RA'ANANA, Israel, Nov. 17, 2009 (GLOBE NEWSWIRE) -- Retalix(R) Ltd. (Nasdaq:RTLX), a leading provider of software solutions for retailers and distributors, announced today results for the third quarter and nine-month period ended September 30, 2009.
Summarized financial highlights for the third quarter and nine-month period ended September 30, 2009 results:
* Total Revenues in the third quarter were $50.1 million, compared to $56.2 million in the third quarter of 2008. Total Revenues in the nine-month period ended September 30, 2009 were $146.0 million, compared to $169.5 million in the nine-month period ended September 30, 2008. * Income from Operations for the third quarter and the nine-month period ended September 30, 2009 was $3.5 million and $10.9 million, respectively, compared to $1.9 million and $2.0 million in the third quarter and the nine-month period ended September 30, 2008, respectively. * Adjusted Income from Operations (Non-GAAP)* for the third quarter and the nine-month period ended September 30, 2009 was $4.9 million and $15.4 million, respectively, compared to $3.9 million and $8.5 million in the third quarter and the nine-month period ended September 30, 2008, respectively. * Financial Income for the third quarter was $1.5 million, due to currency exchange income and benefits related to valuation of forward currency transactions, versus a financial expense ($0.1) million in the third quarter of 2008. * GAAP Net Income for the third quarter of 2009 was $4.2 million, or $0.20 per diluted share, compared to $1.1 million, or $0.05 per diluted share in the third quarter of 2008. GAAP Net Income in the nine-month period ended September 30, 2009 was $9.8 million, or $0.48 per diluted share, compared to $2.1 million, or $0.10 per diluted share in the nine-month period ended September 30, 2008. * Adjusted Net Income (Non-GAAP)* for the third quarter was $5.0 million, or $0.24 per diluted share, compared to $2.8 million, or $0.13 per diluted share in the third quarter of 2008. Adjusted Net Income (Non-GAAP)* in the nine-month period ended September 30, 2009 was $12.9 million, or $0.64 per diluted share, compared to $7.1 million, or $0.34 per diluted share, in the nine-month period ended September 30, 2008. * Cash Flow from Operating Activities generated $6.1 million during the third quarter of 2009, compared to a cash flow of $1.8 million generated during the third quarter of 2008. During the nine-month period ended September 30, 2009, the Company generated $36.3 million from Operating Activities, compared to a cash flow of $0.9 million generated from Operating Activities in the nine-month period ended September 30, 2008. * Balance Sheet: As of September 30, 2009, the Company had more than $71.2 million in cash, cash equivalents and marketable securities on its balance sheet and less than $0.7 million dollars in debt
Barry Shaked, President and Chief Executive Officer of Retalix, said, "We are continuing to achieve positive results by executing on our plan for 2009, which was designed to maintain profitability despite the challenges in the global economy. We have been successful in increasing operating efficiencies and managing costs in order to address the difficult market conditions which continue to impact our revenues. At the same time we continue to meet the global needs of our customers for effective and cost-efficient solutions for their operations."
Hugo Goldman, the Company's Chief Financial Officer, said, "We are maintaining improved income from operations through careful management of our costs. Operating expenses were down nearly fifteen percent in the third quarter and were down by twenty-one percent in the first nine months of 2009 versus the respective periods in 2008. Profitability was further aided by $1.5 million in financial income recorded in the third quarter due to currency translation benefits on the value of our non-dollar net assets and the valuation of our currency hedges. The profitability along with the cost savings, the ongoing collections from customers and the timing of certain payments helped us to generate $6.1 million in cash flow in the third quarter and $36.3 million in the first nine months of 2009. We continue to maintain a strong balance sheet with over $71.2 million in cash, cash equivalents and marketable securities."
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. We expect little to change in the remainder of 2009, and are beginning to focus on the opportunities for 2010 while carefully monitoring the global economy.
"At the beginning of 2009, we announced that Retalix expected full year 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. While market conditions continue to be challenging in the fourth quarter, we expect to meet the original revenue targets and expect to exceed both the forecast for Non-GAAP* net income and GAAP net income for 2009."
