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Southborough, Mass. - September 29, 2005 -ViryaNet (NASDAQ: VRYA)
, a leading provider of integrated mobile and Web-based software applications for workforce management and field service delivery, today announced financial results of its second fiscal quarter of 2005.
Total revenues were $3.4M for the second quarter, ended June 30, 2005, a 13% increase from $3.0M recorded for the second quarter of 2004, and a 9% decrease from $3.7M recorded for the first quarter of 2005. For the first six months of 2005, total revenues were $7.1M, an increase of 2% from the $7.0M of revenue recorded for the comparable period in 2004.
For the second quarter of 2005, the Company reported a net loss of $1.4M, or $0.23 per basic and diluted share, compared to a net loss of $0.9M or $0.19 per basic and diluted share for the second quarter of 2004, and compared to a net loss of $1.1M, or $0.19 per basic and diluted share for the first quarter of 2005. The net loss for the first six months of 2005 was $2.5M, or $0.41 per basic and diluted share, compared to a net loss of $0.5M, or $0.12 per basic and
diluted share for the comparable period in 2004.
Professional services revenues grew 53% to $3.4M for the second quarter of 2005, compared to $2.2M for the second quarter of 2004, and grew 46% compared to $2.3M for the first quarter of 2005.
The Company reported a gross profit of $1.4M for the second quarter of 2005, or a gross margin of 41%, compared to a gross profit of $1.3M, or a gross margin of 44% in the second quarter of 2004, and compared to a gross profit of $1.9M, or a gross margin of 50% in the first quarter of 2005.
Operating expenses for the second quarter of 2005 were $2.7M, compared to $2.1M for the second quarter of 2004, and compared to $2.8M for the first quarter of 2005.
The Company's cash position on June 30, 2005 was approximately $1.9M, compared to $1.6M on March 31, 2005. The Company's short-term and long-term bank debt position on June 30, 2005 was $2.6M, compared to $1.7M on March 31, 2005.
The Days of Sales Outstanding (DSO) for the Company in the second quarter of 2005 was 43 days, compared to 51 days in the first quarter of 2005.
"The cyclical nature of our deal closing resulted in less-than-expected bookings during the second quarter and the mix of the resulting bookings was heavily weighted toward professional services as a result of several expanded engagements with existing customers," said Paul V. Brooks, president and CEO, ViryaNet. "Despite that condition, our year-to-date revenue has increased slightly over the revenue for the same period last year. With a strong sales
pipeline, we expect that our full year revenues will surpass those of the year 2004."
"Our strategy remains steadfast: to become the worldwide leader of mobile workforce management solutions. Toward that end, we continue to invest significantly in sales and marketing, professional services and account management, our partner network, and research and development. As well, we constantly analyze opportunities that will expand our market presence and growth, as illustrated by the establishment of our Australian subsidiary and our acquisition of
Australia-based e-Wise Solutions during the second quarter."
New Product Introductions -
The Company announced during the quarter the planned product release of an electronic Vegetation Management Solution (eVMS) for utility companies. eVMS will be a first-to-market computerized system that provides utility companies with the necessary tools for effectively administering a UVM (Utilities Vegetation Management) program. eVMS is built using ViryaNet Service Hub technology in partnership with CN Utility Consulting (CNUC) and Enporion.
Customer Expansions -
During the quarter, several existing customers,
including News America Marketing, EDS, Duquesne, Aquila, and Ricoh, expanded
the use of our product,which contributed to the growth of our professional services revenue from the previous quarter.
Geographic Expansion -
During the quarter, ViryaNet established an Australian subsidiary, and completed the acquisition of substantially all of the assets of Australia-based e-Wise Solutions. e-Wise develops and implements front-office automation solutions for mobile and desktop platforms, and has a customer roster that includes a number of large organizations in the utility, government, and oil & gas services market segments, across Australia, New Zealand, and the Asia Pacific
region.
In addition, Australian energy company Integral Energy selected ViryaNet Service Scheduler to schedule emergency field service technicians across multiple regions, dispatching these resources based on location, skill sets, work to be done, and other business requirements. Since the acquisition of e-Wise, the Company has utilized its Australian subsidiary as the primary source of professional services delivery to GE as part of the Integral Energy project.