Q1 Financial Results

 

TIDMBEK 
 
RNS Number : 3186S 
Berkeley Technology Limited 
15 May 2009 
 

+-------------------------------------+-------------------------------------+ 
| FOR IMMEDIATE RELEASE               |                        May 15, 2009 | 
+-------------------------------------+-------------------------------------+ 
 
 
 
Berkeley Technology Limited 
 
 
Financial Results 
For the Quarter Ended 
March 31, 2009 
 
 
London, May 15, 2009 - Berkeley Technology Limited (OTCBB: BKLYY.PK, London: 
BEK.L) (the "Company") is an international venture capital consulting firm with 
a focus on Silicon Valley technology companies. 
 
 
The Company today reported financial results for the quarter ended March 31, 
2009. The Company's consolidated net loss for the quarter ended March 31, 2009 
was $1.0 million, or $0.02 per diluted share and $0.19 per diluted ADR, compared 
with a consolidated net loss of $0.4 million, or $0.01 per diluted share and 
$0.09 per diluted ADR, for the quarter ended March 31, 2008. The Company 
computes and reports consolidated net income (loss) and diluted earnings (loss) 
per share and ADR in accordance with U.S. generally accepted accounting 
principles ("U.S. GAAP"). 
 
 
Accounting rules require us to review our private equity investments on a 
quarterly basis for impairment indicators. If impairment indicators exist, we 
must then record a loss for any decrease in fair value that we determine to be 
other-than-temporary. During the first quarter of 2009, we recorded a write-down 
of $0.2 million on one of our private equity investments; however, despite our 
current valuation of this investment, there is still the possibility that we 
could ultimately realize more than our current carrying value of this 
investment. This investee company was a former consulting client of ours and 
during the second quarter of 2009, we were successful in converting our fees 
receivable from this investee company into an additional bridge financing 
investment which protects our original preferred stock investment. The results 
for the first quarter of 2008 included a $0.3 million realized investment gain 
relating to the final distribution we received from the WorldCom securities 
litigation. This means that $0.5 million of the $0.6 million decline in 
operating results for the first quarter of 2009 compared to the first quarter of 
2008 was due to either unrealized investment write-downs or extraordinary 
investment gains. During the fourth quarter of 2008, we received a partial 
distribution of $1.4 million from the Enron Corporation securities litigation, 
and we expect to receive a final distribution later in 2009. 
 
 
We continue to make progress in holding operating expenses down. Operating 
expenses fell by $0.1 million during the first quarter of 2009 compared to the 
same period in 2008. We expect quarterly expenses to fall by approximately $0.2 
million starting in the third quarter of 2009 after severance costs cease in 
relation to one employee. 
 
We earned consulting fees of $0.1 million during the quarter which was 
comparable to the fees earned in the same period last year. Interest income 
declined by $0.1 million during the quarter compared to the first quarter of 
2008 due to lower interest rates. 
 
In certain of our consulting arrangements, we may benefit from investments made 
by our clients if their investments are successful.  Given the challenges we 
face in the current economic environment, the level of consulting fees is 
expected to be volatile depending on the nature and extent of our work at any 
point in time. We continue to actively seek new clients and business 
opportunities. 
 
 . 
  ********** 
 
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: 
 
 
+----------------------------------+--------+----------------------------+ 
| Ian Whitehead                    | Jersey |             (0)1534 607700 | 
+----------------------------------+--------+----------------------------+ 
| Chief Financial Officer          |        |                            | 
+----------------------------------+--------+----------------------------+ 
| Berkeley Technology Limited      |        |                            | 
+----------------------------------+--------+----------------------------+ 
 
 
 
Form 10-Q for the quarter ended March 31, 2009 
 
 
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: [phone] 
  BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES 
 
 
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
(In thousands, except share amounts) 
 
