MCLEAN, Va., Aug. 19, 2014 /PRNewswire/ -- CYREN Ltd.
(NASDAQ: CYRN), a global provider of cloud-based security
solutions, today announced its second quarter 2014 financial
results for the period ending June 30,
2014.
Second Quarter 2014 Financial Highlights:
- Revenues in accordance with U.S. Generally Accepted Accounting
Principles (US GAAP) totaled $8.3
million for the second quarter of 2014 compared to
$8.1 million for the sequential first
quarter of 2014 and $8.1 million in
the second quarter of 2013.
- Non-GAAP revenues totaled $8.3
million for the second quarter of 2014 compared to
$8.1 million for the sequential first
quarter of 2014 and $8.2 million in
the second quarter of 2013. The difference between non-GAAP and
GAAP revenue is derived from the fact that deferred revenues
consolidated from acquired companies are accounted under GAAP based
on fair value.
- GAAP net loss for the second quarter of 2014 was $2.0 million compared to net loss of $2.1 million for the sequential first quarter of
2014 and a net loss of $0.7 million
in the second quarter of 2013.
- GAAP loss per basic and diluted share for the second quarter of
2014 was $0.08, compared to a loss of
$0.08 for the sequential first
quarter of 2014 and a loss of $0.03
in the second quarter of 2013.
- Non-GAAP net loss for the second quarter 2014 was $1.1 million compared to non-GAAP net loss of
$1.4 million for the sequential first
quarter of 2014 and non-GAAP net income of $0.1 million in the second quarter of
2013.
- Non-GAAP loss per basic and diluted share for the second
quarter 2014 was $0.04, compared to
non-GAAP loss of $0.05 for the
sequential first quarter of 2014 and non-GAAP earnings per diluted
share of $0.00 in the second quarter
of 2013.
- Cash provided by operating activities during the quarter was
$0.3 million.
- Cash as of June 30, 2014 was
$3.1 million, compared to
$2.3 million as of March 31, 2014. In addition, the company had
drawn $5.3 million under its
$7.5 million credit
facility.
- Subsequent to quarter end, CYREN completed a registered direct
offering of ordinary shares and warrants. The offering resulted in
gross proceeds of $11.5 million,
excluding placement agent fees and offering fees and excluding any
proceeds to be received upon exercise of the warrants.
"We are very pleased with our continued progress in ramping our
recently introduced cloud-based CYREN WebSecurity offering. During
the second quarter we expanded our global distribution partners,
signed our first end users and began to recognize initial revenue,"
said Lior Samuelson, CEO and Chairman of the Board
at CYREN.
"More recently, we strengthened our balance sheet with the
successful completion of our registered direct offering," Samuelson
added. "Proceeds from the offering combined with healthy
demand trends in our profitable core detection business provide a
solid foundation to support our growth strategy."
For information regarding the non-GAAP financial measures
discussed in this release, please see "Use of Non-GAAP Financial
Information" and "Reconciliation of Selected GAAP Measures to Non
GAAP Measures."
Business Highlights:
- The company launched its CYREN Zero-Hour URL Phishing Feed, a
powerful new service that allows its web and email security
partners to block phishing sites before they reach unsuspecting end
users. The CYREN Zero-Hour URL Phishing Feed identifies thousands
of unique phishing URLs each day using a robust combination of
Recurrent Pattern Detection™ technologies, phishing URL logic,
automated crawling, and human analysis by CYREN
GlobalView™ Security Lab researchers.
- CYREN was awarded the TRUSTe Cloud Data Privacy Certification
as well as EU and Swiss Safe Harbor Certifications recognized by
the U.S. Department of Commerce. The TRUSTe Privacy Seal is
recognized by millions of consumers as a sign of trust and
demonstrates privacy best practices for personal data
protection.
- Beijing-based Byzoro
Networks Ltd, a leading supplier of next-generation information
security products, integrated CYREN Embedded Antivirus,
Anti-Spam and URL Filtering technologies in its family of
PatrolFlow security appliances.
