ENGLEWOOD, CO — (Marketwired) — 03/17/15 — Evolving Systems, Inc. (NASDAQ: EVOL)
Evolving Systems, Inc. (NASDAQ: EVOL), a leader in activation, enablement and management of services for connected mobile devices worldwide, today reported financial results for its fourth quarter and full year ended December 31, 2014.
“Evolving Systems delivered strong financial results in the fourth quarter and full year, including double digit revenue growth and record or near-record highs in key profit metrics,” said Thad Dupper, Chairman and CEO. “Our Dynamic SIM Allocation (DSA) product led the way with revenue growth of 48% for the year. In addition, we added a new tier-1 DSA customer during the fourth quarter.
“In 2014 our customers activated a record 120 million DSA SIM cards, up 59% year over year and bringing the total number of DSA SIM cards activated to well over 300 million since 2011. DSA–s position as the first touch point in the subscriber–s user experience is becoming increasingly strategic as carriers look to offer an expanding array of new features during the moment of initial activation, such as downloading their customer care app, offering cloud back-up services and/or the insertion of mobile ads at the time of the initial activation. To meet this need we continue to add new features to the DSA platform with more in the pipeline. As a result, we are confident in the long-term prospects for increased carrier adoption and our continued leadership role in this growth segment of the market.”
increased 16% to $7.6 million from $6.6 million in the fourth quarter last year. License and services revenue increased 22% to $5.0 million from $4.1 million last year. Customer support revenue increased 5% to $2.6 million from $2.4 million a year ago.
increased 355% to $2.5 million from $0.5 million in the fourth quarter last year.
increased 99% to $1.6 million from $0.8 million in the fourth quarter last year. Diluted net income per share grew to $0.13 from $0.07 year over year.
increased 119% to $2.7 million from $1.2 million in the fourth quarter last year.
Cash and cash equivalents at December 31, 2014, were $9.8 million, down from $13.8 million at 2013 year-end. However, working capital at December 31, 2014, increased 7% to $15.8 million from $14.7 million at 2013 year-end.
The Company declared a first quarter dividend of $0.11 per share, payable on March 31, 2015, to stockholders of record on March 24, 2015.
increased 18% to $29.7 million in 2014 from $25.1 million in the prior year. License and services revenue grew 23% year over year to $19.7 million from $16.0 million. Customer support revenue increased 9% to $9.9 million from $9.1 million.
increased 67% to $8.4 million from $5.0 million last year.
grew 47% year over year to $5.6 million from $3.8 million. Diluted net income per share increased to $0.47 from $0.32.
increased 51% to $9.4 million from $6.3 million a year ago.
totaled $7.7 million compared to $7.4 million in the fourth quarter last year. License and services bookings were flat year over year at $5.2 million. DSA license and services bookings were up 61% to $3.7 million from $2.3 million. Tertio® Service Activation (TSA) license and services bookings were $1.4 million compared to $2.8 million in the fourth quarter last year. Customer support bookings in the fourth quarter totaled $2.5 million, up 16% from $2.2 million in the same quarter last year. Bookings are defined as sales orders expected to be recognized as revenue during the following 12 months.
increased 8% year over year to $28.3 million from $26.2 million. License and services bookings grew 12% to $18.4 million from $16.4 million. DSA license and services bookings were up 46% to $11.6 million from $7.9 million. TSA license and services bookings declined 19% year over year to $6.8 million from $8.4 million. Customer support bookings were $10.0 million, up slightly from $9.9 million last year.
at December 31, 2014, was $10.6 million compared to $12.2 million in the same quarter last year. License and services backlog was $5.6 million versus $7.1 million year over year. License and services backlog included $4.1 million in DSA and $1.4 million in TSA. Customer support backlog was $5.0 million, down slightly from $5.1 million year over year.
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 87144586. A telephone replay will be available through March 31, 2015, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 87144586. 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 March 31, 2015.
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 more than 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 services for connected devices. Founded in 1985, the Company has headquarters in Englewood, CO, 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 market for the Company–s products, market leadership, positive outlook, EBITDA, cash flow and 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 17, 2015; Forms 10-Q, 10-Q/A, and 8-K; press releases and the Company–s website.
*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.
**The change in backlog during the periods presented may not equal the difference between revenue recognized and bookings due to changes in foreign exchange rates.
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303.393.7044
Sarah Hurp
Evolving Systems
+44 (0) 1225 478060
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