Press Releases

PLANTATION, Fla., Feb. 9 /PRNewswire-FirstCall/ -- DJSP Enterprises, Inc. (Nasdaq: DJSP, DJSPW, DJSPU), one of the largest providers of processing services for the mortgage and real estate industries in the United States, today announced financial results for the three and nine month periods ending September 30, 2009 for its recently acquired processing operations. The operating results discussed in this press release reflect the separate operations of the acquired business for the periods presented on an adjusted basis, each of which occurred prior to the closing of the Business Combination with Chardan 2008 China Acquisition Corp on January 15, 2010.

Processing Operations Third Quarter Financial Highlights

    --  Revenue for the quarter increased 44% to $73.0 million from $50.6
        million in last year's comparable period. For nine months, revenue
        increased 29% year over year to $189.8 million.

    --  Adjusted Net income was $10.4 million in the third quarter. For the nine
        month period, adjusted net income was $32.4 million or $1.65* per share.

    --  Adjusted EBITDA for the third quarter was $16.4 million, and for the
        nine months was $50.7 million.

*Calculated using treasury stock method assuming a common share price of $8.14; Assumes 19.62  million shares outstanding; Assumes adjusted net income for nine months ended September 30, 2009 of $32.4 million. 

Subsequent to Quarter End

Chardan 2008 China Acquisition Corp. closed its business combination with DAL Group, LLC on January 15, 2010 and changed its name to DJSP Enterprises, Inc. and its NASDAQ symbols to DJSP, DJSPU and DJSPW.

Third Quarter Results for Processing Operations

Net revenue from operations for the three months ended September 30, 2009 increased $22.4 million, or 44%, to $73.0 million from $50.6 million in last year's comparable period. The revenue improvement resulted from an increase in the number of mortgage foreclosures taking place in the Company's principal market, Florida, as well as the expansion of REO (bank-owned) activities. During the three months ended September 30, 2009, revenue from mortgage foreclosure related services, net of revenue from client reimbursements, increased by $4.9 million, or 21%, to $28.0 million, compared to $23.1 million for the same period last year. Our REO liquidation business, which emanates from a single customer, became an increasingly significant source of revenue during the quarter, generating $3.0 million in revenue, with approximately an 88% gross margin.  Revenue for the same three months of 2008 was $1.2 million. Going forward, management intends to offer both REO closing and liquidation services to additional customers as a means of increasing revenues and profits. The remainder of the increase in revenue was due to increased client-reimbursed costs.

Adjusted net income increased to $10.4 million for the three months ended September 30, 2009.  

Year-to-Date Results

Net revenue for the nine months ended September 30, 2009 increased $43.4 million, or 29%, to $189.8 million from $146.3 million in last year's comparable period. The revenue improvement resulted from an increase in the number of mortgage foreclosures taking place in the Company's principal market, Florida, as well as the expansion of REO activities, which increased approximately 208% to $7.9 million compared with $2.5 million in the same period in 2008. Revenues from mortgage foreclosure related services, net of revenue from client reimbursements, increased by $11.8 million, or 15%, to $89.0 million, compared to $77.2 million for the same period last year.  Revenues from our REO liquidation business increased by $5.4 million, or 208% to $7.9 million, compared to $2.5 million for the same period last year. The remainder of the increase in revenue reflected increased amounts due for client-reimbursed costs.

During the first nine months of fiscal 2009, the Company's adjusted net income increased to $32.4 million.

The Company generated $41.8 million in cash from operating activities in the nine months ended September 30, 2009, compared to $38.9 million in the nine months ended September 30, 2008.

David J. Stern, Chairman and Chief Executive Officer of DJSP Enterprises commented, "DJSP delivers unparalleled customer service by combining unique mortgage and foreclosure expertise with highly automated electronic processing. This efficiency has historically enabled us to significantly grow both our top and bottom-line results.  As a public company we will be able to leverage our expertise, diversify our service offerings, and expand geographically in order to accelerate our growth and enhance our client relationships. Going forward, we are particularly excited about our REO business which will become an increasingly significant source of revenue and income growth in the coming years."

Management Guidance:

The Company reaffirms its previously announced guidance of approximately $42 million in adjusted net income and $67.8 million in adjusted EBITDA for Calendar 2009.  For 2010, the Company expects to report adjusted net income of  approximately $49 million and adjusted EBITDA of approximately $80.6  million, excluding any one time transaction expenses associated with the Business Combination.

