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): August 13, 2003
Island Pacific, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-23049 33-0896617
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(Commission File Number) (IRS Employer Identification No.)
19800 MacArthur Boulevard, Suite 1200, Irvine, California 92612
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(Address of Principal Executive Offices) (Zip Code)
(949) 476-2212
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(Registrant's telephone number, including area code)
SVI Solutions, Inc. 5607 Palmer Way, Carlsbad, CA 92008
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 9. REGULATION FD DISCLOSURE
On August 12, 2003, Island Pacific, Inc. ("IPI") announced first quarter
financial results for the period ended June 30, 2003. The company reported
revenues of $5.5 million, an 11.7% increase versus $4.9 million for the
year-earlier period. Island Pacific generated earnings before interest, taxes,
depreciation and amortization (EBITDA) of $879,000, versus $2,000 in the same
quarter in prior year. The company reported net income of $285,000, or a basic
EPS of $0.01 and diluted EPS of $0.00, versus a loss of ($2.0) million, or basic
and diluted EPS of ($0.07) per share, for the prior year's first quarter. The
first quarter of fiscal 2004 results included a net income tax refund receivable
of $574,000. The fiscal 2003 results (period ended June 30, 2002) included a
charge of $627,000 related to the impairment of goodwill and $50,000 in income
from discontinued operations. Island Pacific increased its shareholder's equity
by $7.8 million versus the prior quarter, ending the June period with $31.6
million in equity. The company ended the first quarter with $7.1 million in cash
and cash equivalents.
Three months ended June 30,
2003 2002
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Net income (loss) $ 285 $ (2,017)
Add back:
Interest expense 311 408
Depreciation and amortization 868 1,034
Cumulative effect of a change in accounting principle -- 627
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1,464 52
Deduct:
Income tax benefits, net 570
Other income 15
Income from discontinued operations -- 50
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EBITDA from continuing operations $ 879 $ 2
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Island Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
THREE MONTHS ENDED JUNE 30,
2003 2002
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Net sales $ 5,466 $ 4,893
Cost of sales 1,654 2,053
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Gross profit 3,812 2,840
Expenses:
Application development 137 901
Depreciation and amortization 868 1,034
Selling, general and administrative 2,796 1,937
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Total expenses 3,801 3,872
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Operating income (loss) 11 (1,032)
Other income (expense):
Interest income 26 1
Other income (expense) (11) (1)
Interest expense (311) (408)
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Total other income (expense) (296) (408)
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Income (loss) before provision for income taxes (285) (1,440)
Provision for income taxes 570 --
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Income (loss) before cumulative effect of a change in accounting principle 285 (1,440)
Cumulative effect of changing accounting principle - goodwill
valuation under SFAS 142 -- (627)
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Income (loss) from continuing operations 285 (2,067)
Income from discontinued operations of the SVI Training Products, Inc.
subsidiary, net of applicable income taxes -- 50
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Net income (loss) $ 285 $ (2,017)
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Basic income (loss) per share:
Income (loss) before cumulative effect of a change in accounting principle $ 0.01 $ (0.05)
Cumulative effect of a change in accounting principle - goodwill
valuation under SFAS 142 -- (0.02)
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Income (loss) from continuing operations 0.01 (0.07)
Income from discontinued operations --
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Net income (loss) $ 0.01 $ (0.07)
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Diluted income (loss) per share:
Income (loss) before cumulative effect of a change in accounting principle $ -- $ (0.05)
Cumulative effect of a change in accounting principle - goodwill
valuation under SFAS 142 -- (0.02)
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Income (loss) from continuing operations -- (0.07)
Loss from discontinued operations -- --
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Net income (loss) $ -- $ (0.07)
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Weighted-average common shares outstanding:
Basic 31,615 28,512
Diluted 64,743 28,512
In accordance with the procedural guidance in SEC Release No. 33-8216, the
information in this Form 8-K and the Exhibit attached hereto is being furnished
under "Item 9. Regulation FD Disclosure" rather than under "Item 12. Disclosure
of Results of Operations and Financial Condition." The information in this Form
8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933 or the
Exchange Act, except as expressly set forth by specific reference in such a
filing.
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated August 12, 2003.
SIGNATURES
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 hereto duly authorized.
SVI Solutions, Inc.
Date: August 13, 2003 By: /s/ Ran Furman
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Name: Ran Furman
Title: Chief Financial Officer
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