 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |  March    |     |December  | 
|                                                        |    31,    |     |   31,    | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |   2009    |     |  2008    | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                        ASSETS                          |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Current assets:                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   Cash and cash equivalents                            |  $ 13,001 | (*) | $ 13,681 | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Accounts receivable, less allowances of $0 as of       |           |     |          | 
| March 31, 2009                                         |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   and December 31, 2008                                |       148 |     |      222 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   Interest receivable                                  |         2 |     |        1 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   Prepaid expenses and deposits                        |        93 |     |      147 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Total current assets                                   |    13,244 |     |   14,051 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Private equity investments (at lower of cost or        |    1,284  | (*) |    1,484 | 
| estimated fair value)                                  |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Property and equipment, net of accumulated             |           |     |          | 
| depreciation of $179 and $177                          |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| as of March 31, 2009 and December 31, 2008,            |         8 |     |        9 | 
| respectively                                           |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Total assets                                           |  $ 14,536 |     | $ 15,544 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|          LIABILITIES AND SHAREHOLDERS' EQUITY          |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Current liabilities:                                   |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   Accounts payable and accrued expenses                |     $ 460 |     |    $ 459 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|   Policyholder liabilities (due in less than one year) |        44 |     |      106 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Total current liabilities                              |       504 |     |      565 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| 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, 2009                                               |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| and December 31, 2008                                  |     3,222 |     |    3,222 | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Additional paid-in capital                             |    67,879 |     |   67,860 | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Retained earnings                                      |     5,928 |     |    6,894 | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Employee benefit trusts, at cost (13,522,381 shares as |           |     |          | 
| of                                                     |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| March 31, 2009 and December 31, 2008)                  |  (62,598) |     | (62,598) | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Accumulated other comprehensive loss                   |     (399) |     |    (399) | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Total shareholders' equity                             |    14,032 |     |   14,979 | 
+--------------------------------------------------------+-----------+-----+----------+ 
|                                                        |           |     |          | 
+--------------------------------------------------------+-----------+-----+----------+ 
| Total liabilities and shareholders' equity             |  $ 14,536 |     | $ 15,544 | 
+--------------------------------------------------------+-----------+-----+----------+ 
 
 
 (*) The Company's insurance subsidiary, London Pacific Assurance Limited 
("LPAL"), holds $11,716 of the Group's $13,001 in cash and cash equivalents and 
$1,144 of the Group's $1,284 in private equity investments which are only 
available currently to fund the operations or commitments of LPAL, and not to 
the parent company or any of the other subsidiaries, except for $5 million in 
cash which was distributed by LPAL to the Company in April 2009. 
 
 
 
BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES 
 
 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(In thousands, except per share and ADS amounts) 
 
 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |    Three Months Ended    | 
+--------------------------------------------------------+--------------------------+ 
|                                                        |        March 31,         | 
+--------------------------------------------------------+--------------------------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |    2009    |  |  2008    | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Revenues:                                              |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Consulting fee income                                  |       $ 97 |  |    $ 114 | 
+--------------------------------------------------------+------------+--+----------+ 
| Interest income                                        |          7 |  |      121 | 
+--------------------------------------------------------+------------+--+----------+ 
| Realized investment gains (losses)                     |      (200) |  |      270 | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |       (96) |  |      505 | 
+--------------------------------------------------------+------------+--+----------+ 
| Expenses:                                              |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Operating expenses                                     |        867 |  |      950 | 
+--------------------------------------------------------+------------+--+----------+ 
| Amounts credited on insurance policyholder accounts    |          1 |  |        1 | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |        868 |  |      951 | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Loss before income tax expense                         |      (964) |  |    (446) | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Income tax expense                                     |          2 |  |        2 | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Net loss                                               |    $ (966) |  |  $ (448) | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Basic and diluted loss per share                       |   $ (0.02) |  | $ (0.01) | 
+--------------------------------------------------------+------------+--+----------+ 
|                                                        |            |  |          | 
+--------------------------------------------------------+------------+--+----------+ 
| Basic and diluted loss per ADS                         |   $ (0.19) |  | $ (0.09) | 
+--------------------------------------------------------+------------+--+----------+ 
  BERKELEY TECHNOLOGY LIMITED AND SUBSIDIARIES 
 
 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(In thousands) 
 
 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |  Three Months Ended    | 
+---------------------------------------------------------+------------------------+ 
|                                                         |       March 31,        | 
+---------------------------------------------------------+------------------------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |  2009    |  |  2008    | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Net cash used in operating activities                   |  $ (616) |  |  $ (712) | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Cash flows from investing activities:                   |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Proceeds from WorldCom, Inc. securities litigation      |        - |  |      270 | 
| settlement                                              |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Capital expenditures                                    |        - |  |      (2) | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Net cash provided by investing activities               |        - |  |      268 | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Cash flows from financing activities:                   |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Insurance policyholder benefits paid                    |     (63) |  |        - | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Net cash used in financing activities                   |     (63) |  |        - | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Effect of exchange rate changes on cash                 |      (1) |  |        - | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Net decrease in cash and cash equivalents               |    (680) |  |    (444) | 
+---------------------------------------------------------+----------+--+----------+ 
| Cash and cash equivalents at beginning of period        |   13,681 |  |   14,568 | 
+---------------------------------------------------------+----------+--+----------+ 
|                                                         |          |  |          | 
+---------------------------------------------------------+----------+--+----------+ 
| Cash and cash equivalents at end of period              | $ 13,001 |  | $ 14,124 | 
+---------------------------------------------------------+----------+--+----------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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