ViryaNet (VRYA) , a provider of integrated mobile and web-based software applications for workforce management and the automation of field service delivery, today announced financial results of its first fiscal quarter of 2004.
For the first quarter of 2004, the company reported a net profit of $31,000 or $0.01 per basic and diluted share, compared to a net loss of $1.4 million or $0.51 per basic and diluted share in the first quarter of 2003, and compared to a net profit of $116,000 or $0.03 per basic and diluted share for the fourth quarter of 2003.
Revenues for the first quarter, ended March 31, 2004, were $3.7 million, an 82% increase from $2 million for the first quarter of 2003, and a 3% increase from $3.6 million for the fourth quarter of 2003.
Software license revenues for the first quarter of 2004 were $1.3 million compared to $300,000 in the first quarter of 2003, and compared to $1.6 million in the fourth quarter of 2003. Software license revenues comprised 36% of total revenue during the first quarter of 2004, compared to 13% in the first quarter of 2003, and compared to 44% in the fourth quarter of 2003.
The company reported a gross profit of $1.9 million for the first quarter of 2004, or a gross margin of 53%, compared to a gross profit of $800,000, or a gross margin of 42% in the first quarter of 2003, and compared to a gross profit of $2 million, or a gross margin of 57% in the fourth quarter of 2003. The company said that the reduction in gross profit and gross margins during the first quarter of 2004 compared to the fourth quarter of 2003 was primarily attributable to the change in revenue mix between software licenses and professional services.
The company's cash position on March 31, 2004 was $3.7 million, compared to $5.1 million on December 31, 2003. This was predominately due to the reduction of the company's short- and long-term bank debt position during the first quarter of 2004 by $1.2 million, from $3.3 million on December 31, 2003 to $2.1 million on March 31, 2004. During the first quarter, the company also paid transaction costs of approximately $200,000 related to the equity financing transactions closed in the fourth quarter of 2003.
The Days of Sales Outstanding (DSO) for the company in the first quarter of 2004 was 69 days, compared to 65 days in the fourth quarter of 2003.
"Despite the seasonal dip traditionally experienced in the first quarter by vendors in our sector, we are pleased with our quarterly results, which demonstrate continued revenue growth and profitability," said ViryaNet president and CEO Win Burke.
"Based on the gradual improvements in general business conditions that we are currently experiencing, we have set a goal for at least 25% growth in revenues for the full year 2004 over the revenue reported for 2003. However, with the unpredictability in size of our deals, and with the variability in the timing of the closing of deals associated with our reseller partners, any one quarter's results will be difficult to predict and will not necessarily be indicative of full-year performance," Burke said.
Published by Globes [online] - www.globes.co.il - on Monday, May 10, 2004