Prepress

Peerless Systems Announces Results for the Third Quarter of Fiscal 2011

Thursday 16. December 2010 - Peerless Systems Corporation (Nasdaq: PRLS), a provider of imaging and networking technologies to the digital document market, today reported financial results for the third quarter of fiscal 2011, which ended on October 31, 2010.

Third quarter revenues were $2.8 million, versus $1.0 million in the third quarter of fiscal 2010. Product licensing revenue was $2.8 million, compared with $0.7 million in the third quarter of fiscal 2010. The increase in product licensing revenues was primarily the result of a non-recurring increase in product licensing during the current quarter.
Third quarter gross margins were 69% and 68% for the third quarters of fiscal years 2011 and 2010, respectively. Peerless reported net income of $0.7 million, or $0.04 per basic share and diluted share in the third quarter of fiscal 2011, compared to a net income of $3.5 million, or $0.21 per basic and diluted share, in the third quarter of fiscal 2010. Income in the third quarter of fiscal 2010 included a $4.8 million dividend from the Company’s investment in Highbury Financial, Inc.
On October 5, 2010, the Company commenced a tender offer to acquire up to $45 million in shares of its common stock at a price of $3.25 per share. A total of 13,214,401 shares were properly tendered and not withdrawn in the offer at a total purchase price of approximately $42.9 million. The offer was undersubscribed and all properly tendered shares were purchased by the Company. Following completion of the offer, the Company had 3,357,519 as of