SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
November 9, 2015
Evolving Systems, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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001-34261
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84-1010843
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9777 Pyramid Court, Suite 100, Englewood, Colorado 80112
(Address of principal executive offices)
Registrant’s telephone number, including area code: (303) 802-1000
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 10, 2015, Evolving Systems, Inc. (“Evolving Systems”) issued a press release announcing its financial results for the third quarter ended September 30, 2015. The full text of Evolving Systems’ press release, together with the related unaudited financial and operating highlights, is furnished herewith as Exhibit 99.1.
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION
On November 9, 2015, Evolving Systems entered into the Fourth Amendment (“Fourth Amendment”) to the Loan and Security Agreement with East West Bank (“Revolving Facility”). The purpose of the Fourth Amendment is to remove non-cash foreign exchange changes from certain covenant calculations. The remaining terms and conditions of the Revolving Facility are unchanged.
For information relating to the Revolving Facility, please see Evolving Systems’ Current Reports on Forms 8-K filed with the SEC on October 25, 2012, November 6, 2014 and September 30, 2015.
Text of Agreements . The full text of the amendment to Fourth Amendment to the Revolving Facility is attached as Exhibit 10.1 to this Current Report on Form 8-K. The foregoing descriptions are qualified in their entirety by reference to such exhibit.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
d) Exhibits . The following exhibits are filed or furnished with this report.
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Exhibit No. |
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Description |
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10.1 |
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Fourth Amendment to Loan and Security Agreement between Evolving Systems, Inc. and East West Bank |
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99.1 |
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Press Release issued by Evolving Systems, Inc. announcing its financial results for the third quarter ended September 30, 2015. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: November 10, 2015
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Evolving Systems, Inc. |
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By: |
/s/ DANIEL J. MOORHEAD |
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Daniel J. Moorhead |
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Vice President, Finance & Administration |
EXHIBIT 10.1
FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
This Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”) is entered into as of November 9, 2015 by and among EAST WEST BANK (“Bank”) and EVOLVING SYSTEMS, INC. (“Borrower”).
RECITALS
Borrower and Bank are parties to that certain Loan and Security Agreement dated as of October 22, 2012, Amendment to Loan and Security Agreement dated October 22, 2014, Second Amendment to Loan and Security Agreement dated April 8, 2015 and Third Amendment to Loan and Security Agreement dated September 28, 2015 (collectively “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Fourth Amendment.
NOW, THEREFORE, the parties agree as follows:
Section 6.8 of the Agreement entitled “Financial Covenants” is amended by restating subpart (c) in its entirety as follows:
“(c) Total Liabilities to Tangible Net Worth . A ratio of Total Liabilities to Tangible Net Worth of not more than (i) 3.75 to 1.00 ending September 30, 2015; (ii) 3.50 to 1.00 ending December 31, 2015; (iii) 3.25 to 1.00 March 31, 2016; and (iv) 3.00 to 1.00 thereafter, measured on a quarterly basis.
For the purpose of this covenant, the following terms shall have the following respective meanings:
“ Tangible Net Worth ” means at any date as of which the amount thereof shall be determined, total stockholder’s equity of Borrower and its Subsidiary as determined in accordance with GAAP, plus or minus the adjustment necessary to offset any cumulative non cash foreign exchange gain or loss posted to Borrower’s “Other Comprehensive Income” account after 6/30/15 (balance of which was ($4,467,997.23) as of 6/30/15), minus goodwill as of 9/30/15 of $16,603,791 (maximum value, no future changes related to foreign exchange) and minus other intangible assets, plus up to $10 million related to the acquisition of Six Sense Media. Additionally, up to $250,000 in aggregate non recurring expense incurred during the period of measurement may be excluded.
“ Total Liabilities ” means at any date as of which the amount thereof shall be determined, all obligations that should, in accordance with GAAP be classified as liabilities on the consolidated balance sheet of Borrower, including in any event, to the extent not already included, all Indebtedness excluding any non-cash liabilities related to intangible assets (such as deferred taxes associated with goodwill or other intangible assets).”
The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. The execution, delivery, and performance of this Fourth Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Each Borrower ratifies and reaffirms the continuing effectiveness of all other instruments, documents and agreements entered into in connection with the Agreement.
Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Fourth Amendment, and that no Event of Default has occurred and is continuing.
Unless otherwise defined, all initially capitalized terms in this Fourth Amendment shall be as defined in the Agreement. This Fourth Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.
IN WITNESS WHEREOF, the undersigned have executed this Fourth Amendment as of the date set forth above.
