12 Mar 2012 08:23
Emblaze Ltd. ("Emblaze" or "the Group") Final results for the year ended 31 December 2011
Herzeliya, Israel, 12 March 2012: Emblaze Ltd , today announces its final results for the 12 months ended 31 December 2011. All references to $ are to US Dollars.
HIGHLIGHTS:
- Continued strong cash position with cash and short term investment of $149 million compared to $145 million on 31 December 2010.
- Profit from continued operations of $2.8 million compared to a loss of ($4.6) million in 2010.
- Basic and diluted earnings per share from continuing operations of $0.02, compared to a loss of ($0.04) per share in 2010.
- Emoze Ltd., the Company's subsidiary and a provider of push-mailtechnology, has continued to expand through licensing of its solutions tohandset manufacturers, distributors and operators. During 2011, Emoze signedstrategic license agreements with Mototrola Mobility Inc. and Huawei topre-embed the EMOZE push email solution on their MediaTek, and Android mobiledevices.
- As part of its growth strategy, the Company is in the process of evaluating potential investments into solid businesses that can offer Emblaze the opportunity to drive revenues and achieve long-term sustainable growth.
Naftali Shani, chairman of Emblaze said: "The Company's managementbelieve that the recent licensing agreements signed by Emoze, as well aspotential additional future licensing deals with handset manufacturers,present an opportunity to increase revenue and create shareholder value. Webelieve that changing market conditions will present new opportunities forinvestments during 2012 and the Company is carefully managing its cash so asto be able to take advantage of such opportunities. In addition, the Companywill continue the legal proceedings against Apple Inc. for infringement of theCompany's live streaming patent.
A copy of the Company's Financial Report & Accounts for the year ended 31 December 2011 has been submitted to the Financial Services Authority and will shortly be available for inspection at the National Storage Mechanism, which is located at www.hemscott.com/nsm.do
The report is also available on the Company's website, www.emblaze.com
Enquiries:
Jonathan Shillington/ Amlika Lal +44 20 7932 1850Grayling Amlika.Lal@grayling.comThe Emblaze Group is traded on the London Stock Exchange since1996. www.emblaze.com EMBLAZE LTD. AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETSU.S. dollars in thousands December 31, 2010 2011 ASSETS CURRENT ASSETS:Cash and cash equivalents $ 144,173 $ 148,261
Short-term investments (Note 4(a)) 229
196
Restricted deposits (Note 4(b)) 420
198
Other receivables and prepaid expenses (Note 6) 955
1,103
Assets of discontinued operations (Note 3) 221
176 Total current assets 145,998 149,934 SEVERANCE PAY FUND 335 356
PROPERTY AND EQUIPMENT, NET (Note 7) 44
59 Total assets $ 146,377 $ 150,349
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED BALANCE SHEETSU.S. dollars in thousands, except share and per share data December 31, 2010 2011 LIABILITIES AND EQUITY CURRENT LIABILITIES:Trade payables $ 341 $ 325Other payables and accrued expenses (Note 8) 4,278
6,725
Liabilities of discontinued operations (Note 3) 3,255
647 Total current liabilities 7,874 7,697 ACCRUED SEVERANCE PAY 452 507
COMMITMENTS AND CONTINGENT LIABILITIES (Note 9)
EQUITY: (Note 10)Equity attributable to the Company's shareholders:Share capital -Ordinary shares of NIS 0.01 par value -
Authorized: 200,000,000 shares at December 31, 2010 and 2011; Issued: 140,578,154 shares at December 31, 2010 and 2011; Outstanding: 111,755,932 shares at December 31, 2010 and 2011
416
416
Additional paid-in capital 469,844 469,864Treasury stock, at cost (75,555) (75,555)Accumulated deficit (257,123) (253,054) Total Company's shareholders' equity 137,582 141,671 Non- controlling interest 469 474 Total equity 138,051 142,145 Total liabilities and equity $ 146,377 $
150,349
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands, except share and per share data Year ended December 31, 2009 2010 2011 Revenues $ 266 $ 629 $ 1,207Cost of revenues 203 166 247 Gross profit 63 463 960 Operating expenses:Research and development 1,396 1,482 1,401Selling and marketing 1,248 849 599General and administrative 2,935 2,616 2,504 Total operating expenses 5,579 4,947 4,504 Operating loss (5,516) (4,484) (3,544)
Financial income, net (Note 12(a)) 619 701
2,210
Other income (expenses) (Note 12(b)) 47 (785)
4,114
Income (loss) from continuing operations (4,850) (4,568)
2,780
Gain from discontinued operations, net(Note 3) 18,254 40,843 1,289 Consolidated net income 13,404 36,275 4,069Less - net income from discontinuedoperation attributable to non-controllinginterest 22,510 8,437
-
Net income (loss) attributable toCompany's shareholders $ (9,106) $ 27,838 $ 4,069 Basic and diluted earnings (loss) pershare to Company's shareholders:From continuing operations $ (0.04) $ (0.04) $ 0.02From discontinued operations (0.04) 0.29 0.01 Net earnings (loss) per share $ (0.08) $ 0.25 $ 0.03
