RA'ANANA, Israel, Aug. 11, 2010 (GLOBE NEWSWIRE) -- Retalix® Ltd. (Nasdaq:RTLX), a leading provider of Software and Services for retailers and distributors, announced today results for the second quarter ended June 30, 2010.
Summarized financial highlights for the three months ended June 30, 2010:
- Total Revenues were $52.0 million, compared to $48.9 million in the second quarter of 2009.
- Income from Operations (GAAP) was $3.4 million, compared to $3.0 million income from operations (GAAP) in the second quarter of 2009.
- Adjusted Income from Operations (Non-GAAP)* was $5.3 million compared to $4.5 million in the second quarter of 2009.
- Financial Expense was $0.8 million due to currency fluctuations and the value of the Company's forward currency transactions compared to a financial income of $3.7 million in the second quarter of 2009 related to currency fluctuations and the value of the forward currency transactions. These amounts impacted the GAAP Net Income and Non-GAAP Net Income, including per share data, presented below.
- GAAP Net Income was $1.6 million, or $0.06 per diluted share, versus a GAAP Net Income of $4.9 million, or $0.24 per diluted share in the second quarter of 2009, including the $3.7 million in financial income referenced above.
- Adjusted Net Income (Non-GAAP)* was $3.3 million, or $0.14 per diluted share, compared to $6.1 million, or $0.30 per diluted share in the second quarter of 2009, including the $3.7 million in financial income referenced above.
- Cash Flow from Operating Activities generated $4 million during the second quarter of 2010.
- Balance Sheet includes approximately $107.5 million in cash and cash equivalents, deposits and marketable securities and negligible debt as of June 30, 2010.
Shuky Sheffer, Chief Executive Officer of Retalix, said, "It was another solid quarter for Retalix that included sequential and year-over-year growth in total revenues and operating income along with continued positive cash flow from operations. We had a good quarter of delivering projects to customers, including our first in Japan. We also won new customer programs including a new customer in Spain. We are continuing to execute on our plan. Our market analysis has confirmed that Retalix is well positioned and our leadership is aligned with the opportunities in the marketplace. We are making progress on developing and enhancing our product offering and services that build on Retalix's strengths and we look forward to continuing to expand upon these efforts."
Hugo Goldman, the Company's Chief Financial Officer, said, "We had solid financial results in the second quarter of 2010, reporting growth in total revenues and income from operations both when compared to the previous quarter and the year ago period. Our second quarter Non-GAAP Net Income was also a slight improvement versus the first quarter despite increased financial expenses due to currency fluctuations and its impact on the value of our non-dollar assets. We were able to achieve a better than 10% operating margin Non-GAAP in the second quarter of 2010 by focusing on efficient operations while we continue to recruit and increase our total headcount in key areas such as customer facing operations, R&D and services. We also maintained positive cash flows, generating $4 million from operations and a solid balance sheet with more than $107.5 million in cash and cash equivalents, deposits and marketable securities and negligible debt."
Outlook for FY 2010
Sheffer added, "Overall we are satisfied by the progress we made in the first two quarters of 2010. We achieved our financial goals for the first half and we continue to receive positive feedback from our customers and see good acceptance and interest in our solutions. While there continues to be caution over the rate of recovery for the global economy and inconsistencies by geography, opportunities exist based on the individual customer's market and the local versus global economy.
"We see initial signs of growth, and while there continues to be uncertainty in the economy, the results of the first half give us confidence in our guidance for 2010. We are refining our guidance and we now expect total revenues for 2010 of between $200 and $210 million and similar or better profitability than 2009."
Conference Call and Webcast Information
Retalix will be holding a conference call to discuss results for the second quarter 2010 on Wednesday, August 11th 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.
* 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, Indirect private placement costs, and amortization of intangibles related to acquisitions, as well as impairment of goodwill when applicable. 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.
