Evolving Systems, Inc. (EVOL)
1.9000 -0.18 (-8.65%)
After hours: 7:27PM EDT
Chart Events
Performance Outlook
| Previous Close | 2.0300 |
| Open | 2.0100 |
| Bid | 1.9800 x 800 |
| Ask | 2.3200 x 1200 |
| Day's Range | 2.0100 - 2.1500 |
| 52 Week Range | 0.8100 - 5.6300 |
| Volume | 72,526 |
| Avg. Volume | 622,679 |
| Market Cap | 25.497M |
| Beta (5Y Monthly) | 1.19 |
| PE Ratio (TTM) | 41.60 |
| EPS (TTM) | 0.0500 |
| Earnings Date | Mar 17, 2021 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | Jun 01, 2016 |
| 1y Target Est | N/A |
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- GlobeNewswire
Effective Digital Customer Engagement is Mission Critical but also Challenging to Achieve, Concludes New Industry Report listing Evolving Systems
Report by Loyalty360, the association for customer loyalty, outlines current state of the industryENGLEWOOD, Colo., April 13, 2021 (GLOBE NEWSWIRE) -- A newly released industry report, Technology Today, published by Loyalty360, concludes that, while vital to long-term success, customer engagement in the digital age remains an embryonic challenge for many companies in different verticals. The report lists Evolving Systems, Inc. (NASDAQ: EVOL), which specializes in real-time digital engagement solutions and services, among suppliers of solutions that tackle the challenge of creating effective digital customer engagement. Loyalty360’s analysis concludes that creating engaging experiences that actualize emotional bonds and drive customer loyalty is one of the best marketing strategies brands can develop. Creating memorable and powerful experiences for consumers, while effectively navigating the challenging and rapidly evolving Martech space, enables companies to reap benefits that competitors not focused on customer loyalty do not. The report notes growing interest and investment in customer-centric strategies across all industries. In a recent Loyalty360 Brand Survey, over half (52 percent) of respondents plan on enhancing or replacing parts of their technology stack in the next 18 months. However, it also concludes that, even with concerted effort, creating engaging customer experiences and driving customer loyalty remains a significant challenge and undertaking for marketers today. These and other findings in part explain the success of Evolving Systems’ Evolution Customer Value Management and Loyalty platform which is already live in multiple deployments. Built using the latest technologies, Evolution has been designed specifically to capture customer data from multiple sources, build a 360° profile of customers and integrate with communication and provisioning channels - to Marketing, Retention and CVM teams - with an intuitive user interface in order to more effectively manage customer engagement. Carly Stemmer, lead author of the Loyalty360 report, asserts: “Brands are realizing the importance of customer loyalty, but turning a vision into reality can be a complicated journey. There are several internal components that marketers need to manage, such as having the proper teams in place, senior-level commitment, organizational alignment, budget, and available time. It is nearly impossible to get plans in place and operations running smoothly without having the right external partners.” Matthew Stecker, CEO of Evolving Systems, commented: “The new report highlights a number of important trends that are impacting companies undergoing digital transformations across geographies and vertical industries; the challenges it identifies are ones we are well placed, at Evolving Systems, to address. In fact, many of our clients are already successfully using our technology to overcome the obstacles to success that the report identifies.” About Evolving Systems® Evolving Systems, Inc. (NASDAQ: EVOL) empowers Communications Service Providers (CSPs) to succeed in fast-changing, disruptive telecoms environments. This is achieved through a combination of People, Processes, and Platforms and empowers CSPs to activate, engage, and retain their customers. Evolving Systems’ real-time digital engagement solutions and services are used by more than 90 service providers in over 60 countries worldwide. The Company’s portfolio includes CSP market-leading solutions and services for network provisioning and resource management, enhancing the digital sales and distribution channels, service activation, real-time analytics, customer value management and loyalty. Founded in 1985, the Company has its headquarters in Englewood, Colorado, with offices in Asia, Europe, Africa, South and North America. For more information, please visit www.evolving.com or follow us on Twitter at http://twitter.com/EvolvingSystems. Follow us on: Twitter: https://twitter.com/EvolvingSystemsLinkedIn: https://www.linkedin.com/company/evolving-systems Media & Analyst Relations: Sancha BrodySancha.brody@evolving.com / +44 (0) 7376 366855
- InvestorPlace
7 Hot Penny Stocks for the Robinhood Traders
