31 Aug 2011 08:08
Emblaze Ltd ("Emblaze" or "the Company") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011 Herzeliya, Israel, 31 August 2011: Emblaze Ltd. today announces its financialresults for the six month period ended 30 June 2011 (the "Reported Period").All references to $ are to US Dollars.
FINANCIAL HIGHLIGHTS:
* Profit from continued operations totaled $3.1 million (H1/2010: loss of $2.6 million); * Consolidated net income reached $4.5 million (H1/2010: loss of $5.9 million);
* Continued strong cash position with cash and short term investments of $146
million compared to $145 million on 31 December 2010;
* Basic and diluted earnings per share reached $0.04 (H1/2010: loss of $0.06
per share); * Total current assets were $151 million compared to $146 million on 31 December 2010.
OPERATIONAL HIGHLIGHTS:
* EMOZE Ltd. ("EMOZE"), the Company's subsidiary, has successfully expanded
strategic deals and licensing of its push-mail solutions;
* EMOZE announced on 30 August 2011 the signing of a licensing agreement with
Huawei, a leading global information and communications technology (ICT)
solutions provider, to embed the EMOZE solution on Huawei's mobile devices;
OUTLOOK & STRATEGY
* EMOZE continues to grow through additional licensing deals with handsets
manufacturers and other deals with operators and enterprises; * As part of its growth strategy, Emblaze continues to evaluate potential investments in the technology space that can offer the Company the opportunity to drive revenues and achieve long-term sustainable growth.
Naftali Shani, Chairman of Emblaze, commented:
"The positive momentum in EMOZE's business is continuing and we believe in EMOZE potential to contribute to Emblaze's results and shareholder value going forward.
In term of corporate actions, we believe that the changing market climate willpresent better opportunities for potential acquisitions than those availableduring the first half of 2011."A copy of the Company's interim results for the six months ended 30 June 2011has been submitted to the Financial Services Authority and will shortly beavailable for inspection at the National Storage Mechanism, which is located atwww.hemscott.com/nsm.do
The report is also available on the Company's website, www.emblaze.com
Enquiries: Jonathan Shillington/Alistair Scott +44 20 7932 1850
Grayling alistair.scott@grayling.com
The Emblaze Group is traded on the London Stock Exchange since 1996. www.emblaze.com
Emblaze holds EMOZE Ltd.: an acknowledged world leader, providing transparent,synchronized mobile push messaging and push content solutions for handsetmanufactures, mobile operators and enterprises. EMOZE supports all major emailproviders, instant messaging services and social networks. EMOZE push messagingsolution is based on EMOZE patented technology and provides real pushexperience combined with an efficient mechanism, minimizing both data trafficand battery consumption to all mobile devices (feature-phones andsmart-phones).EMOZE architecture is based on reliable, redundant, scalable server-technologythat offers a low TCO and quick-to-market deployment. EMOZE was established in2006 and is part of the Emblaze Group www.emoze.comCONSOLIDATED BALANCE SHEETSU.S. dollars in thousands June 30, December 31, 2011 2010 Unaudited AuditedASSETS CURRENT ASSETS: Cash and cash equivalents $103,565 $144,173 Short-term investments 42,514 229 Restricted deposits 75 420 Trade receivables and prepaid 1,049 955expenses Other receivables 3,787 -
Assets of discontinued operations 206 221
Total current assets 151,196 145,998 SEVERANCE FUND 344 335 PROPERTY AND EQUIPMENT, NET 62 44 Total assets $151,602 $146,377
The accompanying notes are an integral part of the financial statements.
CONSOLIDATED BALANCE SHEETSU.S. dollars in thousands, except share and per share data June 30, December 31, 2011 2010 Unaudited Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES: Trade payables $301 $341
Derivative financial instruments 1,968 - Other payables and accrued expenses 3,944
4,278
Liabilities of discontinued operations 2,321 3,255 Total current liabilities 8,534 7,874 LONG-TERM LIABILITIES Accrued severance pay 486 452 Total long-term liabilities 486 452 SHAREHOLDERS' EQUITY: Share capital: Ordinary shares of NIS 0.01 par value - 416
416
Authorized: 200,000,000 shares at June 30, 2011 and December 31, 2010 ; Issued: 140,578,154 shares at June 30, 2011
and December 31, 2010 ; Outstanding: 111,755,932 shares at June 30, 2011 and December 31, 2010
Additional paid-in capital 469,854 469,844 Treasury stock, at cost (75,555) (75,555) Accumulated deficit (252,607) (257,123) Total Company's shareholders' equity 142,108 137,582 Non- controlling interest 474 469 Total equity 142,582 138,051 Total liabilities and equity $151,602
$146,377
The accompanying notes are an integral part of the financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands, except share and per share data Year ended December 31 2011 2010*) 2010 Unaudited AuditedRevenues $557 $349 $ 629 Cost of revenues 120 95 166 Gross profit 437 254 463 Operating expenses: Research and development, net 650 688 1,482 Selling and marketing 279 510 849 General and administrative 1,380 1,175 2,616 Total operating expenses 2,309 2,373 4,947 Operating loss (1,872) (2,119) (4,484) Financial income 1,191 255 701 Other income (expenses) 3,787 (781) (785) Profit (loss) from continuing 3,106 (2,645) (4,568)operations
Profit from discontinued operations, 1,410 8,812 40,843 net
Consolidated net income 4,516 6,167 36,275 Less: net income from discontinued - 12,041 8,437operation attributable to non-controlling interest Net income (loss) attributable to $4,516 $(5,874) $27,838Company's shareholders Basic and diluted income (loss) per
share to Company's shareholders: From continuing operations $0.03 $(0.03) $(0.04) From discontinued operations $0.01 $(0.03) $0.29 Net gain (loss) per share $0.04 $(0.06) $0.25
Weighted average number of shares used 111,755,932 111,755,932 111,755,932 in computing basic and diluted earnings
(loss) per share
*)Reclassified due to discontinued operations.