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EVOLVING SYSTEMS, INC. |
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By: |
/s/ DANIEL J. MOORHEAD |
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Title: |
VICE PRESIDENT FINANCE |
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EAST WEST BANK |
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By: |
/s/ NADER MAGHSOUDNIA |
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Title: |
DIRECTOR |
EXHIBIT 99.1
Evolving Systems Reports Third Quarter 2015 Financial Results
· Acquisition of Sixth Sense Media expands product portfolio and accelerates move into mobile marketing, positioning Company for profitable growth
· Sequential quarter license and services bookings up 34%; sequential quarter license and services backlog up 11%
· 30 th consecutive profitable quarter; profit metrics remain steady with 75% gross margins, 17% operating margins, 20% adjusted-EBITDA margins
· Two new Dynamic SIM Allocation™ (DSA) wins subsequent to third quarter raise 2015 DSA win total to four vs. one in 2014
· Fourth quarter dividend of $0.11 per share, payable December 4, 2015, to stockholders of record on November 27, 2015
ENGLEWOOD, Colorado, November 10, 2015 — Evolving Systems, Inc. (Nasdaq: EVOL), a leader in activation, enablement and real-time marketing of services for connected mobile devices worldwide, today reported financial results for its third quarter and nine-month period ended September 30, 2015.
Late in the third quarter Evolving Systems acquired RateIntegration, Inc., d/b/a Sixth Sense Media (SSM), a transformative event for the Company. The acquisition of SSM accelerates the Company’s entry into the lucrative area of mobile marketing, adding technology and talent and expanding the Company’s global customer base. The transaction is expected to be accretive and contribute an additional 20% to current revenue run rates.
Mobile marketing and advertising software enables carriers to conduct sophisticated, revenue-generating campaigns from the moment a subscriber’s device is activated and continuing through the entire lifecycle with the carrier. The combination of SSM’s Real-time Lifecycle Marketing™, or RLM, solution with Evolving Systems’ Dynamic SIM Allocation™ (DSA) and Mobile Data Enablement™ (MDE) solutions forms one of the most advanced and robust mobile marketing platforms available today. Evolving Systems will be reporting these products under a new bookings and revenue category referred to as Mobile Marketing Solutions (MMS). MMS products can be purchased individually or as a complete integrated product solution.
“We are pleased to see renewed momentum in our license and service bookings. Based upon our current sales pipeline, as well as the contributions we will post from SSM, we are confident we will sustain this momentum in the fourth quarter,” said Thad Dupper Chairman and CEO. “The current fourth quarter will be the first quarter in which we recognize revenue and profitability from the acquisition. In addition, we are seeing a resurgence in DSA orders thus far in the fourth quarter. We’ve recorded two new DSA wins in the past two weeks, which brings to four the number of new DSA orders year to date, as compared with one for all of 2014. DSA remains a compelling value proposition and we are confident we’ll continue to extend our leadership position in the SIM activation market.”
Thomas Thekkethala, President, added, “We are excited by the integration of SSM into Evolving and the cross-selling opportunities with our respective product lines and worldwide customer bases. We are also developing mobile advertising and advanced campaign management capabilities for the mobile gaming and entertainment sector, which we believe will be significant new revenue drivers for our customers.”
The Company’s Board of Directors has declared a fourth quarter dividend of $0.11 per share, which raises to $5.41 per share the total amount of capital returned to Evolving Systems stockholders since May 2010.
Financial Results Recap
The Company reported net income of $0.6 million, or $0.05 per share, on revenue of $5.8 million in the third quarter versus net income of $1.7 million, or $0.14 per share, on revenue of $7.6 million in the same quarter last year. Adjusted EBITDA was $1.1 million compared to $2.5 million year over year. Nine-month net income was $2.2 million, or $0.19 per share, on revenue of $18.5 million compared to net income of $4.0 million, or $0.34 per share, on revenue of $22.1 million a year ago. Adjusted EBITDA was $3.9 million versus $6.8 million year over year.
Cash and cash equivalents at September 30, 2015, were $9.4 million versus $9.8 million at 2014 year-end. The Company declared a fourth quarter dividend of $0.11 per share, payable on December 4, 2015, to stockholders of record on November 27, 2015.
Bookings and Backlog Highlights
License and services bookings in the third quarter increased 34% sequentially to $3.8 million from $2.8 million the second quarter. MMS license and services bookings increased to $2.2 million from $1.1 million in the second quarter. Customer support bookings in the third quarter increased to $2.0 million from $1.5 million year over year. Bookings are defined as sales orders expected to be recognized as revenue during the following 12 months.
