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Peerless Systems Announces Results for the Quarter Ended
April 30, 2012
GlobeNewswire
2012-06-15
STAMFORD, Conn., June 14, 2012 (GLOBE NEWSWIRE) -- Peerless Systems
Corporation (Nasdaq:PRLS) today reported financial results for its
first fiscal quarter that ended April 30, 2012.
First Quarter Results
Revenues were $0.6 million for the three months ended April 30, 2012,
compared to $1.8 million for the three months ended April 30, 2011. We
experienced a decrease in licensing revenues during the three months
ended April 30, 2012 from the three months ended April 30, 2011, due to
an $800,000 block license that was sold during the three months ended
April 30, 2011 and no block license was sold during the three months
ended April 30, 2012 as well as an overall decrease in per-unit
licenses sold.
Our gross margins were 91.5% and 66.5% for the three months ended April
30, 2012 and April 30, 2011, respectively. The increase in gross
margins was the result of less fees being paid to third parties due to
a change in the product mix generating licensing revenues.
Our net income for the three months ended April 30, 2012 was
approximately $446,000, or $0.13 per basic share and diluted share,
compared to a net income of approximately $352,000, or $0.11 per basic
and diluted share, for the three months ended April 30, 2011. The
Company had 3.3 million and 3.1 million weighted average shares of
common stock outstanding as of April 30, 2012 and April 30, 2011,
respectively.
Timothy E. Brog, Chairman and Chief Executive Officer of Peerless,
said, "We are very pleased that our historical licensing business was
on track with our expectations during the first quarter of fiscal 2013
and continues to generate positive cash flow."
Mr. Brog added, "However we are extraordinarily disappointed in the
performance of our investment in ModusLink Global Solutions Inc.
(Nasdaq:MLNK) and the lack of results to date of their review of
strategic alternatives. We are also shocked about the accounting
irregularities and internal control weakness that ModusLink has
recently disclosed. We presently intend in the next several weeks to
communicate to ModusLink's Board of Directors and its stockholders our
view on ModusLink's Board of Directors chronic failures, the various
issues that ModusLink currently faces and potential recommendations."
Peerless will hold its annual meeting of stockholders on June 27, 2012.
Stockholders of record on May 2, 2011 are entitled to vote at the
meeting. Further information about the meeting is included in the proxy
statement filed with the Securities and Exchange Commission ("SEC") on
May 17, 2012.
About Peerless Systems Corporation
Founded in 1982, Peerless historically licensed imaging and networking
technologies to the digital document markets. Effective April 30, 2008,
Peerless sold its imaging and networking technologies and certain other
assets to Kyocera-Mita Corporation. Peerless retains certain rights to
continue licensing these technologies to customers in the digital
document markets. Peerless is seeking to maximize the value of its
licensing business and is exploring various alternatives to enhance
stockholder value, potentially through establishing a new venture or
acquiring an existing business, as well as through other investment
opportunities.
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 maximize the value of its
licensing business or to enhance stockholder value, potentially through
establishing a new venture or acquiring an existing business, or
through other investment opportunities. Additional information
regarding factors that could cause results to differ materially from
management's expectations is found in the section[s] entitled "Risk
Factors" in the Company's 2012 Annual Report on Form 10-K filed with
the SEC on April 27, 2012. 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.
PEERLESS SYSTEMS CORPORATION
UNAUDITED CONDENSED STATEMENT OF INCOME
(In thousands except per share amounts)
Three Months
Ended
April 30,
---------------
2012 2011
Revenues $614 $ 1,759
Cost of revenues 52 590
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Gross margin 562 1,169
Operating expenses 436 671
Other income, net 609 113
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Income before income taxes 735 611
Provision for income taxes 289 259
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Net income $446 $352
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Basic earnings per share $0.13 $0.11
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Diluted earnings per share $0.13 $0.11
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Weighted average common shares
- outstanding -- basic 3,305 3,107
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Weighted average common shares
- outstanding -- diluted 3,531 3,315
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PEERLESS SYSTEMS CORPORATION
UNAUDITED CONDENSED BALANCE SHEET
(In thousands)
January
April 30, 31,
2012 2012
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ASSETS
Current assets:
Cash and cash equivalents $11,523 $10,433
Marketable securities 4,435 6,588
Trade accounts receivable,
net 1,029 1,267
Income tax receivable -- 21
Prepaid expenses and other
current assets 27 56
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Total current assets 17,014 18,365
Property and equipment, net -- 0
Other assets 4 4
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Total assets $17,018 $18,369
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accrued salaries and benefits $53 $330
Accrued product licensing
costs 176 218
Deferred tax liability 72 688
Income tax payable 311 --
Other current liabilities 244 614
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Total current liabilities 856 1,850
Non-current liabilities
Tax liabilities 1,655 1,643
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Total liabilities 2,511 3,493
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Stockholders' equity:
Common stock, $.001 par value 18 18
Additional paid-in capital 57,250 57,177
Retained earnings 5,302 4,856
Accumulated other
comprehensive income 434 1,322
Treasury stock, 15,951 at
April 30, 2012 and January
31, 2012 (48,497) (48,497)
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Total stockholders' equity 14,507 14,876
--------- ---------
Total liabilities and
stockholders' equity $17,018 $18,369
========= =========
CONTACT: Peerless Systems Corporation
Timothy E. Brog
Chief Executive Officer
203-350-0040
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