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF CHANGES IN EQUITYU.S. dollars in thousands Share Additional Treasury Accumulated Accumulate
Non Total Total
capital paid-in stock, other deficit controlling Equity comprehensive capital at cost comprehensiv interest income (loss) income (loss) Balance as of $416 $ 469,562 $ $6,924 $ $200,273 $316,659 January 1, (75,555) (284,961) 2010 Sale of - - - (6,924) - (208,287) (215,211) (6,924)shares of subsidiaries Share based - - - - - 46 46 -compensation expenses of subsidiaries Share based 282 - - - - 282 -compensation expenses Net income - - - - 27,838 8,437 36,275 36,275 Balance as of $ 416 $ 469,844 $ $- $(257,123) $ 469 $ 138,051 December 31, (75,555) 2010 Total $29,351comprehensive income Share based - 10 - - - - 10 -compensation expenses Share based - - - - - 5 5 -compensation expenses of subsidiaries Net income - - - - 4,516 - 4,516 4,516 Balance as of $416 $469,854 $ $- $(252,607) $474 $142,582 June 30, 2011 (75,555) (unaudited) Total $4,516comprehensive income
The accompanying notes are an integral part of the financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Six months ended Year ended June 30, December 31, 2011 2010*) 2010 Unaudited
Cash flows from operating activities:
Consolidated net income $4,516 $6,167 $36,275
Less: Profit from discontinued operations* 1,410 8,812 40,843
Income (loss) from continuing operations 3,106 (2,645) (4,568) Depreciation 17 21 41
Share based compensation expenses 10 110
282
Share based compensation expenses of 5 38
46subsidiaries Net loss from sales of marketable (295) (77)
(240)
securities, changes in accrued interest, net and increase in value of marketable
securities
Decrease (increase) in trade receivables, (3,903) 15 (5) other receivables and prepaid expenses
Increase (decrease) in trade payables, (349) (646)
2,978
other payables and accrued expenses, accrued severance pay, net and other long
term liabilities Other - - 85 Net cash used in operating activities from (1,409) (3,184) (1,381)continuing operations Net cash provided by (used in) operating 491 19,813
(11,888)
activities from discontinued operations Net cash provided by (used in) operating (918) 16,629 (13,269)activities
Cash flows from investing activities: Purchase of property and equipment, net (35) (4)
(10)
Investment in short term marketable (40,000) -
-securities
Proceeds from short-term and long-term 345 253
892
marketable securities and restricted
deposits Proceeds from sale of Formula - -
139,138
Net cash provided by (used in) investing (39,690) 249 140,020 activities of continuing operations
Net cash used in investing activities from - (2,516)
-discontinued operations
Net cash provided by (used in) investing (39,690) (2,267) 140,020 activities
*) Reclassified due to discontinued operations.
The accompanying notes are an integral part of the financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Six months ended Year ended June 30, December 31, 2011 2010*) 2010 Unaudited
Cash flows from financing activities: Net cash provided by (used in) financing - (24,732)
10,074activities of discontinued operations
Net cash provided by (used in) investing - (24,732)
10,074activities
Effect of exchange rate on cash of continuing - (2,059)
-operations
Net increase (decrease) in cash and (40,608) (12,429)
136,825cash equivalents
Cash and cash equivalents at the beginning 144,173 107,618
7,348of the year**)
Cash and cash equivalents at the end of the $103,565 $95,189 $144,173 year **)
*) Reclassified due to discontinued operations.
**) Cash and cash equivalents for December 31, 2010 and June 30, 2010, include Cash and Cash equivalents of discontinued operations.
The accompanying notes are an integral part of the financial statements.
NOTE 1:- GENERAL
Emblaze Ltd. ("Emblaze" or "the Company") is an Israeli corporation. TheCompany's shares are traded on the London Stock Exchange ("LSE") under thesymbol BLZ. Until November 2010, the Company consisted of two principalbusiness segments, namely Growth and Innovation. The Company sold its entireholdings in Formula in November 2010 part of the Growth segment. The companycurrently operates only in one segment of operation, the Innovation.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2010, are applied consistently in these financial statements.
NOTE 3:- UNAUDITED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited interim financial statements have been prepared inaccordance with accounting principles generally accepted in the United Statesfor interim financial information. Accordingly, they do not include all theinformation and footnotes required by accounting principles generally acceptedin the United States for complete financial statements. In the opinion ofmanagement, all adjustments (consisting of normal recurring accruals)considered necessary for a fair presentation have been included. Operatingresults for the six-month period ended June 30, 2011 are not necessarilyindicative of the results that may be expected for the year ended December
31,2011.NOTE 4:- SUBSEQUENT EVENTOn 13 July 2011 the High Court in London ordered HM Revenue & Customs ("HMRC")to make an immediate payment of the undisputed VAT reclaims in the case of VATreclaims against HMRC. The remaining sum in dispute will be subject tocontinuing legal procedures. As a result, the Company recorded in other incomean estimated amount of $3,787 in the six month period ending in June 30, 2011.
XLON