BackWeb Provides Preliminary Q4 Results Showing Sequential Improvement and Provides Update on Transfer of Trading of Its Ordinar
17 Januar 2007 - 11:29PM
Business Wire
BackWeb Technologies Ltd. (NASDAQ: BWEB), a leading provider of
software designed to provide unplugged access to enterprise web
applications, today provided its preliminary, unaudited operating
results for the fourth quarter ended December 31, 2006 and also
updated shareholders on its previously announced delisting from the
Nasdaq Capital Market, due to take effect later this month. The
delisting is the result of a change in NASDAQ�s application of its
continued listing requirements for non-U.S. companies. The Company
is seeking to have the trading of its shares transferred to the OTC
Bulletin Board where it is expected the shares would continue to
trade under the BWEB symbol. Q4 2006 Preliminary Results For the
fourth quarter of 2006, BackWeb�s financial performance improved
from that of Q3 2006. The following table highlights the company�s
preliminary results for Q4 2006 as well as the actual results for
Q3 2006 and Q4 2005. BackWeb Technologies Quarterly Operating
Results Overview (unaudited) � Q4 � 2006Preliminary Results Q3 �
2006 Actual Q4 �2005 Actual New License Sales $ 500,000� $30,000� $
370,000� Total License Sales $ 550,000� $ 60,000� $743,00� Total
Revenue $1,200,000� $ 720,000� $1,750,000� Net Loss (1) ($500,000)
� ($600,000) ($1,560,000) ($300,000) (1) The Q4 2006 and Q3 2006
net losses include approximately $100,000 in non-cash stock-based
compensation related expenses. The Q4 2005 net loss does not
include such expenses. BackWeb�s CEO, Bill Heye, stated, �We are
encouraged by the improvement we achieved in license sales in Q4 as
well as the 2007 pipeline of customer and partner opportunities we
have developed so far. This improved performance will be
complemented by our previously announced cost cutting initiatives
which should reduce 2007 expenses to approximately $1.5 to $1.6
million per quarter from approximately $2.4 million per quarter in
2006. We felt it was important to share this overview of our Q4
performance as we approach the delisting of our shares from Nasdaq
later this month. We will release our final, audited Q4 2006
results in February.� NASDAQ Delisting � Move to OTC Bulletin Board
In May 2006, Nasdaq implemented a change in its continued listing
requirements to stipulate that non-U.S. companies must now comply
with Nasdaq Marketplace Rule 4320(e)(2)(E)(i) which states that the
closing per share bid price of Nasdaq listed companies must be at
or above $1.00. Non-U.S. companies had previously been exempted
from the rule. In July 2006, BackWeb received notification from
Nasdaq indicating that, for the last 30 consecutive business days,
the bid price of BackWeb�s Ordinary Shares had closed below the
minimum $1.00 per share requirement for continued inclusion on the
Nasdaq Capital Market. In accordance with Nasdaq Marketplace Rule
4320(e)(2)(E)(ii), BackWeb was provided 180 calendar days, or until
January 16, 2007, to regain compliance by having the bid price of
its shares close at $1.00 per share or more for a minimum of 10
consecutive trading days. On January 17, 2007, BackWeb received the
expected written notification from Nasdaq that the Company�s
Ordinary Shares will be delisted from trading on the Nasdaq Capital
Market, taking effect beginning on the morning of January 26, 2007.
BackWeb�s Ordinary Shares may become eligible for trading on the
OTC Bulletin Board if a market maker makes application to quote the
Ordinary Shares and such application is cleared by the NASD.
BackWeb has already begun seeking sponsorship from market makers in
an effort to facilitate the filing of a Form 211 in accordance with
SEC Rule 15c2-11. A Form 211 application and its clearance are
required for the listing of BackWeb�s Ordinary Shares on the OTC
Bulletin Board. The Company expects, but cannot be certain, that
trading on the OTC Bulletin Board would commence on January 26,
2007 or soon thereafter. BackWeb�s Vice President, Finance, Ken
Holmes, commented, �As we had previously indicated, after thorough
review we have decided to take no action to stay the delisting of
our shares from Nasdaq. Our decision was based on review of all the
issues involved and the determination that our best course was to
keep our resources focused in support of our business. At this
point in our business, we believe a listing on the OTC Bulletin
Board will provide adequate liquidity for a company of our size as
well as for the investors in our company.� About BackWeb
Technologies: BackWeb (http://www.backweb.com) mobilizes critical
web applications and content for mobile workforces and remote
offices. Mobile professionals can be productive anytime, anywhere,
without interruption, regardless of connection status or network
availability. BackWeb's web and polite synchronization mobile
solution delivers a seamless and simple user experience. The
solution is commonly deployed to sales forces, field employees,
mobile managers and remote operations. Typical e-business
applications include enterprise sales force automation, CRM,
e-learning and training and Human Capital Management (HCM). Content
examples include document repositories and rich media. BackWeb
customers include market leaders such as Boehringer Ingelheim,
Eastman Kodak, GE Healthcare, Hewlett-Packard, Johnson &
Johnson, KLA Tencor, Lam Research, and Pfizer. BackWeb also serves
customers through partnerships with BEA, Oracle PeopleSoft and SAP.
BackWeb's operations are centered in San Jose, California, New
York, New York, and Rosh Ha 'ayin, Israel. Make every minute of
your mobile professional's day productive; visit www.backweb.com or
call (877) 222-5932. � 2007 BackWeb Technologies Ltd. All rights
reserved. BackWeb is a registered trademark and Offline Access
Server is a trademark of BackWeb Technologies Ltd. All other
trademarks are property of their respective owners. Oracle, JD
Edwards, PeopleSoft and Siebel are registered trademarks of Oracle
Corporation and/or its affiliates. Statements in this news release,
which are not purely historical, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements of beliefs, plans, expectations or intentions regarding
the future. Such forward-looking statements include, but are not
limited to, statements regarding BackWeb�s anticipated operating
results for the fourth quarter of 2006, the improvement in the
Company�s 2007 pipeline of customer and partner opportunities,
expected reductions in the Company�s operating expenses for 2007,
the anticipated transfer of BackWeb�s Ordinary Shares to trading on
the OTC Bulleting Board and the ability of such transfer to provide
BackWeb�s shareholders with adequate liquidity. Actual results
could differ materially from those in such forward-looking
statements. Factors that could cause actual results to differ
materially from expectations include, but are not limited to,
determination of BackWeb�s anticipated financial results for the
fourth quarter of 2006 is based on preliminary information, which
is subject to change; the uncertainty of market acceptance of
offline access products or our ability to license those products to
customers; general economic conditions or any downturn in IT
industry spending; the ability of BackWeb to develop innovative
technology and deliver solutions that meet customer needs; the
potential emergence of competitive technologies or competitor
companies and BackWeb may not be able to successfully transfer the
trading of its Ordinary Shares to the OTC Bulletin Board, and any
such transfer may not provide adequate liquidity for its
shareholders. In addition, please refer to our periodic filings
with the Securities and Exchange Commission, including our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2006, which contain more detailed descriptions of the risk factors
facing our business. BackWeb assumes no obligation to update any of
the forward-looking statements in this release.
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