Click here to close now.




















Welcome!

News Feed Item

Evolving Systems Reports Fourth Quarter and Full Year 2013 Financial Results

ENGLEWOOD, CO -- (Marketwired) -- 03/11/14 -- Evolving Systems, Inc. (NASDAQ: EVOL)

Q4 license and services bookings up 43% to $5.2M from $3.6M in Q4 last year as order velocity increases

DSA license and services bookings up 152% in Q4 to $2.3M from $0.9M in Q4 last year

Company adds a record four new Dynamic SIM Allocation™ (DSA) customers in 2013

Cash generated from operations in 2013 increased to $8.6M from $0.2M in cash used in operations last year

First quarter dividend of $0.10 per share, payable March 31, 2014, to stockholders of record on March 24, 2014

Evolving Systems, Inc. (NASDAQ: EVOL), a leader in activation, enablement and management of services for connected mobile devices, today reported financial results for its fourth quarter and full year ended December 31, 2013.

"Evolving Systems continued to build momentum in the fourth quarter with license and services bookings growing by 43% which followed our strong third quarter bookings results," said Thad Dupper, Chairman and CEO. "Fourth quarter DSA license and services bookings were up 152% year over year and Tertio® license and service orders increased by 6% year over year. We also completed our October acquisition of Telespree Communications -- a transaction that we expect to accelerate our introduction of a cloud-based DSA solution and enhance our connected device product offerings.

"For the full year we made progress in several key areas. We added a record four new DSA customers in 2013 and were pleased to see DSA's impact on the global wireless industry grow to more than 600 million licensed connections worldwide," Dupper added. "For the full year DSA bookings increased 40% to $11.3 million, up from the year ago figure of $8.1 million. In addition, we continued to generate strong cash flows and profitability in 2013, while maintaining a strong balance sheet and returning value to stockholders in the form of quarterly dividends totaling $0.36 per share for the year. As a result, we remain confident that our product portfolio of both SaaS and premise-based connected device activation solutions will position us for continued growth."

Fourth Quarter Results Recap

  • Revenue of $6.6 million versus $6.9 million in the fourth quarter last year. License and services revenue of $4.1 million compared with $4.6 million last year. Customer support revenue increased to $2.4 million from $2.3 million in the fourth quarter last year.

  • Operating income of $0.5 million (inclusive of $0.2 million in transaction and integration expenses and $0.6 million in restructuring costs related to the fourth quarter acquisition of Telespree Communications) versus operating income of $1.8 million in the fourth quarter last year.

  • Net income of $0.8 million versus $1.4 million in the fourth quarter last year. Diluted net income per share of $0.07 versus $0.12.

  • Adjusted EBITDA of $1.2 million versus $2.0 million in the fourth quarter last year.

  • Cash Flow: The Company generated $1.4 million in cash from operations in the fourth quarter compared with cash used in operations of $1.8 million in the same quarter last year.

  • Balance Sheet: Cash and cash equivalents at December 31, 2013, were $13.8 million, up from $8.8 million at 2012 year-end.

  • Dividend Update: The Company declared a first quarter dividend of $0.10 per share, payable on March 31, 2014, to stockholders of record on March 24, 2014.

Full Year Results Recap

  • Revenue of $25.1 million in 2013, down from $26.2 million in 2012. License and services revenue of $16.0 million versus $17.6 million last year. Customer support revenue of $9.1 million, up from $8.6 million.

  • Operating income of $5.0 million versus $5.6 million last year. The lower operating income was attributable to approximately $1.0 million in Telespree acquisition and integration expenses and restructuring costs.

  • Net income of $3.8 million compared with $5.6 million a year ago when the Company recorded $1.4 million in gain on sale and related interest associated with investments in marketable debt securities. Diluted net income per share was $0.32 versus $0.48.

  • Adjusted EBITDA of $6.3 million versus $6.5 million a year ago.

  • Cash Flow: Cash generated from operations increased to $8.6 million in 2013, up from $0.2 million in cash used in operations in 2012.

Bookings and Backlog Highlights

  • Fourth quarter bookings totaled $7.4 million, up 5% from the third quarter of this year and up 18% over the fourth quarter last year. License and services bookings were $5.2 million, up 10% from $4.7 million in the third quarter and up 43% over $3.6 million in the fourth quarter last year. DSA license and services bookings in the fourth quarter were $2.3 million, up slightly from $2.2 million in the third quarter but up 152% from $0.9 million in the fourth quarter last year. TSA license and services bookings were $2.8 million, up from $2.5 million in the third quarter and up from $2.7 million in the fourth quarter last year. Customer support bookings in the fourth quarter were $2.2 million, down from $2.3 million in the third quarter and $2.6 million in the fourth quarter a year ago. Bookings are defined as new, non-cancelable orders expected to be recognized as revenue during the following 12 months.