Despite some warning signs that the market may be stretched, most traders don’t seem to care. In a way, they have justification for their bullishness. Thanks to the power of coordinated trading on social media and the easy access to equities that mobile trading apps like Robinhood provide, it’s never been easier to speculate on penny stocks. Over the course of generations, penny stocks have always attracted speculators for their low price and high profitability potential. That’s due in part to the law of small numbers. It’s much easier to generate a 100% return on an equity unit priced at $1 than it is to generate that same percentage performance on a $99 unit, even though we’re talking about the same nominal difference. But penny stocks have always relied on mass interest to pop. Here, Robinhood and the power of the internet have teamed up to forge a new paradigm in speculative trading. Theoretically, if enough people keep pumping a particular stock, it could keep moving higher despite crumbling on an initial pump and dump.InvestorPlace - Stock Market News, Stock Advice & Trading Tips However, we should also recognize that there’s a serious downside to this tactic. At the end of the day, whether particular penny stocks perform one pump or multiple, they usually tend to fall flat permanently or for a very long time. When that last pop is – and at what price it peaks – is anyone’s guess. Therefore, this sector is extremely risky. 7 Retail Stocks That Are Far Too Close to Failing Plus, this market segment doesn’t necessarily respond to fundamentals. That’s a good thing if major indices tumble and these speculative names don’t. But because of the lack of predictability, penny stocks are more casinos than proper investments. If you’re okay with that, you may want to consider these risky ideas: Evolving Systems (NASDAQ:EVOL) NexTech AR Solutions (OTCMKTS:NEXCF) Zosano Pharma (NASDAQ:ZSAN) Rockwell Medical (NASDAQ:RMTI) Allied Esports Entertainment (NASDAQ:AESE) iMD Companies (OTCMKTS:ICBU) Premier Products Group (OTCMKTS:PMPG) One final note to keep the lawyers happy. These penny stocks are wildly treacherous and you should not rely on any information – whether coming from me or from the companies in question – to guide you. Frankly, you should not buy these stocks unless you are mentally prepared to lose everything you put into them. Penny Stocks for Robinhood Traders: Evolving Systems (EVOL) Source: Shutterstock As a communications services provider (CSP), Evolving Systems already had a relevant business prior to the pandemic. With connectivity technologies driving commerce directly to where people are rather than where they must go, CSPs naturally make marketing initiatives more efficient while increasing revenue. But with the new normal, EVOL stock has taken on new relevance. Due to the initial government mandates of lockdowns and non-essential business restrictions, consumers had no choice but to limit their activities. That forced many brick-and-mortar institutions to rethink their business model, organically improving the investment profile of EVOL stock. Although Covid-19 cases are declining, significant fears about mingling with the public remain. Until we can really get back to normal, I believe contactless platforms will retain much of their utility. Given that Evolving Systems helps their clients bring the point of sale closer to the customer, this is one of the more credible penny stocks to buy. NexTech AR Solutions (NEXCF) Source: Shutterstock While NexTech AR Solutions doesn’t quite get the chatter that many other Robinhood-fueled penny stocks receive, it’s nonetheless one of the more compelling trades available. Indeed, you might consider it good news for NEXCF stock to be under the radar. That allows you to buy more shares in anticipation of a potential big wave of bullishness. Listen, no one can guarantee that such a wave will materialize. But what makes NEXCF stock so alluring is that it’s one of the few pure plays on the augmented reality (AR) space. One of the main reasons why NexTech should be on your radar of penny stocks is that its AR platform allows consumers to easily visualize how an appliance or piece of furniture will look in their home or how a pair of sunglasses will fit on their face. Take Your Profits! 7 Covid Winners to Sell Now With AR, the canvas is the real world, and the digitalized 3D imagery juxtaposed on the canvas is dimensionally accurate. Zosano Pharma (ZSAN) Source: Shutterstock According to the Migraine Research Foundation, migraines are the third-most prevalent illness in the world. Also, nearly a quarter of households include someone suffering from migraines. On a social cost scale, migraines represent the sixth-most disabling illness globally, with 90% of sufferers unable to perform their duties when having an attack. Bluntly speaking, it’s a serious problem and one that needs to be addressed. That’s where Zosano Pharma comes into the picture, presenting a possible solution to this terrible illness. Utilizing a proprietary intracutaneous microneedle-array drug-delivery system, Zosano hopes that its novel formulation of zolmitriptan will provide therapies for migraines and cluster headaches. Because of its fundamental relevance, ZSAN