Conference call Information:

Management will conduct a conference call at 9:30 a.m. Eastern Time on Wednesday, February 10, 2010, to discuss the third quarter 2009 results.  To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-877-941-1430. International callers should dial 1-480-629-9667. When prompted by the operator, mention conference ID 4224362.

If you are unable to participate in the call at this time, a replay will be available for one week starting on Wednesday, February 10, 2010, at 12:30 p.m. Eastern Time. To access the replay, dial 1-800-406-7325 or 1-303-590-3030.  Please use passcode 4224362. The call will also be accompanied live by webcast over the Internet and accessible at http://viavid.net/dce.aspx?sid=000070E6

About DJSP Enterprises, Inc.

DJSP is one of the largest providers of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services. The Company's principal customer is the Law Offices of David J. Stern, P.A. whose clients include all of the top 10 and 17 of the top 20 mortgage servicers in the United States, many of which have been customers for more than 10 years. The Company has approximately 1,000 employees and contractors and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky and San Juan, Puerto Rico. The Company's U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about DJSP Enterprises, Inc. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions, changing interpretations of generally accepted accounting principles; outcomes of government or other regulatory reviews, particularly those relating to the regulation of the practice of law; the impact of inquiries, investigations, litigation or other legal proceedings involving the Company or its affiliates, which, because of the nature of the Company's business, have happened in the past to the Company and the Law Offices of David J. Stern, P.A.; the impact and cost of continued compliance with government or state bar regulations or requirements; legislation or other changes in the regulatory environment, particularly those impacting the mortgage default industry; unexpected changes adversely affecting the businesses in which the Company is engaged; fluctuations in customer demand; the Company's ability to manage rapid growth; intensity of competition from other providers in the industry; general economic conditions, including improvements in the economic environment that slows or reverses the growth in the number of mortgage defaults, particularly in the State of Florida; the ability to efficiently expand its operations to other states or to provide services not currently provided by the Company; the impact and cost of complying with applicable SEC rules and regulation, many of which the Company will have to comply with for the first time after the closing of the business combination; geopolitical events and changes, as well as other relevant risks detailed in the Company's filings with the U.S. Securities and Exchange Commission, (the "SEC"), including its report on Form 20-F for the period ended December 31, 2008 and the Form 6-K filed with the SEC on December 29, 2009 containing the proxy statement relating to the Business Combination which was mailed to shareholders of the Company, in particular, those listed under "Risk Factors." The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

Non-GAAP Financial Measures

The financial information and data contained in this press release are unaudited and do not conform to the SEC's Regulation S-X.. This press release includes certain estimated financial information and forecasts presented as pro forma financial measures that are not derived in accordance with generally accepted accounting principles ("GAAP"), and which may be deemed to be non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. Management believes that the presentation of these non-GAAP financial measures serves to enhance the understanding of the financial performance of the acquired business. Our Non-GAAP financial measures may not be comparable to similarly titled pro forma measures reported by other companies. Such measures are not recognized terms under U.S. GAAP, and should be considered in addition to, and not as substitutes for, or superior to, operating income, cash flows, revenues, or other measures of financial performance prepared in accordance with generally accepted accounting principles. Such measures are not a completely representative measure of either the historical performance or, necessarily, the future potential of the Company.

Adjusted EBITDA - The adjusted EBITDA measure presented consists of income (loss) from continuing operations before (a) interest expense, net; (b) income tax expense; (c) depreciation and amortization; and (d) non-recurring income and/or expense.  The Company is providing adjusted EBITDA, a non-GAAP financial measure, along with GAAP measures, as a measure of profitability because adjusted EBITDA helps the Company to evaluate and compare its performance on a consistent basis with the lower operating cost structure that will be in place after consummation of the  Business Combination.  In the calculation of adjusted EBITDA, the Company excludes from expenses the compensation paid to the Company's Founder that exceeds the base compensation that he will be entitled to receive after completion of the Business Combination, as well as the payroll taxes associated with such compensation, non-recurring travel expenses incurred on behalf of the Founder and other benefits received in prior periods that will not be permitted in following the closing of the Business Combination.

