Niklas Bjorkman wrote: Firstly I agree with your conclusion. NewSQL takes the best of the traditional databases and NoSQL databases to combine the benefits of both worlds. I do not agree that NewSQL vendors focus on giving scale-out features to transactional data. The NewSQL market is focusing on giving true ACID support combined with extreme performance, stepping away from the traditional relational structures in databases. A lot of developers appreciate the ease of accessing data using SQL and I think we will see more and more databases supporting standard SQL.
As you said - NewSQL databases often maintain the...
Net income increases 29 percent. Adjusted net earnings per diluted
share grows 50 percent
2012 Full Year Highlights
Net income increases 25 percent. Adjusted net earnings per diluted
share increases 14 percent to $1.37 per diluted share
Gross profit up 10 percent
TORONTO, Feb. 19, 2013 /CNW/ - Softchoice Corporation (TSX: SO), a North
American provider of technology solutions and services, today reported
earnings for the fourth quarter and fiscal year 2012.
For the three-month period ended December 31, 2012, Softchoice reported
net income of US$8.4 million compared to US$6.5 million for the same
period in the prior year. Eliminating the impact of certain non-cash
foreign exchange gains and losses, and an adjustment resulting from the
retroactive change to Canadian tax legislation, adjusted net income
grew 50 percent in the period, increasing to US$9.5 million, or US$0.48
per diluted share, compared to adjusted net income of US$6.3 million,
or US$0.32 per diluted share recorded in the fourth quarter of 2011.
Fourth quarter revenue grew 15 percent to US$308.7 million. The
Company's Services business grew 65 percent compared to the same
quarter in the prior year, bolstered by the additive impact of the
acquisition of Unis Lumin. Sales of Enterprise Software, Servers,
Storage and Networking solutions also made steady gains in the period,
increasing 33 percent for the quarter while sales of Microsoft grew by
10 percent. Fourth quarter earnings before interest, taxes,
depreciation and amortization ("EBITDA") margin increased 63 basis
points to 5.4 percent.
"Our focus on delivering high-value solutions and services to our
clients and expanding our reach within the small and medium-size
business segment resulted in strong net income growth in the quarter,"
said David MacDonald, President and CEO of Softchoice. "Moreover, the
solid growth in EBITDA reflects the leverage our operating model is
delivering to our business as we benefit from the integration of UNIS
LUMIN, major upgrades to our internal CRM system and strong execution
on the part of our field sales organization."
On a full year basis, Softchoice reported net income of US$27.7 million
or US$1.37 per diluted share. On an adjusted basis, earnings amounted
to US$27.5 million or US$1.37 per diluted share, representing an
earnings increase of 15 percent compared to the US$23.9 million or
US$1.20 per diluted share reported for fiscal year 2011.
"The fourth quarter was a strong close to a transformational year for
Softchoice," added Mr. MacDonald. "In 2012 we largely completed the
integration of UNIS LUMIN, built new recurring revenue streams with the
launch of Softchoice Cloud and Keystone, our first North American-wide
managed services offering, and strengthened our Services organization
with the appointment of new regional leadership. With solid momentum
and alignment around our services strategy, we are well-positioned to
continue outgrowing the market."
In August 2012, the Company reinstated its quarterly dividend in the
amount of CAD$0.07 per common share. The quarter will see a dividend
increase to CAD$0.09 per common share. This dividend will be payable
on March 15, 2013 to shareholders of record as of March 1, 2013.
At the end of the quarter, Softchoice had cash on hand of US$67.9
million compared to $33.0 million ending the fourth quarter of 2011 and
total debt of nil. Cash flow generated from operations for the year was
$44.1 million, which increased by $5.5 million or 14 percent.
Quarterly Operating Highlights
In the fourth quarter, total revenue, including imputed revenue,
increased 9 percent to $589.4 million.
Microsoft Canada recognized Softchoice with awards for marketing
innovation and collaboration at the recent 2012 IMPACT awards ceremony
in Toronto.
During the quarter, Softchoice was honored with the Cisco Customer
Satisfaction Excellence award for both the U.S. and Canada, the highest
distinction a partner can achieve for customer satisfaction within the
Cisco Channel Partner Community.
Softchoice has once again been named to the CRN Tech Elite 250 list, a
definitive list of solution providers with deep technical expertise and
premier certifications in the data center market.
Softchoice Corporation will host its fourth quarter earnings call on
February 20, 2013 at 8:00 am ET.
The call will be moderated by David MacDonald, Softchoice's President
and CEO and Chief Financial Officer, David Long. The conference call
will begin with a brief web presentation followed by a
question-and-answer session.
To ensure participation, please dial in at least 10 minutes prior to the
start of the conference at 8:00 am ET.
For those unable to attend the call, a link will be made available on
the Softchoice website to an archived web and audio version on February
21, 2013.
About Softchoice
As a leading North American provider of technology solutions and
services, Softchoice combines the efficiency and reliability of a
national IT supplier with the personal touch and technical expertise of
a local solutions provider. Softchoice's holistic approach to
technology includes solution design, implementation and asset
management services, as well as access to one of the most comprehensive
and cost-effective technology distribution networks in North America.
With over 1,200 employees, Softchoice manages the technology needs of
thousands of corporate and public sector organizations across the
United States and Canada.
Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the
trading symbol "SO." The common shares of Softchoice are not registered
under the U.S. Securities Act of 1933 and are not publicly traded in
the United States.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements relate to
expectations, intentions and plans contained in this press release that
are not historical fact. When used in this press release, the words
"anticipate", "expect", "will" and similar expressions generally
identify forward-looking statements. These statements reflect our
current expectations and are subject to a number of risks and
uncertainties including, but not limited to, change in technology and
general market conditions, many of which are set out or incorporated by
reference in the Company's latest Annual Information Form. Due to the
many risks and uncertainties, Softchoice cannot assure that the
forward-looking statements contained in this press release will be
realized.
SOFTCHOICE CORPORATION
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)
December 31, 2012 and 2011
2012
2011
Assets
Current assets:
Cash
$
67,875
$
32,993
Trade and other receivables
280,241
306,434
Inventories
3,836
8,872
Deferred costs
2,644
2,591
Prepaid expenses and other assets
7,635
6,158
Total current assets
362,231
357,048
Non-current assets:
Long-term accounts receivable
207
643
Long-term prepaid expenses
1,690
1,821
Property and equipment
5,478
6,309
Goodwill
16,696
16,441
Intangible assets
40,571
46,203
Deferred tax assets
18,708
19,224
Total non-current assets
83,350
90,641
Total assets
$
445,581
$
447,689
Liabilities and Shareholders' Equity
Current liabilities:
Trade and other payables
$
263,813
$
290,267
Deferred lease inducements
276
243
Deferred revenue
11,321
10,627
Income taxes payable
779
2,279
Total current liabilities
276,189
303,416
Non-current liabilities:
Deferred lease inducements
498
648
Deferred revenue
3,991
3,307
Total non-current liabilities
4,489
3,955
Total liabilities
280,678
307,371
Shareholders' equity:
Capital stock
26,728
26,548
Contributed surplus
2,907
3,274
Retained earnings
136,567
111,689
Accumulated other comprehensive loss
(1,299)
(1,193)
Total shareholders' equity
164,903
140,318
Total liabilities and shareholders' equity
$
445,581
$
447,689
SOFTCHOICE CORPORATION
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share information)
Years ended December 31, 2012 and 2011
2012
2011
Net sales
$
1,065,620
$
999,400
Cost of sales
858,304
810,518
Gross profit
207,316
188,882
Expenses:
Selling and marketing
119,543
102,434
Administrative
47,225
45,680
166,768
148,114
Income from operations
40,548
40,768
Finance costs
528
6,169
Finance income
(1,289)
(82)
Other income
(232)
(119)
Other expense
96
673
(897)
6,641
Income before income taxes
41,445
34,127
Income tax expense
13,789
12,007
Net income
27,656
22,120
Other comprehensive loss:
Foreign currency translation adjustment
(106)
(51)
Total comprehensive income
$
27,550
$
22,069
Net earnings per common share:
Basic
$
1.40
$
1.12
Diluted
1.37
1.11
SOFTCHOICE CORPORATION
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
Years ended December 31, 2012 and 2011
Accumulated
other
Total
Number
Capital
Contributed
comprehensive
Retained
shareholders'
2012
of shares
stock
surplus
loss
earnings
equity
Balance, January 1, 2012
19,837,211
$
26,548
$
3,274
$
(1,193)
$
111,689
$
140,318
Total comprehensive income (loss):
Net income
-
-
-
-
27,656
27,656
Other comprehensive loss:
Foreign currency translation adjustment
-
-
-
(106)
-
(106)
Total comprehensive income (loss)
-
-
-
(106)
27,656
27,550
Transactions with shareholders recorded directly in equity:
Share options exercised
40,151
516
(194)
-
-
322
Share-based compensation
-
-
2,091
-
-
2,091
Repurchase of common shares
(219,600)
(336)
(2,264)
-
-
(2,600)
Dividends declared
-
-
-
-
(2,778)
(2,778)
(179,449)
180
(367)
-
(2,778)
(2,965)
Balance, December 31, 2012
19,657,762
$
26,728
$
2,907
$
(1,299)
$
136,567
$
164,903
Accumulated
other
Total
Number
Capital
Contributed
comprehensive
Retained
shareholders'
2011
of shares
stock
surplus
loss
earnings
equity
Balance, January 1, 2011
19,780,039
$
26,016
$
2,054
$
(1,142)
$
89,569
$
116,497
Total comprehensive income (loss):
Net income
-
-
-
-
22,120
22,120
Other comprehensive loss:
Foreign currency translation adjustment
-
-
-
(51)
-
(51)
Total comprehensive income (loss)
-
-
-
(51)
22,120
22,069
Transactions with shareholders recorded directly in equity:
Share options exercised
8,599
108
(41)
-
-
67
Share-based compensation
-
-
1,722
-
-
1,722
Repurchase of common shares
(4,000)
(37)
-
-
-
(37)
Deferred share units exercised
52,573
461
(461)
-
-
-
57,172
532
1,220
-
-
1,752
Balance, December 31, 2011
19,837,211
$
26,548
$
3,274
$
(1,193)
$
111,689
$
140,318
SOFTCHOICE CORPORATION
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
Years ended December 31, 2012 and 2011
2012
2011
Cash provided by (used in):
Operating activities:
Net income
$
27,656
$
22,120
Adjustments for:
Amortization of intangible assets
8,663
5,989
Depreciation of property and equipment
3,124
3,018
Share-based compensation
2,091
1,722
Income tax expense
13,789
12,007
Unrealized foreign currency (gain) loss
(1,086)
648
Loss on disposal of intangible assets and property and equipment
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