goodwill and intangible assets, net 1,617 1,739
Other assets 200 166
--------- ---------
Total assets $ 8,351 $ 9,490
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 379 $ 739
Current portion of long term debt 33 102
Current portion of long term debt-related party - 64
Other accrued liabilities 791 1,336
Accrued compensation and related expenses 878 721
Deferred revenue 3,296 3,220
--------- ---------
Total current liabilities 5,377 6,182
Long term debt, net of current portion 3 31
Royalties payable 539 514
Accrued support obligations 120 124
Other long term liabilities 77 72
Commitments and contingencies - -
Stockholders' equity:
Common stock 29 28
Additional paid-in capital 63,937 63,588
Accumulated other comprehensive income 19 73
Accumulated deficit (61,750) (61,122)
--------- ---------
Total stockholders' equity 2,235 2,567
--------- ---------
Total liabilities and stockholders' equity $ 8,351 $ 9,490
========= =========
UNIFY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
April 30, April 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Revenues:
Software licenses $ 2,092 $ 1,255 $ 5,535 $ 5,205
Services 1,348 1,518 5,714 6,098
--------- --------- --------- ---------
Total revenues 3,440 2,773 11,249 11,303
--------- --------- --------- ---------
Cost of Revenues:
Software licenses 92 73 448 336
Services 562 250 1,920 1,328
--------- --------- --------- ---------
Total cost of revenues 654 323 2,368 1,664
--------- --------- --------- ---------
Gross profit 2,786 2,450 8,881 9,639
--------- --------- --------- ---------
Operating Expense:
Product development 647 704 2,714 2,814
Selling, general and
administrative 1,981 2,359 6,845 9,225
--------- --------- --------- ---------
Total operating expenses 2,628 3,063 9,559 12,039
--------- --------- --------- ---------
Income (loss) from
operations 158 (613) (678) (2,400)
Other income, net 10 9 50 44
--------- --------- --------- ---------
Income (loss) before income
taxes 168 (604) (628) (2,356)
Provision for income taxes - 1 - 8
--------- --------- --------- ---------
Net income (loss) $ 168 $ (605) $ (628) $ (2,364)
========= ========= ========= =========
Net income (loss) per share:
Basic $ 0.01 $ (0.02) $ (0.02) $ (0.09)
Diluted $ 0.01 $ (0.02) $ (0.02) $ (0.09)
Shares used in computing net income
(loss) per share:
Basic 29,449 28,287 29,015 27,777
Diluted 29,736 28,287 29,015 27,777
CONTACT: Unify Corporation
Deb Thornton, 916-928-6379
deb@unify.com