Welcome!

News Feed Item

ViryaNet Reports First Quarter 2014 Financial Results

ViryaNet Limited (OTC QB:VRYAF), a leading provider of software solutions that optimize and allow for the continuous improvement of service processes for mobile workforces, today announced its financial results for the quarter ended March 31, 2014.

First Quarter 2014 Highlights

  • Quarterly revenues of approximately $2.4 million represented a year-over-year decrease of 18.8% compared to approximately $2.9 million and a sequential decrease of 29.6% compared to approximately $3.4 million in the fourth quarter of 2013.
  • First quarter 2014 net loss of $379,000, or $0.09, in basic and diluted loss per share compared to net income of $243,000, or $0.06, in basic and diluted income per share in the same period of last year and to net income of $832,000, or $0.20 in basic and $0.19 in diluted income per share in the fourth quarter of 2013.
  • A significant increase in total pipeline value year over year (estimated to represent 50% pipeline growth).
  • Technology Evaluation Centers, a leading advocate for the enterprise software purchaser, spotlighted ViryaNet as a strong contender in the field service management market and how service organizations can take advantage of ViryaNet’s solution.

“Our business remains in good shape despite the lack of new licensing revenues in the first quarter,” stated Memy Ish-Shalom, President and Chief Executive Officer of ViryaNet. “Long and unpredictable sales cycles are typical in our business, and while we are not satisfied with our performance in the first quarter, we are increasingly confident in our long-term business model. We have seen significant growth in our deal pipeline, both in terms of the number of deals, as well as their aggregate value. The investments we have made into our business and the unique products and services that ViryaNet now offers should continue to drive our performance and enable us to reach our growth objectives this year and beyond.”

Mr. Ish-Shalom continued, “Industry demand remains robust and the level of interest in our cloud offerings from both new and existing customers continues to increase, affirming our confidence in ViryaNet’s competitive positioning and industry-leading solution. We are excited about the growth prospects we see on the horizon in the global workforce management space as well as the strong demand for the cloud-based offerings we launched at the end of 2013. Our investment in new products designed for smart devices, integrating a business value focus performance management practice into our offering and a cloud-based delivery option, in particular, is opening up access to new vertical markets for mobile workforce solutions, and creating opportunities for us to increase our recurring revenues, with customers of varying sizes. We expect to announce a cloud-based deployment for a large new customer managing hundreds of facilities in the very near term.”

First Quarter 2013 Financial Results

For the quarter ended March 31, 2014, ViryaNet reported total revenues of approximately $2.4 million, an 18.8% decrease from approximately $2.9 million for the same period in 2013 and a 29.6% sequential decrease from approximately $3.4 million in the fourth quarter of 2013. License revenues for the three months ended March 31, 2014 decreased to $24,000, compared to $392,000 in the same period of 2013, a 93.9% decrease, and compared to $928,000 in the fourth quarter of 2013, a 97.4% sequential decrease. Maintenance and services revenues decreased to approximately $2.4 million in the first quarter of 2014, compared to approximately $2.5 million in both the same period of 2013 and in Q4 of 2013.

Gross profit was $1.3 million in the first quarter of 2014, reflecting gross margin of 54.7% for that period, compared to gross profit of $1.8 million, reflecting gross margin of 61.3%, in the first quarter of 2013, and compared sequentially to gross profit of approximately $2.4 million, reflecting gross margin of 72.4%, in the fourth quarter of 2013. Total operating expenses in the first quarter of 2014 were approximately $1.7 million, compared to $1.5 million in the corresponding period of 2013 and compared sequentially to $1.5 million in the fourth quarter of 2013. Research and development expenses increased by 31.3% in the first quarter of 2014, to $461,000, from $351,000 in the corresponding quarter of 2013, which increased expenses, were targeted at accelerating the development of new offerings requested by current and prospective customers. This level of research and development expenses also reflected a sequential increase of 18.2% compared to $390,000 in the fourth quarter of 2013. Selling and marketing expenses increased by 12.2% in the first quarter of 2014, to $706,000, compared to $629,000 in the same period of 2013, and decreased by 4.8% compared sequentially to $745,000 in the fourth quarter of 2013. General and administrative expenses increased by approximately 3.1% in the first quarter of 2014, to $491,000, from $476,000 in the corresponding period of 2013 and compared sequentially to $404,000 in the fourth quarter of 2013, reflecting an increase of 21.5% relative to that quarter. Operating loss for the first quarter of 2014 was $356,000, compared to operating income of $340,000 in the corresponding quarter of 2013 and compared sequentially to operating income of $908,000 in the fourth quarter of 2013.

Net loss for the first quarter of 2014 was $379,000, or $0.09 of basic and diluted loss per share, as compared to net income of $243,000, or $0.06 of basic and diluted income per share, for the same period in 2013 and compared sequentially to net income of $832,000, or $0.20 of basic and $0.19 of diluted income per share in the fourth quarter of 2013.