Adjusted EBITDA is a non-GAAP measure that has limitations because it does not include all items of income and expense that affect the operations of the Company. In addition, it should be noted that companies calculate adjusted EBITDA differently and, therefore, adjusted EBITDA as presented for us may not be comparable to the calculations of adjusted EBITDA reported by other companies.

Adjusted Net Income - The Company is providing adjusted Net Income, a non-GAAP financial measure, along with GAAP measures, as a measure of profitability because adjusted Net Income helps the Company to evaluate and compare its past performance on a consistent basis with the taxable structure that will be in place after consummation of the transaction, reflecting the effects of that taxable structure on profitability.  In the calculation of adjusted Net Income, the Company deducts the Depreciation and Amortization amounts to the Adjusted EBITDA calculation and then subtracts the income tax expense, calculated at the expected 'going forward' tax rate of 35% from such figure.  Adjusted Net Income per share is calculated by dividing adjusted Net Income by the number of ordinary shares outstanding using the treasury stock method.

A reconciliation of adjusted EBITDA and adjusted Net Income is not provided below for 2009 and 2010 because the exact amount of the adjustments described  in this section are not currently determinable, in particular adjustments to the services fee due to processing, interest, depreciation and amortization.

The following tables provide reconciliations of net income (US GAAP)  to Adjusted EBITDA (Non-GAAP) and adjusted Net Income (Non-GAAP)

    
    
                                       9 Months      3 Months       3 Months
                                       Ended         Ended          Ended
                                       -----------   -----------    ----------
                                       30-Sep-09     30-Sep-09      30-Sep-08
                                       -----------   -----------    ----------
    
    Net Income                         $40,598,406   $13,143,565    $5,544,308
    
    Adjustment
           Adj. to Fee to Processing     2,372,633     1,331,194     4,663,450
           Officers' Salaries            2,230,000        60,000     2,170,000
           Non-Recurring Travel          2,191,547       734,490       894,811
           Other Non-Recurring Salary &
            Benefits                     1,519,971      -107,875     1,597,894
           Payroll Tax                      21,606        -1,564        23,169
           Interest, Depreciation &      
            Amortization                   970,957       369,536       510,156
           Other Income (Expense)          836,229       836,229       592,200
                                       -----------   -----------    ----------
    Total Adjustments                   10,142,943     3,222,010    10,451,680
          
    Adjusted EBITDA                    $50,741,349   $16,365,575   $15,995,988
                                       ===========   ===========   ===========
    
    
    Adjustments to Reconcile Pro-Forma
     Net Income
           Interest, Depreciation &
            Amortization                   970,957       369,536       369,536
           Other Income (Expense)                -             -             -
           Tax (Estimated at 35%)       17,419,637     5,598,614     5,469,258
                                       -----------   -----------    ----------
    Total Adjustments                   18,390,594     5,968,150     5,838,794
    
    
    Adjusted Net Income                $32,350,755   $10,397,425   $10,157,194
                                       ===========   ===========   ===========

–tables follow–

The financial results contained in the attached tables are not necessarily indicative of the operations of the business following the closing, in particular because the processing operations were not subject to income taxes prior to the closing of the Business Combination, certain private company expenses and compensation included in the reported operating results will not continue post-closing and varied materially from period to period, reported results do not include interest expenses associated with the Business Combination financing and the reported results have not been adjusted for the noncontrolling interest resulting from the Business Combination.

    
    
    
    
                DJS PROCESSING DIVISION AND ITS COMBINED AFFILIATES
                          UNAUDITED FINANCIAL STATEMENTS
                  For the Nine Months Ended September 30, 2009 
    
                DJS PROCESSING DIVISION AND ITS COMBINED AFFILIATES 
               (A Division of The Law Offices of David J. Stern, P.A.)  
    
