ENGLEWOOD, CO — (Marketwired) — 11/10/15 — Evolving Systems, Inc. (NASDAQ: EVOL)
Evolving Systems, Inc. (NASDAQ: EVOL), a leader in activation, enablement and real-time marketing of services for connected mobile devices worldwide, today reported financial results for its third quarter and nine-month period ended September 30, 2015.
Late in the third quarter Evolving Systems acquired RateIntegration, Inc., d/b/a Sixth Sense Media (SSM), a transformative event for the Company. The acquisition of SSM accelerates the Company–s entry into the lucrative area of mobile marketing, adding technology and talent and expanding the Company–s global customer base. The transaction is expected to be accretive and contribute an additional 20% to current revenue run rates.
Mobile marketing and advertising software enables carriers to conduct sophisticated, revenue-generating campaigns from the moment a subscriber–s device is activated and continuing through the entire lifecycle with the carrier. The combination of SSM–s Real-time Lifecycle Marketing, or RLM, solution with Evolving Systems– Dynamic SIM Allocation (DSA) and Mobile Data Enablement (MDE) solutions forms one of the most advanced and robust mobile marketing platforms available today. Evolving Systems will be reporting these products under a new bookings and revenue category referred to as Mobile Marketing Solutions (MMS). MMS products can be purchased individually or as a complete integrated product solution.
“We are pleased to see renewed momentum in our license and service bookings. Based upon our current sales pipeline, as well as the contributions we will post from SSM, we are confident we will sustain this momentum in the fourth quarter,” said Thad Dupper Chairman and CEO. “The current fourth quarter will be the first quarter in which we recognize revenue and profitability from the acquisition. In addition, we are seeing a resurgence in DSA orders thus far in the fourth quarter. We–ve recorded two new DSA wins in the past two weeks, which brings to four the number of new DSA orders year to date, as compared with one for all of 2014. DSA remains a compelling value proposition and we are confident we–ll continue to extend our leadership position in the SIM activation market.”
Thomas Thekkethala, President, added, “We are excited by the integration of SSM into Evolving and the cross-selling opportunities with our respective product lines and worldwide customer bases. We are also developing mobile advertising and advanced campaign management capabilities for the mobile gaming and entertainment sector, which we believe will be significant new revenue drivers for our customers.”
The Company–s Board of Directors has declared a fourth quarter dividend of $0.11 per share, which raises to $5.41 per share the total amount of capital returned to Evolving Systems stockholders since May 2010.
The Company reported net income of $0.6 million, or $0.05 per share, on revenue of $5.8 million in the third quarter versus net income of $1.7 million, or $0.14 per share, on revenue of $7.6 million in the same quarter last year. Adjusted EBITDA was $1.1 million compared to $2.5 million year over year. Nine-month net income was $2.2 million, or $0.19 per share, on revenue of $18.5 million compared to net income of $4.0 million, or $0.34 per share, on revenue of $22.1 million a year ago. Adjusted EBITDA was $3.9 million versus $6.8 million year over year.
Cash and cash equivalents at September 30, 2015, were $9.4 million versus $9.8 million at 2014 year-end. The Company declared a fourth quarter dividend of $0.11 per share, payable on December 4, 2015, to stockholders of record on November 27, 2015.
License and services bookings in the third quarter increased 34% sequentially to $3.8 million from $2.8 million the second quarter. MMS license and services bookings increased to $2.2 million from $1.1 million in the second quarter. Customer support bookings in the third quarter increased to $2.0 million from $1.5 million year over year. Bookings are defined as sales orders expected to be recognized as revenue during the following 12 months.
License and services backlog was $5.2 million, up 11% sequentially from $4.7 million in the second quarter. License and services backlog included $3.9 million in MMS, up 20% year over year and up 28% sequentially, and $1.3 million in TSA.
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 61307822. A telephone replay will be available through November 24, 2015, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 61307822. 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 24, 2015. The webcast is also available by clicking the following link:
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 75 network operators in over 50 countries worldwide. The Company–s portfolio includes market-leading activation products that address subscriber service activation, SIM card activation, mobile broadband activation and connected devices; mobile data enablement solutions to successfully monetize mobile data traffic; number management products to reliably and efficiently manage number resources; and real-time analytical and marketing solutions offering highly personalized interactive campaigns. Founded in 1985, the Company has headquarters in Englewood, Colorado, with offices in the United States, United Kingdom, India, Malaysia and Romania. For more information please visit
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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 impact of the SSM acquisition, the market for the Company–s products, prospects for new customer wins, positive outlook, EBITDA, cash flow and growth, and the Company–s continued ability to pay dividends, achieve profitable growth, or post quarterly or year to date 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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