The software behind perfect printed and digital communication
Perfect printed and digital communication

News Release

Pompey, France  04/26/2013

Global Graphics reports results for the first quarter of 2013

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Pompey (France), Friday 26 April 2013 - GLOBAL GRAPHICS SA (NYSE-Euronext: GLOG), experts in developing e-document and printing software, announces its consolidated results for the quarter ended 31 March 2013.


ANALYSIS OF THE COMPANY’S FINANCIAL PERFORMANCE
Comparisons for the quarter ended 31 March 2013 with the first quarter of the financial year ended 31 December 2012 include:
  • sales of Euro 1.9 million this quarter (Euro 2.0 million at Q1 2012 exchange rates) compared with Euro 2.0 million in Q1 2012, or a decrease of 8.2% at current exchange rates, and of 2.4% at constant exchange rates;
  • an operating loss of Euro 0.8 million this quarter, compared with an operating loss of Euro 0.3 million in Q1 2012;
  • an adjusted operating loss (EBITA) of Euro 0.4 million this quarter, compared with an adjusted operating loss of Euro 0.3 million in Q1 2012;
  • a net loss of Euro 0.8 million this quarter (or a net loss of Euro 0.08 per share this quarter), compared with a net loss of Euro 0.3 million in Q1 2012 (or a net loss of Euro 0.03 per share in Q1 2012); and
  • an adjusted net loss of Euro 0.4 million this quarter (or an adjusted net loss of Euro 0.04 per share this quarter), compared with an adjusted net loss of Euro 0.3 million in Q1 2012 (or an adjusted net loss of Euro 0.03 per share in Q1 2012).

Sales for the quarter ended 31 March 2013 include the royalty revenue referred to under note 2b (iii) of the Board’s report on operations for the financial year ended 31 December 2012, which is included in the Company’s annual financial report for 2012 and which was released by the Company on 15 April 2013.
The Company’s consolidated results for the quarter ended 31 March 2013 were unfavorably impacted by a non-recurring, operating expense amounting to Euro 0.3 million, which resulted from the Board’s decision to implement a reorganization of the Company’s legal structure, as announced in a press release issued on 15 April 2013.


Cash position and cash flow analysis
The Company had no outstanding debt and a cash position of Euro 2.1 million as at 31 March 2013, compared with a net cash position of approximately Euro 2.3 million as at 31 December 2012, and of Euro 1.3 million as at 31 March 2012.
Cash flows provided by the Company’s operations amounted to Euro 0.3 million in the quarter ended 31 March 2013 (compared with cash flows used in the amount of Euro 0.6 million in the same period of the financial year ended 31 December 2012), allowing the Company to finance its operating requirements and its capital expenditures during the first quarter of the current financial year.

Detailed discussion of the Company’s financial performance
A detailed discussion of the Company’s financial performance during the quarter ended 31 March 2013, including a comparison with the previous financial year’s comparative period, is set out in note 2 to the interim management report of the Company’s Board of Directors for the quarter ended 31 March 2013, which is attached to this press release, together with the condensed consolidated interim financial statements for that quarter.


MANAGEMENT’S COMMENTS
Gary Fry, Global Graphics’ Chief Executive Officer declared: “During the first quarter of 2013, we launched our end-user product gDoc Binder, which is available to purchase through our new web site www.gdoc.com. gDoc Binder is a software ring-binder, which is aimed at consumers but also gives our channel partners the ability to share it with their prospects. It also demonstrates the kind of software application that can be built by developers and user interface specialist on our gDoc Platform.
“I am pleased to say that the gDoc Platform won the Technology Innovation category of the 2013 KnowList Awards for the professional services industry. The awards are made to organizations that have developed innovative technology solutions as saleable products.
“On the Print side of our business, we welcomed Kendall Madsen as VP of the Harlequin Print Division. Kendall comes to us with many years’ experience of the print industry, both in development management and product management.”


PROJECTED LEGAL REORGANISATION
On 15 April 2013, the Company announced that it planned to transfer its listing to NYSE Alternext Brussels and to simplify its legal structure, notably through the conversion of Global Graphics SA into a European Company (SE), and through the transfer of the Company’s registered office from France to the UK, subject in both instances to approval by the Company’s shareholders in their meetings scheduled on 7 June and 18 October 2013, respectively.
Additional information on the projected legal reorganization of the Company is available on a dedicated page of the Investor section of the Company’s website at:
http://www.globalgraphics.com/investors/legal-reorganization


ANALYST MEETING
Global Graphics expects to hold an analyst meeting on Friday 7 June 2013, at 11.00 CET, at the Hôtel du Châtelain, 17 rue du Châtelain, in Brussels (Belgium).


ANNUAL MEETING OF THE COMPANY’S SHAREHOLDERS
Global Graphics expects to hold its annual meeting on Friday 7 June 2013, at 14.00 CET, at the Hôtel du Châtelain, 17 rue du Châtelain, in Brussels (Belgium).
In accordance with applicable legal and regulatory provisions, the agenda of this meeting of the Company’s shareholders, the proposed resolutions (notably on the proposed transfer of the listing of the Company’s share on NYSE Alternext Brussels, and the proposed conversion of Global Graphics SA into Global Graphics SE), and the voting procedures will be announced today after market close.


RESULTS FOR THE QUARTER AND THE SIX-MONTH PERIOD ENDING 30 JUNE 2013
Global Graphics expects to announce its consolidated results for the current quarter and the six-month ending 30 June 2013 on Thursday 1 August 2013 before market opening.

Editors notes

About Global Graphics
Global Graphics (www.globalgraphics.com) is a leading developer of e-document and printing software. Its high-performance solutions are at the heart of products from customers such as HP, Fuji Xerox, Agfa, Corel and Quark.

Forward-looking statements
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding the Company’s growth, funding, expansion plans and expected results for future periods.
Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Although management believes that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure any reader that the expectations will prove to have been correct. Accordingly, any reader should not place undue reliance on these forward-looking statements.
In any event, these statements speak only as of the date of this release. The Company undertakes no obligation to revise or update any of them, neither to reflect events or circumstances after the date of this release, nor to reflect new information nor the occurrence of unanticipated events

Contact

Alain Pronost, Chief Financial Officer Tel: + 33 (0)6 62 60 56 51 Jill Taylor, Director of Corporate Communications Tel: + 44 (0)1223 926 489