  • Full year bookings totaled $26.2 million, up from $24.6 million in 2012. License and services bookings were $16.4 million and included of $7.9 million in DSA orders and $8.4 million in TSA. Customer support bookings were $9.9 million, up 22% over $8.1 million last year. Customer support bookings included $3.4 million in DSA, up from $1.2 million last year, and $6.4 million in TSA, down from $6.9 million a year ago.

  • Total backlog at December 31, 2013, was $12.2 million, up from $11.4 million in the third quarter and up from $11.1 million at the same time last year. License and services backlog totaled $7.1 million and included $4.0 million in DSA and $3.0 million in TSA. Customer support backlog was $5.1 million.

Conference Call
The Company will conduct a conference call and webcast today at 2:30 p.m. Mountain Time. The call-in numbers for the conference call are 1-877-303-6316 for domestic toll free and 650-521-5176 for international callers. The conference ID is 1419941. A telephone replay will be available through March 25, 2014, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 1419941. To access a live webcast of the call, please visit Evolving Systems' website at www.evolving.com. A replay of the Webcast will be accessible at that website through March 25, 2014.

Non-GAAP Financial Measures
Evolving Systems reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release non-GAAP financial information in the form of net income, diluted net income per share and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, stock compensation and gain/loss on foreign exchange transactions.) Management believes these non-GAAP financial measures are useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Investors and financial analysts who follow the Company use non-GAAP net income and non-GAAP diluted income per share to compare the Company against other companies. Adjusted EBITDA can be useful for lenders as an indicator of earnings available to service debt. Non-GAAP financial measures should not be considered in isolation from or as an alternative to the financial information prepared in accordance with GAAP.

About Evolving Systems®
Evolving Systems, Inc. (NASDAQ: EVOL) is a provider of software and services to 60 network operators in over 40 countries worldwide. The Company's product portfolio includes market-leading activation products that address subscriber service activation, SIM card activation, mobile broadband activation as well as the activation of connected devices. Founded in 1985, the Company has headquarters in Englewood, CO, with offices in San Francisco, CA; the United Kingdom; India; and Malaysia. For more information please visit www.evolving.com or follow us on Twitter: http://twitter.com/EvolvingSystems

CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Specifically, statements about the market for the Company's DSA, TSA and SaaS products, market leadership, EBITDA, cash flow and bookings growth, and the Company's continued ability to pay dividends or post quarterly or full year results that are similar to those described in this press release are forward-looking statements. These statements are based on our expectations and are naturally subject to uncertainty and changes in circumstances. Readers should not place undue reliance on these forward-looking statements, and the Company may not undertake to update these statements. Actual results could vary materially from these expectations. For a more extensive discussion of Evolving Systems' business, and important factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the Company's Form 10-K filed with the SEC on March 11, 2014, as well as other SEC filings, including Forms 10-Q, 10-Q/A, 8-K and press releases.



Consolidated Statements of Operations
(In thousands except per share data)

(Unaudited)
                                  Three months ended    Twelve months ended
                                     December 31,          December 31,
                                    2013       2012       2013       2012
                                 ---------  ---------  ---------  ---------
Revenue:
  License fees and services      $   4,145  $   4,590  $  15,998  $  17,622
  Customer support                   2,425      2,261      9,095      8,625
                                 ---------  ---------  ---------  ---------
Total revenue                        6,570      6,851     25,093     26,247
                                 ---------  ---------  ---------  ---------
Costs of revenue and operating
 expenses:
  Costs of license fees and
   services, excluding
   depreciation and amortization     1,511      1,685      5,565      6,734
  Costs of customer support
   excluding depreciation and
   amortization                        512        364      1,599      1,502
  Sales and marketing                1,588      1,236      5,364      5,070
  General and administrative           964        769      3,644      3,613
  Product development                  840        887      2,956      3,069
  Depreciation                          38         44        155        268
  Amortization                          16        101        211        400
  Restructuring                        558          -        558          -
                                 ---------  ---------  ---------  ---------
Total costs of revenue and
 operating expenses                  6,027      5,086     20,052     20,656
                                 ---------  ---------  ---------  ---------
  Income from operations               543      1,765      5,041      5,591
                                 ---------  ---------  ---------  ---------
Other income (expense):
  Interest income                        3          4         11         60
  Interest income, related party         -          -          -        532
  Interest expense                      (5)        (3)       (20)        (3)
  Other income                          87          -         87          -
  Gain on sale of investments            -          -          -        891
  Foreign currency exchange gain
   (loss)                              (77)        60        (39)      (106)
                                 ---------  ---------  ---------  ---------
Other income (expense), net              8         61         39      1,374
                                 ---------  ---------  ---------  ---------
Income from operations before
 income taxes                          551      1,826      5,080      6,965
    Income tax expense (benefit)      (253)       389      1,274      1,401
                                 ---------  ---------  ---------  ---------
Net income                       $     804  $   1,437  $   3,806  $   5,564
                                 =========  =========  =========  =========
Basic income per common share    $    0.07  $    0.13  $    0.33  $    0.49
                                 =========  =========  =========  =========
Diluted income per common share  $    0.07  $    0.12  $    0.32  $    0.48
                                 =========  =========  =========  =========
Weighted average basic shares
 outstanding                        11,542     11,368     11,459     11,278
Weighted average diluted shares
 outstanding                        11,871     11,645     11,756     11,529



