-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RK+itog19x8kFSIj/ex5JuTxC8NY4BlS8w9pFlOWOhK6Tz6RTLU91afEGhYWj7gc qjtFxHWWWmcOm2lBmG3m4A== 0001144204-05-014805.txt : 20050511 0001144204-05-014805.hdr.sgml : 20050511 20050511145401 ACCESSION NUMBER: 0001144204-05-014805 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050511 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050511 DATE AS OF CHANGE: 20050511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DATA SYSTEMS & SOFTWARE INC CENTRAL INDEX KEY: 0000880984 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 222786081 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19771 FILM NUMBER: 05820351 BUSINESS ADDRESS: STREET 1: 200 RTE 17 CITY: MAHWAH STATE: NJ ZIP: 07430 BUSINESS PHONE: 2015292026 MAIL ADDRESS: STREET 1: 200 ROUTE 17 CITY: MAHWAH STATE: NJ ZIP: 07430 FORMER COMPANY: FORMER CONFORMED NAME: DEFENSE SOFTWARE & SYSTEMS INC DATE OF NAME CHANGE: 19930328 8-K 1 v017958.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) May 11, 2005 DATA SYSTEMS & SOFTWARE INC. (Exact name of Registrants as Specified in their Charters) Delaware 0-19771 22-2786081 - -------------------------------------------------------------------------------- (States or Other Jurisdiction (Commission file Numbers) (IRS Employer of Incorporation) Identification Nos.) 200 Route 17, Mahwah, New Jersey 07430 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrants' telephone number, including area code (201) 529-2026 -------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-2 under the Exchange Act (17 CFR 240.14a-2) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 2 - Financial Information Item 2.02 Results of Operations and Financial Condition. On May 10, 2005, the Registrant announced its financial results for the first quarter ended March 31, 2005. The press release relating to such announcement is filed as Exhibit 99.1 hereto. Section 9 - Financial Statements and Exhibits Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release dated May 10, 2005 announcing the financial results. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 11th day of May 2005. DATA SYSTEMS & SOFTWARE, INC. By: /S/ GEORGE MORGENSTERN ----------------------------------------- Name: George Morgenstern Title: President and Chief Executive Officer EX-99.1 2 v017958_ex99-1.txt Exhibit 99.1 [logo] FOR IMMEDIATE RELEASE CONTACT: George Morgenstern, CEO DATA SYSTEMS & SOFTWARE INC. (201) 529-2026 E-mail: ir@dssiinc.com DATA SYSTEMS & SOFTWARE INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2005 Mahwah, New Jersey -May 10, 2005 -- Data Systems & Software Inc. (OTCBB: DSSI) today announced results for the quarter ended March 31, 2005. Sales in the first quarter of 2005 were $8.6 million, increasing by $1.3 million, or 18%, compared to sales in the first quarter of 2004. This increase was primarily due to a $0.8 million, or 19% increase in computer hardware sales. In addition, sales in the Company's software consulting and development segment increased by $0.5 million, or 16%, primarily due to an increase in consulting revenues. Gross profit in the first quarter of 2004 was $1.9 million, increasing by $0.3 million, or 19%, compared to gross profit in the first quarter of 2004. This increase was primarily attributable to the increase in software consulting and development sales, as well as improved gross profit margin in that segment, from 20% in the first quarter of 2004 to almost 26% in the first quarter of 2005. Gross profit in the computer hardware segment remained relatively stable, with the increase in sales being offset by a decrease in gross profit margin from 22% in the first quarter of 2004 to almost 19% in the first quarter of 2005, due to the inclusion of a particularly profitable sale in the 2004 period. The Company's share of Comverge's net loss in the first quarter of 2005 was $0.2 million, compared to $0.4 million in the first quarter of 2004. Comverge's net loss during those periods was $3.0 million and $2.1 million, respectively. The decrease in the Company's share of Comverge's losses, despite the increase in Comverge's loss, was due to the decrease in the Company's percentage holdings of Comverge's preferred share equity. George Morgenstern, Chairman, President and Chief Executive Officer of DSSI commented: "Both our operating segments continued to generate profits in the first quarter of 2005 and we expect these operations to remain profitable and even show improved results in the coming quarters. However, Comverge's losses continued to have a negative effect on our results." Mr. Morgenstern also commented on the status of the agreement in principle to sell dsIT: "We are proceeding with the due diligence process and our negotiation of a definitive agreement for the sale of our dsIT subsidiary to Matrix IT Ltd. and hope to complete that process over the next few weeks." Data Systems & Software Inc. (OTCBB: DSSI) is a provider of software consulting and development services, and is an authorized direct seller and value added reseller of computer hardware. In addition, its Comverge Inc. equity affiliate provides energy intelligence solutions to utilities. Additional information about DSSI is available at www.dssiinc.com. This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. The ability of the Company to maintain profitable operations in its consolidated operating segments is subject to risks and uncertainties related to conditions in the market for computer hardware and IT solutions markets. There is no assurance that the Company will be able to maintain profitable operations from the operations of its consolidated operating segments over the short or long term. The ability of Comverge to continue to grow and improve its results is subject to risks associated with conditions in the market for energy intelligence solutions, including competition and the pace and consequences of deregulation. The consummation of the transaction for the sale of dsIT referred to in this release is subject to (i) satisfactory completion by Matrix of its due diligence investigation of dsIT, (ii) negotiation and execution of a definitive agreement, and (iii) the receipt of all necessary corporate and other approvals. The actual consideration to be paid by Matrix for the dsIT shares, and the amount that the Company may receive in connection with the transaction, is subject to adjustment. There is no assurance that the transaction will be consummated on the terms previously announced or at all. A more complete discussion of risks and uncertainties which may affect the accuracy of these statements and the Company's business generally is included in "Business--Factors Which May Affect Future Results" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission. Tables Follow DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except per share data)
