|
Aladdin Knowledge Systems Ltd.
Condensed
Consolidated Statements of Operations
(U.S. dollars, in thousands - except for
per-share amount)
(Unaudited)
|
|
Three
month period
ended
June
30,
|
Six
month period
ended
June
30,
|
|
|
2008
|
|
2007
|
2008
|
2007
|
|
Revenues:
|
|
|
|
|
|
|
Software Security (DRM)
|
16,420
|
|
16,466
|
35,407
|
33,488
|
|
Enterprise Security
|
9,960
|
|
9,000
|
20,996
|
17,156
|
|
Total revenues
|
26,380
|
|
25,466
|
56,403
|
50,644
|
|
|
|
|
|
|
|
|
Cost of revenues
|
6,256
|
|
5,843
|
13,982
|
11,252
|
|
Gross profit
|
20,124
|
|
19,623
|
42,421
|
39,392
|
|
|
|
|
|
|
|
|
Research & development
|
6,679
|
|
4,585
|
12,944
|
9,174
|
|
Selling & marketing
|
9,751
|
|
7,917
|
19,248
|
15,994
|
|
General & administrative
|
4,211
|
|
3,370
|
8,205
|
6,765
|
|
Total operating expenses
|
20,641
|
|
15,872
|
40,397
|
31,933
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
(517)
|
|
3,751
|
2,024
|
7,459
|
|
Financial income, net
|
284
|
|
1,042
|
997
|
2,047
|
|
Other income
|
-
|
|
5
|
613
|
14
|
|
Income (loss) before taxes
|
(233)
|
|
4,798
|
3,634
|
9,520
|
|
|
|
|
|
|
|
|
Taxes on income
|
(50)
|
|
770
|
450
|
1,512
|
|
Income (loss) before equity in loss of an affiliate
and non-controlling interest
|
(183)
|
|
4,028
|
3,184
|
8,008
|
|
|
|
|
|
|
|
|
Equity in loss of an affiliate
|
-
|
|
149
|
(68)
|
261
|
|
Income (loss) before non-controlling interest
|
(183)
|
|
3,879
|
3,116
|
7,747
|
|
Non-controlling interest
|
327
|
|
-
|
693
|
-
|
|
Net income
|
144
|
|
3,879
|
3,809
|
7,747
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
0.01
|
|
0.27
|
0.27
|
0.53
|
|
Diluted earnings per share
|
0.01
|
|
0.26
|
0.27
|
0.52
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding for
Basic EPS
|
13,882
|
|
14,493
|
13,874
|
14,590
|
|
Weighted average number of shares outstanding for
Diluted EPS
|
14,196
|
|
14,914
|
14,212
|
14,962
|
Aladdin Knowledge Systems Ltd.
Condensed
Consolidated Balance Sheets
(U.S. dollars, in thousands)
(Unaudited)
|
|
June 30,
2008
|
December 31,
2007
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
Cash & cash equivalents
|
90,934
|
77,209
|
|
Marketable securities
|
3,577
|
13,127
|
|
Investment in other companies
|
2,336
|
4,423
|
|
Trade receivables, net of allowance for
doubtful accounts
|
16,947
|
16,918
|
|
Other accounts receivable
|
6,634
|
7,061
|
|
Inventories
|
12,311
|
8,763
|
|
|
|
|
|
Total current assets
|
132,739
|
127,501
|
|
|
|
|
|
Severance pay fund
|
4,903
|
3,853
|
|
|
|
|
|
Fixed assets, net
|
7,276
|
6,501
|
|
|
|
|
|
Other long-term assets, net
|
20,528
|
12,195
|
|
|
|
|
|
Total
Assets
|
165,446
|
150,050
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Trade payables
|
8,414
|
8,236
|
|
Deferred revenues
|
6,681
|
6,635
|
|
Other current liabilities
|
10,606
|
8,583
|
|
|
|
|
|
Total current liabilities
|
25,701
|
23,454
|
|
|
|
|
|
Accrued severance pay
|
6,370
|
4,802
|
|
|
|
|
|
Other long-term liabilities
|
3,354
|
2,564
|
|
|
|
|
|
Non-controlling interest
|
5,712
|
-
|
|
|
|
|
|
Shareholders' Equity
|
124,309
|
119,230
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
165,446
|
150,050
|
Aladdin Knowledge Systems Ltd.
