Expects to record second quarter revenues of $22.7-23.0 million, up 18% to 20% compared to the second quarter last year
HERZLIYA, Israel, July 8 /PRNewswire-FirstCall/ -- BluePhoenix Solutions (Nasdaq: BPHX), the leader in value-driven legacy modernization, today provided additional visibility into its expected second quarter 2008 financial results. This information is intended to supplement the preliminary earnings guidance provided on June 19, 2008.
Arik Kilman, CEO of BluePhoenix commented, "Based on a preliminary review of our second quarter results, revenues are expected to be in the range of $22.7 to $23.0 million for the second quarter of 2008, up approximately 18% to 20% compared to $19.2 million in last year's same period. Challenging global economic conditions, particularly related to IT spending have resulted in a somewhat longer sales cycle, and as such, our ability to forecast the timing of revenue recognition is proving more difficult than normal."
"We have maintained a healthy pipeline and we are actively engaged in discussions with both new prospects and current customers for follow-on projects, some of which are sizable," Mr. Kilman continued. "We continued to book new projects throughout the second quarter despite the global economic conditions, and are seeing a particularly nice pick-up in AS400 business, as our ANSA subsidiary continues to grow."
Mr. Kilman concluded, "We expect that the legacy modernization market will continue to present attractive opportunities for us, and that we have the right solutions that enterprises need, and further, that the decision to migrate isn't a question of 'if', but rather 'when.' BluePhoenix's best-of-class solutions for migrating and modernizing legacy databases, applications, and IT platforms position the Company well for long-term growth and financial success in this market."
About BluePhoenix Solutions
BluePhoenix Solutions (Nasdaq: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, re-hosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Merrill Lynch, Rabobank, Rural Servicios Informaticos, SDC Udvikling, TEMENOS, Toyota and Volvofinans. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.
SAFE HARBOR: Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements. These risks and uncertainties include but are not limited to: market demand for the Company's tools, successful implementation of the Company's tools, competitive factors, the ability to manage the Company's growth, the ability to recruit and retrain additional software personnel, and the ability to develop new business lines. This press release is also available at http://www.bphx.com. All names and trademarks are their owners' property.
Company Contact Investor Contact
Varda Sagiv Peter Seltzberg
BluePhoenix Solutions Hayden Communications
+97299526100 (646) 415-8972
vsagiv@bphx.com peter@haydenir.com
Financial Media Contact
Jeffrey Stanlis
Hayden Communications
(602) 476-1821
jeff@haydenir.com
SOURCE BluePhoenix Solutions
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