Balance Sheet Summary

Cash and cash equivalents were approximately $778,000 as of March 31, 2014 compared to $921,000 as of December 31, 2013. ViryaNet's short and long-term bank debt balance on March 31, 2014 was reduced by $158,000 to $665,000 as compared to $823,000 as of December 31, 2013. Total shareholders’ equity was $2.6 million as of March 31, 2014, an 11.8% decrease compared to $2.9 million as of December 31, 2013.

About ViryaNet

ViryaNet delivers mobile workforce management solutions that intelligently guide, automate, and optimize both simple and complex field service work, resulting in measurable business benefits. ViryaNet's products, pre-packaged solutions and people are recognized within the industry as innovative which in turn enables its' customers to be viewed as leaders within their respective industries. ViryaNet's G4 products specialize in the functions of scheduling and dispatching resources and enabling mobile field communication and are delivered in industry specific configurations. Embedding industry best practices and utilizing innovative technologies like ViryaNet's BPM Blueprint for Mobile Workforce Management™, Microsoft InfoPath® and device agnostic mobile solutions enable ViryaNet's products to be rapidly deployed and extended to support virtually any business process across a wide range of industries. ViryaNet is proud to call many of the world's leading utilities, the United States' largest pure rural telecommunications firm, the supermarkets' most respected retailer, and North America's largest auto insurer as customers. ViryaNet has strong partnerships with leading platform and system integration companies that enable it to have a global presence. Headquartered in Westborough, MA, ViryaNet has additional offices in the United States and Israel. For more information visit our website or follow us on twitter.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding ViryaNet's expectations, beliefs, intentions, or strategies regarding the capabilities of its products, its relationships with its customers, its customer purchases, its future operational plans and objectives including integration of other businesses, its future business prospects, its future financial performance, its future cash position, and its future prospects for profitability. All forward-looking statements included in this document are based upon information available to ViryaNet as of the date hereof, and ViryaNet assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to ViryaNet's business include market acceptance of and demand for ViryaNet's products, risks associated with a slow-down in the economy, risks associated with the financial condition of ViryaNet's customers, risks associated with competition and competitive pricing pressures, risks associated with increases in costs and operating expenses, risks in technology development and commercialization, the risk of operating losses, risks in product development, risks associated with international sales, and other risks that are set forth in ViryaNet's annual report on Form 20-F, filed on April 29, 2013, and the other reports filed by ViryaNet from time to time, with the Securities and Exchange Commission. Reported results should not be considered an indication of future performance. You should not place undue reliance on these forward-looking statements, which speak only as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

 
 
VIRYANET LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
         
March 31, 2014 December 31, 2013
Unaudited Audited
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 778 $ 921
Restricted cash 186 183
Trade receivables 1,045 1,445
Other accounts receivable and prepaid expenses   277     304  
 
Total current assets   2,286     2,853  
 
NON - CURRENT ASSETS:
Severance pay fund 1,256 1,232
Long-term receivable 63 63
Other   72     23  
 
Total non - current assets   1,391     1,318  
 
PROPERTY AND EQUIPMENT, net   53     48  
 
GOODWILL   6,516     6,516  
 
Total assets $ 10,246   $ 10,735  
 
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Short-term bank credit $ 65 $ 171
Current maturities of long-term bank loans 202 199
Trade payables 364 525
Deferred revenues 3,490 3,310
Other accounts payable and accrued expenses   1,346     1,384  
 
Total current liabilities   5,467     5,589  
 
LONG-TERM LIABILITIES:
Long-term bank loan, net of current maturities 398 453
Long-term deferred revenues 89 131
Long-term deferred rent payable 48 54
Accrued severance pay   1,651     1,567  
 
Total long-term liabilities   2,186     2,205  
 
SHAREHOLDERS’ EQUITY:
Share capital 5,674 5,098
Additional paid-in capital 115,627 116,172
Accumulated deficit  

(118,708

)

  (118,329 )
 
Total shareholders’ equity   2,593     2,941  
 
Total liabilities and shareholders’ equity $ 10,246   $ 10,735  
 
 
VIRYANET AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, U.S. dollars in thousands, except share and per share data)
   
      Three months ended

March 31

2014 2013
Revenues:
Software licenses $ 24 $ 392
Maintenance and services   2,356     2,538
 
Total revenues   2,380     2,930
 
Cost of revenues:
Software licenses - 62
Maintenance and services   1,078     1,072
 
Total cost of revenues   1,078     1,134
 
Gross profit   1,302     1,796
 
Operating expenses:
Research and development 461 351
Selling and marketing 706 629
General and administrative   491     476
 
Total operating expenses   1,658     1,456
 
Income (loss) from operations (356 ) 340
Financial expenses, net   23     97
 
Net income (loss) $ (379 ) $ 243
 
Basic income (loss) per share $ (0.09 ) $ 0.06
 
Diluted income (loss) per share $ (0.09 ) $ 0.06
 
Weighted average number of shares used in computation of basic income (loss) per share 4,191,184 4,002,759
Weighted average number of shares used in computation of diluted income (loss) per share 4,191,184 4,368,011

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...