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Friday 13 November, 2009

Berkeley Technology

3rd Quarter Results

RNS Number : 4505C
Berkeley Technology Limited
13 November 2009
 



FOR IMMEDIATE RELEASE

November 13, 2009




Berkeley Technology Limited


Financial Results

For the Three and Nine Months Ended

September 30, 2009



LondonNovember 13, 2009 - Berkeley Technology Limited (OTCBB: BKLYY.PK, London: BEK.L) (the "Company") is an international venture capital consulting firm with a focus on Silicon Valley technology companies.


The Company today reported financial results for the three and nine months ended September 30, 2009. The Company's consolidated net loss for the third quarter of 2009 was $0.5 million, or $0.01 per diluted share and $0.09 per diluted ADR, compared with a consolidated net loss of $1.0 million, or $0.02 per diluted share and $0.20 per diluted ADR, for the third quarter of 2008. The Company computes and reports consolidated net income (loss) and diluted earnings (loss) per share and ADR in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").


For the nine months ended September 30, 2009, the Company's consolidated net loss was $2.2 million, or $0.04 per diluted share and $0.43 per diluted ADR, compared with a consolidated net loss of $2.1 million, or $0.04 per diluted share and $0.41 per diluted ADR, for the first nine months of 2008.  


The improvement in results for the third quarter of 2009 compared to the third quarter of 2008 resulted from a $0.4 million decrease in operating expenses, primarily in staff costs, and a $0.2 million change in realized investment gains and losses. The results for the third quarter of 2008 included an other-than-temporary write-down taken on one of the Group's private equity investments, and there were no investment gains or losses in the third quarter of 2009.


 We continue to make progress in holding operating expenses down.  The results for the first nine months of 2009 includes a $0.4 million decrease in operating expenses, primarily in staff costs, though this was offset by a $0.2 million decline in interest income due to the lower interest rate environment, and by a $0.2 million change in realized investment gains and losses. During the first nine months of 2009, an other-than-temporary write-down of $0.2 million was taken on one of the Group's private equity investments. During the first nine months of 2008, an other-than temporary write-down of $0.25 million was taken on this private equity investment, but this was more than offset by a $0.27 million realized gain due to the receipt of a final distribution from the WorldCom, Inc. securities litigation.

 

We earned consulting fees of $0.4 million during the first nine months of 2009 which was comparable to the fees earned in the same period last year.   


In certain of our consulting arrangements, we may benefit from investments made by our clients if their investments are successful. Given the challenges we face in the current economic environment, the level of consulting fees is expected to fluctuate depending on the nature and extent of our work at any point in time. We continue to actively seek new clients and business opportunities.


 

********





Statements contained herein which are not historical facts are forward-looking statements that involve a number of risks and uncertainties that could cause the actual results of the future events described in such forward-looking statements to differ materially from those anticipated in such forward-looking statements. Factors that could cause or contribute to deviations from the forward-looking statements include, but are not limited to, (i) variations in demand for the Company's products and services, (ii) the success of the Company's new products and services, (iii) significant changes in net cash flows in or out of the Company's businesses, (iv) fluctuations in the performance of debt and equity markets worldwide, (v) the enactment of adverse state, federal or foreign regulation or changes in government policy or regulation (including accounting standards) affecting the Company's operations, (vi) the effect of economic conditions and interest rates in the U.S., the U.K. or internationally, (vii) the ability of the Company's subsidiaries to compete in their respective businesses, (viii) the ability of the Company to attract and retain key personnel, and (ix) actions by governmental authorities that regulate the Company's businesses, including insurance commissions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise.