- The New Saints Football Club (TNS), a member of
the Corbett Sports Welsh Premier League and
the Union of European Football Associations (UEFA),
became one of the first UK organizations to adopt the
cloud-based CYREN WebSecurity solution. CYREN WebSecurity was
chosen through VCW Security, a leading UK distributor of
IT security solutions and new CYREN partner.
- During the second quarter, the company has increased its base
of CYREN WebSecurity partners to 18, including distributors and
resellers in 15 countries.
- imatrix, a Tokyo-based
corporation, is the latest partner to offer the cloud-based CYREN
WebSecurity and CYREN EmailSecurity solutions. imatrix will offer
these services to its channel partners, telecom service providers
as well as enterprises throughout the Japanese market.
- AvailaSoft, a leading security vendor with a large network of
customers mostly located throughout the Asia-Pacific region,
signed a distribution agreement in July
2014. AvailaSoft will initially begin offering bundled CYREN
WebSecurity services through its long-time partners in Australia, China, Hong
Kong, Indonesia,
Japan, Korea, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam.
- IMPROVES B.V., a value added ICT security solution provider
based near Rotterdam, will begin offering its Benelux
customers a cloud-based IMPROVES WebSecurity service to addresses
its customers' ever-increasing security needs for mobile employees.
- Hermitage Solutions SARL, a distributor of IT security
solutions based in Lyon, France, signed a distribution agreement in
June 2014. With a network of more
than 200 qualified and active resellers
throughout France as well as Belgium, Estonia, Latvia, Lithuania and Luxemburg, Hermitage Solutions is one of
CYREN's largest European distributors to date for its new Security
as a Service (SecaaS) solutions.
- Komtera, a value added IT distributor based in Istanbul,
Turkey, signed a distribution
agreement in June 2014. Serving more
than 300 resellers with more than 7,000 end-user organizations
countrywide, Komtera is an exciting partner for CYREN WebSecurity
and its entry into Turkey. Komtera is also set to offer the
cloud-based CYREN EmailSecurity solution later this year.
- NexTek, an IT services and solutions company based
in Mumbai, India announced a
multi-year national distribution agreement in May. More than 30
NexTek reseller partners are expected to
offer CYREN solutions to their end users. To assist in
servicing the NexTek partnership and CYREN's continuing embedded
business in the region, CYREN opened its first data center
in India in June 2014.
Business
Outlook
Based on current expectations, the company is reiterating its
financial outlook for the full year 2014. CYREN anticipates
that its core embedded business will be maintained, with flat to
low single digit revenue growth during 2014 and that its recently
launched CYREN WebSecurity offering will be incremental to this
growth. The company plans to continue to invest the cash flow from
its core business to accelerate the development and rollout of its
cloud strategy.
The above outlook is as of the date of this release, and the
company undertakes no obligation to update its estimates in the
future.
Use of Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: stock-based compensation expenses,
amortization and impairment of acquired intangible assets,
executive termination costs, deferred taxes and deferred revenues
related to acquisitions, acquisition related costs, onetime
settlement agreements, reorganization expenses and adjustments to
earn-out obligations. The purpose of such adjustments is to give an
indication of the company's performance exclusive of non-cash
charges and other items that are considered by management to be
outside of the company's core operating results. The company's
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with the company's consolidated
financial statements prepared in accordance with GAAP. Company
management regularly uses supplemental non-GAAP financial measures
internally to understand, manage and evaluate the business and make
operating decisions.
These non-GAAP measures are among the primary factors management
uses in planning for and forecasting future periods. The company
believes this adjustment is useful to investors as a measure of the
ongoing performance of the business. The company believes these
non-GAAP financial measures provide consistent and comparable
measures to help investors understand the company's current and
future operating cash flow performance. These non-GAAP financial
measures may differ materially from the non-GAAP financial measures
used by other companies. Reconciliation between results on a GAAP
and non-GAAP basis is provided in a table immediately following the
Consolidated Statements of Income. The presentation of this
non-GAAP financial information is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. Management uses both GAAP
and non-GAAP measures when evaluating the business internally and
therefore felt it important to make these non-GAAP adjustments
available to investors.
