Saville Reports Record Financial Results for the Second Quarter and
First Half of 1997
BURLINGTON, Mass.--(BUSINESS WIRE)--July 29, 1997--
Second Quarter Revenue And Earnings Increase Greater Than 100 Percent
Over Prior Year's Second Quarter
Total Revenue Increases 107 Percent for the Quarter, Up 100 Percent for the Half
Net Income Increases 112 Percent for the Quarter and 114 Percent for the Half
Net Income per Share doubles for the Quarter and the Half
Cash and Short-Term Investment balances increase $14.3 million over balances at December 31, 1996
Saville Systems PLC (NASDAQ:SAVLY), a leading provider of convergent-billing software solutions for the
telecommunications industry, today disclosed financial results for the second quarter ended June 30, 1997.
Total revenue for the quarter of $25.5 million was 107 percent higher than revenues of $12.3 million in the second quarter
of 1996. Net income for the quarter increased 112 percent from $2.6 million to $5.4 million. Earnings per share were $.28
compared to $.14 per share in the second quarter of 1996. Cash flow for the quarter of $13.8 million resulted in a record
ending cash and short-term investments balance of $49.7 million. Weighted average shares and share equivalents
outstanding during the second quarter of 1997 and the second quarter of 1996 were 19.6 million and 18.9 million,
respectively.
Chris Hanson, Saville's CFO, commented: ``Our business trends and the corresponding financial results remain very
positive. Second quarter 1997 license fee revenues were 21 percent of total revenue and up 161 percent from the comparable
quarter of 1996. Our operating margin was over 27% for the quarter and our average Days Sales Outstanding (DSO)
dropped significantly during the quarter to 85 days.''
CEO Jack Boyle comments on the results Jack Boyle, Saville's CEO commented: ``We are extremely pleased with our
financial results for the quarter, and our continuing business prospects. Saville is well positioned in the marketplace to help
telecommunication providers aggressively compete in a rapidly changing business environment. Our convergent billing
product, CBP, continues to be used by more clients as a strategic, competitive advantage.''
Boyle added, ``We believe the demand for CBP's convergent capabilities and our sales pipeline from both direct and indirect
channels, remain strong. For example, we obtained a new contract during the quarter with a Competitive Local Exchange
Carrier (CLEC), Brooks Fiber, which was the first opportunity presented to us by our alliance partner, Lucent
Technologies. Additionally, we signed three new contracts, one of which was ACC Long Distance, another company
specifically looking for the convergent billing features of CBP.''
Founded in 1982, Saville Systems is a leading provider of convergent billing solutions to the telecommunications industry.
Saville is a publicly held company, traded on the Nasdaq National Market under the symbol SAVLY, and employs over 900
professionals worldwide.
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward
looking statements include Mr. Hanson's comments on business trends, and Mr. Boyle's comments on marketplace
position, demand for CBP and strong pipeline. Among the important factors that could cause actual results to differ
materially from those indicated by such forward looking statements are delays in product development, undetected errors or
bugs in software, changes in product pricing policies, competitive pressures, lower-than-expected demand for
telecommunications billing solutions, general economic conditions and the risk factors detailed from time to time in the
Company's periodic reports and registration statements filed with the Securities and Exchange Commission.
Note: Consolidated Statements of Income and Consolidated Balance Sheets follow. |
