Abacus in with 1st Q EPS at .10 a share! See below
WESTMINSTER, Colo., April 23 /PRNewswire/ -- Abacus Direct Corporation
(Nasdaq: ABDR) reported record net income of $981,000, or .10 per share, and
revenues of $5.53 million for the first quarter ended March 31, 1997. Net
income for the same period a year ago was $251,000, or $.03 per share, on
revenues of $2.78 million.
ABACUS DIRECT CORPORATION
Financial Highlights
(In millions, except earnings per share)
Three Months Ended
March 31, %
1997 1996 Increase
Revenue $5.53 $2.78 98.7%
Net income $ .98 $ .25 290.1%
Earnings per share $ .10 $ .03 233%
In reviewing the first quarter results, Tony White, Chairman and CEO
stated, "Abacus achieved record growth in revenue as our products and services
continued to deliver measurable results and outstanding value to our
customers. In addition, our first User Conference held in January, 1997, was
a great success in helping our current and prospective customers become more
knowledgeable about and better able to use our Prospecting, Optimization,
Housefile and Marketing Research products."
"The number of participants in the Abacus Alliance now stands at 725,
having added another 25 members during the first quarter," the Chairman
continued. "We are pleased with the growth in demand for our Optimization
Services and Marketing Information Research Reports, in particular. The
successful results of the "in the lab testing" we are conducting for our new
Data Enhancement area have emboldened us to accelerate the hiring of senior
marketing people with backgrounds in Publishing, Fundraising, Retail and
Financial Services. Furthermore, the Abacus E-Net service, an even faster way
to deliver products and services, attracted two new participants during the
quarter bringing the total to six."
Mr. White noted, "Catalogers in general had a good fourth quarter in 1996
and appear to be cautiously optimistic about prospects for 1997. However the
industry typically sees a decrease in revenue during the first and second
quarters. Recognizing the seasonality in our business, we are pleased to note
that revenues increased from $5.1 million in the fourth quarter 1996 to $5.53
million in the first quarter 1997, an increase of 8.0% and up 98.7% versus the
first quarter a year ago. Historically, however, Abacus recognizes its lowest
quarterly revenue and net income during the first and second quarters of the
year, with the third and fourth quarters' revenue and net income traditionally
the highest due to client demands as they prepare for the holiday season.
"First quarter operating expenses increased 26.4% from the fourth quarter
of 1996 as the Company completed its planned 1997 staff expansion in
anticipation of higher third and fourth quarter revenue levels," the Chairman
said. "During the first quarter, the Company incurred additional expenses
relating to its new status as a public company, CFO transition expenses,
higher sales commissions and the cost of added strategic hires. Nevertheless,
we were very pleased to achieve a record 26.8% operating income margin in the
first quarter. The success in the first quarter provides an encouraging step
toward achieving the Company's annual margin goal of 35% while keeping an eye
on future investments for increasing long term revenue growth."
Abacus Direct Corporation is a leading provider of information products
and marketing research services to the direct marketing industry,
specifically, the catalog industry.
This release contains statements that are forward-looking in nature,
including those related to the Company's thresholds, operating strategy and
results, seasonality and cyclical nature of the industry. A variety of
important factors could cause actual results to differ materially from such
goals, expectations or potential results. These factors include, but are not
limited to: the actions of current and potential new competitors, rapid
changes in technology, overall economic conditions, changes in postal rates
and paper prices and the nature and the amount of the Company's revenue and
expenses.
ABACUS DIRECT CORPORATION
First Quarter Earnings Release
(Unaudited)
Three Months Ended March 31,
1997 1996 % Change
Revenue from operations $5,525,291 $2,780,257 98.7%
Cost of operations 1,080,815 747,234 44.6%
Gross Profit 4,444,476 2,033,023 118.6%
Other Operating Costs
Sales and marketing 1,444,746 787,025 83.6%
General and administration 1,231,081 625,814 96.7%
Research and development 286,946 139,499 105.7%
Total Operating Expenses 2,962,773 1,552,338 90.9%
Operating Profit 1,481,703 480,685 208.2%
Interest and Other Income (Expense) 62,771 (61,175) -202.6%
Net Income Before Income Taxes 1,544,474 419,510 268.2%
Income tax expense 563,800 168,100 235.4%
Net Income $980,674 $251,410 290.1%
Earnings Per Common Share $0.10 $0.03
Weighted Average Number of Common and
Common Equivalent
Shares Outstanding 10,135,919 9,509,552
SOURCE Abacus Direct Corporation |