Financial Results Conference Call
The company has scheduled a conference call later today,
August 19, 2014, at 10 a.m. Eastern Time to discuss its second
quarter 2014 results.
To participate, please call one of the following
teleconferencing numbers by dialing in at least 10 minutes before
the conference call commences. If you are unable to connect using
the toll-free numbers, please try the international dial-in
number.
US Dial-in Number: 1-877-407-8289
Israel Dial-in Number: 1-80-940-6247
International Dial-in Number: 1-201-689-8341
at:
10 a.m. Eastern
Time, 5 p.m. Israel Time
The call will be simultaneously webcast live on the investor
relations section of CYREN's website at
http://www.cyren.com/ir.html.
For those unable to listen to the live call, a webcast replay of
the call will be available from the day after the call in the
investor relations section of CYREN's corporate website.
About CYREN
CYREN is a leading provider of cloud-based security
solutions that deliver powerful protection through global data
intelligence. Regardless of the device or its
location, CYREN's easily deployed web, email, and
anti-malware products deliver uncompromising protection in both
embedded and Security as a Service (SecaaS) deployments.
Organizations rely on CYREN's cloud-based threat
detection and proactive security analytics to provide up-to-date
spam classifications, URL categorization and malware detection
services. The CYREN GlobalView™ Cloud Platform leverages Recurrent
Pattern Detection™ technologies to protect more than 550 million
users in 190 countries. CYREN is traded on
the NASDAQ Capital Market and the Tel Aviv Stock
Exchange (TASE) under the trading symbol "CYRN." Visit
the CYREN GlobalView Security Center or go
to www.CYREN.com.
Blog: blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc
This press release contains forward-looking statements,
including projections about the company's business, within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. For example, statements
in the future tense, and statements including words such as
"expect," "plan," "estimate," "anticipate," or "believe" are
forward-looking statements. These statements are based on
information available at the time of the press release and the
company assumes no obligation to update any of them. The statements
in this press release are not guarantees of future performance and
actual results could differ materially from current expectations as
a result of numerous factors, including business conditions and
growth or deterioration in the internet security market,
technological developments, products offered by competitors,
availability of qualified staff, and technological difficulties and
resource constraints encountered in developing new products, as
well as those risks described in the company's Annual Reports on
Form 20-F and reports on Form 6-K, which are available through
www.sec.gov.
U.S. Investor Contact
Monica
Gould
The Blueshirt Group
+1 212 871
3927
monica@blueshirtgroup.com
Israel Investor Contact
Iris
Lubitch
EffectiveIR
+972 54
2528007
iris@FinCom.co.il
Company Contact:
Mike
Myshrall, CFO
CYREN