Conference Call and Webcast Information
The Company will be holding a conference call to discuss results for the third quarter of 2009 on Tuesday, November 17th at 9:00 am Eastern Time (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, 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 equity-based compensation, net of tax effect 2.0-2.8 (b) The effect of amortization of acquisition related intangible assets, 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, the transition of management 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 Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ---------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- (Unaudited) (Unaudited) (Audited) ---------------- ---------------- ------- U.S. $ in thousands (except per share data) -------------------------------------------- REVENUES: Product sales 42,425 54,795 16,026 17,715 72,907 Services 103,580 114,657 34,120 38,519 148,720 ------- ------- ------- ------- ------- Total revenues 146,005 169,452 50,146 56,234 221,627 ------- ------- ------- ------- ------- COST OF REVENUES: Cost of product sales 27,605 35,830 11,136 12,184 45,201 Cost of services 56,562 66,818 18,372 21,913 88,078 ------- ------- ------- ------- ------- Total cost of revenues 84,167 102,648 29,508 34,097 133,279 ------- ------- ------- ------- ------- GROSS PROFIT 61,838 66,804 20,638 22,137 88,348 ------- ------- ------- ------- ------- OPERATING EXPENSES: Research and development - net 20,965 29,928 6,977 9,079 38,357 Selling and marketing 14,282 16,697 4,404 5,054 23,623 General and administrative 15,627 18,153 5,702 6,173 26,677 Other (income) expenses - net 36 (64) 24 (38) (376) Impairment of goodwill -- -- -- -- 58,182 ------- ------- ------- ------- ------- Total operating expenses 50,910 64,714 17,107 20,268 146,463 ------- ------- ------- ------- ------- INCOME (LOSS) FROM OPERATIONS 10,928 2,090 3,531 1,869 (58,115) FINANCIAL INCOME (EXPENSES), net 1,572 621 1,492 (119) (1,978) ------- ------- ------- ------- ------- INCOME (LOSS) BEFORE TAXES ON INCOME 12,500 2,711 5,023 1,750 (60,093) TAX BENEFIT (EXPENSES) (2,448) 50 (838) (423) 8,960 ------- ------- ------- ------- ------- INCOME (LOSS) AFTER TAXES ON INCOME 10,052 2,761 4,185 1,327 (51,133) SHARE IN INCOME OF AN ASSOCIATED COMPANY 17 35 15 4 54 ------- ------- ------- ------- ------- NET INCOME (LOSS) 10,069 2,796 4,200 1,331 (51,079) ------- ------- ------- ------- ------- NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (272) (745) (48) (234) (537) ------- ------- ------- ------- ------- NET INCOME (LOSS) ATTRIBUTABLE TO RETALIX LTD. 9,797 2,051 4,152 1,097 (51,616) ======= ======= ======= ======= ======= EARNINGS (LOSSES) PER SHARE - in U.S. $: Basic 0.48 0.10 0.20 0.05 (2.55) ======= ======= ======= ======= ======= Diluted 0.48 0.10 0.20 0.05 (2.55) ======= ======= ======= ======= ======= WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - in thousands: Basic 20,400 20,235 20,406 20,315 20,265 ======= ======= ======= ======= ======= Diluted 20,425 20,275 20,434 20,333 20,265 ======= ======= ======= ======= =======
RETALIX LTD. CONDENSED CONSOLIDATED BALANCE SHEET Sept. 30 Dec. 31 ---------------- ------- 2009 2008 2008 ------- ------- ------- (Unaudited) (Audited) ---------------- ------- U.S. $ in thousands ------------------------- Assets CURRENT ASSETS: Cash and cash equivalents 70,317 22,924 33,546 Marketable securities 50 3,660 3,239 Accounts receivable: Trade 58,562 85,160 70,017 Other 9,228 5,056 11,554 Prepaid expenses 4,995 4,681 4,003 Inventories 1,579 1,597 1,037 Deferred income taxes 5,977 8,088 4,871 ------- ------- ------- Total current assets 150,708 131,166 128,267 ------- ------- ------- NON-CURRENT ASSETS : Long-term receivables 1,288 3,782 3,382 Long-term prepaid expenses 311 596 539 Long term investments 862 1,043 862 Amounts funded in respect of employee rights upon retirement 10,170 10,450 8,663 Deferred income taxes 11,668 9,918 15,462 Other 441 207 424 ------- ------- ------- Total non - current assets 24,740 25,996 29,332 ------- ------- ------- PROPERTY, PLANT AND EQUIPMENT, net 15,424 13,888 14,734 ------- ------- ------- GOODWILL 50,864 109,013 50,660 ------- ------- ------- OTHER INTANGIBLE ASSETS, net of accumulated amortization Customer relationship 13,270 15,578 15,386 Other 2,036 3,107 2,413 ------- ------- ------- 15,306 18,685 17,799 ------- ------- ------- Total assets 257,042 298,748 240,792 ======= ======= =======