The Retalix Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5937
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 2010" including our expected results, expected demand and opportunities, future expansion of product offering and services, and future strategic plans and positioning, 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, 2009, 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 ended June 30 |
Three months ended June 30 |
Year ended December 31 |
|||||
| 2010 | 2009 | 2010 | 2009 | 2009 | |||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||
|
U.S. $ in thousands (except per share data) |
|||||||
| REVENUES: | |||||||
| Product sales | 27,009 | 26,399 | 13,322 | 13,587 | 58,145 | ||
| Services | 73,681 | 69,460 | 38,697 | 35,340 | 134,248 | ||
| Total revenues | 100,690 | 95,859 | 52,019 | 48,927 | 192,393 | ||
| COST OF REVENUES: | |||||||
| Cost of product sales | 16,281 | 16,469 | 7,717 | 9,209 | 39,560 | ||
| Cost of services | 43,571 | 38,190 | 23,312 | 19,085 | 74,564 | ||
| Total cost of revenues | 59,852 | 54,659 | 31,029 | 28,294 | 114,124 | ||
| GROSS PROFIT | 40,838 | 41,200 | 20,990 | 20,633 | 78,269 | ||
|
OPERATING EXPENSES: |
|||||||
| Research and development – net | 14,401 | 13,988 | 7,495 | 7,157 | 28,991 | ||
| Selling and marketing | 8,383 | 9,878 | 4,264 | 5,109 | 18,776 | ||
| General and administrative | 11,794 | 9,925 | 5,856 | 5,369 | 21,007 | ||
| Other (income) expenses – net | (23) | 12 | (23) | 36 | (154) | ||
| Indirect private placement costs | -- | -- | -- | -- | 1,823 | ||
| Total operating expenses | 34,555 | 33,803 | 17,592 | 17,671 | 70,443 | ||
| INCOME FROM OPERATIONS | 6,283 | 7,397 | 3,398 | 2,962 | 7,826 | ||
| FINANCIAL INCOME (EXPENSES), net | (1,148) | 80 | (792) | 3,699 | 1,757 | ||
| INCOME BEFORE TAXES ON INCOME | 5,135 | 7,477 | 2,606 | 6,661 | 9,583 | ||
| TAX EXPENSES | (1,367) | (1,610) | (911) | (1,676) | (3,494) | ||
| INCOME AFTER TAXES ON INCOME | 3,768 | 5,867 | 1,695 | 4,985 | 6,089 | ||
| SHARE IN INCOME OF AN ASSOCIATED COMPANY | 2 | 2 | 2 | -- | 17 | ||
| NET INCOME | 3,770 | 5,869 | 1,697 | 4,985 | 6,106 | ||
|
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
(280) | (224) | (138) | (81) | (310) | ||
| NET INCOME ATTRIBUTABLE TO RETALIX LTD. | 3,490 | 5,645 | 1,559 | 4,904 | 5,796 | ||
| EARNINGS PER SHARE – in U.S. $: | |||||||
| Basic | 0.14 | 0.28 | 0.06 | 0.24 | 0.28 | ||
| Diluted | 0.14 | 0.28 | 0.06 | 0.24 | 0.28 | ||
|
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE – in thousands: |
|||||||
| Basic | 24,090 | 20,394 | 24,092 | 20,399 | 20,824 | ||
| Diluted | 24,235 | 20,417 | 24,233 | 20,418 | 21,020 | ||
| RETALIX LTD. | |||
| CONDENSED CONSOLIDATED BALANCE SHEET | |||
| June 30 | December 31 | ||
| 2010 | 2009 | 2009 | |
| (Unaudited) | (Audited) | ||
| U.S. $ in thousands | |||
| A s s e t s | |||
| CURRENT ASSETS: | |||
| Cash and cash equivalents | 73,014 | 65,211 | 103,675 |
| Short-term deposits | 32,000 | -- | -- |
| Marketable securities | 2,031 | 263 | 226 |
| Accounts receivable: | |||
| Trade | 58,018 | 55,694 | 54,814 |
| Other | 9,862 | 11,284 | 8,891 |
| Prepaid expenses | 3,672 | 3,729 | 4,967 |
| Inventories | 1,326 | 1,050 | 1,496 |
| Deferred income taxes | 5,509 | 6,705 | 4,957 |
| Total current assets | 185,432 | 143,936 | 179,026 |
| NON-CURRENT ASSETS : | |||
| Long-term receivables | 993 | 2,257 | 1,386 |
| Long-term prepaid expenses | 640 | 393 | 406 |
| Long term investments | 493 | 861 | 682 |
| Amounts funded in respect of employee rights upon retirement | 10,978 | 8,772 | 10,621 |
| Deferred income taxes | 10,615 | 11,152 | 12,150 |
| Other | 269 | 429 | 269 |
| Total non - current assets | 23,988 | 23,864 | 25,514 |
| PROPERTY, PLANT AND EQUIPMENT, net | 14,927 | 15,341 | 15,233 |
