Global Graphics reports second quarter and half year 2009 results

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.”
 
Second quarter 2009 conference call details
Global Graphics will hold a conference call today at 10.00 CET about its results for the second quarter and the first six months of the year ending 31 December 2009.
Callers should dial +44 (0)207 162 0025 and mention "Global Graphics quarterly results conference call" to the operator.  The call will be available for replay for 7 working days by dialing +44 (0)207 031 4064 (freephone number UK only: 0800 358 1867), access code 842071.

Third quarter 2009 results announcement
Global Graphics expects to announce its financial results for the quarter and the nine-month period ending 30 September 2009 on Friday 23 October 2009 before market opening.

Editors notes

About Global Graphics
Global Graphics (http://www.globalgraphics.com) is a leading developer of e-document and printing software. It provides high-performance solutions to the graphic arts/commercial print and digital print markets and for knowledge worker and professional software applications.  The Company’s customers include Original Equipment Manufacturers (OEMs), system integrators, software developers and resellers and number the world’s leading brands of digital pre-press systems, large-format color printers, color proofing systems, digital copiers and printers for the corporate and SOHO (Small Office / Home Office) markets, as well as a wide variety of market leading software applications.

Forward-looking statements
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding the Company’s growth, funding, expansion plans and expected results for future periods. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Although management believes that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure any reader that the expectations will prove to have been correct. Accordingly, any reader should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. The Company undertakes no obligation to revise or update any of them, to reflect events or circumstances after the date of this release, nor to reflect new information nor the occurrence of unanticipated events.

Contact

CFO Alain Pronost/Global Graphics

+33 6 19 68 44 46

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