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Wednesday April 26, 10:32 am Eastern Time
Company Press Release
SOURCE: Billing Concepts Corp.
Billing Concepts Announces Second Quarter 2000 Results
SAN ANTONIO, Texas, April 26 /PRNewswire/ -- Billing Concepts Corp. (Nasdaq: BILL - news) today announced second quarter 2000 results.
Quarter Ended March 31, 2000
Consolidated revenues were $37.1 million for the quarter ended March 31, 2000, compared to consolidated revenues of $45.8 million for the corresponding quarter of the prior fiscal year.
Second quarter 2000 revenues for the Transaction Processing Services, Aptis Software and Internet divisions of the Company were $27.8 million, $9.1 million and $0.2 million, respectively.
The Company recorded special charges of $6.2 million for the second quarter of 2000 consisting of (i) a $5.0 million write-off of in-process research and development associated with the March 2000 equity investment of $33.5 million in Princeton eCom, the Company's electronic bill presentment and payment (EBPP) investment and the $6.0 million March 2000 equity investment in COREintellect, and (ii) employee severance related costs of $1.2 million.
The Company's Internet division generated a second quarter 2000 pre-tax loss of $5.5 million. This amount consisted of a $1.7 million equity pick-up in the loss of Princeton eCom, and $3.8 million of expenses incurred in conjunction with the Company's initiative to develop a metamediary Website focused on the credit union industry.
Excluding the Internet division and special charges, the Company recorded a second quarter net loss of $2.0 million, or $0.05 per share.
Contributing to the loss were, (i) margin pressures experienced by the LEC operations of the Transaction Processing Services division, (ii) lower than anticipated revenue from the Aptis Software division and (iii) higher than expected development and infrastructure expenses incurred by the Aptis Software division.
On a consolidated basis (including the Internet division and special charges), the Company generated a second quarter 2000 net loss of $13.9 million, or $0.36 per share, versus second quarter 1999 net income of $5.9 million, or $0.16 per share.
Six-Months Ended March 31, 2000
The Company generated consolidated revenues of $75.1 million for the six months ended March 31, 2000, compared to consolidated revenues of $93.7 million for the corresponding period of the prior fiscal year.
Revenues for the six months ended March 31, 2000 for the Transaction Processing Services, Aptis Software and Internet divisions of the Company were $56.9 million, $17.9 million and $0.3 million, respectively.
Excluding the Internet division and special charges, the Company recorded a net loss of $1.3 million, or $0.03 per share, for the six months ended March 31, 2000.
On a consolidated basis (including the Internet division and special charges), the Company generated a net loss of $17.5 million, or $0.46 per share, for the six months ended March 31, 2000.
Commenting on the second quarter, Parris H. Holmes, Jr., Chairman and CEO of Billing Concepts, stated, ``While we are disappointed with the second quarter financial results of the Company, we are very excited about the prospects for all of our divisions and our technology-driven investments including Princeton eCom, COREintellect and FIData. As a result of the integration of various segments of OSC, our recently acquired Directory Assistance and Teleservices operations, the streamlining of development efforts in our Aptis Software division and other cost reduction initiatives, we have reduced our Company-wide employee and contractor headcount by 150 or 16%.''
Regarding the Internet division, Holmes stated, ``Princeton eCom continues to make significant inroads as a leader in the EBPP arena. This is evidenced by the recently announced alliances with UPS Capital and MasterCard. Their impressive customer base continues to grow at a very rapid pace. Princeton is currently presenting over 70,000 bills per month and has arrangements with over 30 'live' billers and over 500 financial institutions. We applaud the efforts of Princeton eCom's management team and firmly believe that we are building value for our shareholders through our Princeton eCom investment.''
``COREintellect is moving at Internet-speed as it executes its business plan. Beta tests with two Fortune 500 companies are scheduled to be conducted over the next thirty days. We are very pleased with COREintellect's continued progress including the recent hiring of a key member of management, Tim Votaw, Senior Vice President of Sales. Tim's prior experience includes Vice President of Sales for the Americas at Iomega Corporation and National Sales Manager, personal interactive products, at Apple Computer, Inc.''
``As a result of the acceptance of FIData, we have decided to focus our credit union initiative on our Internet-based loan engine product. This will allow us to focus on our revenue-generating product, which has experienced a 47% increase in loan applications processed (16,800 versus 11,400) on a sequential quarter basis. This narrowing of our focus will also result in a significant reduction in expenses incurred in this area. We are committed to the success of FIData as a leader in the Internet-based automated loan engine product serving the financial services market.''
Regarding the Transaction Processing Services division, Holmes stated, ``Margin and pricing pressures had an adverse effect on second quarter 2000 results of the LEC operations. We have taken actions to mitigate this effect including a cost reduction program. Additionally, we will begin to see the revenue contribution from OSC, beginning with our third quarter. We continue to be very excited about the prospects of OSC and its ability to begin to accelerate the revenue of our Transaction Processing Services division beginning in the third quarter. Contracts have recently been executed for three significant Directory Assistance customers and one Teleservices customer and are scheduled to generate revenue in the OSC system within the next sixty days. OSC also continues to generate significant interest in its e-care product and services offerings.''
Regarding the Aptis Software division, Holmes stated, ``Actions have been taken to streamline the development efforts and infrastructure of the Aptis organization, thereby significantly reducing costs and increasing efficiencies. We will begin to see the effects of these actions in the third quarter of 2000. We are very pleased with the level and quality of our prospects in the software sales pipeline. Additionally, we continue to see growth in the recurring services revenue of Aptis.''
In closing, Holmes added, ``In spite of our disappointment in the second quarter financial results, we are confident that we are laying the foundation for long-term success through our Internet investment thrust as well as our Transaction Processing Services and Aptis Software divisions.''
About Billing Concepts
Billing Concepts Corp. provides Revenue Support Solutions (RSS) to communications-based businesses through a variety of delivery systems, including hosted transaction processing, supported software and Internet-based solutions. The Transaction Processing Services division provides outsourced billing solutions, LEC billing clearinghouse and information management services, directory assistance, operator services and Customer Relationship Management (CRM) including inbound customer care, e-care and interactive voice response (IVR) solutions to the communications and other consumer products industries. Currently, the Transaction Processing division serves over 340 customers in North America. Through its Aptis Software division, the Company develops, licenses and supports billing and customer care systems for Internet, data and network service providers, as well as integrated communications providers (ICPs) of virtually any size. Aptis' customers include WinStar Communications, Inc., Intermedia Communications, Inc., KMC Telecom Holdings and IBM Global Services.
The Company's Internet division provides Internet-based instant loan approval products to the financial services industry through FIData, Inc. The Company is also the lead investor in Princeton eCom Corporation and COREintellect, Inc. Princeton eCom is a leading application service provider for electronic bill presentment and payment solutions. COREintellect is a B2B content delivery application service provider. Billing Concepts Corp., headquartered in San Antonio, Texas, maintains offices in Austin, TX, Albany, NY, Corpus Christi, TX and Lubbock, TX. For more information, visit www.billingconcepts.com.
Certain statements contained herein are ``forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Companies with the Securities and Exchange Commission.
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