GLOBAL GRAPHICS SA, developers of the Harlequin and Jaws RIP engines as utilised in a number of leading large format RIP software solutions, announces financial results for the second quarter and the first six months of the year ending 31 December 2009.
Comparisons for the second quarter of 2009 with the second quarter of the previous year include:
- Sales of Euro 2.6 million this quarter (Euro 2.3 million at Q2 2008 exchange rates), as in Q2 2008;
- An operating loss of Euro 0.1 million this quarter compared with an operating loss of Euro 0.3 million in Q2 2008;
- An adjusted operating loss of Euro 0.2 million this quarter as in Q2 2008;
- An adjusted pre-tax loss of Euro 0.4 million this quarter (or a loss of Euro 0.04 per share) compared with an adjusted pre-tax loss of Euro 0.2 million in Q2 2008 (or a loss of Euro 0.02 per share);
- A net loss of Euro 0.5 million this quarter (or a loss of Euro 0.05 per share) as in Q2 2008; and
- An adjusted net loss of Euro 0.6 million this quarter (or a loss of Euro 0.06 per share) compared with an adjusted net loss of Euro 0.5 million in Q2 2008 (or a loss of Euro 0.05 per share).
Commenting on performance, Gary Fry, Chief Executive Officer, said: “Our performance in the second quarter of 2009 is in line with our expectations. Although we made a small operating loss in the quarter, our cash position is unchanged at Euro 4.5 million at 30 June 2009 with that of 1 January 2009 and we have made a conscious decision to continue driving future product developments in both our print and eDoc segments.
“We launched our first business application, gDoc Fusion, on 18 May as a soft launch to gain market knowledge and customer feedback. We have been very encouraged by the independent verification from multiple sources that gDoc Fusion has unique value to our customers and fits a current market need.
“Our printing partners continue to have a challenging time with the current economic conditions, but remain optimistic and are working closely with us on future developments. We delivered the latest release of our Harlequin RIP, 8.1, during the second quarter. This has been very well received by our partners and their customers.
“I was also very pleased to announce in early July our strategic partnership with a leading embedded chip manufacturer, Conexant, which will enable us to gain greater access into the office printing market with our Harlequin embedded printing solution.”
Second quarter 2009 performance
Sales for the second quarter 2009 amounted to Euro 2.6 million compared with Euro 2.6 million in the second quarter 2008, or a sequential increase of 3.4% at current exchange rates.
Total operating expenses amounted to Euro 2.6 million this quarter compared with Euro 2.7 million in the same period of 2008 (which included non-recurring expenses of Euro 0.3 million), as well as in Q1 2009.
The Company reported an operating loss of Euro 0.1 million for this quarter (or 2.6% of Q2 2009 sales), compared with an operating loss of Euro 0.3 million in Q2 2008 (or 10.1% of Q2 2008 sales).
The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.2 million for this quarter (or 8.1% of Q2 2009 sales), as in Q2 2008 when such adjusted operating loss represented 8.9% of Q2 2008 sales.
The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.4 million for this quarter, compared with an adjusted pre-tax loss of Euro 0.2 million in Q2 2008, pursuant to the recognition of net exchange losses of Euro 0.2 million in Q2 2009. Accordingly adjusted pre-tax EPS was a loss of Euro 0.04 this quarter compared with a loss of Euro 0.02 in Q2 2008.
The Company reported a net loss of Euro 0.5 million for this quarter (or a loss of Euro 0.05 per share), as in Q2 2008.
The Company reported an adjusted net loss (as defined in the accompanying table) of Euro 0.6 million for this quarter, compared with an adjusted net loss of Euro 0.5 million in Q2 2008. Accordingly, adjusted net EPS was a loss of Euro 0.06 this quarter, compared with a loss of Euro 0.05 per share in Q2 2008.
First six months performance
Sales for the first six months of 2009 amounted to Euro 5.3 million compared with Euro 5.6 million for the same period of 2008, or a sequential decrease of 4.5% at current exchange rates.
Total operating expenses amounted to Euro 5.3 million for the first six months of 2009, compared with Euro 5.5 million for the same period of 2008, the latter figure including non-recurring expenses of Euro 0.5 million, notably relating to costs incurred with regards to the change in the Chief Executive Officer position which occurred in late June 2008.
The Company reported an operating loss of Euro 0.2 million for the first six months of 2009 (or 3.7% of the period’s sales), compared with an operating loss of Euro 0.1 million for the same period of 2008 (or 2.1% of that period’s sales).
The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.5 million for the first six months of 2009 (or 8.7% of the period’s sales), compared with a nominal adjusted operating loss for the same period of 2008 (or 0.6% of that period’s sales).
The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.6 million for the first six months of 2009 (or a loss of Euro 0.06 per share), compared with an adjusted pre-tax profit of Euro 0.2 million for the same period of 2008 (or a profit of Euro 0.02 per share).
The Company reported a net loss of Euro 0.6 million for the first six months of 2009 (or a loss of Euro 0.06 per share), compared with a net loss of Euro 0.3 million for the same period of 2008 (or a loss of Euro 0.03 per share).
The Company reported an adjusted net loss (defined in the accompanying table) of Euro 0.8 million for the first six months of 2009, compared with an adjusted net loss of Euro 0.2 million for the same period of 2008. Accordingly, adjusted net EPS was a loss of Euro 0.08 per share for the first six months of 2009, compared with a loss of Euro 0.02 per share for the same period of 2008.
2009 outlook
Gary Fry continued: "Our strategy of continued investment in our printing and gDoc solutions will continue in the second half of 2009. With the market insight and direct customer feedback we have had we will be refining our gDoc Fusion application and plan an aggressive sales and marketing drive shortly. This will set us up well for both gDoc Fusion and future planned gDoc applications.
Clearly 2009 has been and continues to be a challenging year for most companies in our industry. Though we currently have limited visibility on our revenues for the second half of this year, we remain confident that our past and current commercial and technology investments will deliver sustained, long-term growth for Global Graphics.”
