Symbolic Logic Inc. (EVOL)

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Evolving Systems Reports Third Quarter 2012 Financial Results
Press Release: Evolving Systems – 14 minutes ago.. .

ENGLEWOOD, CO--(Marketwire - Nov 13, 2012) - Evolving Systems, Inc. ( NASDAQ : EVOL )

Total revenue of $6.8 million, up 60% year over year

Net income from continuing operations of $1.2 million vs. loss of $0.1 million in 2011

Adjusted EBITDA from continuing operations of $1.9 million, up from a loss of $0.2 million in 2011

Company declares fourth quarter dividend of $0.05 per share to stockholders of record on November 30, 2012, payable December 21, 2012

Evolving Systems, Inc. ( NASDAQ : EVOL ), a leading provider of strategic solutions to telecoms operators worldwide, today reported continued profitable growth for its third quarter and nine-month period ended September 30, 2012.

"Evolving Systems' third quarter was highlighted by revenue increasing 60% year over year," said Thad Dupper, Chairman and CEO. "It was our second consecutive quarter of 50% plus revenue growth with all of our key operating and financial metrics showing continued solid growth. We were also pleased to see our core products -- Tertio® Service Activation (TSA) and Dynamic SIM Allocation™ (DSA) -- post strong booking and revenue results. TSA saw growth as carriers continued to upgrade to LTE and 4G technologies; and with DSA, we closed our first sale in China -- a strategically important market that offers tremendous growth potential for us."

Third Quarter Highlights
•Revenue increased 60% to $6.8 million year over year. License and services revenue grew 147% to $4.7 million. Customer support revenue was $2.1 million.


•Operating income increased to $1.7 million -- a $2.2 million positive swing over the third quarter last year.


•Net income from continuing operations increased to $1.2 million from a net loss from continuing operations of $0.1 million last year. Diluted net income per share from continuing operations was $0.11 versus a loss of $0.01 last year.


•Adjusted EBITDA from continuing operations was $1.9 million, up from an adjusted EBITDA loss of $0.2 million in the same quarter last year.


•Balance Sheet: Cash and cash equivalents at September 30, 2012, were $12.4 million. In the first half of 2012 the Company returned approximately $41.4 million to stockholders through special dividends, which accounts for the lower September 30, 2012, cash and marketable securities balance relative to the 2011 year end total of $50.7 million.


•Dividend Update: The Company declared a fourth quarter dividend of $0.05 per share to stockholders of record November 30, 2012, payable December 21, 2012.

Nine-Month Highlights
•Revenue increased 38% to $19.4 million year over year. License and services revenue was $13.0 million, up 83% year over year. Customer support revenue was $6.4 million.


•Operating income improved to $3.8 million, a $5.9 million positive swing over an operating loss of $2.1 million in the same period last year.


•Net income from continuing operations increased to $4.1 million from a loss from continuing operations of $1.4 million year over year. Diluted net income per share from continuing operations was $0.36 versus a loss of $0.13 last year.


•Adjusted EBITDA from continuing operations was $4.6 million through nine months versus an adjusted EBITDA loss of $0.4 million in the same period last year.

Bookings and Backlog Highlights
•Q3 bookings totaled $7.0 million, including $5.0 million in license and services bookings -- the best quarter of the year in this category. Q3 DSA license and services bookings were $2.3 million while TSA license and services bookings were $2.7 million. In the third quarter of 2011, the Company booked $7.8 million in total orders, $5.4 million of which was attributed to license and services, including the largest ever order for DSA from a tier 1 customer in Russia.


•9-month bookings were up 11% to $18.4 million year over year. License and services bookings grew 27% to $13.0 million. DSA license and services bookings increased 4% to $6.0 million. Tertio license and services bookings increased 57% to $6.9 million. Bookings are defined as new, non-cancelable orders expected to be recognized as revenue during the following 12 months.


•Total backlog at September 30, 2012, increased 13% to $11.6 million year over year. License and services backlog was up 30% to $7.6 million. DSA license and services backlog increased 11% year over year to $4.7 million. TSA license and services backlog grew 80% to $2.9 million. Customer support backlog was $4.0 million versus $4.4 million a year ago.

Third Quarter Conference Call
The Company will conduct a conference call and webcast today at 2:30 p.m. Mountain Time. The call-in numbers for the conference call are 1-877-303-6316 for domestic toll free and 650-521-5176 for international callers. The conference ID is 38427070. A telephone replay will be available through November 27, 2012, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406, passcode 38427070. To access a live webcast of the call, please visit Evolving Systems' website at www.evolving.com. A replay of the Webcast will be accessible at that website through November 27, 2012.

Non-GAAP Financial Measures
Evolving Systems reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release non-GAAP financial information in the form of net income, diluted net income per share and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, stock compensation and gain/loss on foreign exchange transactions.) Management believes these non-GAAP financial measures are useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Investors and financial analysts who follow the Company use non-GAAP net income and non-GAAP diluted income per share to compare the Company against other companies. Adjusted EBITDA can be useful for lenders as an indicator of earnings available to service debt. Non-GAAP financial measures should not be considered in isolation from or as an alternative to the financial information prepared in accordance with GAAP.