As of As of December March 31, ASSETS 31, 2004 2005 ------------- ------------- Current assets: (unaudited) Cash and cash equivalents ................................................. $ 685 $ 327 Short-term bank deposits .................................................. 72 -- Restricted cash ........................................................... 354 354 Accounts receivable, net .................................................. 6,069 6,985 Unbilled work-in-process .................................................. 533 1,036 Inventory ................................................................. 61 114 Other current assets ...................................................... 540 1,002 ------------- ------------- Total current assets .................................................. 8,314 9,818 Property and equipment, net .................................................... 649 677 Other assets ................................................................... 737 662 Funds in respect of employee termination benefits .............................. 2,836 2,860 Goodwill ....................................................................... 4,408 4,354 Other intangible assets, net ................................................... 81 72 ------------- ------------- Total assets .......................................................... $ 17,025 $ 18,443 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term bank credit .................................................... $ 729 $ 647 Current maturities of long-term debt ...................................... 466 445 Related Party - Note payable .............................................. -- 250 Trade accounts payable .................................................... 2,283 3,575 Accrued payroll, payroll taxes and social benefits ........................ 1,735 1,810 Other current liabilities ................................................. 2,227 2,277 ------------- ------------- Total current liabilities ............................................. 7,440 9,004 ------------- ------------- Long-term liabilities: Investment in Comverge, net ............................................... 1,444 1,645 Long-term debt ............................................................ 201 220 Liability for employee termination benefits ............................... 4,279 4,384 Other liabilities ......................................................... 65 45 ------------- ------------- Total long-term liabilities ........................................ 5,989 6,294 ------------- ------------- Minority interests ............................................................. 1,471 1,494 ------------- ------------- Shareholders' equity: Common stock - $0.01 par value per share: Authorized - 20,000,000 shares; Issued - 8,937,395 shares at .......... 88 December 31, 2004 and March 31, 2005 ............................... 88 Additional paid-in capital ................................................ 39,733 39,733 Warrants .................................................................. 461 461 Deferred compensation ..................................................... (59) (53) Accumulated deficit ....................................................... (34,290) (34,729) Treasury stock, at cost -820,704 shares at December 31, 2004 and March 31, (3,791) 2005 .................................................................. (3,791) Accumulated other comprehensive loss ...................................... (17) (58) ------------- ------------- Total shareholders' equity ............................................ 2,125 1,651 ------------- ------------- Total liabilities and shareholders' equity ............................ $ 17,025 $ 18,443 ============= =============
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share data)
Three months ended March 31, ------------------------------ 2004 2005 ------------- ------------- Sales: Products .......................................................... $ 4,269 $ 5,128 Services .......................................................... 2,308 2,588 Projects .......................................................... 678 843 ------------- ------------- Total sales ................................................... 7,255 8,559 ------------- ------------- Cost of sales: Products .......................................................... 3,365 4,185 Services .......................................................... 1,767 1,984 Projects .......................................................... 573 540 ------------- ------------- Total cost of sales ........................................... 5,705 6,709 ------------- ------------- Gross profit ............................................... 1,550 1,850 ------------- ------------- Operating expenses: Research and development expenses ................................... -- 9 Selling, marketing, general and administrative expenses ............. 1,830 1,892 ------------- ------------- Total operating expenses ................................. 1,830 1,901 ------------- ------------- Operating loss ......................................................... (280) (51) Interest income ........................................................ 2 2 Interest expense ....................................................... (57) (55) Other income , net ..................................................... 101 5 ------------- ------------- Loss before taxes on income ....................................... (234) (99) Taxes on income ........................................................ 7 (97) ------------- ------------- Loss from operations of the Company and its consolidated subsidiaries .. (227) (196) Share in losses of Comverge ............................................ (353) (201) Minority interests ..................................................... (15) (42) ------------- ------------- Net loss ......................................................... $ (595) $ (439) ============= ============= Other comprehensive loss, net of tax: Differences from translation of financial statements of subsidiaries ... (196) (41) ------------- ------------- Comprehensive loss .............................................. $ (791) $ (480) ============= ============= Basic and diluted loss per share: Net loss per share - basic and diluted ............................ $ (0.08) $ (0.05) ============= ============= Weighted average number of shares outstanding - basic and diluted 7,920 8,117 ============= =============
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