ENGLEWOOD, CO — (Marketwired) — 05/05/15 — 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 first quarter ended March 31, 2015.
“While revenue growth was modest in the first quarter, our profit metrics were strong with a 39% increase in operating income, a 32% increase in net income and 17% growth in adjusted EBITDA. Cash provided by operations for the quarter was also strong,” said Thad Dupper, Chairman and CEO. “These improvements were driven by near record gross margins of 76%. Our Tertio® Service Activation license and services bookings were particularly impressive, growing 58% year over year, while Dynamic SIM Allocation (DSA) revenue in the first quarter was up 13% year over year.
“During the first quarter we experienced some lengthening decision cycles from our customers and new account prospects, resulting in some orders moving out of the quarter,” Dupper added. “For example, our newest DSA customer order just missed the quarter, closing on April 2. That notwithstanding, the business case for our DSA solution remains very compelling and I am particularly pleased with our product direction and the progress we are making around our partnering initiatives.”
As a result of continued growth in profitability, the Board has declared a second quarter dividend of $0.11 per share.
increased 1% to $6.7 million from $6.6 million in the first quarter last year. License and services revenue was down slightly at $4.3 million from $4.4 million last year. Customer support revenue increased 5% to $2.3 million from $2.2 million a year ago.
increased 39% to $1.4 million from $1.0 million in the first quarter last year.
increased 32% to $0.9 million from $0.7 million in the first quarter last year. Diluted EPS grew to $0.07 from $0.05 year over year.
increased 17% to $1.6 million from $1.4 million in the first quarter last year.
Cash and cash equivalents at March 31, 2015, were up 13% to $11.0 million from $9.8 million at 2014 year-end.
The Company declared a second quarter dividend of $0.11 per share, payable on May 29, 2015, to stockholders of record on May 22, 2015.
totaled $6.5 million compared to $7.4 million in the first quarter last year. License and services bookings were $4.3 million versus $5.1 million last year. DSA license and services bookings were $1.7 million compared to $3.5 million in the first quarter of 2014. Tertio® Service Activation (TSA) license and services bookings increased 58% to $2.5 million from $1.6 million in the first quarter last year. Customer support bookings in the first quarter totaled $2.2 million versus $2.4 million in the same quarter last year. Bookings are defined as sales orders expected to be recognized as revenue during the following 12 months.
at March 31, 2015, was $10.4 million compared to $13.1 million in the same quarter last year. License and services backlog was $5.5 million versus $7.8 million year over year. License and services backlog included $3.6 million in DSA and $1.9 million in TSA. Customer support backlog was $4.9 million, down 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 29555781. A telephone replay will be available through May 19, 2015, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 29555781. 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 19, 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, prospects for new customer wins, 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
You must be logged in to post a comment Login