RETALIX LTD. CONDENSED CONSOLIDATED BALANCE SHEET Sept. 30 Dec. 31 ---------------- ------- 2009 2008 2008 ------- ------- ------- (Unaudited) (Audited) ---------------- ------- U.S. $ in thousands ------------------------- Liabilities and shareholders' equity CURRENT LIABILITIES: Current maturities of long-term bank loans 265 259 249 Accounts payable and accruals: Trade 4,396 13,315 8,672 Employees and employee institutions 9,478 8,818 8,783 Accrued expenses 11,112 7,011 6,527 Other 2,333 1,963 2,596 Deferred revenues 22,740 18,393 19,135 ------- ------- ------- Total current liabilities 50,324 49,759 45,962 ------- ------- ------- LONG-TERM LIABILITIES: Long-term loans, net of current maturities 412 673 523 Employee rights upon retirement 14,374 15,321 13,860 Deferred tax liability 271 266 286 Other tax payables 483 1,058 1,112 ------- ------- ------- Total long-term liabilities 15,540 17,318 15,781 ------- ------- ------- Total liabilities 65,864 67,077 61,743 ------- ------- ------- EQUITY: Share capital -Ordinary shares of NIS 1.00 par value (authorized: September 30, 2009 (unaudited), December 31, 2008 (audited) and September 30, 2008 (unaudited) 30,000,000 shares; issued and outstanding: - September 30, 2009 (unaudited) 20,406,363 Shares; December 31, 2008 (audited) - 20,389,771 shares; September 30, 2008 (unaudited) - 20,315,515 shares 5,384 5,361 5,380 Additional paid in capital 177,060 174,587 175,435 Retained earnings 4,376 48,246 (5,421) Accumulated other comprehensive income 697 (61) 328 ------- ------- ------- Total Retalix shareholders' equity 187,517 228,133 175,722 ------- ------- ------- Non-controlling interest 3,661 3,538 3,327 ------- ------- ------- Total equity 191,178 231,671 179,049 ------- ------- ------- Total liabilities and equity 257,042 298,748 240,792 ======= ======= =======
RETALIX LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ----------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- Unaudited Unaudited Audited ----------------- ---------------- ------- U.S. $ in thousands -------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) 10,069 2,796 4,200 1,331 (51,079) Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,652 4,606 1,561 1,513 6,265 Losses (gains) from sale of property, plant and equipment 44 -- 23 -- (46) Share in gains of an associated company (4) (35) (2) (4) (54) Stock based compensation expenses 1,623 3,927 461 1,257 4,777 Changes in accrued liability for employee rights upon retirement 408 965 616 (573) (396) Losses (gains) on amounts funded in respect of employee rights upon retirement (797) (1,293) (1,080) 230 312 Deferred income taxes - net 2,683 (2,623) 282 250 (4,928) Net decrease (increase) in trading securities 159 (79) 13 187 342 Impairment of available for sale securities -- -- -- -- 700 Amortization of discount on marketable debt securities -- -- -- -- 5 Impairment of goodwill -- -- -- -- 58,182 Other (5) 43 (33) 117 (26) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable: Trade (including the non- current portion) 13,692 (1,916) (1,717) (1,205) 13,395 Other (including the non- current portion) 1,588 (4,246) 910 (538) (10,080) Increase (decrease) in accounts payable and accruals: Trade (4,302) (2,071) (219) (401) (6,655) Employees, employee institutions and other 4,079 (441) 1,583 (1,136) (113) Decrease (increase) in inventories (542) (307) (529) (519) 247 Increase (decrease) in long-term institutions (629) (39) (2,782) (205) 15 Increase in deferred revenues 3,545 1,635 2,836 1,453 2,381 ------- ------- ------- ------- ------- Net cash provided by operating activities - forward 36,263 922 6,123 1,757 13,244 ======= ======= ======== ======= =======
RETALIX LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ----------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- Unaudited Unaudited Audited ----------------- ---------------- ------- U.S. $ in thousands -------------------------------------------- Net cash provided by operating activities - brought forward 36,263 922 6,123 1,757 13,244 ======= ======= ======== ======= ======= CASH FLOWS FROM INVESTING ACTIVITIES: Maturity of marketable debt securities held to maturity 490 370 200 -- 370 Sales of marketable trading debt securities 2,535 -- -- -- -- Investment in marketable debt securities held to maturity -- (199) -- -- (208) Acquisition of subsidiaries and business consolidated for the first time(a) -- (735) -- (110) (110) Additional investments in subsidiaries -- -- -- -- (714) Purchase of property, plant, equipment and other assets (2,267) (3,446) (1,307) (2,078) (5,055) Proceeds from sale of property, plant and equipment 120 38 50 38 55 Amounts funded in respect of employee rights upon retirement, net (678) (360) (282) 32 (168) Long-term loans collected from employees 14 17 -- 1 36 ------- ------- ------- ------- ------- Net cash provided by (used in) investing activities 214 (4,315) (1,339) (2,117) (5,794) ------- ------- ------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term bank loans (119) (116) -- -- (241) Issuance of share capital to employees and non-employees resulting from exercise of options 4 3,995 -- -- 4,012 short-term bank credit - net -- (11) -- (11) (11) ------- ------- ------- ------- ------- Net cash provided by (used in) financing activities (115) 3,868 -- (11) 3,760 ------- ------- ------- ------- ------- EFFECT OF EXCHANGE RATE CHANGES ON CASH 409 (35) 322 (103) (148) ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 36,771 440 5,106 (474) 11,062 BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 33,546 22,484 65,211 23,398 22,484 ------- ------- ------- ------- ------- BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD 70,317 22,924 70,317 22,924 33,546 ======= ======= ======= ======= =======