 


Please address any inquiries to:


Robert A. Cornman

Jersey

(0)1534 607700

Company Secretary



Berkeley Technology Limited






Form 10-Q for the quarter ended September 30, 2009


A copy of the above document will be submitted to the U.K. Listing Authority and will be shortly available for inspection at the U.K. Listing Authority's Document Viewing Facility, which is situated at:


Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS


Tel: 020 7676 1000




 




BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share amounts)




September 30,


December 31,


2009


2008





ASSETS




Current assets:




Cash and cash equivalents

$ 11,744


$ 13,681

Accounts receivable, less allowances of $0 as of September 30, 2009




and December 31, 2008

150


222

Interest receivable

2


1

Prepaid expenses and deposits

27


147

Total current assets

11,923


14,051





Private equity investments (at lower of cost or estimated fair value)

1,341


1,484

Property and equipment, net of accumulated depreciation of $181 and  $177 as of September 30, 2009 and December 31, 2008, respectively

6


9

Total assets

$ 13,270


$ 15,544


LIABILITIES AND SHAREHOLDERS' EQUITY








Current liabilities:




Accounts payable and accrued expenses

$  417


$ 459

Policyholder liabilities (due in less than one year)

-


106

Total current liabilities

417


565





Commitments and contingencies  








Shareholders' equity:




Ordinary shares, $0.05 par value per share: 86,400,000 shares authorized;




64,439,073 shares issued and outstanding as of September 30, 2009




and December 31, 2008

3,222


3,222

Additional paid-in capital

67,903


67,860

Retained earnings

4,725


6,894

Employee benefit trusts, at cost (13,522,381 shares as of 




September 30, 2009 and December 31, 2008)

(62,598)


(62,598)

Accumulated other comprehensive loss

(399)


(399)

Total shareholders' equity

12,853


14,979

Total liabilities and shareholders' equity

$  13,270


$ 15,544




See accompanying Notes which are an integral part of these Condensed

Consolidated Financial Statements.


 

 

BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share and ADS amounts)

 



Three Months Ended


Nine Months Ended


September 30,


September 30,










2009


2008


2009


2008

 








Revenues:








Consulting fees

$ 150


$ 150


$ 397


$ 414

Total revenues

150


150


397


414

 








Operating expenses:








Cost of services

199


218


609


697

Selling, general and administrative expenses 

425


758


1,789


2,091

Total operating expenses

624


976


2,398


2,788









Operating loss

(474)


(826)


(2,001)


(2,374)









Interest income

20


72


34


271

Net realized investment gains (losses)

-


(250)


(200)


20

Loss before income tax expense

(454)


(1,004)


(2,167)


(2,083)

 








Income tax expense

-


-


2


2

 








Net loss

$ (454)


$ (1,004)


(2,169)


$ (2,085)

























Basic and diluted loss per share

$ (0.01)


$ (0.02)


$ (0.04)


$ (0.04)









Basic and diluted loss per ADS

$ (0.09)


$ (0.20)


$ (0.43)


$ (0.41)




See accompanying Notes which are an integral part of these Condensed 

Consolidated Financial Statements.




BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)



Nine Months Ended


September 30,


2009


2008





Cash flows from operating activities:




Net loss

$ (2,169)


$ (2,085)





Adjustments to reconcile net loss to net




cash used in operating activities:




Depreciation and amortization

3


5

Amounts credited on insurance policyholder accounts

1


4

Net realized investment losses (gains)

200


(20)

Share based compensation

43


51





Net changes in operating assets and liabilities:




Accrued investment income 

(1)


12

Other assets

135


269

Accounts payable, accruals and other liabilities

(43)


10

Net cash used in operating activities

(1,831)


(1,754)





Cash flows from investing activities: 




Proceeds from WorldCom, Inc. securities litigation settlement

-


270

Capital expenditures

-


(2)





Net cash provided by investing activities

-


268





Cash flows from financing activities:




Insurance policyholder benefits paid

(111)


-

Net cash used in financing activities

(111)


-





Effect of exchange rate changes on cash

5


(18)





Net decrease in cash and cash equivalents

(1,937)


(1,504)





Cash and cash equivalents at beginning of period

13,681


14,568





Cash and cash equivalents at end of period 

$ 11,744


$13,064









Supplemental disclosure of non-cash investing activities:




Exchange of receivable from consulting client for additional private




  equity investment in consulting client

$ 57


$ -

 

See accompanying Notes which are an integral part of these Condensed 

Consolidated Financial Statements.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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