3rd Quarter Results
13 November 2009 - 8:00AM
UK Regulatory
TIDMBEK
RNS Number : 4505C
Berkeley Technology Limited
13 November 2009
+----------------------------------------+----------------------------------------+
| FOR IMMEDIATE RELEASE | November 13, 2009 |
+----------------------------------------+----------------------------------------+
Berkeley Technology Limited
Financial Results
For the Three and Nine Months Ended
September 30, 2009
London, November 13, 2009 - Berkeley Technology Limited (OTCBB: BKLYY.PK,
London: BEK.L) (the "Company") is an international venture capital consulting
firm with a focus on Silicon Valley technology companies.
The Company today reported financial results for the three and nine months ended
September 30, 2009. The Company's consolidated net loss for the third quarter of
2009 was $0.5 million, or $0.01 per diluted share and $0.09 per diluted ADR,
compared with a consolidated net loss of $1.0 million, or $0.02 per diluted
share and $0.20 per diluted ADR, for the third quarter of 2008. The Company
computes and reports consolidated net income (loss) and diluted earnings (loss)
per share and ADR in accordance with U.S. generally accepted accounting
principles ("U.S. GAAP").
For the nine months ended September 30, 2009, the Company's consolidated net
loss was $2.2 million, or $0.04 per diluted share and $0.43 per diluted ADR,
compared with a consolidated net loss of $2.1 million, or $0.04 per diluted
share and $0.41 per diluted ADR, for the first nine months of 2008.
The improvement in results for the third quarter of 2009 compared to the third
quarter of 2008 resulted from a $0.4 million decrease in operating expenses,
primarily in staff costs, and a $0.2 million change in realized investment gains
and losses. The results for the third quarter of 2008 included
an other-than-temporary write-down taken on one of the Group's private equity
investments, and there were no investment gains or losses in the third quarter
of 2009.
We continue to make progress in holding operating expenses down. The results
for the first nine months of 2009 includes a $0.4 million decrease in operating
expenses, primarily in staff costs, though this was offset by a $0.2 million
decline in interest income due to the lower interest rate environment, and by a
$0.2 million change in realized investment gains and losses. During the first
nine months of 2009, an other-than-temporary write-down of $0.2 million was
taken on one of the Group's private equity investments. During the first nine
months of 2008, an other-than temporary write-down of $0.25 million was taken on
this private equity investment, but this was more than offset by a $0.27 million
realized gain due to the receipt of a final distribution from the WorldCom, Inc.
securities litigation.
We earned consulting fees of $0.4 million during the first nine months of 2009
which was comparable to the fees earned in the same period last year.
In certain of our consulting arrangements, we may benefit from investments made
by our clients if their investments are successful. Given the challenges we face
in the current economic environment, the level of consulting fees is expected to
fluctuate depending on the nature and extent of our work at any point in time.
We continue to actively seek new clients and business opportunities.
********
Statements contained herein which are not historical facts are forward-looking
statements that involve a number of risks and uncertainties that could cause the
actual results of the future events described in such forward-looking statements
to differ materially from those anticipated in such forward-looking statements.
Factors that could cause or contribute to deviations from the forward-looking
statements include, but are not limited to, (i) variations in demand for the
Company's products and services, (ii) the success of the Company's new products
and services, (iii) significant changes in net cash flows in or out of the
Company's businesses, (iv) fluctuations in the performance of debt and equity
markets worldwide, (v) the enactment of adverse state, federal or foreign
regulation or changes in government policy or regulation (including accounting
standards) affecting the Company's operations, (vi) the effect of economic
conditions and interest rates in the U.S., the U.K. or internationally, (vii)
the ability of the Company's subsidiaries to compete in their respective
businesses, (viii) the ability of the Company to attract and retain key
personnel, and (ix) actions by governmental authorities that regulate the
Company's businesses, including insurance commissions. The Company undertakes no
obligation to update any forward-looking statements, whether as a result of new
information, future developments or otherwise.
