RA'ANANA, Israel, Aug. 25, 2009 (GLOBE NEWSWIRE) -- Retalix(r) Ltd. (Nasdaq:RTLX), a leading provider of software solutions for retailers and distributors, announced today results for the second quarter and six-month period ended June 30, 2009.
Summarized financial highlights for the second quarter and six-month period ended June 30, 2009 results:
* Total Revenues in the second quarter were $48.9 million, compared to $59.3 million in the second quarter of 2008. Total Revenues in the six-month period ended June 30, 2009 were $95.9 million, compared to $113.2 million in the six-month period ended June 30, 2008. * Income from Operations for the second quarter and the six-month period ended June 30, 2009 was $3.0 million and $7.4 million, respectively, compared to $1.1 million and $0.2 million in the second quarter and the six-month period ended June 30, 2008, respectively. * Adjusted Income from Operations (Non-GAAP)* for the second quarter and the six-month period ended June 30, 2009 was $4.5 million and $10.4 million, respectively, compared to $3.2 million and $4.5 million in the second quarter and the six-month period ended June 30, 2008, respectively. * Financing Income for the second quarter ended June 30, 2009 was $3.7 million, due to currency exchange income and benefits related to valuation of forward currency transactions, versus $0.6 million in Financing Income in the second quarter of 2008. * GAAP Net Income for the second quarter of 2009 was $4.9 million, or $0.24 per diluted share, compared to $1.5 million, or $0.07 per diluted share in the second quarter of 2008. GAAP Net Income in the six-month period ended June 30, 2009 was $5.6 million, or $0.28 per diluted share, compared to $1.0 million, or $0.04 per diluted share in the six-month period ended June 30, 2008. * Adjusted Net Income (Non-GAAP)* for the second quarter ended June 30, 2009 was $6.1 million, or $0.30 per diluted share, compared to $3.2 million, or $0.15 per diluted share in the second quarter of 2008. Adjusted Net Income (Non-GAAP)* in the six-month period was $7.9 million, or $0.39 per diluted share, compared to $4.4 million, or $0.22 per diluted share, in the six month period ended June 30, 2008. * Cash Flow from Operating Activities generated $9.7 million during the second quarter of 2009, compared to a negative cash flow of $(1.2) million used in Operating Activities during the second quarter of 2008. During the six-month period ended June 30, 2009, the Company generated $30.1 million from Operating Activities, compared to a negative cash flow of $(0.8) million used in Operating Activities in the six-month period ended June 30, 2008. As of June 30, 2009, the Company had more than $66 million in cash, cash equivalents and marketable securities on its balance sheet and less than $1.0 million dollars in debt.
Barry Shaked, President and Chief Executive Officer of Retalix, said, "We continued the successful execution of our plan, designed to increase operating efficiencies and manage costs in order to maintain profitability despite the challenges in the global economy. We anticipated the difficult market conditions would continue to impact our revenues and have been successful in managing our operations to meet customers' needs while also improving Operating Income and Net Income. We are providing solutions to help customers manage their operations in the current business environment while pursuing near-term market opportunities."
Hugo Goldman, the Company's Chief Financial Officer, said: "Second quarter operating expenses were more than seventeen percent lower than the operating expenses in the year ago second quarter, helping us to maintain strong operating margins this quarter. The $3.7 million dollar financial income recorded in the second quarter was due to currency shifts that improved the valuation of the forward currency transactions we entered into at the beginning of the year to hedge our currency exposure in 2009 and translation benefits on the value of our non-dollar net assets due to the weakening of the dollar in the reported quarter. The financial income in the second quarter largely offsets a similar financial expense recorded in the first quarter that was due to the -- then -- strengthening of the US dollar. Cash flow from operations continued to be strong, partially aided this quarter by the timing of certain customers' payments and the proceeds from a successful arbitration completed during the first quarter. The audited 2008 financial statements filed in June included a subsequent event according to Statement of Accounting Standards, or SAS, No. 1 of $1.0 million bad debt which was originally reported in the first quarter 2009 unaudited Income from Operations. Accordingly, the Income from Operations for the six months ended June 30, 2009 has been adjusted to exclude that $1.0 million. While forward visibility remains limited in our markets, we have maintained our strong balance sheet and we will continue to execute our plan designed to maintain operating margins in 2009."