                          COMBINED CARVE OUT BALANCE SHEETS
    
    
                                            September 30,  December 31,
                                                2009          2008
                                            ------------   -----------
    ASSETS                                  (Unaudited)
    Current Assets
      Cash and cash equivalents               $3,034,044    $1,427,588
                                              ----------    ----------
      Accounts receivable
        Client reimbursed costs                4,597,526    26,147,837
        Fee income, net                       21,889,787    11,807,293
        Unbilled receivables                   7,808,878    11,210,565
                                              ----------    ----------
             Total accounts receivable        34,296,191    49,165,695
                                              ----------    ----------
      Prepaid expenses                           132,811        46,939
             Total current assets             37,463,046    50,640,222
                                              ----------    ----------
    Property and Equipment, net                4,394,531     3,154,623
                                              ----------    ----------
             Total assets                    $41,857,577   $53,794,845
                                             ===========   ===========
    LIABILITIES AND STOCKHOLDER'S AND
     MEMBER'S EQUITY
    Current Liabilities
      Accounts payable – reimbursed
       client costs                           $4,597,526   $20,425,337
      Accounts payable                         1,404,644       742,601
      Accrued compensation                     2,066,788     2,207,094
      Accrued expenses                         1,827,562       976,643
      Current portion of capital
       lease obligations                          48,113       217,095
      Deferred revenue                           263,900       263,900
      Due to related party                        80,594        25,035
      Note payable                             2,448,000             -
      Line of credit                          10,873,599             -
      Current portion of deferred rent           974,904       821,464
                                              ----------    ----------
             Total current liabilities        24,585,630    25,679,169
                                              ----------    ----------
    Deferred rent, less current portion           93,246       137,859
    Capital lease obligation, less
     current portion                             485,277       512,168
                                              ----------    ----------
             Total liabilities                25,164,153    26,329,196
    Commitment and contingencies
    Common stock                                   1,000         1,000
    Retained earnings                          7,646,028     7,608,920
    Member's equity                            9,046,396    19,855,729
                                              ----------    ----------
             Total stockholder's and
              member's equity                 16,693,424    27,465,649
                                              ----------    ----------
             Total liabilities,
              stockholder's and member's
              equity                         $41,857,577   $53,794,845
                                             ===========   ===========
    
    
    
                 DJS PROCESSING DIVISION AND ITS COMBINED AFFILIATES
               (A Division of The Law Offices of David J. Stern, P.A.)
    
                       COMBINED CARVE OUT STATEMENTS OF INCOME 
    
    
                               For the      For the     For the     For the
                            Nine Months  Nine Months Three Months Three Months
                                Ended        Ended       Ended       Ended
                              September    September   September   September
                               30, 2009     30, 2008    30, 2009    30, 2008
                             ----------   ----------  ----------  ----------
                            (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    
    Revenue                 $189,770,734 $146,329,545 $73,004,323 $50,634,759
                            ------------ ------------ ----------- -----------
    Operating expenses:
     Direct operating &
      other expenses          17,474,873   11,563,845   6,200,278   4,614,449
     Client reimbursed costs 100,811,738   69,167,390  45,014,958  27,541,750
     Compensation related     
      expenses                29,914,400   29,991,149   8,275,986  12,609,905
     Depreciation expense        776,074      858,909     265,918     286,303
       Interest expense          194,883       59,725     103,618      38,044
                            ------------ ------------ ----------- -----------
      Total operating 
       expenses              149,171,968  111,554,293  59,860,758  45,090,451
                            ------------ ------------ ----------- -----------
       Net Income            $40,598,406  $34,688,527 $13,143,565  $5,544,308
                            ============ ============ =========== ===========
    
    
    
               DJS PROCESSING DIVISION AND ITS COMBINED AFFILIATES
             (A Division of The Law Offices of David J. Stern, P.A.)
    
                    COMBINED CARVE OUT STATEMENTS OF CASH FLOWS 
    
    
    