stock has been a hot performer this year, up 126.8% since the beginning of January. Of course, with pharmaceutical penny stocks, it’s really anyone’s guess where this ultimately ends up. But because of its social media chatter, we could see a significant boost in ZSAN stock. If you’re a speculator, it’s one to keep on your radar. Rockwell Medical (RMTI) Source: Iryna Imago / Shutterstock.com Another one of the penny stocks gathering momentum thanks to the power of social media is Rockwell Medical. Specializing in iron deficiency anemia, this is a condition with an expansive patient base. Iron deficiency anemia affects about “20% of women, 50% of pregnant women, and 3% of men.” Typically, the solution to these cases is to eat more foods high in iron. But other cases are not so simple. For instance, end-stage renal disease patients suffer from iron deficiency anemia due to insufficient production of red blood cells. Also, frequent dialysis treatments can result in blood loss, exacerbating the anemia. Thus, RMTI stock makes a strong fundamental case for itself through its underlying Triferic iron infusion therapy. 8 SPACs That Are Worth a Gamble Like any pharmaceutical penny stocks you find, you’ll want to be ultra-careful. Yes, RMTI stock has significant upside potential. But the low-capitalization pharma space is littered with more failures than successes. If you’re going to place a bet, do so carefully and soberly. Allied Esports Entertainment (AESE) Source: NYCStock / Shutterstock.com I’m convinced that at least 90% of the older demographic must view esports as some kind of sick joke. This is basically “Revenge of the Nerds” becoming an everyday reality. I mean, who would have thought that when home console video games first launched that goofing around could lead to a multimillion-dollar empire? But that’s exactly what esports is. In 2019, total esports viewership was 454 million. By 2023, experts believe that it will reach 646 million. Last year, the global esports market was valued around $950 million. Therefore, with current trends, it’s only a matter of time before the sector is bringing in billions. And that puts AESE stock in prime position. Specializing in integrated arenas and mobile esports trucks, Allied Esports’ core business took a hit due to the pandemic. However, with anticipation toward a return to normal, AESE stock could become one of the hottest penny stocks available. Still, it’s worth reminding ourselves that we don’t know how this crisis will pan out. But if you believe in the long-term narrative of video games, AESE is a name to watch closely. iMD Companies (ICBU) Source: Shutterstock Easily one of the top stories recently is cryptocurrency exchange Coinbase registering 114.9 million shares for a public listing. Further, Bloomberg pegs the valuation of the company near $100 billion. Of course, you must also factor in the extreme bullishness – some might call it a bubble – toward cryptocurrencies. Just the anticipation alone of Coinbase including a particular token on its exchange can send its value to the moon. With so much hype, it’s not surprising that iMD Companies, billed as a holding company for cryptocurrency and blockchain-related acquisitions, has garnered intense speculator interest. ICBU stock is basically an ICBM, rocketing toward the stratosphere. For traders, the question now is whether shares will keep moving higher or come crashing back down to earth, leaving a nasty crater in their portfolios. In my view, iMD represents a double whammy of risks commonly associated with penny stocks. First, you just don’t know when other investors will tire of bidding up ICBU stock. Second, the cryptocurrency market itself is frenetic, shifting rapidly between bullish and bearish outlooks. 7 Manufacturing Stocks That Will Help You Build a Better Portfolio If you want to throw some risk money here, you might do well. But don’t get too caught up in this craziness. Premier Products Group (PMPG) Source: Shutterstock Specializing in technology company acquisitions, Premier Products Group has arguably garnered the most interest recently for its development of smart city infrastructure. Specifically, the company manufactures SmartRoad pavement markers, which provide navigational data to automobiles. Initially, this tech has substantial safety implications. In addition, it can facilitate smoother logistics, a valuable feature for when society returns to normal. Both anecdotally and through live traffic data, we can see that major metropolitan areas across the U.S. are steadily moving back toward normal levels. Obviously, this bodes well for PMPG stock. Moreover, the SmartRoad innovation can help foster the development of fully autonomous vehicles, which is a major talking point in the tech industry today. Still, I’ve got to remind everyone that PMPG stock carries significant risk. This really is a trade that could go anywhere, so only put in money that you’re comfortable losing. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post 7 Hot Penny Stocks for the Robinhood Traders appeared first on InvestorPlace.