Outlook for FY 2009
Shaked added, "Market conditions remain largely unchanged with retailers and distributors focusing on near-term operational and cost improvements and efforts to maintain and grow their market share. Due to the current uncertainties in the global economy many retailers are continuing to defer longer-term IT investments and upgrades and as a result we are maintaining our conservative outlook for the second half of 2009 while we remain focused on meeting the needs of our customers and supporting our current programs."
"As we announced at the beginning of 2009, Retalix expects FY 2009 revenues to be between $180.0 million and $200.0 million, Non-GAAP* net income to be between $5.0 million and $11.0 million and GAAP net income to be between $1.0 million and $6.0 million."
Conference Call and Webcast Information
The Company will be holding a conference call to discuss results for the second quarter of 2009 on Tuesday, August 25th at 9:00 am EDT (4:00 pm Israel Time). This conference can be accessed by all interested parties through the Company's web site at http://www.retalix.com/conference-call.cfm, which web site is not part of this press release. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Retalix's web site.
About Retalix
Retalix is an independent provider of software solutions to retailers and distributors worldwide. Retalix solutions serve the needs of grocery chains, convenience and fuel retailers, food and consumer goods distributors and independent grocers. The Company offers a portfolio of software applications that automate and synchronize essential retail and supply chain operations, encompassing stores, headquarters and warehouses. The company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas. For more information about Retalix, please visit www.retalix.com, the contents of which are not part of this press release.
Retalix is a registered trademark of Retalix Ltd. in the United States and in other countries. The names of actual companies, products and services mentioned herein may be the trademarks of their respective owners.
The Retalix Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5937
* Note Regarding the Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Retalix uses Non-GAAP measures of operating income, net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation in accordance with SFAS 123(R), and amortization of intangibles related to acquisitions. Retalix's management believes the Non-GAAP financial information provided in this release is useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future. The presentation of this Non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management also uses both GAAP and Non-GAAP information in evaluating and operating business internally and as such deemed it important to provide this information to investors. Reconciliations between GAAP measures and Non-GAAP measures are contained following the GAAP financial statements in this press release. Reconciliation between GAAP to Non-GAAP outlook for 2009 is provided in the table below.
FY 2009 Outlook
U.S. $ Millions
Total Revenues 180.0-200.0
GAAP Net Income 1.0-6.0
(a) The effect of stock- based compensation
- SFAS 123(R), net of tax effect 2.0-2.8
(b) The effect of amortization of intangible assets
and acquisition related expenses, net of tax effect 2.0-2.2
Non-GAAP Net Income 5.0-11.0
Safe Harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. For example, the statements regarding our "Outlook for FY 2009" including our expected results, reactions to market conditions, anticipated demand for our software products, customers pipeline, and about our market position and expected cash flow and profitability, all involve forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements or other guidance or outlooks expressed or implied by such forward-looking statements. Such factors include risks relating to Retalix's anticipated future financial performance and growth, the performance of the US dollar relative to other currencies, continued roll-outs with existing customers, continued interest in Retalix's new platforms, the perception by leading retailers of Retalix's reputation, the potential benefits to food and fuel retailers and distributors, expansion into new geographic markets, and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including Retalix's Annual Report on Form 20-F for the year ended December 31, 2008, for a discussion of these and other important risk factors. Except as required by law, Retalix undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
RETALIX LTD.