RETALIX LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months Three months Year ended ended ended Sept. 30 Sept. 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 -- (735) -- (110) (110) ------- ------- ------- ------- ------- -- (735) -- (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 $81,000 acquired in credit and will be presented as investing activity when actually paid. 2. The Company purchased equipment in the amount of $863,000 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: Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ---------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- Unaudited ------------------------------------------- U.S. $ in thousands (except share and per share data) ------------------------------------------- OPERATING INCOME (LOSS) GAAP Operating income (loss) 10,928 2,090 3,531 1,869 (58,115) GAAP Operating Margin* 7.5% 1.2% 7% 3.3% (26.2%) Plus: Amortization of acquisition-related intangible assets 2,812 2,478 929 823 3,308 Stock based compensation expenses 1,623 3,927 461 1,257 4,775 Impairment of goodwill 58,182 ------- ------- ------- ------- ------- Non-GAAP Operating income 15,363 8,495 4,921 3,949 8,150 ======= ======= ======= ======= ======= Non-GAAP Operating Margin* 10.5% 5.0% 9.8% 7.0% 3.7% ======= ======= ======= ======= ======= NET INCOME (LOSS) GAAP Net income (loss) 9,797 2,051 4,152 1,097 (51,616) Plus: Amortization of acquisition-related intangible assets 2,812 2,478 929 823 3,308 Stock based compensation expenses 1,623 3,927 461 1,257 4,775 Impairment of goodwill 58,182 Less: Income tax effect of amortization of acquisition-related intangible assets (1,100) (927) (365) (288) (1,262) Tax expenses (income) effect of stock based compensation expenses (231) (412) (141) (135) (456) Income tax effect of impairment of goodwill -- -- (3,041) ------- ------- ------- ------- ------- Non-GAAP Net income 12,900 7,117 5,036 2,754 9,890 ======= ======= ======= ======= ======= NET INCOME (LOSS) PER DILUTED SHARE GAAP Net income (loss) per diluted share 0.48 0.10 0.20 0.05 (2.55) Plus: Amortization of acquisition-related intangible assets 0.14 0.12 0.05 0.04 0.16 Stock based compensation expenses 0.08 0.19 0.02 0.06 0.24 Impairment of goodwill 2.87 Less: Income tax effect of amortization of acquisition-related intangible assets (0.05) (0.05) (0.02) (0.01) (0.06) Income tax effect of stock based compensation expenses (0.01) (0.02) (0.01) (0.01) (0.02) Income tax effect of impairment of goodwill -- -- -- -- (0.15) ------- ------- ------- ------- ------- Non-GAAP Net income per diluted share 0.64 0.34 0.24 0.13 0.49 ======= ======= ======= ======= ======= Shares used in computing diluted net income per share 20,425 20,275 20,434 20,333 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: Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ---------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- Unaudited Unaudited Audited ---------------- ---------------- ------- U.S. $ in thousands ------------------------------------------- Cost of product sales 76 125 23 38 174 Cost of services 768 1,488 233 451 1,847 Research and development 373 857 107 240 1,029 Selling and marketing 144 310 40 91 360 General and administrative 262 1,147 58 437 1,365 ------- ------- ------- ------- ------- Total 1,623 3,927 461 1,257 4,775 ======= ======= ======= ======= =======
The following table shows the classification of amortization of acquisition-related intangible assets: Nine months Three months Year ended ended ended Sept. 30 Sept. 30 Dec. 31 ---------------- ---------------- ------- 2009 2008 2009 2008 2008 ------- ------- ------- ------- ------- Unaudited Unaudited Audited ---------------- ---------------- ------- U.S. $ in thousands ------------------------------------------- Cost of product sales 1,870 1,650 624 548 2,211 Cost of services 657 590 219 197 786 Selling and marketing -- 3 -- 1 3 General and administrative 285 235 86 77 308 ------- ------- ------- ------- ------- Total 2,812 2,478 929 823 3,308 ======= ======= ======= ======= =======