Global Graphics reports second quarter and first half 2011 results

GLOBAL GRAPHICS SA (NYSE-Euronext: GLOG), experts in developing electronic document and printing software, announces consolidated financial results for the second quarter and the first six months of the year ending 31 December 2011.

Comparisons for the second quarter of 2011 with the second quarter of the previous year include:

• Sales of Euro 2.1 million this quarter (Euro 2.3 million at Q2 2010 exchange rates), compared with Euro 2.2 million in Q2 2010;
• A nominal operating profit this quarter compared with an operating loss of Euro 1.2 million in Q2 2010;
• An adjusted operating loss of Euro 0.2 million this quarter compared with an adjusted operating loss of Euro 0.7 million in Q2 2010;
• An adjusted pre-tax loss of Euro 0.2 million this quarter (or an adjusted pre-tax loss of Euro 0.02 per share) compared with an adjusted pre-tax loss of Euro 0.8 million in Q2 2010 (or an adjusted pre-tax loss of Euro 0.08 per share);
• A net loss of Euro 0.1 million this quarter (or a net loss of Euro 0.01 per share) compared with a net loss of Euro 1.5 million in Q2 2010 (or a net loss of Euro 0.14 per share); and
• An adjusted net loss of Euro 0.2 million this quarter (or an adjusted net loss of Euro 0.02 per share) compared with an adjusted net loss of Euro 1.0 million in Q2 2010 (or an adjusted net loss of Euro 0.10 per share).

Commenting on performance, Gary Fry, Chief Executive Officer, said: “the second quarter has been stable financially and that has allowed us to continue our exciting programme into our three market segments.

“In the production printing market segment, we have been finalizing new technology releases for digital and traditional printing applications.  Both are due to be released in the third quarter of this year and we are pleased to see that our initial expectations on performance and quality have been exceeded.  These innovations will enable us to continue to win new customers in digital print.

“In the office printing market segment, we released our alpha code to the growing list of manufacturers who are evaluating our mobile print solution.  The beta evaluation will be released in the third quarter of this year, and with that, plans to capitalize on the growth opportunities of what is an emerging market.

“Our growth plans in the electronic document market segment are looking strong as our existing partners, such as Corel, roll out their sales and marketing activity.  The latest addition to our portfolio of OEM software will go into beta in the third quarter of this year and will be rolled out through our partners to a number of blue-chip organizations.

“In the quarter ended 30 June 2011, we continued to recruit exciting new talent into Global Graphics’ development and QA teams in Cambridge.  However, this will not increase our cost base, mostly because we have reallocated corresponding costs from the closure of our offshore facility in India.”

Second quarter 2011 performance
Sales for the second quarter 2011 amounted to Euro 2.1 million compared with Euro 2.2 million in the second quarter 2010, or a sequential decrease of 2.9% at current exchange rates, but a sequential increase of 6.4% at constant exchange rates.

Total operating expenses amounted to Euro 2.2 million this quarter (after effect of other operating income for Euro 0.2 million), compared with Euro 3.3 million in the same period of 2010 (including other operating expenses for Euro 0.4 million), and with Euro 2.3 million in Q1 2011.  

The Company reported a nominal operating profit for this quarter (or a profit equivalent to 0.3% of Q2 2011 sales), compared with an operating loss of Euro 1.2 million in Q2 2010 (or a loss equivalent to 54.6% of Q2 2010 sales).

The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.2 million for this quarter (or a loss equivalent to 9.4% of Q2 2011 sales), compared with an adjusted operating loss of Euro 0.7 million, which was equivalent to 33.4% of Q2 2010 sales.

The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.2 million for this quarter, compared with an adjusted pre-tax loss of Euro 0.8 million in Q2 2010. Accordingly adjusted pre-tax EPS was a loss of Euro 0.02 this quarter compared with an adjusted pre-tax loss of Euro 0.08 per share in Q2 2010.

The Company reported a net loss of Euro 0.1 million for this quarter (or a net loss of Euro 0.01 per share), compared with a net loss of Euro 1.5 million in Q2 2010 (or a net loss of Euro 0.14 per share).

The Company reported an adjusted net loss (as defined in the accompanying table) of Euro 0.2 million for this quarter, compared with an adjusted net loss of Euro 1.0 million in Q2 2010. Accordingly, adjusted net EPS was a loss of Euro 0.02 this quarter, compared with an adjusted net loss of Euro 0.10 per share in Q2 2010.

First six months performance
Sales for the first six months of 2011 amounted to Euro 4.2 million, compared with Euro 4.2 million for the same period of 2010, or a sequential decrease of 0.2% at current exchange rates, but a sequential increase of 3.4% at constant exchange rates.

Total operating expenses amounted to Euro 4.3 million for the first six months of 2011 (after effect of other operating income for Euro 0.2 million), compared with Euro 6.3 million for the same period of 2010, the latter figure including other operating expenses for Euro 0.4 million, which were notably relating to expenses incurred pursuant to the Company’s reorganization which was implemented in April 2010.

The Company reported an operating loss of Euro 0.3 million for the first six months of 2011 (or a loss equivalent to 6.7% of the period’s sales), compared with an operating loss of Euro 2.3 million for the same period of 2010 (or a loss equivalent to 54.6% of that period’s sales).

The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.5 million for the first six months of 2011 (or a loss equivalent to 12.7% of the period’s sales), compared with an adjusted operating loss for the same period of 2010 of Euro 1.8 million (or a loss equivalent to 43.0% of that period’s sales).

The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.5 million for the first six months of 2011 (or an adjusted pre-tax loss of Euro 0.05 per share), compared with an adjusted pre-tax loss of Euro 2.0 million for the same period of 2010 (or an adjusted pre-tax loss of Euro 0.20 per share).

The Company reported a net loss of Euro 0.2 million for the first six months of 2011 (or a net loss of Euro 0.01 per share), compared with a net loss of Euro 2.7 million for the same period of 2010 (or a net loss of Euro 0.26 per share).

The Company reported an adjusted net loss (defined in the accompanying table) of Euro 0.3 million for the first six months of 2011, compared with an adjusted net loss of Euro 2.2 million for the same period of 2010. Accordingly, adjusted net EPS was a loss of Euro 0.03 per share for the first six months of 2011, compared with an adjusted net loss of Euro 0.22 per share for the same period of 2010.

Commentary on the remainder of 2011
Gary Fry continued: “Global Graphics continues to produce innovative ideas across all three of its market segments.  Feedback from our partners and our new customers provides me with a very exciting outlook going forward. Our technology skills and innovation, along with our valuable partnerships, continue to give Global Graphics a strong platform for growth.”
 
Third quarter 2011 results announcement

Global Graphics (http://www.globalgraphics.com) is a leading developer of e-document and printing software. It provides high-performance solutions to the graphic arts/commercial print and digital print markets and for knowledge worker and professional software applications. The Company’s customers include Original Equipment Manufacturers (OEMs), system integrators, software developers and resellers and number the world’s leading brands of digital pre-press systems, large-format color printers, color proofing systems, digital copiers and printers for the corporate and SOHO (Small Office / Home Office) markets, as well as a wide variety of market leading software applications.

Forward-looking statements
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding the Company’s growth, funding, expansion plans and expected results for future periods. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Although management believes that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure any reader that the expectations will prove to have been correct. Accordingly, any reader should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. The Company undertakes no obligation to revise nor update any of them, neither to reflect events or circumstances after the date of this release, nor to reflect new information nor the occurrence of unanticipated events.