+1 703 760
3320
mike.myshrall@CYREN.com
Media Contact
Matthew
Zintel
Zintel Public Relations
+1 281 444
1590
matthew.zintel@zintelpr.com
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CYREN
LTD.
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
(in thousands
of U.S. dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
June
30
|
|
June
30
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenues
|
$ 8,262
|
|
$ 8,055
|
|
$ 16,352
|
|
$ 15,980
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
2,065
|
|
1,756
|
|
4,087
|
|
3,534
|
|
|
|
|
|
|
|
|
Gross
profit
|
6,197
|
|
6,299
|
|
12,265
|
|
12,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
3,081
|
|
2,182
|
|
5,981
|
|
4,446
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
3,137
|
|
2,537
|
|
6,129
|
|
5,302
|
|
|
|
|
|
|
|
|
General and
administrative
|
1,882
|
|
2,263
|
|
4,149
|
|
4,478
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
8,100
|
|
6,982
|
|
16,259
|
|
14,226
|
|
|
|
|
|
|
|
|
Operating
loss
|
(1,903)
|
|
(683)
|
|
(3,994)
|
|
(1,780)
|
|
|
|
|
|
|
|
|
Other
income
|
-
|
|
-
|
|
200
|
|
-
|
|
|
|
|
|
|
|
|
Financial
expense, net
|
(167)
|
|
(358)
|
|
(463)
|
|
(543)
|
|
|
|
|
|
|
|
|
Net loss before
taxes
|
(2,070)
|
|
(1,041)
|
|
(4,257)
|
|
(2,323)
|
|
|
|
|
|
|
|
|
Tax
benefit
|
75
|
|
296
|
|
120
|
|
319
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
|
|
|
|
$ (1,995)
|
|
$ (745)
|
|
$ (4,137)
|
|
$ (2,004)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
$ (0.08)
|
|
$ (0.03)
|
|
$ (0.16)
|
|
$ (0.08)
|
|
|
|
|
|
|
|
|
Loss per share -
diluted
|
$ (0.08)
|
|
$ (0.03)
|
|
$ (0.16)
|
|
$ (0.08)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
26,577
|
|
26,128
|
|
26,548
|
|
26,032
|
|
|
|
|
|
|
|
|
Diluted
|
26,577
|
|
26,128
|
|
26,548
|
|
26,032
|
CYREN
LTD.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON GAAP MEASURES
|
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|
|
|
|
|
|
|
(in thousands
of U.S.dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
June
30
|
|
June
30
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$ (1,903)
|
|
$ (683)
|
|
$ (3,994)
|
|
$ (1,780)
|
Stock-based
compensation (1)
|
357
|
|
344
|
|
661
|
|
674
|
Other acquisition
related costs (2)
|
-
|
|
-
|
|
-
|
|
142
|
Amortization of
intangible assets (3)
|
467
|
|
329
|
|
891
|
|
765
|
Adjustment to
earn-out liabilities (4)
|
-
|
|
-
|
|
-
|
|
(3)
|
Executive
terminations (6)
|
69
|
|
-
|
|
208
|
|
165
|
Adjustment to
deferred revenues (7)
|
52
|
|
141
|
|
104
|
|
337
|
Settlement agreements
(8)
|
-
|
|
75
|
|
-
|
|
75
|
Re organization
expenses (9)
|
-
|
|
-
|
|
75
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP operating
profit (loss)
|
$ (958)
|
|
$ 206
|
|
$ (2,055)
|
|
$ 375
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$ (1,995)
|
|
$ (745)
|
|
$ (4,137)
|
|
$ (2,004)
|
Stock-based
compensation (1)
|
357
|
|
344
|
|
661
|
|
674
|
Other acquisition
related costs (2)
|
-
|
|
-
|
|
-
|
|
142
|
Amortization of
intangible assets (3)
|
467
|
|
329
|
|
891
|
|
765
|
Adjustment to
earn-out liabilities (4)
|
96
|
|
261
|
|
189
|
|
431
|
Income taxes
(5)
|
(113)