Condensed
Consolidated Statement of Cash Flows
(U.S. dollars, in thousands)
(Unaudited)
|
|
Three month period
ended
June 30,
|
Six month period
ended
June 30,
|
|
|
2008
|
2007
|
2008
|
2007
|
|
Cash
flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
144
|
3,879
|
3,809
|
7,747
|
|
Adjustment to reconcile net income to net
cash provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
769
|
990
|
1,265
|
1,649
|
|
Increase (decrease) in trade and other
receivables, net
|
2,007
|
(720)
|
1,185
|
(1,752)
|
|
Increase in inventory
|
(1,013)
|
(190)
|
(2,284)
|
(383)
|
|
Increase (decrease) in trade payables and
accrued liabilities
|
(567)
|
578
|
(201)
|
188
|
|
Other adjustments
|
(774)
|
44
|
(1,014)
|
1,062
|
|
Net
cash provided by operating activities
|
566
|
4,581
|
2,760
|
8,511
|
|
|
|
|
|
|
|
Cash
flow from investing activities:
|
|
|
|
|
|
Purchase of property and equipment, net
|
(667)
|
(1,161)
|
(1,142)
|
(1,798)
|
|
Proceeds from sale of property and
equipment
|
-
|
16
|
-
|
29
|
|
Investment in available-for-sale
marketable securities
|
-
|
(13,728)
|
-
|
(34,356)
|
|
Proceeds from sale of available-for-sale
marketable securities
|
5,357
|
14,210
|
9,561
|
35,210
|
|
Investment in other companies
|
-
|
(245)
|
(203)
|
(495)
|
|
Investment in other assets
|
(236)
|
-
|
(236)
|
-
|
|
Proceeds from return on investment in
other companies
|
-
|
-
|
2,904
|
-
|
|
Net
cash provided by (used in) investing activities
|
4,454
|
(908)
|
10,884
|
(1,410)
|
|
Cash
flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of options
|
36
|
312
|
185
|
398
|
|
Loan Payments
|
-
|
-
|
(250)
|
-
|
|
Purchase of treasury shares
|
-
|
(9,983)
|
-
|
(9,983)
|
|
Net
cash provided by (used in) financing activities
|
36
|
(9,671)
|
(65)
|
-
|
|
|
|
|
|
|
|
Effect of exchange rate on cash and cash
equivalents
|
(166)
|
18
|
146
|
9
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents
|
4,890
|
(5,980)
|
13,725
|
(2,476)
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning
of the period
|
86,044
|
43,239
|
77,209
|
39,734
|
|
Cash and cash equivalents at the end of
the period
|
90,934
|
37,259
|
90,934
|
37,259
|
Aladdin Knowledge Systems Ltd.
Supplementary
Financial Information
Reconciliation
of GAAP Financial Information to Non-GAAP
(U.S. dollars, in thousands - except for
per-share amount)
(Unaudited)
|
|
Quarter
ended June 30
|
Six
month period ended June 30
|
|
|
|
GAAP
2008
|
SFAS
123R adjustments
|
Non-GAAP
2008
|
Non-GAAP
2007
|
GAAP
2008
|
SFAS
123R
adjustments
|
Non-GAAP
2008
|
Non-GAAP
2007
|
|
|
(Unaudited)
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Software Security (DRM)
|
16,420
|
|
16,420
|
16,466
|
35,407
|
|
35,407
|
33,488
|
|
Enterprise
Security
|
9,960
|
|
9,960
|
9,000
|
20,966
|
|
20,966
|
17,156
|
|
Total Revenues
|
26,380
|
|
26,380
|
25,466
|
56,403
|
|
56,403
|
50,644
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
6,256
|
18
|
6,238
|
5,833
|
13,982
|
38
|
13,944
|
11,252
|
|
Gross profit
|
20,124
|
(18)
|
20,142
|
19,633
|
42,421
|
(38)
|
42,459
|
39,392
|
|
|
|
|
|
|
|
|
|
|
|
Research & development
|
6,679
|
149
|
6,530
|
4,431
|
12,941
|
276
|
12,668
|
8,939
|
|
Selling & marketing
|
9,751
|
145
|
9,606
|
7,818
|
19,248
|
297
|
18,951
|
15,787
|
|
General & administrative
|
4,211
|
91
|
4,120
|
3,213
|
8,205
|
174
|
8,031
|
6,642
|
|
Total operating expenses
|
20,641
|
385
|
20,256
|
15,462
|
40,397
|
747
|
39,650
|
31,368
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
(517)
|
(403)
|
(114)
|
4,171
|
2,024
|
(785)
|
2,809
|
8,024
|
|
Financial income, net
|
284
|
|
284
|
1,042
|
997
|
|
997
|
2,048
|
|
Other income
|
-
|
|
|
5
|
613
|
|
613
|
14
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
(233)
|
(403)
|
170
|
5,218
|
3,634
|
(785)
|
4,419
|
10,086
|
|
Taxes on income
|
(50)
|
|
(50)
|
770
|
450
|
|
450
|
1,512
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity in loss of an affiliate
|
(183)
|
(403)
|
220
|
4,448
|
3,184
|
(785)
|
3,969
|
8,574
|
|
Equity in loss of an affiliate
|
-
|
|
-
|
149
|
(68)
|
|
(68)
|
(261)
|
|
Income (loss) before non-controlling interest
|
(183)
|
|
220
|
-
|
3,116
|
|
3,901
|
8,313
|
|
Non-controlling interest
|
327
|
|
327
|
-
|
693
|
|
693
|
-
|
|
Net income
|
144
|
(403)
|
547
|
4,597
|
3,809
|
(785)
|
4,594
|
8,313
|
|
Basic earnings per share
|
0.01
|
|
0.04
|
0.32
|
0.27
|
|
0.33
|
0.57
|
|
Diluted earnings per share
|
0.01
|
|
0.04
|
0.31
|
0.27
|
|
0.32
|
0.56
|
|
Weighted average number of shares outstanding for Basic EPS
|
13,882
|
|
13,882
|
14,493
|
13,874
|
|
13,874
|
14,590
|
|
Weighted average number of shares outstanding for Diluted EPS
|
14,196
|
|
14,196
|
14,914
|
14,212
|
|
14,212
|
14,962
|
|
|
|
|
|
|
|
|
|
|
|
|