CONSOLIDATED STATEMENTS OF INCOME
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
--------------- --------------- -------
2009 2008 2009 2008 2008
------- ------- ------- ------- -------
(Unaudited) (Unaudited) (Audited)
--------------- --------------- -------
U.S. $ in thousands
(except per share data)
---------------------------------------
REVENUES:
Product sales 26,399 37,080 13,587 21,521 72,907
Services 69,460 76,138 35,340 37,764 148,720
------- ------- ------- ------- -------
Total revenues 95,859 113,218 48,927 59,285 221,627
------- ------- ------- ------- -------
COST OF REVENUES:
Cost of product sales 16,469 23,646 9,209 13,856 45,201
Cost of services 38,190 44,905 19,085 22,952 88,078
------- ------- ------- ------- -------
Total cost of revenues 54,659 68,551 28,294 36,808 133,279
------- ------- ------- ------- -------
GROSS PROFIT 41,200 44,667 20,633 22,477 88,348
------- ------- ------- ------- -------
OPERATING EXPENSES:
Research and development
- net 13,988 20,850 7,157 10,075 38,357
Selling and marketing 9,878 11,643 5,109 5,692 23,623
General and administrative 9,925 11,980 5,369 5,639 26,677
Other (income) expenses
- net 12 -- 36 -- (376)
Impairment of goodwill -- -- -- -- 58,182
------- ------- ------- ------- -------
Total operating expenses 33,803 44,473 17,671 21,406 146,463
------- ------- ------- ------- -------
INCOME (LOSS) FROM
OPERATIONS 7,397 194 2,962 1,071 (58,115)
FINANCIAL INCOME (EXPENSES),
net 80 766 3,699 623 (1,978)
------- ------- ------- ------- -------
INCOME (LOSS) BEFORE TAXES
ON INCOME 7,477 960 6,661 1,694 (60,093)
TAX BENEFIT (EXPENSES) (1,610) 473 (1,676) 26 8,960
------- ------- ------- ------- -------
INCOME (LOSS) AFTER TAXES
ON INCOME 5,867 1,433 4,985 1,720 (51,133)
SHARE IN INCOME OF AN
ASSOCIATED COMPANY 2 32 -- 20 54
------- ------- ------- ------- -------
NET INCOME (LOSS) 5,869 1,465 4,985 1,740 (51,079)
------- ------- ------- ------- -------
NET INCOME ATTRIBUTABLE TO
NON-CONTROLLING INTERESTS (224) (511) (81) (254) (537)
------- ------- ------- ------- -------
NET INCOME (LOSS)
ATTRIBUTABLE TO RETALIX
LTD 5,645 954 4,904 1,486 (51,616)
======= ======= ======= ======= =======
EARNINGS (LOSSES) PER SHARE
- in U.S. $:
Basic 0.28 0.05 0.24 0.07 (2.55)
======= ======= ======= ======= =======
Diluted 0.28 0.04 0.24 0.07 (2.55)
======= ======= ======= ======= =======
WEIGHTED AVERAGE NUMBER OF
SHARES USED IN COMPUTATION
OF EARNINGS PER SHARE - in
thousands:
Basic 20,394 20,191 20,399 20,273 20,265
======= ======= ======= ======= =======
Diluted 20,417 20,242 20,418 20,307 20,265
======= ======= ======= ======= =======
RETALIX LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
June 30 Dec. 31
----------------- -------
2009 2008 2008
------- ------- -------
(Unaudited) (Audited)
----------------- -------
U.S. $ in thousands
---------------------------
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents 65,211 23,398 33,546
Marketable securities 263 3,647 3,239
Accounts receivable:
Trade 55,694 85,588 70,017
Other 11,284 4,933 11,554
Prepaid expenses 3,729 4,280 4,003
Inventories 1,050 1,089 1,037
Deferred income taxes 6,705 8,361 4,871
------- ------- -------
Total current assets 143,936 131,296 128,267
------- ------- -------
NON-CURRENT ASSETS:
Long-term receivables 2,257 2,571 3,382
Long-term prepaid expenses 393 642 539
Long term investments 861 1,364 862
Amounts funded in respect of
employee rights upon retirement 8,772 10,486 8,663
Deferred income taxes 11,152 9,878 15,462
Other 429 197 424
------- ------- -------
Total non - current assets 23,864 25,138 29,332
------- ------- -------
PROPERTY, PLANT AND EQUIPMENT, net 15,341 12,539 14,734
------- ------- -------
GOODWILL 50,730 109,173 50,660