License and services backlog was $5.2 million, up 11% sequentially from $4.7 million in the second quarter. License and services backlog included $3.9 million in MMS, up 20% year over year and up 28% sequentially, and $1.3 million in TSA.
Conference Call
The Company will conduct a conference call and webcast today at 2:30 p.m. Mountain Time. The call-in numbers for the conference call are 1-877-303-6316 for domestic toll free and 650-521-5176 for international callers. The conference ID is 61307822. A telephone replay will be available through November 24, 2015, and can be accessed by calling 1-855-859-2056 or 1-404-537-3406. Conference ID 61307822. To access a live webcast of the call, please visit Evolving Systems’ website at www.evolving.com. A replay of the Webcast will be accessible at that website through November 24, 2015. The webcast is also available by clicking the following link: http://edge.media-server.com/m/p/vvimzpr3
Non-GAAP Financial Measures
Evolving Systems reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release non-GAAP financial information in the form of net income, diluted net income per share and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, stock compensation and gain/loss on foreign exchange transactions). Management believes these non-GAAP financial measures are useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Investors and financial analysts who follow the Company use non-GAAP net income and non-GAAP diluted income per share to compare the Company against other companies. Adjusted EBITDA can be useful for lenders as an indicator of earnings available to service debt. Non-GAAP financial measures should not be considered in isolation from or as an alternative to the financial information prepared in accordance with GAAP.
About Evolving Systems®
Evolving Systems, Inc. (NASDAQ: EVOL) is a provider of software and services to 75 network operators in over 50 countries worldwide. The Company’s portfolio includes market-leading activation products that address subscriber service activation, SIM card activation, mobile broadband activation and connected devices; mobile data enablement solutions to successfully monetize mobile data traffic; number management products to reliably and efficiently manage number resources; and real-time analytical and marketing solutions offering highly personalized interactive campaigns. Founded in 1985, the Company has headquarters in Englewood, Colorado, with offices in the United States, United Kingdom, India, Malaysia and Romania. For more information please visit www.evolving.com or follow us on Twitter: http://twitter.com/EvolvingSystems.
CAUTIONARY STATEMENT
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Specifically, statements about the impact of the SSM acquisition, the market for the Company’s products, prospects for new customer wins, positive outlook, EBITDA, cash flow and growth, and the Company’s continued ability to pay dividends, achieve profitable growth, or post quarterly or year to date results that are similar to those described in this press release are forward-looking statements. These statements are based on our expectations and are naturally subject to uncertainty and changes in circumstances. Readers should not place undue reliance on these forward-looking statements, and the Company may not undertake to update these statements. Actual results could vary materially from these expectations. For a more extensive discussion of Evolving Systems’ business, and important factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the Company’s Form 10-K filed with the SEC on March 17, 2015; Forms 10-Q, 10-Q/A, and 8-K; press releases and the Company’s website.
Investor Relations
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303.393.7044
jay@pfeifferhigh.com
Press Relations
Sarah Hurp
Evolving Systems
+44 (0) 1225 478060
sarah.hurp@evolving.com
Consolidated Statements of Operations
(In thousands except per share data)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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(Unaudited) |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenue: |
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License fees and services |
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$ |
3,228 |
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$ |
5,141 |
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$ |
11,177 |
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$ |
14,690 |
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Customer support |
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2,545 |
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2,419 |
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7,327 |
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7,391 |
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Total revenue |
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5,773 |
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7,560 |
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18,504 |
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22,081 |
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Costs of revenue and operating expenses: |
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Costs of license fees and services, excluding depreciation and amortization |
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1,043 |
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1,446 |
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3,458 |
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4,437 |
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Costs of customer support excluding depreciation and amortization |
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396 |
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509 |
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1,116 |
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1,417 |
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Sales and marketing |
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1,336 |
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1,363 |
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4,435 |
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4,344 |
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General and administrative |
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1,010 |
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877 |
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2,943 |
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2,654 |
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Product development |
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913 |
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948 |
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2,887 |
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2,786 |
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Depreciation |
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97 |
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74 |
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277 |
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172 |
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Amortization |
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24 |
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24 |
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71 |
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71 |
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Restructuring |
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— |
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— |
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— |
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237 |
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Total costs of revenue and operating expenses |
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4,819 |