                                                 For the          For the
                                               Nine Months      Nine Months
                                                  Ended            Ended
                                              September 30,    September 30,
                                                   2009             2008
                                             --------------   --------------
                                               (Unaudited)      (Unaudited)
    Cash Flows From Operating Activities
       Net income                               $40,598,406      $34,688,527
       Adjustments to reconcile net income
        to net cash provided by operating
        activities:
         Depreciation                               776,074          858,909
         Changes in operating assets and
          liabilities:
         (Increase) decrease in:
           Accounts receivable – client
            reimbursed costs                     21,550,311       (5,026,316)
           Fee income receivable, net           (10,082,494)      (1,644,837)
           Unbilled receivable                    3,401,687       (1,004,092)
           Prepaid expenses                         (85,872)        (424,367)
           Accounts payable – client
            reimbursed costs                    (15,827,811)       9,690,536
           Accounts payable                         662,043          919,010
           Accrued expenses                         850,921          441,571
           Accrued compensation                    (140,306)         357,152
           Deferred rent                            108,827                -
             Net cash provided by operating
              activities                         41,811,786       38,851,695
                                                 ----------       ----------
    Cash Flows From Investing Activities
       Purchase of property and equipment        (2,015,984)      (2,331,885)
                                                 ----------       ----------
           Net cash flow used for investing
            activities                           (2,015,984)      (2,331,885)
                                                 ----------       ----------
    Cash Flows From Financing Activities
       Net advance from related party                55,559             (853)
       Advances on line of credit                10,873,599                -
       Advances on note payable                   2,448,000                -
       Principal payments on capital lease
        obligations                                (195,874)               -
       Distributions                            (51,370,630)     (36,507,112)
                                                -----------      -----------
           Net cash flow used for financing
            activities                          (38,189,346)     (36,507,965)
                                                -----------      -----------
           Net change in cash and cash
            equivalents                           1,606,456           11,845
    Cash and cash equivalents, beginning of
     period                                       1,427,588          978,766
                                                 ----------       ----------
    Cash and cash equivalents, end of period     $3,034,044         $990,611
                                                 ==========       ==========
    Supplemental Disclosures of Cash Flow
     Information
    Cash payments for interest                     $194,883          $38,044

SOURCE DJSP Enterprises, Inc.

SECAUCUS, N.J., Feb. 9 /PRNewswire-FirstCall/ -- Panasonic today announces pricing for its compact High Definition models, the HDC-TM55, HDC-HS60 and HDC-SD60, and its full-featured standard definition camcorders, the SDR-H85, SDR-T50, SDR-S50. All six models will be available in mid-March 2010.

The Panasonic full-HD camcorders will be available for suggested retail prices (SRP) of $529.95 for the HDC-TM55; $699.95 for the HDC-HS60 and $499.95 for the HDC-SD60. The three Panasonic HD camcorders feature a 35.7mm wide-angle lens and a powerful 25x optical zoom. And with Panasonic's new Intelligent Zoom feature, the new HD camcorders can extend to a 35x zoom. Intelligent Zoom corrects image degradation in ordinary digital zooming to deliver stunningly clear HD quality, even with the zoom fully extended. All camcorders record to SD/SDHC/SDXC Memory Cards, while the HDC-TM55 also has 8 GB* of internal memory and the HDC-HS60 has a Hard Disk Drive that holds up to 120 GB.

Panasonic's standard definition camcorders will have SRPs of $349.95 for the SDR-H85; $269.95 for the SDR-T50; and $249.95 for the SDR-S50. These camcorders may be small in size, but they have impressive features: a 33mm wide-angle and a long, powerful 78x ultra zoom – giving them remarkable range for capturing video both far and wide. Panasonic's new camcorder models are packed with enhanced features to help make shooting quality video easy, including the new Active mode for the Advanced O.I.S. (Optical Image Stabilizer), helping to suppress blur even if the user is moving and when the long zooms are extended. Like the HD camcorder models, these models all record to SD/SDHC/SDXC Memory Cards. Additionally, the SDR-H85 has an 80 GB hard disk drive, and the SDR-T50 has 4 GB of built-in memory.

For more information on all Panasonic LUMIX digital camera models, please visit www.panasonic.com/dvc.

* GB = 1,073,741,824 bytes.

About Panasonic Consumer Electronics Company

Based in Secaucus, N.J., Panasonic Consumer Electronics Company (PCEC), is a Division of Panasonic Corporation of North America, the principal North American subsidiary of Panasonic Corporation (NYSE: PC) and the hub of Panasonic's U.S. marketing, sales, service and R&D operations. In its commitment to provide consumers with extensive imaging resources, Panasonic LUMIX established the Digital Photo Academy, a series of nationwide workshops designed to instruct consumers how to optimize the features on their digital cameras and produce high-quality photos. Panasonic is pledged to practice prudent, sustainable use of the earth's natural resources and protect our environment through the company's Eco Ideas programs. Company information for journalists is available at www.panasonic.com/pressroom.

For more than 20 years, Panasonic has been proud to support the Olympic Movement as an Official Worldwide Olympic Partner in the Audio and Visual Equipment category and, beginning in 2009, in the Digital Imaging category as well. Panasonic has also renewed its partnership with the International Olympic Committee for an additional eight years through the 2016 Summer Games. For more information, visit http://panasonic.net/olympic/.

SOURCE Panasonic