------- ------- -------
OTHER INTANGIBLE ASSETS, net of
accumulated amortization
Customer relationship 14,000 15,620 15,386
Other 1,814 3,609 2,413
------- ------- -------
15,814 19,229 17,799
------- ------- -------
Total assets 249,685 297,375 240,792
======= ======= =======
RETALIX LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
June 30 Dec. 31
---------------- -------
2009 2008 2008
------- ------- -------
(Unaudited) (Audited)
---------------- -------
U.S. $ in thousands
-------------------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Short-term bank credit -- 11 --
Current maturities of long-term
bank loans 255 279 249
Accounts payable and accruals:
Trade 4,608 13,892 8,672
Employees and employee institutions 9,506 9,450 8,783
Accrued expenses 9,642 5,722 6,527
Other 2,208 3,542 2,596
Deferred revenues 19,844 16,945 19,135
------- ------- -------
Total current liabilities 46,063 49,841 45,962
------- ------- -------
LONG-TERM LIABILITIES:
Long-term loans, net of current
maturities 401 710 523
Employee rights upon retirement 13,659 15,812 13,860
Deferred tax liability 258 251 286
Other tax payables 3,265 1,263 1,112
------- ------- -------
Total long-term liabilities 17,583 18,036 15,781
------- ------- -------
Total liabilities 63,646 67,877 61,743
------- ------- -------
EQUITY:
Share capital - Ordinary shares of NIS
1.00 par value (authorized: June 30,
2009 (unaudited), December 31, 2008
(audited) and June 30, 2008 (unaudited)
30,000,000 shares; issued and
outstanding: - June 30, 2009 (unaudited)
20,406,363 Shares; December 31, 2008
(audited) - 20,389,771 shares; June 30,
2008 (unaudited) - 20,315,515 shares 5,384 5,361 5,380
Additional paid in capital 176,603 173,330 175,435
Retained earnings 224 47,149 (5,421)
Accumulated other comprehensive income 343 357 328
------- ------- -------
Total Retalix shareholders' equity 182,554 226,197 175,722
------- ------- -------
Non-controlling interest 3,485 3,301 3,327
------- ------- -------
Total equity 186,039 229,498 179,049
------- ------- -------
Total liabilities and equity 249,685 297,375 240,792
======= ======= =======
RETALIX LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
--------------- --------------- -------
2009 2008 2009 2008 2008
------ ------ ------ ------ -------
Unaudited Unaudited Audited
--------------- --------------- -------
U.S. $ in thousands
-------------------------------------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) 5,869 1,465 4,985 1,740 (51,079)
Adjustments required
to reconcile net
income to net cash
provided by (used
in) operating
activities:
Depreciation and
amortization 3,091 3,093 1,460 1,521 6,265
Losses (gains)
from sale of
property, plant
and equipment 21 -- 40 -- (46)
Share in gains of
an associated
company (2) (32) -- (20) (54)
Stock based
compensation
expenses 1,162 2,670 576 1,352 4,777
Changes in accrued
liability for
employee rights
upon retirement (208) 1,303 1,083 86 (396)
Losses (gains) on
amounts funded in
respect of
employee rights
upon retirement 283 (1,288) (631) (484) 312
Deferred income
taxes - net 2,401 (2,873) 2,215 (1,097) (4,928)
Net decrease
(increase) in
trading securities 146 (266) 1 (191) 342
Impairment of
available for
sale securities -- -- -- -- 700
Amortization of
discount on
marketable debt
securities -- -- -- -- 5
Impairment of
goodwill -- -- -- -- 58,182
Other 28 (73) (154) 114 (26)
Changes in
operating assets
and liabilities:
Decrease
(increase)
in accounts
receivable:
Trade
(including the
non-current
portion) 15,409 (711) (1,126) (1,222) 13,395
Other
(including the
non-current
portion) 678 (3,708) 1,932 (3,470) (10,080)
Increase
(decrease)
in accounts
payable and
accruals:
Trade (4,083) (1,670) (2,321) 1,179 (6,655)
