Financial Results
May 13 2010 - 2:01AM
UK Regulatory
TIDMBEK
RNS Number : 8284L
Berkeley Technology Limited
13 May 2010
+--------------------------------+--------------------------------+
| FOR IMMEDIATE PRESS RELEASE | May 12, 2010 |
+--------------------------------+--------------------------------+
Financial Results
For the Quarter Ended
March 31, 2010
London, May 12, 2010 - Berkeley Technology Limited (London: BEK.L) (the
"Company") is an international venture capital consulting company incorporated
under the laws of Jersey, Channel Islands, with an office in San Francisco,
California.
The Company's typical client is a Silicon Valley technology company or a large
international telecommunications company. The Company's objective is the
development of large European and Asian telecommunications relationships with
Silicon Valley technology companies. These relationships have led to several
equity investments by one client, and new opportunities generated through
others. In certain cases, the Company may benefit from investments made by its
clients if their investments are successful. The Company is actively seeking
new clients and business opportunities.
By definition, venture capital operates in a highly volatile
environment, even more so than the economy as a whole. This industry faces
significant challenges in this adverse environment, especially related to the
raising of new funds. Operating in this segment creates the potential for
tremendous growth, but is also subject to a high level of risk. The Company is
therefore challenged, not only by the severe downturn in the economy, but also
by the particular complications facing those companies operating in the venture
capital markets. From these challenges come opportunities that may reward
patience and discipline. In addressing these challenges, the Company is taking
significant steps to curtail and contain its expenditures while aggressively
pursuing new business opportunities. The Company has further reduced staffing
levels and focused operations on its core expertise. In order to reduce and
contain costs, the Company terminated its ADR program. As much smaller and cost
efficient, the Company expects to more easily capitalize on positive revenue
events with its current and future clients.
The Company's consulting fee revenues increased 20% in first quarter 2010
compared to first quarter 2009. Operating expenses decreased in the first
quarter of 2010, primarily due to lower staff costs. Interest income remained
relatively consistent.
The Company today reports financial results for the quarter ended March
31, 2010. The Company's consolidated net loss for the quarter ended March 31,
2010, was $(1.0) million (which includes $(0.4) million non-recurring net
realization of accumulated foreign currency translation losses) or $(0.02) per
diluted share and $(0.19) per diluted ADR, compared with consolidated net loss
of $(1.0) million, or $(0.02) per diluted share and $(0.19) per diluted ADR, for
the quarter ended March 31, 2009. The Company computes and reports consolidated
net losses and diluted losses per share and ADR in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP").
**********
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 March 31, 2010
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)
+-------------------------------------------------+----------+----------+-----------+
| | March | | December |
| | 31, | | 31, |
+-------------------------------------------------+----------+----------+-----------+
| | 2010 | | 2009 |
+-------------------------------------------------+----------+----------+-----------+
| ASSETS | | | |
+-------------------------------------------------+----------+----------+-----------+
| Current assets: | | | |
+-------------------------------------------------+----------+----------+-----------+
| Cash and cash equivalents | $ | | $ |
| | 10,949 | | 11,480(1) |
+-------------------------------------------------+----------+----------+-----------+
| Accounts receivable, less allowances of $0 | | | |
| March 31, 2010 | | | |
+-------------------------------------------------+----------+----------+-----------+
| and December 31, 2009 | 104 | | 141 |
+-------------------------------------------------+----------+----------+-----------+
| Prepaid expenses and deposits | 62 | | 68 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Total current assets | 11,115 | | 11,689 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Private equity investments (at lower of cost or | 1,469 | | 1,469(1) |
| estimated fair value) | | | |
+-------------------------------------------------+----------+----------+-----------+
| Property and equipment, net of accumulated | | | |
| depreciation of $181 | | | |
+-------------------------------------------------+----------+----------+-----------+
| as of March 31, 2010 and December 31, 2009 | 4 | | 6 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Total assets | $ 12,588 | | $ 13,164 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
+-------------------------------------------------+----------+----------+-----------+
| Current liabilities: | | | |
+-------------------------------------------------+----------+----------+-----------+
| Accounts payable and accrued expenses | $ | | $ |
| | 423 | | 417 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Total current liabilities | 423 | | 417 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| 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 | | | |
| March 31, 2010 | | | |
+-------------------------------------------------+----------+----------+-----------+
| and December 31, 2009 | 3,222 | | 3,222 |
+-------------------------------------------------+----------+----------+-----------+
| Additional paid-in capital | 67,917 | | 67,915 |
+-------------------------------------------------+----------+----------+-----------+
| Retained earnings | 3,624 | | 4,607 |
+-------------------------------------------------+----------+----------+-----------+
| Employee benefit trusts, at cost (13,522,381 | | | |
| shares as of | | | |
+-------------------------------------------------+----------+----------+-----------+
| March 31, 2010 and December 31, 2009) | (62,598) | | (62,598) |
+-------------------------------------------------+----------+----------+-----------+
| Accumulated other comprehensive loss | - | | (399) |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Total shareholders' equity | 12,165 | | 12,747 |
+-------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------+----------+----------+-----------+
| Total liabilities and shareholders' equity | $ 12,588 | | $ 13,164 |
+-------------------------------------------------+----------+----------+-----------+
(1) As of December 31, 2009, the Company's subsidiary, London Pacific
Limited f/k/a London Pacific Assurance Limited ("LPL"), held $2,816 of the
Group's $11,480 in cash and cash equivalents and $844 of the Group's $1,469 in
private equity investments which were only available to fund the operations or
commitments of LPL, and not to fund the parent company or any of the other
subsidiaries. As of December 31, 2009, LPL needed permission of the Jersey
Financial Services Commission ("JFSC") if LPL funds were to be used to fund
operations or commitments outside of the LPL entity. As of January 14, 2010,
the JFSC approved LPL's Cessation Of Business Plan and canceled LPL's insurance
permit. As of January 14, 2010, the foregoing restrictions no longer apply.