- GlobeNewswire
Evolving Systems Reports its 2020 Year-End and Fourth Quarter Financial Results
ENGLEWOOD, Colo., March 17, 2021 (GLOBE NEWSWIRE) -- Evolving Systems, Inc. (NASDAQ: EVOL) (the “Company”), a leader in real-time digital engagement, today reported financial results for its fourth quarter and full year ended December 31, 2020. 2020 Financial Results Highlights: 2020 revenues were $26.4 million, an increase of $0.6 million from 2019 revenuesFourth quarter revenues of $7.0 million, a $0.3 million increase from the fourth quarter 2019 revenuesOperating income of $1.0 million for the year 2020 and fourth quarter operating income of $0.5 millionPositive adjusted EBITDA of $2.4 million for the year 2020 and adjusted EBITDA of $0.8 million in the fourth quarterThe Company has generated positive cash flow from operations in 2020The Company made the final payment on its bank term loan in January 2021The Company continues to function efficiently during the global pandemic Matthew Stecker, the Company’s Chief Executive Officer and Executive Chairman, stated: “In our years of servicing our global clients, we have developed a culture of successfully managing our business through telework. We have leveraged our ability to implement and provide support remotely and have noted a relatively limited effect on our operations during this time of a global pandemic. This has allowed us to overcome many challenges and we are proud to announce the Company has increased revenues and generated a profit for the year and for the fourth quarter. The Company also generated positive cash flows from operations and paid off the bank term loan. We continue working with existing and new clients, helping them to explore new ways of using our products and services to enhance their businesses during these historic times. Although there has been continued impact on our ability to interact with our clients in the traditional modes of sales and business development, and the pandemic has slowed our expected growth, we are excited to have made the gains that we have.” Matthew Stecker further added: “During 2021, Evolving Systems will focus on increasing innovation and finding new growth opportunities. We plan to develop exciting new products that will grow existing client relationships, facilitate penetration into new markets, and reach new customers while continuing to generate sustainable long-term shareholder value.” 2020 ResultsTotal revenue for the year ended December 31, 2020 was $26.4 million, a $0.6 million or 2.3% increase compared to the year-ago period. Services revenues of $25.6 million increased year-over-year by $1.1 million, mostly related to work from new client projects and upgrades to existing clients partially offset by a decrease in work with other existing clients as projects reached completion. The Company reported gross profit margins, excluding depreciation and amortization, of approximately 66.5% for the year ended December 31, 2020 as compared to gross profit margins of approximately 66.3% for the year ended December 31, 2019. The Company continues to assign staff to support internal efforts including product development, reducing the project hours worked and maintaining project margins. Total operating expenses were $16.5 million for the year ended December 31, 2020, a decrease from total operating expenses of $25.0 million in the year ended December 31, 2019. Excluding the $6.7 million goodwill impairment charge in 2019, the Company’s operating expenses were $18.3 million in the corresponding year-ago period. The decrease of approximately $1.8 million was related to reductions in the Company’s sales and marketing costs, as incentive compensation expenses decreased, and a decrease in travel and marketing costs mainly due to the travel restrictions during the global pandemic. There was also a decrease in overall resource costs on the product development team. The Company reported operating profit of $1.0 million and net income of $0.6 million for the year ended December 31, 2020 as compared to operating loss of $7.9 million and net losses of $9.7 million for the year ended December 31, 2019. Excluding the effect of the goodwill impairment in 2019, the operating loss would have been $1.2 million and net loss would have been $3.0 million. Net earnings per share, both basic and diluted, was $0.05 for the year ended December 31, 2020 as compared to net loss per share, both basic and diluted, of ($0.80) in the comparable year-ago period. The Company reported adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $2.4 million for the year ended December 31, 2020 compared to $0.3 million for the same period a year ago and the Company plans to continue to strategically invest a portion of the profits in our continuing initiatives to foster long-term growth. Cash and cash equivalents as of December 