|
|
(279)
|
|
(214)
|
|
(371)
|
Executive
terminations (6)
|
69
|
|
-
|
|
208
|
|
165
|
Adjustment to
deferred revenues (7)
|
52
|
|
141
|
|
104
|
|
337
|
Settlement agreements
(8)
|
-
|
|
75
|
|
(200)
|
|
75
|
Reorganization
expenses (9)
|
-
|
|
-
|
|
75
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss)
|
$ (1,067)
|
|
$ 126
|
|
$ (2,423)
|
|
$ 214
|
|
|
|
|
|
|
|
|
GAAP loss per share
(dilluted)
|
(0.08)
|
|
(0.03)
|
|
(0.16)
|
|
(0.08)
|
Stock-based
compensation (1)
|
0.01
|
|
0.01
|
|
0.02
|
|
0.03
|
Other acquisition
related costs (2)
|
0.00
|
|
0.00
|
|
0.00
|
|
0.01
|
Amortization of
intangible assets (3)
|
0.02
|
|
0.01
|
|
0.04
|
|
0.03
|
Adjustment to
earn-out liabilities (4)
|
0.00
|
|
0.01
|
|
0.01
|
|
0.02
|
Income taxes
(5)
|
(0.00)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Executive
terminations (6)
|
0.00
|
|
0.00
|
|
0.01
|
|
0.01
|
Adjustment to
deferred revenues (7)
|
0.00
|
|
0.01
|
|
0.00
|
|
0.01
|
Settlement agreements
(8)
|
0.00
|
|
0.00
|
|
(0.01)
|
|
0.00
|
Reorganization
expenses (9)
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
(loss) per share (basic and diluted)
|
$ (0.04)
|
|
0.00
|
|
$ (0.09)
|
|
0.01
|
|
|
|
|
|
|
|
|
Numbers of shares
used in computing non-GAAP earnings per share (basic and
diluted)
|
26,577
|
|
26,132
|
|
26,548
|
|
26,191
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation
|
|
|
|
|
|
|
|
Cost of
revenues
|
$ 13
|
|
$ 14
|
|
$ 25
|
|
$ 26
|
Research and
development
|
74
|
|
63
|
|
147
|
|
121
|
Sales and
marketing
|
72
|
|
76
|
|
144
|
|
135
|
General and
administrative
|
198
|
|
191
|
|
345
|
|
392
|
|
|
|
|
|
|
|
|
|
$ 357
|
|
$ 344
|
|
$ 661
|
|
$ 674
|
(2) Other
acquisition related costs
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 142
|
|
|
|
|
|
|
|
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 142
|
(3) Amortization
of intangible assets
|
|
|
|
|
|
|
|
Cost of
revenues
|
$ 235
|
|
$ 142
|
|
$ 432
|
|
$ 330
|
Sales and
marketing
|
232
|
|
187
|
|
459
|
|
435
|
|
|
|
|
|
|
|
|
|
$ 467
|
|
$ 329
|
|
$ 891
|
|
$ 765
|
(4) Adjustment to
earn-out liabilities
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$
-
|
|
$
(3)
|
Financial expenses,
net
|
96
|
|
261
|
|
189
|
|
434
|
|
|
|
|
|
|
|
|
|
$ 96
|
|
$ 261
|
|
$ 189
|
|
$ 431
|
(5) Income
taxes
|
|
|
|
|
|
|
|
Deferred tax asset -
tax benefit
|
$ (113)
|
|
$ (279)
|
|
$ (214)
|
|
$ (371)
|
|
|
|
|
|
|
|
|
|
$ (113)
|
|
$ (279)
|
|
$ (214)
|
|
$ (371)
|
(6) Executive
terminations
|
|
|
|
|
|
|
|
General and
administrative
|
$ 69
|
|
$
-
|
|
$ 208
|
|
$ 165
|
|
|
|
|
|
|
|
|
|
$ 69
|
|
$
-
|
|
$ 208
|
|
$ 165
|
(7) Adjustment to
deferred revenues
|
|
|
|
|
|
|
|
Revenues
|
$
52
|
|
$ 141
|
|
$ 104
|
|
$ 337
|
|
|
|
|
|
|
|
|
|
$ 52
|
|
$ 141
|
|
$ 104
|
|
$ 337
|
(8) Settlement
agreements
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$ 75
|
|
$
-
|
|
$ 75
|
Other
income
|
-
|
|
-
|
|
(200)
|
|
-
|
|
|
|
|
|
|
|
|
|
$
-
|
|
$ 75
|
|
$ (200)
|
|
$ 75
|
|
|
|
|
|
|
|
|
(9) Reorganization
expenses
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$ 75
|
|
$
-
|
|
|
|
|
|
|
|
|
|
$
-
|
|
$
-
|
|
$ 75
|
|
$
-
|
CYREN
LTD.