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5,241 |
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15,187 |
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16,118 |
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Income from operations |
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954 |
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2,319 |
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3,317 |
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5,963 |
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Other income (expense): |
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Interest income |
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5 |
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6 |
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14 |
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13 |
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Interest expense |
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(3 |
) |
(4 |
) |
(9 |
) |
(13 |
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Other loss |
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— |
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— |
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— |
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(27 |
) |
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Foreign currency exchange gain (loss) |
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(244 |
) |
185 |
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(218 |
) |
13 |
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Other income (expense), net |
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(242 |
) |
187 |
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(213 |
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(14 |
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Income from operations before income taxes |
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712 |
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2,506 |
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3,104 |
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5,949 |
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Income tax expense |
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142 |
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827 |
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894 |
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1,943 |
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Net income |
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$ |
570 |
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$ |
1,679 |
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$ |
2,210 |
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$ |
4,006 |
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Basic income per common share |
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$ |
0.05 |
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$ |
0.14 |
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$ |
0.19 |
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$ |
0.34 |
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Diluted income per common share |
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$ |
0.05 |
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$ |
0.14 |
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$ |
0.19 |
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$ |
0.34 |
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Weighted average basic shares outstanding |
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11,687 |
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11,647 |
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11,677 |
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11,635 |
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Weighted average diluted shares outstanding |
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11,927 |
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11,934 |
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11,938 |
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11,919 |
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Consolidated Balance Sheets
(In thousands)
(Unaudited)
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September 30, |
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December 31, |
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2015 |
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2014 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
9,410 |
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$ |
9,781 |
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Contract receivables, net |
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9,935 |
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9,182 |
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Unbilled work-in-progress, net |
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3,370 |
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4,995 |
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Deferred income taxes |
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— |
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80 |
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Prepaid and other current assets |
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1,533 |
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1,331 |
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Total current assets |
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24,248 |
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25,369 |
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Property and equipment, net |
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595 |
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659 |
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Amortizable intangible assets, net |
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5,179 |
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608 |
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Goodwill |
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23,553 |
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17,010 |
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Long-term deferred income taxes |
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— |
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586 |
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Total assets |
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$ |
53,575 |
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$ |
44,232 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of capital lease obligations |
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$ |
5 |
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$ |
5 |
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Accounts payable and accrued liabilities |
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5,704 |
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4,460 |
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Income taxes payable |
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466 |
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1,227 |
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Unearned revenue |
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4,343 |
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3,883 |
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Total current liabilities |
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10,518 |
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9,575 |
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Long-term liabilities: |
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Capital lease obligations, net |
|
3 |
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7 |
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Revolving line of credit, net of current portion |