31, 2020 and December 31, 2019 were approximately $2.8 million and $3.1 million, respectively. Contract receivables, net of allowance for doubtful accounts, were $5.7 million at December 31, 2020, a decrease of $1.0 million or approximately 15.6%, compared to December 31, 2019. Working capital increased by $1.7 million or approximately 44.9%, to $5.5 million as of December 31, 2020 from $3.8 million as of December 31, 2019. The increase in working capital is related to an increase in unbilled work-in-progress and a decrease in the current portion of the term loan, partially offset by decreases in cash and cash equivalents, contract receivables, and income taxes receivable along with an increase in accounts payable and accrued liabilities. Matthew Stecker concluded: “Our strong customer footprint and decades of proven performance gave us the steadiness to maintain our business trends during these uncertain times. Therefore, 2020 was a year where Evolving Systems has made progress on delivering the results on the transformation of our business that we started in recent years. We are always seeking new opportunities whether through potential accretive acquisitions, joint ventures, or strategic partnerships to drive both top- and bottom-line performance. The key to our future success is in driving innovation and capturing more wallet share from our installed base, while in parallel driving new engagements that can enhance our value proposition and expand our reach.” Fourth Quarter ComparisonsTotal revenue in the fourth quarter ended December 31, 2020 was $7.0 million as compared to $6.7 million in the comparable year-ago period, an increase of $0.3 million or 4.2%. Driving the period-over-period increase were higher revenues associated with new projects, partially offset by a decrease in work with other existing clients as projects reached completion. Total operating expenses for the fourth quarter of 2020 were $4.1 million compared to $4.2 million for the comparable period a year ago. The decrease was mostly related to lower travel and entertainment costs due to restrictions during the global pandemic, and a reduction of marketing programs partially offset by a larger number of hours worked on product development, as staff previously working on delivery shifted to product development work. The Company reported operating income of $0.5 million and net income of $0.6 million for the fourth quarter ending December 31, 2020. The Company had operating income of $0.1 million and a net loss of $1.4 million for the fourth quarter ended December 31, 2019. Adjusted EBITDA for the fourth quarter ended December 31, 2020 was $0.8 million as compared to adjusted EBITDA of $0.4 million in the fourth quarter ended December 31, 2019. Conference CallThe Company will be conducting a conference call and webcast on Wednesday March 17, 2021 at 5:00 p.m. Eastern Time and 3:00 p.m. Mountain Time. To access a live video webcast of the call, please click the ‘Investors’ tab on the Company’s website at https://www.evolving.com/investors and then click the ‘2020 earnings call’ icon on the left. A replay of the webcast will be accessible at that website through June 17, 2021. Non-GAAP Financial MeasuresThe Company 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 financial information in the form of non-GAAP net income and diluted net earnings per share and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, stock compensation, restructuring 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 earnings 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, as an alternative to, or superior to, the financial information prepared in accordance with GAAP. About Evolving SystemsEvolving Systems, Inc. (NASDAQ: EVOL) empowers Communications Service Providers (CSPs) to succeed in fast-changing, disruptive telecom environments. This is achieved through a combination of People, Processes, and Platforms and empowers CSPs to activate, engage, and retain their customers. Evolving Systems’ real-time digital engagement solutions and services are used by more than 90 service providers in over 60 countries worldwide. The Company’s portfolio includes CSP market-leading solutions and services for network provisioning and resource management, enhancing the digital sales and distribution channels, service activation, real-time analytics, customer value management and loyalty. Founded in 1985, the Company has its headquarters in Englewood, Colorado, with offices in Asia, Europe, Africa, South and North America. For more information, please visit www.evolving.com or follow us on Twitter at http://twitter.com/EvolvingSystems. CAUTIONARY STATEMENTThis 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 market for, and performance of, the Company’s products, the Company’s plans to develop new products, its ability to successfully