| GOODWILL | 50,803 | 50,730 | 50,803 |
| OTHER INTANGIBLE ASSETS, net of accumulated amortization | |||
| Customer base | 11,290 | 14,000 | 12,544 |
| Other | 1,327 | 1,814 | 1,889 |
| 12,617 | 15,814 | 14,433 | |
| Total assets | 287,767 | 249,685 | 285,009 |
| RETALIX LTD. | |||
| CONDENSED CONSOLIDATED BALANCE SHEET | |||
| June 30 | December 31 | ||
| 2010 | 2009 | 2009 | |
| (Unaudited) | (Audited) | ||
| U.S. $ in thousands | |||
| Liabilities and equity | |||
| CURRENT LIABILITIES: | |||
| Short-term loan | 55 | -- | 170 |
| Current maturities of long-term bank loans | 369 | 255 | 263 |
| Accounts payable and accruals: | |||
| Trade | 6,431 | 4,608 | 7,071 |
| Employees and employee institutions | 10,100 | 9,506 | 10,114 |
| Accrued expenses | 9,483 | 9,642 | 10,908 |
| Other | 1,277 | 2,208 | 1,804 |
| Deferred revenues | 17,875 | 17,015 | 17,450 |
| Total current liabilities | 45,590 | 43,234 | 47,780 |
| LONG-TERM LIABILITIES : | |||
| Long-term bank loans, net of current maturities | -- | 401 | 275 |
| Long-term deferred revenues | 2,537 | 2,829 | 2,336 |
| Employee rights upon retirement | 14,165 | 13,659 | 14,243 |
| Deferred income tax | 263 | 258 | 269 |
| Institutions | 477 | 3,265 | 476 |
| Total long-term liabilities | 17,442 | 20,412 | 17,599 |
| Total liabilities | 63,032 | 63,646 | 65,379 |
| EQUITY: | |||
|
Share capital -Ordinary shares of NIS 1.00 par value (authorized: June 30, 2010 (unaudited), December 31, 2009 (audited) 50,000,000 shares; June 30, 2009 (unaudited) 30,000,000 shares; |
|||
|
issued and outstanding: - June 30, 2010 (unaudited) 24,099,829 Shares; December 31, 2009 (audited) -24,082,582 shares; June 30, 2009 (unaudited) -20,406,363 shares |
6,358 | 5,384 | 6,353 |
| Additional paid in capital | 210,520 | 176,603 | 208,574 |
| Retained earnings | 3,865 | 224 | 375 |
| Accumulated other comprehensive income | 124 | 343 | 642 |
| Total Retalix shareholders' equity | 220,867 | 182,554 | 215,944 |
| Non-controlling interest | 3,868 | 3,485 | 3,686 |
| Total equity | 224,735 | 186,039 | 219,630 |
| Total liabilities and equity | 287,767 | 249,685 | 285,009 |
| (Continued) - 1 | |||||
| RETALIX LTD. | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
|
Six months ended June 30 |
Three months ended June 30 |
Year ended December 31 |
|||
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| U.S. $ in thousands | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Net income | 3,770 | 5,869 | 1,697 | 4,985 | 6,106 |
| Adjustments required to reconcile net income to net cash provided by operating activities: | |||||
| Depreciation and amortization | 3,063 | 3,091 | 1,485 | 1,460 | 6,475 |
| Losses from sale of property, plant and equipment | -- | 21 | -- | 40 | 44 |
| Share in income of an associated company | (2) | (2) | (2) | -- | (17) |
| Stock based compensation expenses | 1,933 | 1,162 | 996 | 576 | 2,624 |
| Changes in accrued liability for employee rights upon retirement | 222 | (208) | (299) | 1,083 | 311 |
| Losses (gains) on amounts funded in respect of employee rights upon retirement | 147 | 283 | 396 | (631) | (1,023) |
| Deferred income taxes -- net | 951 | 2,401 | 648 | 2,215 | 3,209 |
| Net decrease in marketable securities | 64 | 146 | 62 | 1 | 162 |
| Other | 172 | 28 | 145 | (154) | 13 |
| Changes in operating assets and liabilities: | |||||
| Decrease (increase) in accounts receivable: | |||||
| Trade (including the non-current portion) | (3,485) | 15,409 | (1,516) | (1,126) | 17,339 |
| Other (including the non-current portion) | (32) | 678 | 1,847 | 1,932 | 2,190 |
| Increase (decrease) in accounts payable and accruals: | |||||
| Trade | (495) | (4,083) | 284 | (2,321) | (1,653) |
| Employees, employee institutions and other | (1,810) | 2,496 | (1,027) | 1,662 | 4,102 |