Employees,
employee
institutions
and other 2,496 695 1,662 (623) (113)
Decrease (increase)
in inventories (13) 212 655 (2) 247
Increase (decrease)
in long-term
institutions 2,153 166 39 (160) 15
Increase (decrease)
in deferred
revenues 709 182 (732) 81 2,381
------ ------ ------ ------ -------
Net cash provided by
(used in) operating
activities - forward 30,140 (835) 9,684 (1,196) 13,244
====== ====== ====== ====== =======
RETALIX LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
--------------- --------------- -------
2009 2008 2009 2008 2008
------- ------- ------- ------- -------
Unaudited Unaudited Audited
--------------- --------------- -------
U.S. $ in thousands
---------------------------------------
Net cash provided by (used
in) operating activities -
brought forward 30,140 (835) 9,684 (1,196) 13,244
======= ======= ======= ======= =======
CASH FLOWS FROM INVESTING
ACTIVITIES:
Maturity of marketable
debt securities held to
maturity 290 370 -- 370 370
Sales of marketable
trading debt securities 2,535 -- -- -- --
Investment in marketable
debt securities held to
maturity -- (199) -- (199) (208)
Acquisition of subsidiaries
and business consolidated
for the first time(a) -- -- -- -- (110)
Additional investments in
subsidiaries -- (625) -- -- (714)
Purchase of property,
plant, equipment and
other assets (960) (1,368) (310) (1,005) (5,055)
Proceeds from sale of
property, plant and
equipment 70 -- 34 -- 55
Amounts funded in respect
of employee rights upon
retirement, net (396) (392) (287) (53) (168)
Long-term loans collected
from employees 14 16 12 1 36
------- ------- ------- ------- -------
Net cash provided by (used
in) investing activities 1,553 (2,198) (551) (886) (5,794)
------- ------- ------- ------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repayment of long-term
bank loans (119) (116) (119) (133) (241)
Issuance of share capital
to employees and non-
employees resulting from
exercise of options 4 3,995 -- 1,333 4,012
short-term bank credit -
net -- 11 (11)
------- ------- ------- ------- -------
Net cash provided by (used
in) financing activities (115) 3,879 (119) 1,211 3,760
------- ------- ------- ------- -------
EFFECT OF EXCHANGE RATE
CHANGES ON CASH 87 68 417 (71) (148)
------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 31,665 914 9,431 (942) 11,062
BALANCE OF CASH AND CASH
EQUIVALENTS AT BEGINNING
OF PERIOD 33,546 22,484 55,780 24,340 22,484
------- ------- ------- ------- -------
BALANCE OF CASH AND CASH
EQUIVALENTS AT END OF PERIOD 65,211 23,398 65,211 23,398 33,546
======= ======= ======= ======= =======
RETALIX LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
--------------- --------------- -------
2009 2008 2009 2008 2008
------- ------- ------- ------- -------
Unaudited Unaudited Audited
--------------- --------------- -------
U.S. $ in thousands
---------------------------------------
(a) Supplementary disclosure
of cash flow
information -
Fair value of assets
acquired and
liabilities assumed of
subsidiaries and
activities acquired at
the date of
acquisition -
Goodwill and other
intangible assets
arising on
acquisition -- -- -- -- (110)
------- ------- ------- ------- -------
-- -- -- -- (110)
======= ======= ======= ======= =======
(b) Supplemental information on investing activities not involving
cash flows:
1. During 2008 the Company, through its subsidiary
StoreAlliance.com Ltd. acquired the Supplier's Portal
activity. An amount of approximately $176,000 acquired in
credit and will be presented as investing activity when
actually paid.
2. The Company purchased equipment in the amount of $956,000 in
credit. This amount will be presented as investing activity
when actual payment will be performed.
