Thursday July 22, 4:11 pm Eastern Time
Company Press Release
SOURCE: Concentrex Incorporated
Concentrex Incorporated Reports Record Second Quarter Revenues and Increased Earnings Before Non-Recurring Acquisition Charge
PORTLAND, Ore., July 22 /PRNewswire/ -- Concentrex Incorporated, formerly known as CFI ProServices, Inc., (Nasdaq: CCTX - news) today reported record revenues for the second quarter of 1999 of $27.8 million, a 46.5% increase over 1998's second quarter. The increase resulted principally from increased sales of Concentrex's lending application software products and partially from the acquisition of MECA Software, L.L.C. in May 1999.
''Despite the pressures Y2K placed on our sales efforts, Concentrex not only achieved plan this quarter, but exceeded consensus estimates by $.03 per share, before taking into account the MECA acquisition,'' said Matt Chapman, Concentrex's Chairman and CEO. ''The strength of our application software solutions and of our sales organization has proven to be extraordinary. The addition of MECA this quarter to augment our e-commerce division makes our future even more exciting.''
Concentrex would have reported diluted EPS of $0.25 for the second quarter of 1999, 38.9% higher than in the second quarter of 1998, before taking into account both MECA's anticipated operating loss of $389,000 and a non-recurring charge of $3.8 million for MECA's in-process research and development. After giving effect to the MECA transaction, Concentrex had diluted loss per share of $0.19 for the quarter. ''We anticipate continued strong growth for our e-commerce solutions and do not anticipate MECA being materially dilutive during the second half of the year,'' added Chapman.
Concentrex's revenue from electronic commerce products, including its Internet home banking products and bill payment services, increased 99.0%, to $3.0 million, in the second quarter of 1999 compared to the second quarter of 1998, and increased 101% in the first six months of 1999 compared to the same period in 1998.
''We are also extremely excited about our pending acquisition of ULTRADATA Corporation,'' continued Chapman. ''Their information management technology, in addition to our application software and electronic commerce products, will allow Concentrex to achieve its goal of being the leading single source provider of integrated technologies for financial institutions.'' The ULTRADATA acquisition is scheduled to close before the end of July 1999, a month ahead of original expectations.
Concentrex's revenue for the first six months of 1999 was $47.9 million, an increase of 25.8% over the first half of 1998. Diluted EPS, excluding the MECA transaction, was $0.41 for the first half of 1999, an increase of 10.8% over the first six months of 1998. After giving effect to the MECA acquisition, Concentrex had diluted loss per share of $0.04 for the first six months of 1999.
Recurring service and support revenues increased 29.4% to $9.6 million in the second quarter of 1999 compared to the second quarter of 1998. Service and support revenues increased 29.9% to $18.8 million in the first half of 1999 compared to the first half of 1998. The increases are primarily attributable to higher maintenance revenue from a larger base of installed products. Recurring revenues represented 39.4% of total revenue for the first six months of 1999.
Concentrex Incorporated, Portland, Oregon (formerly known as CFI ProServices, Inc.), is a leading provider of technology-powered solutions to deliver financial services including solutions for real-time back office accounting, branch automation, loan origination, new account opening, call centers, cross selling of products and electronic commerce. Concentrex serves over 5,000 financial institutions of all types and sizes in the United States. Concentrex has major offices in 10 additional cities across the country. Its World Wide Web address is www.concentrex.com.
This release contains forward-looking information that involves risk and uncertainty because Concentrex's business and business agreements are subject to change, cancellation, and performance. For additional information, please refer to the Company's Securities and Exchange Commission reports filed under the Securities Exchange Act.
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