ENGLEWOOD, CO — (Marketwired) — 11/04/14 — 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 third quarter and nine months ended September 30, 2014.
“Our strong quarterly financial results were highlighted by 68% year-over-year Dynamic SIM Allocation (DSA) revenue growth,” said Thad Dupper, Chairman and CEO. “Our DSA growth is a direct result of more carriers deploying our solution in production, as well as steady and strong increases in SIM card activation volumes, driven by the proliferation of connected devices. The impact of this trend is positive revenue and EBITDA results along with gross margins and operating margins that are near all-time highs. Through nine months of 2014, adjusted EBITDA of $6.8 million has eclipsed 2013–s full year total of $6.3 million. Our year-to-date bookings highlights included a 40% increase in DSA license and services orders and an 18% increase in overall license and services orders. Given the market dynamics we are experiencing with DSA, we believe we are well positioned for continued growth for Q4 and into 2015.”
increased 25% to $7.6 million from $6.1 million in the third quarter last year. License and services revenue increased 34% to $5.1 million from $3.8 million last year. Customer support revenue increased 8% to $2.4 million from $2.2 million a year ago.
increased 58% to $2.3 million from $1.5 million in the third quarter last year.
increased 83% to $1.7 million from $0.9 million in the third quarter last year. Diluted net income per share was $0.14 versus $0.08 year over year.
of $2.5 million, up 60% from $1.6 million in the third quarter last year.
Cash and cash equivalents at September 30, 2014, were $11.0 million, down from $13.8 million at 2013 year-end. However, working capital at September 30, 2014, increased 8% to $15.9 million from $14.7 million at 2013 year-end.
The Company declared a fourth quarter dividend of $0.11 per share, payable on November 25, 2014, to stockholders of record on November 18, 2014.
increased 19% to $22.1 million through the first nine months of 2014 from $18.5 million in the same period last year. License and services revenue was up 24% to $14.7 million from $11.9 million last year. Customer support revenue increased 11% to $7.4 million from $6.7 million.
increased 33% to $6.0 million (inclusive of $0.2 million in restructuring costs) from $4.5 million last year.
increased 33% to $4.0 million from $3.0 million a year ago. Diluted net income per share grew to $0.34 from $0.26.
increased 34% to $6.8 million from $5.0 million a year ago.
totaled $6.0 million compared to $7.0 million in the same quarter last year. License and services bookings were $4.5 million, down 5% from $4.7 million year over year. DSA license and services bookings totaled $2.5 million, up 12% from $2.2 million. Tertio® Service Activation (TSA) license and services bookings were $2.0 million, down 20% from $2.5 million in the third quarter last year. Customer support bookings in the third quarter totaled $1.5 million versus $2.3 million in the same quarter last year. Bookings are defined as new, non-cancelable orders expected to be recognized as revenue during the following 12 months.
increased 9% year over year to $20.6 million from $18.8 million. License and services bookings grew 18% to $13.2 million from $11.2 million. DSA license and services bookings were up 40% to $7.8 million from $5.6 million. TSA license and services bookings declined 4% year over year to $5.4 million from $5.6 million. Customer support bookings totaled $7.4 million, down 3% from $7.7 million last year.
at September 30, 2014, was $10.6 million compared to $11.4 million in the same quarter last year. License and services backlog was $5.5 million, down 9% from $6.0 million year over year. License and services backlog included $3.3 million in DSA and $2.2 million in TSA. Customer support backlog was $5.1 million, down 4% from $5.3 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 20590912. A telephone replay will be available through November 18, 2014, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 20590912. 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 November 18, 2014.
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 over 60 network operators in more than 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 nine-month 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 11, 2014, 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
Evolving Systems
+44 (0) 1225 478060
You must be logged in to post a comment Login