HomeBank Technologies reports strong second quarter results; 2nd consecutive quarter with significant earnings
7/29/03
TORONTO, Jul 29, 2003 (Canada NewsWire via COMTEX) --
HomeBank Technologies Inc. (TSX-Venture: HTI) today reported results for the second quarter of fiscal 2003.
Six Month Results: (six months ended June 30, 2003 compared with ------------------ the six months ended June 30, 2002)
- Sales were $1,848,826 compared with $945,131. - Expenses were $1,301,690 compared with $1,079,432. - Net income was $369,962 compared with a net loss of $325,871. - Earnings per share were $0.02 basic and fully diluted compared with a loss per share of $0.02 basic and fully diluted.
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Second Quarter Results: (three months ended June 30, 2003 compared with ----------------------- the three months ended June 30, 2002)
- Sales were $972,797 compared with $563,876. - Expenses were $730,530 compared with $473,063. - Net income was $139,413 compared with a net loss of $5,530. - Earnings per share were $0.01 basic and fully diluted compared to $0.00 basic and fully diluted.
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Bryan McCaw, CEO of HomeBank Technologies Inc. (HTI) said, 'Our efforts in the restructuring of the company in Fiscal 2002, combined with the accelerated market acceptance of ProLender continue to have a very positive impact on our financial performance. Our YTD revenue for the first half of 2003 has exceeded our total revenue for all of 2002. This dramatic increase in revenue combined with costs that have not increased significantly over 2002 has resulted in our second consecutive quarter with significant earnings.'
Mr. McCaw added, 'The results are impressive when you consider all our development costs were expensed in the first half compared to our practice of capitalizing research and development during the same period last year. Expenses have increased relative to the first half of 2002 but these are directly attributable to sales and support cost associated with our accelerated sales. Our business model is fundamentally sound and we can offer a scalable solution to our customers with little incremental costs. We continue to grow our base of recurring revenue, which amounted to $282,000 in the first quarter and increased to $330,000 in the second quarter.'
Second quarter 2003 highlights include:
- The successful implementation of ProLender at Envision Credit Union. Envision is the 3rd largest credit union in Canada and is a reference site for other potential ProLender customers.
- The sale and implementation of ProLender at First Ontario Credit Union. First Ontario is the 15th largest Credit Union in Canada.
- HTI successfully implemented its 75th ProLender customer. HTI thereby moves closer to its goal of becoming a national standard for loan origination systems in the Canadian credit union market. ProLender is now used by more Canadian credit unions than any other lending system.
- A 230% increase in loan applications processed by ProLender, HTI's web-based loan origination system, from 8,826 loans in the first half of 2002 to 29,085 loan applications in the first half of 2003. In addition, loans processed in the quarter increased by 59% from 11,223 in the first quarter of 2003 to 17,852 in the second quarter.
- A 28% increase in online banking sessions processed by our HomeBanking solution. From 1,023,296 sessions in the first half of 2002 to 1,310,001 sessions in the first half of 2003. Quarter over quarter HomeBanking growth slowed to 5% reflecting the maturing of this market.
- During the quarter HTI became a Microsoft Certified Partner.
Outlook for continued revenue growth remains positive. HTI continues to form strong partnerships with their customers; this, combined with a track record of successful implementations provides excellent references. These references combined with focused sales efforts are continuing to help fill HTI's sales funnel. In addition, agreements with 3rd party products that interface to ProLender are starting to provide an additional revenue stream for HTI from their existing customer base. The company is actively working on several 'add-on'modules to ProLender that should create new sales opportunities.
For the second half of 2003 HTI's focus will be on the continued successful execution of their Canadian strategy to become the lending standard for Canadian Credit Unions. In addition, they are actively looking at ways to expand the market for ProLender outside of Canada.
About HomeBank Technologies Inc.
HomeBank Technologies is a web service company specializing in Internet- delivered software infrastructure targeting the fast-growing North American financial institutions market. The Company's products include ProLender, a hosted web-based, loan origination system and HomeBanking, a secure Internet banking system. The common shares of HomeBank Technologies are listed on the TSX Venture Exchange under the symbol HTI. More information is available at www.homebank.net. |