Consolidated Balance Sheets
(In thousands)                                   December 31,  December 31,
ASSETS                                               2013          2012
                                                 ------------  ------------
Current Assets:
  Cash and cash equivalents                      $     13,785  $      8,844
  Short-term restricted cash                                -            53
  Contract receivables, net                             6,420         4,803
  Unbilled work-in-progress, net                        2,423         4,802
  Deferred income taxes                                   131             -
  Prepaid and other current assets                      1,173         1,133
                                                 ------------  ------------
    Total current assets                               23,932        19,635
Property and equipment, net                               342           211
Amortizable intangible assets, net                        702           204
Goodwill                                               17,936        16,510
Long-term restricted cash                                  24             -
Long-term deferred income taxes                           248            27
Other long-term assets                                      -             6
                                                 ------------  ------------
    Total assets                                 $     43,184  $     36,593
                                                 ============  ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current portion of capital lease obligations   $          8  $          4
  Accounts payable and accrued liabilities              4,479         3,833
  Income taxes payable                                    459           308
  Unearned revenue                                      5,314         1,596
                                                 ------------  ------------
    Total current liabilities                          10,260         5,741
Long-term liabilities:
  Capital lease obligations, net                           11            16
  Other long-term obligations                             178             -
                                                 ------------  ------------
    Total liabilities                                  10,449         5,757
Stockholders' equity:
  Common stock                                             12            11
  Additional paid-in capital                           93,895        91,957
  Treasury stock                                       (1,253)       (1,253)
  Accumulated other comprehensive loss                 (3,016)       (3,297)
  Accumulated deficit                                 (56,903)      (56,582)
                                                 ------------  ------------
    Total stockholders' equity                         32,735        30,836
                                                 ------------  ------------
  Total liabilities and stockholders' equity     $     43,184  $     36,593
                                                 ============  ============



Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except per share data)
(Unaudited)
                               Three months ended      Twelve months ended
                                  December 31,            December 31,
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------
Non-GAAP net income and
 income per share:
GAAP net income              $      804  $    1,437  $    3,806  $    5,564
Amortization of intangible
 assets                              16         101         211         400
Stock-based compensation
 expense                             61          59         288         264
Restructuring                       558           -         558           -
Income tax adjustment for
 non-GAAP*                         (179)        (31)       (302)       (127)
                             ----------  ----------  ----------  ----------
Non-GAAP net income          $    1,260  $    1,566  $    4,561  $    6,101
                             ==========  ==========  ==========  ==========

Diluted net income per share
  GAAP                       $     0.07  $     0.12  $     0.32  $     0.48
  Non-GAAP                   $     0.11  $     0.13  $     0.39  $     0.53
  Shares used to compute
   diluted EPS                   11,871      11,645      11,756      11,529


                               Three months ended      Twelve months ended
                                  December 31,            December 31,
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------
Adjusted EBITDA:

Net income                   $      804  $    1,437  $    3,806  $    5,564
  Depreciation                       38          44         155         268
  Amortization of intangible
   assets                            16         101         211         400
  Stock-based compensation
   expense                           61          59         288         264
  Restructuring                     558           -         558           -
  Interest expense and other
   (benefit), net                    (8)        (61)        (39)     (1,374)
  Income tax expense
   (benefit)                       (253)        389       1,274       1,401
                             ----------  ----------  ----------  ----------
Adjusted EBITDA              $    1,216  $    1,969  $    6,253  $    6,523
                             ==========  ==========  ==========  ==========

*The estimated income tax for non-GAAP net income is adjusted by the amount of additional expense that the Company would accrue if it used non-GAAP results instead of GAAP results in the calculation of its tax liability, taking into account in which tax jurisdiction each of the above adjustments would be made and the tax rate in that jurisdiction.

Investor Relations

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303.393.7044
Email Contact

Press Relations

Lissa Franklin
Evolving Systems
415-817-0803
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for ‘normal’ companies without hyper-scale resources. In his session at 17th Cloud Expo, David Cauthron, founder and chief executive officer of Nimboxx, will discuss the evolution of virtualization (hardware, application, memory, storage) and how commodity / open source hyper converged infrastructure (HCI) so...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...