Press Release
- Date:
- Thursday, May 25, 2000
- Contact:
- David Peikin
- Phone:
- (301) 918-0818
- Email:
- G1@schwartz-pr.com
Group 1 Software Reports Record Revenue and Earnings for Fourth Quarter and Fiscal Year
Full Year EPS is $1.00 versus $0.56Fourth Quarter EPS is $0.45 versus $0.31
Lanham, MD — Group 1 Software (Nasdaq: GSOF) today reported financial results for the fiscal year and fourth fiscal quarter ended March 31, 2000. Revenues for the fourth quarter grew 22.6 % to a record $25.5 million from $20.8 million. Net income available to common shareholders, also a quarterly record, increased 82% to $3.1 million from $1.7 million. Earnings per share were $0.45 compared with $0.31 for the same period the previous year.
For the fiscal year ended March 31, 2000, revenue increased 25.3% to $81.8 million, compared with $65.3 million in the prior year. Net income more than doubled to $6.2 million or $1.00 per share, compared with $3.0 million or $0.56 per share reported for the prior year.
Group 1's cash flow also continued strong. Cash and short-term investments totaled $32.0 million (approximately $4.67 per share) at March 31, 2000 compared with $25.5 million at December 31, 1999 and $14.8 million at March 31, 1999.
"We had solid sales performance in our core product areas of data quality, electronic document composition, and direct marketing and mailing efficiency systems," said Group 1 CEO Bob Bowen. "Furthermore, a multimillion dollar fourth quarter sale of our DOC1 product to Convergys solidified our position as the leading bill presentment vendor for the telecommunications industry."
"We also have made tremendous progress in our e-commerce initiatives during the fourth quarter," Bowen added. "A number of leading e-businesses purchased our Web-enabled industry-leading customer data quality tools for real-time use. We are particularly excited about our partnership with USinternetworking to develop and manage Group 1's DataQuality.net engine. A web-accessible portal, DataQuality.net will provide a broad variety of real-time, customer data quality and data enrichment solutions for e-commerce and enterprise-wide applications."
Group 1 Software is a leading provider of software solutions for data quality, database marketing, electronic document composition applications, and direct marketing and mailing efficiency applications. Group 1 supports MVS, VSE, AS/400, UNIX (including Linux), Windows NT, Windows 2000 and other operating systems and various computers. Group 1 has offices throughout the United States and in Canada, the United Kingdom, and Continental Europe. The company is also represented in Latin America, Asia, and Australia.
GROUP 1 SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
For the Three Month Period For the Twelve Month Period Ended March 31, Ended March 31, 2000 1999 2000 1999 (FY00) (FY99) (FY00) (FY99)
Revenues: Software license and related revenues $13,443 $10,549 $38,853 $31,631 Maintenance and services 12,038 10,276 42,898 33,660 Total revenue 25,481 20,825 81,751 65,291 Cost of revenue: Software license expense 2,472 2,779 12,302 10,702 Maintenance and service expense 4,181 3,923 15,001 13,047 Total cost of revenue 6,653 6,702 27,303 23,749 Gross profit 18,828 14,123 54,448 41,542
Operating expenses: Research and development 1,359 850 4,188 2,743 Sales and marketing 7,703 6,382 26,118 21,695 General and administrative 4,648 4,039 14,335 12,180 Total operating expenses 13,710 11,271 44,641 36,618 Income from operations 5,118 2,852 9,807 4,924 Non-operating income 429 87 1,124 247 Income from operations before provision for income taxes and minority interest 5,547 2,939 10,931 5,171 Provision for income taxes 2,466 1,183 4,642 2,030 Minority interest in net income of consolidated subsidiary -- -- -- 83 Net income 3,081 1,756 6,289 3,058 Preferred stock dividend requirements (14) (15) (56) (87) Net income available to common stockholders 3,067 1,741 6,233 2,971 Basic earnings per share $0.52 $ 0.31 $1.07 $0.56 Diluted earnings per share $0.45 $ 0.31 $1.00 $0.56 Basic weighted average shares outstanding 5,897 5,586 5,802 5,264 Diluted weighted average shares outstanding 6,847 5,670 6,245 5,317
GROUP 1 SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)
March 31, 2000 March 31, 1999 ASSETS Current assets: Cash and cash equivalents $20,735 $13,378 Short-term investments 11,259 1,471 Trade and installment accounts receivable, less allowance of $3,317 and $3,603 21,561 22,596 Deferred income taxes 4,069 3,039 Prepaid expenses and other current assets 3,407 3,149 Total current assets 61,031 43,633
Property and equipment, net 4,290 3,678 Computer software, net 21,823 22,559 Other assets 6,695 7,929 Total assets $93,839 $77,799
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 1,940 2,136 Current portion of long-term debt 109 99 Accrued expenses 7,677 5,647 Accrued compensation 7,617 7,095 Current deferred revenues 26,865 20,863 Total current liabilities 44,208 35,840 Long-term debt, net of current portion 88 198 Deferred revenues, long-term 1,170 2,670 Deferred income taxes, net 3,445 3,670 Total liabilities 48,911 42,378
Commitments and contingent liabilities
Stockholders'equity: 6% cumulative convertible preferred stock, $0.25 par value; 200 shares authorized; 48 shares issued and outstanding 916 916 Common stock, $0.50 par value; 14,000 shares authorized; 6,467 and 6,068 issued and outstanding 3,234 2,023 Additional paid in capital 27,431 25,071 Retained earnings 15,684 9,451 Accumulated other comprehensive income (2) 14 47,263 37,475 Less treasury stock at cost, 496 and 482 shares (2,335) (2,054) Total stockholders' equity 44,928 35,421
Total liabilities and stockholders' equity $93,839 $77,799