Please address any inquiries to:
+----------------------------------+--------+----------------------------+
| Robert A. Cornman | Jersey | (0)1534 607700 |
+----------------------------------+--------+----------------------------+
| Company Secretary | | |
+----------------------------------+--------+----------------------------+
| Berkeley Technology Limited | | |
+----------------------------------+--------+----------------------------+
Form 10-Q for the quarter ended September 30, 2009
A copy of the above document will be submitted to the U.K. Listing Authority and
will be shortly available for inspection at the U.K. Listing Authority's
Document Viewing Facility, which is situated at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: 020 7676 1000
BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
+--------------------------------------------------------+-----------+--+-----------+
| | September | | December |
| | 30, | | 31, |
+--------------------------------------------------------+-----------+--+-----------+
| | 2009 | | 2008 |
+--------------------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------------------+-----------+--+-----------+
| ASSETS | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Current assets: | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Cash and cash equivalents | $ 11,744 | | $ 13,681 |
+--------------------------------------------------------+-----------+--+-----------+
| Accounts receivable, less allowances of $0 as of | | | |
| September 30, 2009 | | | |
+--------------------------------------------------------+-----------+--+-----------+
| and December 31, 2008 | 150 | | 222 |
+--------------------------------------------------------+-----------+--+-----------+
| Interest receivable | 2 | | 1 |
+--------------------------------------------------------+-----------+--+-----------+
| Prepaid expenses and deposits | 27 | | 147 |
+--------------------------------------------------------+-----------+--+-----------+
| Total current assets | 11,923 | | 14,051 |
+--------------------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Private equity investments (at lower of cost or | 1,341 | | 1,484 |
| estimated fair value) | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Property and equipment, net of accumulated | 6 | | 9 |
| depreciation of $181 and $177 as of September 30, | | | |
| 2009 and December 31, 2008, respectively | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Total assets | $ 13,270 | | $ 15,544 |
+--------------------------------------------------------+-----------+--+-----------+
+------------------------------------------------------+------------+--+-----------+
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
+------------------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------------------+------------+--+-----------+
| Current liabilities: | | | |
+------------------------------------------------------+------------+--+-----------+
| Accounts payable and accrued expenses | $ 417 | | $ 459 |
+------------------------------------------------------+------------+--+-----------+
| Policyholder liabilities (due in less than one year) | - | | 106 |
+------------------------------------------------------+------------+--+-----------+
| Total current liabilities | 417 | | 565 |
+------------------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------------------+------------+--+-----------+
| Commitments and contingencies | | | |
+------------------------------------------------------+------------+--+-----------+
| | | | |
+------------------------------------------------------+------------+--+-----------+
| Shareholders' equity: | | | |
+------------------------------------------------------+------------+--+-----------+
| Ordinary shares, $0.05 par value per share: | | | |
| 86,400,000 shares authorized; | | | |
+------------------------------------------------------+------------+--+-----------+
| 64,439,073 shares issued and outstanding as of | | | |
| September 30, 2009 | | | |
+------------------------------------------------------+------------+--+-----------+
| and December 31, 2008 | 3,222 | | 3,222 |
+------------------------------------------------------+------------+--+-----------+
| Additional paid-in capital | 67,903 | | 67,860 |
+------------------------------------------------------+------------+--+-----------+
| Retained earnings | 4,725 | | 6,894 |
+------------------------------------------------------+------------+--+-----------+
| Employee benefit trusts, at cost (13,522,381 shares | | | |
| as of | | | |
+------------------------------------------------------+------------+--+-----------+
| September 30, 2009 and December 31, 2008) | (62,598) | | (62,598) |
+------------------------------------------------------+------------+--+-----------+
| Accumulated other comprehensive loss | (399) | | (399) |
+------------------------------------------------------+------------+--+-----------+
| Total shareholders' equity | 12,853 | | 14,979 |
+------------------------------------------------------+------------+--+-----------+
| Total liabilities and shareholders' equity | $ 13,270 | | $ 15,544 |
+------------------------------------------------------+------------+--+-----------+
See accompanying Notes which are an integral part of these Condensed
Consolidated Financial Statements.
BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share and ADS amounts)
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | Three Months Ended | | Nine Months Ended |
+----------------------------------+----------------------+--+------------------------+
| | September 30, | | September 30, |
+----------------------------------+----------------------+--+------------------------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Revenues: | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Consulting fees | $ 150 | | $ 150 | | $ 397 | | $ 414 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Total revenues | 150 | | 150 | | 397 | | 414 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Operating expenses: | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Cost of services | 199 | | 218 | | 609 | | 697 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Selling, general and | 425 | | 758 | | 1,789 | | 2,091 |
| administrative expenses | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Total operating expenses | 624 | | 976 | | 2,398 | | 2,788 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Operating loss | (474) | | (826) | | (2,001) | | (2,374) |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Interest income | 20 | | 72 | | 34 | | 271 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Net realized investment gains | - | | (250) | | (200) | | 20 |
| (losses) | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Loss before income tax expense | (454) | | (1,004) | | (2,167) | | (2,083) |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Income tax expense | - | | - | | 2 | | 2 |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Net loss | $ | | $ | | $ | | $ |
| | (454) | | (1,004) | | (2,169) | | (2,085) |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Basic and diluted loss per share | $ | | $ (0.02) | | $ (0.04) | | $ (0.04) |
| | (0.01) | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| | | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
| Basic and diluted loss per ADS | $ | | $ (0.20) | | $ (0.43) | | $ (0.41) |
| | (0.09) | | | | | | |
+----------------------------------+--------+--+----------+--+----------+--+----------+
See accompanying Notes which are an integral part of these Condensed
Consolidated Financial Statements.
BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
+-----------------------------------------------------+-----------+--+-----------+
| | Nine Months Ended |
+-----------------------------------------------------+--------------------------+
| | September 30, |
+-----------------------------------------------------+--------------------------+
| | 2009 | | 2008 |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Cash flows from operating activities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Net loss | $ (2,169) | | $ (2,085) |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Adjustments to reconcile net loss to net | | | |
+-----------------------------------------------------+-----------+--+-----------+
| cash used in operating activities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Depreciation and amortization | 3 | | 5 |
+-----------------------------------------------------+-----------+--+-----------+
| Amounts credited on insurance policyholder accounts | 1 | | 4 |
+-----------------------------------------------------+-----------+--+-----------+
| Net realized investment losses (gains) | 200 | | (20) |
+-----------------------------------------------------+-----------+--+-----------+
| Share based compensation | 43 | | 51 |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Net changes in operating assets and liabilities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Accrued investment income | (1) | | 12 |
+-----------------------------------------------------+-----------+--+-----------+
| Other assets | 135 | | 269 |
+-----------------------------------------------------+-----------+--+-----------+
| Accounts payable, accruals and other liabilities | (43) | | 10 |
+-----------------------------------------------------+-----------+--+-----------+
| Net cash used in operating activities | (1,831) | | (1,754) |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Cash flows from investing activities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Proceeds from WorldCom, Inc. securities litigation | - | | 270 |
| settlement | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Capital expenditures | - | | (2) |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Net cash provided by investing activities | - | | 268 |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Cash flows from financing activities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Insurance policyholder benefits paid | (111) | | - |
+-----------------------------------------------------+-----------+--+-----------+
| Net cash used in financing activities | (111) | | - |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Effect of exchange rate changes on cash | 5 | | (18) |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Net decrease in cash and cash equivalents | (1,937) | | (1,504) |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Cash and cash equivalents at beginning of period | 13,681 | | 14,568 |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Cash and cash equivalents at end of period | $ 11,744 | | $13,064 |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Supplemental disclosure of non-cash investing | | | |
| activities: | | | |
+-----------------------------------------------------+-----------+--+-----------+
| Exchange of receivable from consulting client for | | | |
| additional private | | | |
+-----------------------------------------------------+-----------+--+-----------+
| equity investment in consulting client | $ 57 | | $ - |
+-----------------------------------------------------+-----------+--+-----------+
See accompanying Notes which are an integral part of these Condensed
Consolidated Financial Statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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