ENGLEWOOD, CO — (Marketwired) — 05/07/13 — Evolving Systems, Inc. (NASDAQ: EVOL)
Evolving Systems, Inc. (NASDAQ: EVOL), a leading provider of strategic solutions to telecom operators worldwide, today reported strong revenue and profit growth for its first quarter ended March 31, 2013.
“We-re off to a strong start to 2013. First quarter revenue increased by 13%, led by license and services revenue growth of 19%, and adjusted-EBITDA increased by 144%,” said Thad Dupper, Chairman and CEO. “First quarter bookings were in line with our expectations, growing year over year. Our Dynamic SIM Allocation (DSA) bookings came in well above our expectations with sequential quarter growth of 93%, led by upgrades from an existing DSA customer. Profitability was particularly noteworthy, with record first quarter gross margins of 72%, adjusted-EBITDA margins of 30% and operating margins of 27%. In addition, we grew cash and cash equivalents to $11.5 million from a year-ending $8.8 million, while continuing to invest in enhancing DSA functionality with the addition of our SIM Reservation Portal. As a result of our solid and sustained profitability, our Board of Directors today declared a second quarter dividend of $0.08 per share as a tangible sign of the confidence we have in our business.”
increased 13% to $6.7 million from $5.9 million in the same quarter last year. License and services revenue grew 19% to $4.5 million from $3.8 million. Customer support revenue was up slightly to $2.2 million from $2.1 million.
increased 210% to $1.8 million from $0.6 million in the first quarter last year.
increased 55% to $1.2 million from $0.8 million in the first quarter last year. Diluted net income per share was $0.10, up from $0.07.
of $2.0 million, up 144% from $0.8 million in the same quarter last year.
The Company generated $2.8 million in cash from operations in the first quarter compared with $1.5 million in the same quarter last year.
Cash and cash equivalents at March 31, 2013, were $11.5 million, up from $8.8 million at 2012 year-end.
The Company declared a second quarter dividend of $0.08 per share to stockholders of record on June 10, 2013, payable July 12, 2013.
totaled $5.7 million, up slightly from $5.6 million in the same quarter last year. First quarter bookings included $3.6 million in license and services and $2.1 million in customer support. DSA license and services bookings in the first quarter were $1.8 million, down from $2.6 million year over year. TSA license and services bookings were $1.8 million, up from $1.2 million last year. Bookings are defined as new, non-cancelable orders expected to be recognized as revenue during the following 12 months.
at March 31, 2013, was $9.8 million compared to $12.5 million a year ago. License and services backlog totaled $5.6 million and was comprised of $3.1 million in DSA and $2.5 million in TSA. Customer support backlog was $4.2 million.
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 57803570. A telephone replay will be available through May 21, 2013, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 57803570. To access a live webcast of the call, please visit Evolving Systems- website at . A replay of the Webcast will be accessible at that website through May 21, 2013.
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.
Evolving Systems, Inc. (NASDAQ: EVOL) is a provider of software and services to 50 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, Colorado, with offices in the United Kingdom, India and Malaysia. For more information please visit or follow us on Twitter:
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 Company-s future orders, the market for the Company-s DSA and TSA products, and the Company-s continued ability to pay dividends or post quarterly 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 12, 2013, as well as other SEC filings, including Forms 10-Q, 10-Q/A, 8-K and press releases.
*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.
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303.393.7044
Sarah Hurp
Marketing Manager
Evolving Systems
+44 1225 478060
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