| Decrease (increase) in inventories | 159 | (13) | 196 | 655 | (456) |
| Increase (decrease) in long-term institutions | 1 | 2,153 | 8 | 39 | (636) |
| Increase (decrease) in deferred revenues | 698 | 709 | (960) | (732) | 625 |
| Net cash provided by operating activities - forward | 5,356 | 30,140 | 3,960 | 9,684 | 39,415 |
| (Continued) - 2 | |||||
| RETALIX LTD. | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
|
Six months ended June 30 |
Three months ended June 30 |
Year ended December 31 |
|||
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| U.S. $ in thousands | |||||
| Net cash provided by operating activities - brought forward | 5,356 | 30,140 | 3,960 | 9,684 | 39,415 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
| Maturity of marketable debt securities held to maturity | -- | 290 | -- | -- | 490 |
| Sales of marketable trading debt securities | -- | 2,535 | -- | -- | 2,535 |
| Investment in Short term deposits | (32,000) | -- | (7,000) | -- | -- |
| Investment in Available-for-sale marketable securities | (1,679) | -- | -- | -- | -- |
| Additional investments in subsidiaries | -- | -- | -- | -- | (22) |
| Purchase of property, plant, equipment and other assets | (1,037) | (960) | (505) | (310) | (2,985) |
| Proceeds from sale of property, plant and equipment | -- | 70 | -- | 34 | 120 |
| Amounts funded in respect of employee rights upon retirement, net | (586) | (396) | (333) | (287) | (913) |
| Changes in restricted deposits | 70 | -- | 70 | -- | (184) |
| Long-term loans collected from employees | -- | 14 | -- | 12 | 14 |
| Net cash provided by (used in) investing activities | (35,232) | 1,553 | (7,768) | (551) | (945) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
| Repayment of long-term bank loans | (123) | (119) | (123) | (119) | (249) |
| Issuance of share capital and warrants to shareholders | -- | -- | -- | -- | 31,468 |
| Issuance of share capital to employees and non-employees resulting from exercise of options | 7 | 4 | 3 | -- | 20 |
| short-term loan - net | (113) | -- | (58) | -- | 170 |
| Net cash provided by (used in) financing activities | (229) | (115) | (178) | (119) | 31,409 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (556) | 87 | (428) | 417 | 250 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (30,661) | 31,665 | (4,414) | 9,431 | 70,129 |
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 103,675 | 33,546 | 77,428 | 55,780 | 33,546 |
| BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD | 73,014 | 65,211 | 73,014 | 65,211 | 103,675 |
| Supplemental information on investing activities not involving cash flows: | |||||
| 1) During 2009 the Company purchased equipment in the amount of $842,000 in credit. An amount of $652,000 was paid and included in investing activities during the six month period ended on June 30, 2010 and the remaining will be presented as investing activity when actual payment is made. | |||||
| 2) During the six month period ended on June 30, 2010, the company purchased equipment in the amount of $607,000 in credit. This amount will be presented as investing activity when actual payment is made. | |||||
| RETALIX LTD. | |||||
| UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS | |||||
| The following tables reflect selected Retalix' non-GAAP results reconciled to GAAP results: | |||||
|
Six months ended June 30, |
Three months ended June 30, |
Year ended December 31 |
|||
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |
|
U.S. $ in thousands (except share and per share data) |
|||||
| OPERATING INCOME | |||||
| GAAP Operating income | 6,283 | 7,397 | 3,398 | 2,962 | 7,826 |
| GAAP Operating Margin | 6.2% | 7.7% | 6.5% | 6.1% | 4.1% |
| Plus: | |||||