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
June
30
|
|
December
31
|
|
2014
|
|
2013
|
|
Unaudited
|
|
Audited
|
|
|
|
|
Assets
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash
equivalents
|
$ 3,104
|
|
$
3,757
|
Trade receivables,
net
|
4,831
|
|
5,178
|
Deferred tax
assets
|
16
|
|
48
|
Prepaid expenses and
other receivables
|
1,446
|
|
1,988
|
Total current
assets
|
9,397
|
|
10,971
|
|
|
|
|
Lease
deposits
|
80
|
|
74
|
Severance pay
fund
|
706
|
|
819
|
Property and
equipment, net
|
2,622
|
|
2,674
|
Goodwill and
intangible assets, net
|
35,287
|
|
36,395
|
Total long-term
assets
|
38,695
|
|
39,962
|
Total
assets
|
$ 48,092
|
|
$
50,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Credit
line
|
$ 5,301
|
|
$
3,245
|
Trade
payables
|
661
|
|
859
|
Employees and payroll
accruals
|
2,772
|
|
3,102
|
Deferred tax
liability
|
56
|
|
-
|
Accrued expenses and
other liabilities
|
1,180
|
|
1,366
|
Earn-out
consideration
|
2,704
|
|
1,428
|
Deferred
revenues
|
4,319
|
|
4,499
|
Total current
liabilities
|
16,993
|
|
14,499
|
|
|
|
|
Deferred
revenues
|
1,420
|
|
1,646
|
Deferred tax
liability
|
2,517
|
|
2,749
|
Earn-out
consideration
|
1,387
|
|
2,857
|
Accrued severance
pay
|
787
|
|
873
|
Total long-term
liabilities
|
6,111
|
|
8,125
|
|
|
|
|
Shareholders'
equity
|
24,988
|
|
28,309
|
Total liabilities and
shareholders' equity
|
$ 48,092
|
|
$
50,933
|
CYREN
LTD.
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED CASH FLOW DATA
|
|
|
|
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30
|
|
June
30
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Net loss
|
$ (1,995)
|
|
$ (745)
|
|
$ (4,137)
|
|
$ (2,004)
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
321
|
|
278
|
|
642
|
|
497
|
Stock based
compensation
|
357
|
|
344
|
|
661
|
|
674
|
Amortization of
intangible assets
|
467
|
|
329
|
|
891
|
|
765
|
Accrued interest,
accretion of discount and exchange rate differences on credit
line
|
4
|
|
(2)
|
|
56
|
|
(2)
|
Accretion and change
in fair value of earn-out consideration, net
|
96
|
|
261
|
|
189
|
|
431
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Trade
receivables
|
1,099
|
|
1,195
|
|
358
|
|
812
|
Deferred
taxes
|
(18)
|
|
(279)
|
|
(119)
|
|
(372)
|
Prepaid expenses and
other receivables
|
310
|
|
(102)
|
|
535
|
|
(1,002)
|
Trade
payables
|
(426)
|
|
474
|
|
(258)
|
|
88
|
Employees and payroll
accruals, accrued expenses and other liabilities
|
718
|
|
61
|
|
(498)
|
|
(516)
|
Deferred
revenues
|
(612)
|
|
(321)
|
|
(410)
|
|
1,958
|
Accrued severance
pay, net
|
3
|
|
(22)
|
|
27
|
|
(9)
|
Net cash provided
by (used in) operating activities
|
324
|
|
1,471
|
|
(2,063)
|
|
1,320
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in long-term
lease deposits
|
(7)
|
|
(8)
|
|
(5)
|
|
(6)
|
Investment in
affiliate
|
-
|
|
(80)
|
|
-
|
|
(80)
|
Purchase of property
and equipment
|
(212)
|
|
(755)
|
|
(558)
|
|
(1,336)
|
Net cash used in
investing activities
|
(219)
|
|
(843)
|
|
(563)
|
|
(1,422)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from credit
line
|
1,000
|
|
3,005
|
|
2,000
|
|
3,005
|
Payment of earn-out
consideration
|
(351)
|
|
(3,994)
|
|
(351)
|
|
(3,994)
|
Proceeds from options
exercised
|
33
|
|
433
|
|
328
|
|
919
|
Net cash provided
by (used in) financing activities
|
682
|
|
(556)
|
|
1,977
|
|
(70)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(10)
|
|
6
|
|
(4)
|
|
(14)
|
Increase
(decrease) in cash and cash equivalents
|
787
|
|
72
|
|
(649)
|
|
(172)
|
Cash and cash
equivalents at the beginning of the period
|
2,327
|
|
4,873
|
|
3,757
|
|
5,137
|
Cash and cash
equivalents at the end of the period
|
$ 3,104
|
|
$ 4,951
|
|
$ 3,104
|
|
$ 4,951
|
Logo -
http://photos.prnewswire.com/prnh/20140120/SF48846LOGO
SOURCE CYREN