integrate its solutions with existing customer network systems, the Company’s business strategy and the Company’s cash runway are forward-looking statements. These statements are based on the Company’s expectations and are naturally subject to uncertainty and changes in circumstances. Readers should not place undue reliance on these forward-looking statements. Actual results could vary materially from these expectations. For a more extensive discussion of Evolving Systems’ business, and important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the Company’s filings and reports filed with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made. Investor Relations Contacts: Alice AhernInvestor RelationsEvolving SystemsTel: 1-844-732-5898Email: investors@evolving.com EVOLVING SYSTEMS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) (unaudited) December 31, December 31, 2020 2019ASSETS Current assets: Cash and cash equivalents$2,763 $3,076 Contract receivables 5,681 6,732 Unbilled work-in-progress 3,365 1,105 Prepaid and other current assets 1,828 1,594 Income taxes receivable 270 953 Total current assets 13,907 13,460 Property and equipment, net 532 482 Amortizable intangible assets, net 2,769 3,665 Operating leases - right of use assets, net 915 1,205 Deferred income taxes 953 1,000 Total assets$19,076 $19,812 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Term loan - current portion$142 $1,577 Accounts payable and accrued liabilities 4,305 3,827 Lease obligations — operating leases 294 321 Unearned revenue 3,713 3,971 Total current liabilities 8,454 9,696 Long-term liabilities: Term loan, net of current portion 319 122 Lease obligations - operating leases, net of current portion 613 876 Total liabilities 9,386 10,694 Stockholders' equity: Common stock 12 12 Additional paid-in capital 99,776 99,555 Treasury stock (1,253) (1,253)Accumulated other comprehensive loss (10,345) (10,053)Accumulated deficit (78,500) (79,143)Total stockholders' equity 9,690 9,118 Total liabilities and stockholders' equity$19,076 $19,812 EVOLVING SYSTEMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited) Three Months Ended Twelve Months Ended December 30, December 30, 2020 2019 2020 2019 REVENUE License fees$358 $93 $745 $1,245 Services 6,606 6,591 25,607 24,505 Total revenue 6,964 6,684 26,352 25,750 COSTS OF REVENUE AND OPERATING EXPENSES Costs of revenue, excluding depreciation and amortization 2,381 2,436 8,837 8,685 Sales and marketing 1,484 1,885 6,000 7,459 General and administrative 1,177 1,106 5,052 5,091 Product development 1,159 918 4,327 4,594 Depreciation 58 40 216 190 Amortization 236 234 940 938 Goodwill impairment loss — — — 6,687 Total costs of revenue and operating expenses 6,495 6,619 25,372 33,644 Income (loss) from operations 469 65 980 (7,894) Other income (expense) Interest income 1 5 5 15 Interest expense (5) (59) (70) (314)Other income, net 168 55 186 56 Foreign currency exchange income (ioss) 130 (638) 370 (455)Other income (expense), net 294 (637) 491 (698) Income (loss) from operations before income taxes 763 (572) 1,471 (8,592)Income tax expense 176 807 828 1,103 Net income (loss)$587 $(1,379) $643 $(9,695) Basic earnings (loss) per common share - net income (loss)$0.05 $(0.11) $0.05 $(0.80) Diluted earnings (loss) per common share - net income (loss)$0.05 $(0.11) $0.05 $(0.80) Weighted average basic shares outstanding 12,196 12,117 12,187 12,157 Weighted average diluted shares outstanding 12,258 12,117 12,271 12,157 EVOLVING SYSTEMS, INC.Reconciliation of GAAP to Non-GAAP Measures(in thousands, except per share data)(unaudited) Three Months Ended Twelve Months Ended December 30, December 30, 2020 2019 2020 2019 Adjusted EBITDA: Net income (loss)$587 $(1,379) $643 $(9,695)Depreciation 58 40 216 190 Amortization of intangible assets 236 234 940 938 Stock-based compensation expense 63 68 221 331 Goodwill impairment loss — — — 6,687 Interest expense and other (benefit), net (294) 637 (491) 698 Income tax expense 176 807 828 1,103 Adjusted EBITDA$826 $407 $2,357 $252 Non-GAAP net income (loss): GAAP net income (loss)$587 $(1,379) $643 $(9,695)Amortization of intangible assets 236 234 940 938 Stock-based compensation expense 63 68 221 331 Income tax adjustment for non-GAAP* (52) (52) (198) (352)Non-GAAP net income (loss)$834 $(1,129) $1,606 $(8,778) Diluted net (loss) income per share GAAP$0.05 $(0.11) $0.05 $(0.80)Non-GAAP$0.07 $(0.09) $0.13 $(0.72)Shares used to compute diluted net (loss) income per share 12,258 12,124 12,271 12,157 * The estimated income tax for non-GAAP net income is adjusted by the amount of additional expense that we would accrue if we used non-GAAP results instead of GAAP results in the calculation of our tax liability, taking into account which tax jurisdiction each of the above adjustments would be made and the tax rate in that jurisdiction.
