Attached files
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| 8-K - PEERLESS SYSTEMS CORP | v205567_8k.htm |
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For Immediate
Release:
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Contacts:
Peerless
Systems
Corporation:
William
R. Neil
Chief
Financial Officer
(310)
536-0908 ex 3146
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Peerless Systems Announces
Results for the Third Quarter of Fiscal 2011
EL
SEGUNDO, Calif., December 15, 2010
— Peerless
Systems Corporation (Nasdaq: PRLS), a provider of imaging and networking
technologies to the digital document market, today reported financial results
for the third quarter of fiscal 2011, which ended on October 31,
2010.
Third quarter revenues were
$2.8 million, versus $1.0 million in the third quarter of fiscal
2010. Product licensing revenue
was $2.8 million, compared with $0.7 million in the third quarter of fiscal
2010. The increase in product
licensing revenues was primarily the result of a non-recurring increase in
product licensing during the current quarter.
Third quarter gross margins
were 69% and 68% for the third quarters of fiscal years 2011 and 2010,
respectively. Peerless reported net income of $0.7 million, or $0.04
per basic share and diluted share in the third quarter of fiscal 2011, compared
to a net income of $3.5 million, or $0.21 per basic and diluted share, in the
third quarter of fiscal 2010. Income in the third quarter
of fiscal 2010 included a $4.8 million dividend from the Company’s investment in
Highbury Financial, Inc.
On
October 5, 2010, the Company commenced a tender offer to acquire up to $45
million in shares of its common stock at a price of $3.25 per
share. A total of 13,214,401 shares were properly tendered and not
withdrawn in the offer at a total purchase price of approximately $42.9
million. The offer was undersubscribed and all properly tendered
shares were purchased by the Company. Following completion of the
offer, the Company had 3,357,519 as of November 10, 2010. Total costs
in connection with the offer were approximately $0.1 million.
About Peerless Systems
Corporation
Founded in 1982, Peerless
historically licensed imaging and networking technologies to the digital
document markets, which include manufacturers of color, monochrome and
multifunction office products and digital appliances. Effective April
30, 2008, Peerless sold its imaging and networking technologies and certain
other assets to Kyocera-Mita Corporation. Peerless retained the
rights to continue licensing these technologies to customers in the digital
document markets. Since the completion of the sale, Peerless has been
focused on enhancing value for its stockholders and maximizing the value of its
historical licensing business.
Safe Harbor Statement Under
The U.S. Private Securities Litigation Reform Act Of
1995
Some statements included in
this news release are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and, therefore, involve uncertainties or risks
that could cause actual results to differ materially there
from. These statements may contain words such as "desires,"
"believes," "anticipates," "plans," "expects," "intends," "estimates" or similar
expressions. These statements are not guarantees of the Company's
future performance and are subject to risks, uncertainties and other important
factors that could cause actual performance or achievements to differ materially
from those expressed or implied by these forward-looking
statements. Such statements include, but are not limited to, the
Company’s ability to enhance value for stockholders, the Company’s current
licensing business and the effects of the Company’s
downsizing. Additional information regarding factors that could cause
results to differ materially from management's expectations is found in the
section entitled "Risk Factors" in the Company's 2010 Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q. The Company intends
that the forward-looking statements included herein be subject to the
above-mentioned statutory safe harbors. Investors are cautioned not to rely on
forward-looking statements. The Company disclaims any obligation to
update forward-looking statements.
Results (in thousands) are as
follows:
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Three Months Ended
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Nine Months Ended
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October 31,
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October 31,
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2010
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2009
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2010
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2009
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Revenues
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$ | 2,827 | $ | 955 | $ | 4,503 | $ | 3,972 | ||||||||
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Cost
of revenues
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885 | 302 | 1,336 | (1,238 | ) | |||||||||||
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Gross
margin
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1,942 | 653 | 3,167 | 5,210 | ||||||||||||
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Operating
expenses
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798 | 994 | 2,629 | (961 | ) | |||||||||||
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Other
income, net
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74 | 4,813 | 6,023 | 5,029 | ||||||||||||
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Income before
income taxes
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1,218 | 4,472 | 6,561 | 11,200 | ||||||||||||
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Provision for
income taxes
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492 | 929 | 2,617 | 4,145 | ||||||||||||
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Net
income
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$ | 726 | $ | 3,543 | $ | 3,944 | $ | 7,055 | ||||||||
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Basic
earnings per share
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$ | 0.04 | $ | 0.21 | $ | 0.25 | $ | 0.42 | ||||||||
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Diluted
earnings per share
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$ | 0.04 | $ | 0.21 | $ | 0.24 | $ | 0.42 | ||||||||
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Weighted
average common shares - outstanding — basic
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16,174 | 16,505 | 16,047 | 16,888 | ||||||||||||
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Weighted
average common shares - outstanding — diluted
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16,459 | 16,699 | 16,328 | 16,835 | ||||||||||||