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10,000 |
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— |
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Deferred income taxes |
|
1,065 |
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— |
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Contingent earn-out obligation |
|
178 |
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178 |
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Long-term unearned revenue |
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— |
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420 |
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Total liabilities |
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21,764 |
|
10,180 |
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Stockholders’ equity: |
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|
|
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Common stock |
|
12 |
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12 |
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Additional paid-in capital |
|
96,307 |
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96,005 |
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Treasury stock |
|
(1,253 |
) |
(1,253 |
) |
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Accumulated other comprehensive loss |
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(5,443 |
) |
(4,534 |
) |
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Accumulated deficit |
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(57,812 |
) |
(56,178 |
) |
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Total stockholders’ equity |
|
31,811 |
|
34,052 |
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Total liabilities and stockholders’ equity |
|
$ |
53,575 |
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$ |
44,232 |
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Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except per share data)
(Unaudited)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Non-GAAP net income and income per share: |
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GAAP net income |
|
$ |
570 |
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$ |
1,679 |
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$ |
2,210 |
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$ |
4,006 |
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Amortization of intangible assets |
|
24 |
|
24 |
|
71 |
|
71 |
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||||
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Stock-based compensation expense |
|
69 |
|
108 |
|
229 |
|
309 |
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||||
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Restructuring |
|
— |
|
— |
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— |
|
237 |
|
||||
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Income tax adjustment for non-GAAP* |
|
(30 |
) |
(46 |
) |
(99 |
) |
(214 |
) |
||||
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Non-GAAP net income |
|
$ |
633 |
|
$ |
1,765 |
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$ |
2,411 |
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$ |
4,409 |
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|
|
|
|
|
|
|
|
|
|
|
||||
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Diluted net income per share |
|
|
|
|
|
|
|
|
|
||||
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GAAP |
|
$ |
0.05 |
|
$ |
0.14 |
|
$ |
0.19 |
|
$ |
0.34 |
|
|
Non-GAAP |
|
$ |
0.05 |
|
$ |
0.15 |
|
$ |
0.20 |
|
$ |
0.37 |
|
|
Shares used to compute diluted EPS |
|
11,927 |
|
11,934 |
|
11,938 |
|
11,919 |
|
||||
|
|
|
Three months ended |
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Nine months ended |
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||||||||
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|
|
September 30, |
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September 30, |
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||||||||
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|
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2015 |
|
2014 |
|
2015 |
|
2014 |
|
||||
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Adjusted EBITDA: |
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|
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|
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||||
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|
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|
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|
|
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||||
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Net income |
|
$ |
570 |
|
$ |
1,679 |
|
$ |
2,210 |
|
$ |
4,006 |
|
|
Depreciation |
|
97 |
|
74 |
|
277 |
|
172 |
|
||||
|
Amortization of intangible assets |
|
24 |
|
24 |
|
71 |
|
71 |
|
||||
|
Stock-based compensation expense |
|
69 |
|
108 |
|
229 |
|
309 |
|
||||
|
Restructuring |
|
— |
|
— |
|
— |
|
237 |
|
||||
|
Interest expense and other (benefit), net |
|
242 |
|
(187 |
) |
213 |
|
14 |
|
||||
|
Income tax expense |
|
142 |
|
827 |
|
894 |
|
1,943 |
|
||||
|
Adjusted EBITDA |
|
$ |
1,144 |
|
$ |
2,525 |
|
$ |
3,894 |
|
$ |
6,752 |
|
*The estimated income tax for non-GAAP net income is adjusted by the amount of additional expense that the Company would accrue if it used non-GAAP results instead of GAAP results in the calculation of its tax liability, taking into account in which tax jurisdiction each of the above adjustments would be made and the tax rate in that jurisdiction.
Supplementary Data
(In thousands) (Unaudited)
|
|
|
Three months ended |
|
Nine months ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
||||
|
License fees and services |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
$ |
1,313 |
|
$ |
3,001 |
|
$ |
5,250 |
|
$ |
8,574 |
|
|
TSA |
|
1,915 |
|
2,140 |
|
5,927 |
|
6,116 |
|
||||
|
Total license fees and services |
|
3,228 |
|
5,141 |
|
11,177 |
|
14,690 |
|
||||
|
Customer support |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
912 |
|
750 |
|
2,487 |
|
2,256 |
|
||||
|
TSA |
|
1,633 |
|
1,669 |
|
4,840 |
|
5,135 |
|
||||
|
Total customer support |
|
2,545 |
|
2,419 |
|
7,327 |
|
7,391 |
|
||||
|
Total revenue |
|
$ |
5,773 |
|
$ |
7,560 |
|
$ |
18,504 |
|
$ |
22,081 |
|
|
|
|
Three months ended |
|
Nine months ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
||||
|
Bookings |
|
|
|
|
|
|
|
|
|
||||
|
License fees and services |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
$ |
2,236 |
|
$ |
2,486 |
|
$ |
5,087 |
|
$ |
7,840 |
|
|
TSA |
|
1,565 |
|
1,966 |
|
5,806 |
|
5,364 |
|
||||
|
Total license fees and services |
|
3,801 |
|
4,452 |
|
10,893 |
|
13,204 |
|
||||
|
Customer support |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
1,330 |
|
910 |
|
3,241 |
|
2,999 |
|
||||
|
TSA |
|
671 |
|
594 |
|
4,076 |
|
4,432 |
|
||||
|
Total customer support |
|
2,001 |
|
1,504 |
|
7,317 |
|
7,431 |
|
||||
|
Total bookings |
|
$ |
5,802 |
|
$ |
5,956 |
|
$ |
18,210 |
|
$ |
20,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
||||||
|
|
|
September 30, |
|
|
|
|
|
||||||
|
|
|
2015 |
|
2014 |
|
|
|
|
|
||||
|
Backlog** |
|
|
|
|
|
|
|
|
|
||||
|
License fees and services |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
$ |
3,930 |
|
$ |
3,280 |
|
|
|
|
|
||
|
TSA |
|
1,319 |
|
2,237 |
|
|
|
|
|
||||
|
Total license fees and services |
|
5,249 |
|
5,517 |
|
|
|
|
|
||||
|
Customer support |
|
|
|
|
|
|
|
|
|
||||
|
MMS |
|
2,455 |
|
2,367 |
|
|
|
|
|
||||
|
TSA |
|
2,588 |
|
2,751 |
|
|
|
|
|
||||
|
Total customer support |
|
5,043 |
|
5,118 |
|
|
|
|
|
||||
|
Total backlog |
|
$ |
10,292 |
|
$ |
10,635 |
|
|
|
|
|
||
**The change in backlog during the periods presented may not equal the difference between revenue recognized and bookings due to changes in foreign exchange rates.