See accompanying Notes which are an integral part of these Unaudited 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 |
| | March 31, |
+-------------------------------------------------+----------------------------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| | 2010 | | 2009 |
+-------------------------------------------------+--------+----------+--------+
| Revenues: | | | |
+-------------------------------------------------+--------+----------+--------+
| Consulting fee income | $ | | $ |
| | 116 | | 97 |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Total revenues | 116 | | 97 |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Operating expenses: | | | |
+-------------------------------------------------+--------+----------+--------+
| Cost of services | 139 | | 204 |
+-------------------------------------------------+--------+----------+--------+
| Selling, general and administrative expenses | 566 | | 664 |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Total operating expenses | 705 | | 868 |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Operating loss | (589) | | (771) |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Interest income | 7 | | 7 |
+-------------------------------------------------+--------+----------+--------+
| Other-than-temporary impairment on investments | - | | (200) |
+-------------------------------------------------+--------+----------+--------+
| Net realized foreign currency translation loss | (399) | | - |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Loss before income tax expense | (981) | | (964) |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Income tax expense | 2 | | 2 |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Net loss | $ | | $ |
| | (983) | | (966) |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Basic and diluted loss per share | $ | | $ |
| | (0.02) | | (0.02) |
+-------------------------------------------------+--------+----------+--------+
| | | | |
+-------------------------------------------------+--------+----------+--------+
| Basic and diluted loss per ADS | $ | | $ |
| | (0.19) | | (0.19) |
+-------------------------------------------------+--------+----------+--------+
See accompanying Notes which are an integral part of these Unaudited Condensed
Consolidated Financial Statements.
BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
+--------------------------------------------------+--------+----------+--------+
| | Three Months Ended |
| | March 31, |
+--------------------------------------------------+----------------------------+
| | 2010 | | 2009 |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Net loss | $ | | $ |
| | (983) | | (966) |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Adjustments to reconcile net loss to net | | | |
+--------------------------------------------------+--------+----------+--------+
| cash used in operating activities: | | | |
+--------------------------------------------------+--------+----------+--------+
| Depreciation and amortization | 2 | | 1 |
+--------------------------------------------------+--------+----------+--------+
| Amounts credited on insurance policyholder | - | | 1 |
| accounts | | | |
+--------------------------------------------------+--------+----------+--------+
| Net realized investment gains and | - | | 200 |
| other-than-temporary impairment on investment | | | |
+--------------------------------------------------+--------+----------+--------+
| Share based compensation | 2 | | 19 |
+--------------------------------------------------+--------+----------+--------+
| Net realized foreign currency translation loss | 399 | | - |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Net changes in operating assets and liabilities: | | | |
+--------------------------------------------------+--------+----------+--------+
| Accrued investment income | - | | (1) |
+--------------------------------------------------+--------+----------+--------+
| Other assets | 43 | | 128 |
+--------------------------------------------------+--------+----------+--------+
| Accounts payable, accruals and other liabilities | 7 | | 2 |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Net cash used in operating activities | (530) | | (616) |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Cash flows used in financing activities: | | | |
+--------------------------------------------------+--------+----------+--------+
| Insurance policyholder benefits | - | | (63) |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Net cash used in financing activities | - | | (63) |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Effect of exchange rate changes on cash | (1) | | (1) |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Net decrease in cash and cash equivalents | (531) | | (680) |
+--------------------------------------------------+--------+----------+--------+
| Cash and cash equivalents at beginning of year | 11,480 | | 13,681 |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Cash and cash equivalents at end of year | $ | | $ |
| | 10,949 | | 13,001 |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Supplemental disclosure of cash flow | | | |
| information: | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| Non-cash operating activities: | | | |
+--------------------------------------------------+--------+----------+--------+
| Realization of non-recurring accumulated foreign | $ | | $ |
| currency translation loss | 399 | | - |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
| | | | |
+--------------------------------------------------+--------+----------+--------+
See accompanying Notes which are an integral part of these Unaudited Condensed
Consolidated Financial Statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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