RETALIX LTD.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
The following tables reflect selected Retalix' non-GAAP results
reconciled to GAAP results:
Six months Three months Year
ended ended ended
June 30, June 30, Dec. 31
-------------- -------------- ---------
2009 2008 2009 2008 2008
------ ------ ------ ------ ---------
Unaudited Unaudited Unaudited
-------------- -------------- ---------
U.S. $ in thousands
(except share and per share data)
-----------------------------------------
OPERATING INCOME (LOSS)
GAAP Operating income
(loss) 7,397 194 2,962 1,071 (58,115)
GAAP Operating Margin* 7.7% 0.2% 6.1% 1.8% (26.2%)
Plus:
Amortization of
acquisition-related
intangible assets 1,883 1,655 941 824 3,308
Stock based
compensation expenses 1,162 2,670 576 1,352 4,775
Impairment of goodwill -- -- -- -- 58,182
------ ------ ------ ------ ---------
Non-GAAP Operating income 10,442 4,519 4,479 3,247 8,150
====== ====== ====== ====== =========
Non-GAAP Operating Margin* 10.9% 4.0% 9.2% 5.5% 3.7%
====== ====== ====== ====== =========
NET INCOME (LOSS) 5,645 954 4,904 1,486 (51,616)
GAAP Net income (loss)
Plus:
Amortization of
acquisition-related
intangible assets 1,883 1,655 941 824 3,308
Stock based
compensation expenses 1,162 2,670 576 1,352 4,775
Impairment of goodwill -- -- -- -- 58,182
Less:
Income tax effect of
amortization of
acquisition-related
intangible assets (735) (638) (367) (313) (1,262)
Tax expenses (income)
effect of stock based
compensation expenses (91) (277) 62 (162) (456)
Income tax effect
of impairment of
goodwill -- -- -- -- (3,041)
------ ------ ------ ------ ---------
Non-GAAP Net income 7,864 4,364 6,116 3,187 9,890
====== ====== ====== ====== =========
NET INCOME (LOSS)
PER DILUTED SHARE
GAAP Net income (loss)
per diluted share 0.28 0.05 0.24 0.07 (2.55)
Plus:
Amortization of
acquisition-related
intangible assets 0.09 0.08 0.05 0.04 0.16
Stock based
compensation expenses 0.06 0.13 0.03 0.07 0.24
Impairment of goodwill -- -- -- -- 2.87
Less:
Income tax effect of
amortization of
acquisition-related
intangible assets (0.04) (0.03) (0.02) (0.02) (0.06)
Income tax effect of
stock based
compensation expenses (0.00) (0.01) (0.00) (0.01) (0.02)
Income tax effect of
impairment of
goodwill -- -- -- -- (0.15)
------ ------ ------ ------ ---------
Non-GAAP Net income
per diluted share 0.39 0.22 0.30 0.15 0.49
====== ====== ====== ====== =========
Shares used in
computing diluted
net income per share 20,417 20,242 20,418 20,307 20,265
====== ====== ====== ====== =========
* Operating Margin calculation: Operating Income as a percentage of
Total Revenues
RETALIX LTD.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
The following table shows the classification of stock-based
compensation expense:
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
-------------- -------------- ------
2009 2008 2009 2008 2008
------ ------ ------ ------ ------
Unaudited Unaudited Audited
-------------- -------------- ------
U.S. $ in thousands
--------------------------------------
Cost of product sales 53 87 25 45 174
Cost of services 535 1,037 260 544 1,847
Research and development 266 617 131 302 1,029
Selling and marketing 104 219 52 104 360
General and administrative 204 710 108 357 1,365
------ ------ ------ ------ ------
Total 1,162 2,670 576 1,352 4,775
====== ====== ====== ====== ======
The following table shows the classification of amortization of
acquisition-related intangible assets:
Six months Three months Year
ended ended ended
June 30 June 30 Dec. 31
-------------- -------------- ------
2009 2008 2009 2008 2008
------ ------ ------ ------ ------
Unaudited Unaudited Audited
-------------- -------------- ------
U.S. $ in thousands
--------------------------------------
Cost of product sales 1,246 1,102 623 549 2,211
Cost of services 438 393 219 196 786
Selling and marketing -- 2 -- 1 3
General and administrative 199 158 99 78 308
------ ------ ------ ------ ------
Total 1,883 1,655 941 824 3,308
====== ====== ====== ====== ======