| Amortization of acquisition-related intangible assets | 1,749 | 1,883 | 871 | 941 | 3,731 |
| Stock based compensation expenses | 1,933 | 1,162 | 996 | 576 | 2,165 |
| Indirect private placement costs* | -- | -- | -- | -- | 1,823 |
| Non-GAAP Operating income** | 9,965 | 10,442 | 5,265 | 4,479 | 15,545 |
| NET INCOME | 3,490 | 5,645 | 1,559 | 4,904 | 5,796 |
| GAAP Net income | |||||
| Plus: | |||||
| Amortization of acquisition-related intangible assets | 1,749 | 1,883 | 871 | 941 | 3,731 |
| Stock based compensation expenses | 1,933 | 1,162 | 996 | 576 | 2,165 |
| Indirect private placement costs* | -- | -- | -- | -- | 1,823 |
| Less: | |||||
| Income tax effect of amortization of acquisition-related intangible assets | (567) | (735) | (216) | (367) | (1,029) |
| Tax expenses (income) effect of stock based compensation expenses | 19 | (91) | 113 | 62 | (96) |
| Income tax effect of Indirect private placement costs | -- | -- | -- | -- | (343) |
| Non-GAAP Net income | 6,624 | 7,864 | 3,323 | 6,116 | 12,047 |
| NET INCOME PER DILUTED SHARE | |||||
| GAAP Net income per diluted share | 0.14 | 0.28 | 0.06 | 0.24 | 0.28 |
| Plus: | |||||
| Amortization of acquisition-related intangible assets | 0.07 | 0.09 | 0.04 | 0.05 | 0.18 |
| Stock based compensation expenses | 0.08 | 0.06 | 0.04 | 0.03 | 0.10 |
| Indirect private placement costs | -- | -- | -- | -- | 0.09 |
| Less: | |||||
| Income tax effect of amortization of acquisition-related intangible assets | (0.02) | (0.04) | (0.01) | (0.02) | (0.05) |
| Income tax effect of stock based compensation expenses | 0.00 | (0.00) | 0.01 | (0.00) | (0.01) |
| Income tax effect of Indirect private placement costs | -- | -- | -- | -- | (0.02) |
| Non-GAAP Net income per diluted share | 0.27 | 0.39 | 0.14 | 0.30 | 0.57 |
| Shares used in computing diluted net income per share (in thousands) | 24,235 | 20,417 | 24,233 | 20,418 | 21,020 |
| * Indirect private placement costs include $459 of stock based compensation expenses. | |||||
| ** We calculate Non-GAAP Operating Margin by dividing Non-GAAP Operating income (reconciled to GAAP operating income above) by revenues. For the quarter ended June 30, 2010, this resulted in a Non-GAAP Operating Margin of 10.1%, calculated as follows: $5,265/$52,019 = 10.1%. | |||||
| RETALIX LTD. | |||||||
| UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS | |||||||
| The following table shows the classification of stock-based compensation expense: | |||||||
|
Six months ended June 30 |
Three months ended June 30 |
Year ended December 31 |
|||||
| 2010 | 2009 | 2010 | 2009 | 2009 | |||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||
| U.S. $ in thousands | |||||||
| Cost of product sales | 13 | 53 | 2 | 25 | 105 | ||
| Cost of services | 130 | 535 | 25 | 260 | 1,060 | ||
| Research and development | 54 | 266 | 44 | 131 | 381 | ||
| Selling and marketing | 259 | 104 | 258 | 52 | 126 | ||
| General and administrative | 1,477 | 204 | 667 | 108 | 493 | ||
| Total | 1,933 | 1,162 | 996 | 576 | 2,165 | ||
| The following table shows the classification of amortization of acquisition-related intangible assets: | |||||||
|
Six months ended June 30 |
Three months ended June 30 |
Year ended December 31 |
|||||
| 2010 | 2009 | 2010 | 2009 | 2009 | |||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||
| U.S. $ in thousands | |||||||
| Cost of product sales | 1,256 | 1,246 | 628 | 623 | 2,490 | ||
| Cost of services | 441 | 438 | 220 | 219 | 876 | ||
| General and administrative | 52 | 199 | 23 | 99 | 365 | ||
| Total | 1,749 | 1,883 | 871 | 941 | 3,731 | ||
Indirect private placement costs relate to a Private Placement completed in November 2009 as part of the agreement with the Alpha Group that generated $32.9 million of gross proceeds and $1.8 million in expenses for Retalix.