Weighted average number of shares used in computing basic earnings (loss) per share 111,755,932 111,755,932 111,755,932
Weighted average number of shares used incomputing diluted earnings (loss) pershare 111,755,932 111,755,932
111,756,536
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYU.S. dollars in thousands Accumulated Additional Treasury other Non- Total Share paid-in stock, comprehensive
Accumulated controlling Total comprehensive
capital capital at cost income (loss) deficit interest equity income (loss) Balance as of January 1, 2009 $ 416 $ 470,716 $ (75,654) $ 6,951 $ (275,855) $ 190,556 $ 317,130 Total comprehensiveloss $ (20,310) Changes during 2009:Decrease in theCompany's holding insubsidiaries - (757) - - - 1,716 959Dividend tonon-controllinginterest - - - - - (15,369) (15,369)Non-controllinginterests changes dueto holding changes andexercise of put option - (595) - - - (2,937) (3,532)Issuance of sharesupon exercise ofoptions *) - (99) 99 - - 1,463 1,463Share basedcompensation expense - 297 - - - 1,845 2,142Comprehensive loss:Unrealized loss fromavailable-for-salemarketable securities,net - - - (260) - (102) (362) $ (362)Foreign currencytranslationadjustments - - - 233 - 591 824 824Net income (loss) - - - - (9,106) 22,510 13,404 13,404 Balance as of December31, 2009 416 469,562 (75,555) 6,924 (284,961) 200,273 316,659 Total comprehensiveincome $ 13,866 Changes during 2010:Sale of shares ofsubsidiaries - - - (6,924) - (208,287) (215,211) $ (6,924)Share basedcompensation expensesof subsidiaries - - - - - 46 46 -Share basedcompensation expenses - 282 - - - - 282 -Comprehensive income:Net income - - - -
27,838 8,437 36,275 36,275
Balance as of December31, 2010 416 469,844 (75,555) - (257,123) 469 138,051 Total comprehensiveincome $ 29,351
*) Represent an amount less than $ 1
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYU.S. dollars in thousands Additional Treasury Non- Total Share paid-in stock,
Accumulated controlling Total comprehensive
capital capital at cost
deficit interest equity income
Balance as of December 31, 2010 416 469,844 (75,555)
(257,123) 469 138,051
Changes during 2011:Share based compensation expenses ofsubsidiaries - - - - 5 5 -Share based compensation expenses - 20 -
- - 20 -Comprehensive income:Net income - - - 4,069 - 4,069 4,069 $
Balance as of December 31, 2011 $ 416 $ 469,864 (75,555) $ (253,054) $ 474 $ 142,145
Total comprehensive income $ 4,069
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Year ended December 31, 2009 2010 2011
Cash flows from operating activities:
Consolidated net income $ 13,404 $ 36,275 $
4,069
Less - gain from discontinued operations 18,254 40,843 1,289
Income (loss) from continuing operations (4,850) (4,568) 2,780
Depreciation 45 41
33
Impairment and amortization of marketabledebt securities premiums and accretion ofdiscounts, net 163 - -Share based compensation expense 297 282
20
Share based compensation expense ofsubsidiaries 78 46 5Net gain on sales of marketable securities,decrease in value of marketable securitiesand changes in accrued interest, net (91) (240)
(34)
Increase in trade receivables, otherreceivables and prepaid expenses (180) (5)
(81)
Increase (decrease) in trade payables, otherpayables and accrued expenses and accruedseverance pay, net (753) 2,978 2,465Other (56) 85 - Net cash provided by (used in) operatingactivities from continuing operations (5,347) (1,381) 5,188Net cash provided by (used in) operatingactivities from discontinued operations 40,434 (11,888) (1,274) Net cash provided by (used in) operatingactivities 35,087 (13,269)
3,914
The accompanying notes are an integral part of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Year ended December 31, 2009 2010 2011
Cash flows from investing activities:
Purchase of property and equipment (15) (10)
(48)
Proceeds from (investment in) short-termbank deposits and short marketablesecurities and restricted deposits, net (596) 834
222
Proceeds from sales, calls and maturity ofmarketable securities 1,390 58
-
Proceeds from realization of investments 838 -
-
Proceeds from sale of Formula - 139,138
-
Net cash provided by investing activitiesfrom continuing operations 1,617 140,020
174
Net cash used in investing activities fromdiscontinued operations (12,401) -
-
Net cash provided by (used in) investingactivities (10,784) 140,020
174
Cash flows from financing activities:
Net cash provided by (used in) financingactivities from discontinued operations (38,645) 10,074
-
Net cash provided by (used in) financingactivities (38,645) 10,074
-
Effect of exchange rate on cash and cashequivalents (237) -
-
Net increase (decrease) in cash and cashequivalents (14,342) 136,825
4,088
Cash and cash equivalents at the beginningof the year *) 122,197 7,348
144,173
Cash and cash equivalents at the end of theyear *) $ 107,618 $ 144,173 $
148,261
*) Cash and cash equivalents in 2009 include cash and cash equivalents of discontinued operations. Cash and cash equivalents at the beginning of 2010 exclude cash and cash equivalents of discontinued operations.
The accompanying notes are an integral part of the consolidated financial statements.
XLON