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Peerless Systems Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: June 13, 2011 12:33PM

Peerless Systems Corp. (PRLS) filed Quarterly Report for the period ended 2011-04-30. Peerless Systems Corp. has a market cap of $11.52 million; its shares were traded at around $3.43 with a P/E ratio of 11.83 and P/S ratio of 1.87.



Highlight of Business Operations:

Revenues for the three months ended April 30, 2011 were $1.8 million, a 100% increase from the $0.9 million in revenues for the three months ended April 30, 2010. The Company did not have any engineering services and maintenance revenues during the three months ended April 30, 2011, compared to $0.1 million for the three months ended April 30, 2010, due to the Company s decision to stop offering these services in the fourth quarter of fiscal 2011.

Our total assets at April 30, 2011 were $15.0 million, an increase of 2.7% from $14.6 million as of January 31, 2011. Cash and cash equivalents increased from $12.4 at January 31, 2011 to $13.0 at April 30, 2011. Stockholders equity at April 30, 2011 was $12.3 million, an increase of 4.2% from $11.8 million as of January 31, 2011.

Our net income for the three months ended April 30, 2011 was $0.4 million, or $0.11 per basic and diluted share, compared to a net income of $3.3 million, or $0.21 per basic and diluted share, for the three months ended April 30, 2010. The Company had 3.1 million and 16.0 million weighted average shares of common stock outstanding as of April 30, 2011 and April 30, 2010, respectively, primarily due to the self-tender offer completed in November 2010.

Revenues were $1.8 million for the three months ended April 30, 2011, compared to $0.9 million for the three months ended April 30, 2010. We experienced an increase in licensing revenues during the three months ended April 30, 2011 from the three months ended April 30, 2010, due to an $800,000 block license signed this quarter with an existing customer. Engineering services and maintenance revenues were $0 and $0.1 million, for the three months ended April 30, 2011 and 2010, respectively. The decrease was due to the Company s decision to stop offering these services.

Total cost of revenues were $0.6 million for the three months ended April 30, 2011, compared to $0.2 million for the three months ended April 30, 2010. Product licensing costs increased for the three months ended April 30, 2011, primarily due to the third party license fees associated with the $800,000 block license. Engineering services and maintenance costs were $0 and $0.1 million, for the three months ended April 30, 2011 and 2010, respectively. The decrease was due to the Company s decision to stop offering these services in the fourth quarter of fiscal 2011.

The Company invested in common stock and warrants of Highbury Financial, Inc. (“Highbury”) beginning in the first quarter of fiscal 2010. Highbury paid quarterly dividends of $0.05 per share of common stock and special dividends of $1.50 and $0.9977 per share of common stock on October 7, 2009 and April 15, 2010, respectively. Over the term of its investment, the Company received aggregate dividends of $8.1 million on its Highbury common stock. On December 12, 2009, Highbury entered into a merger agreement to be acquired by a subsidiary of Affiliated Managers Group, Inc. (“AMG”) for AMG common stock. Our $2.2 million tax provision for the three months ended April 30, 2010 was primarily due to such special dividends and a gain on our investment in Highbury.

Read the The complete Report



Stocks Discussed: PRLS,
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