HomeBank Tech posts $130,000 income in third quarter (part 1)
2003-11-10 09:35 ET - News Release
Mr. Bryan McCaw reports
HOMEBANK TECHNOLOGIES REPORTS STRONG THIRD QUARTER RESULTS; 3RD CONSECUTIVE QUARTER WITH POSITIVE EARNINGS
HomeBank Technologies has reported results for the third quarter of fiscal 2003.
Nine-month results (nine months ended Sept. 30, 2003, compared with the nine months ended Sept. 30, 2002):
sales were $2,679,247 compared with $1,352,335;
expenses were $1,930,383 compared with $1,495,498;
net income was $500,515 compared with a net loss of $408,338; and
earnings per share were three cents basic and fully diluted compared with a loss per share of three cents basic and fully diluted.
Third quarter results (three months ended Sept. 30, 2003, compared with the three months ended Sept. 30, 2002):
sales were $830,421 compared with $407,204;
expenses were $628,693 compared with $416,066;
net income was $130,553 compared with a net loss of $82,557; and
earnings per share were one cent basic and fully diluted compared with a loss per share of one cent basic and fully diluted.
Bryan McCaw, chief executive officer of HomeBank Technologies, said: "We're extremely pleased to announce our third consecutive quarter of positive net income. Our nine-month revenue and earnings are at record levels even when compared to any of our previous annual numbers. Our quarterly expenses are staying quite steady at 75 per cent of revenue. Recurring revenue has grown from representing 33 per cent of revenue in the first quarter to 44 per cent of third quarter revenue. Recurring revenue has grown to cover 58 per cent of our expenses in the third quarter. Our results are encouraging when you consider that the third quarter is very quiet within our sector due to the summer holiday season."
Mr. McCaw added: "Our three consecutive quarters of positive earnings are even more impressive when you consider all our development costs have been expensed this year compared to our practice of capitalizing research and development last year. While expenses have increased relative to the same period in 2002 this increase is attributable to expensed R&D and sales and support cost associated with increased sales. We continue to grow our base of recurring revenue, which amounted to $365,000 in the quarter, a 27-per-cent increase over the first quarter. Revenue from our third party products continues to grow. The addition of automated decision and credit bureau services are expected to positively impact our revenue beginning the fourth quarter."
Third quarter 2003 highlights include:
the addition of John Lahey to HTI's board of directors. As the chief executive officer of FirstOntario Credit Union, Mr. Lahey brings a wealth of experience to HTI's board;
HTI's credit risk services division is beginning to generate new revenue. HTI provided decisioning consulting services to four different credit unions during the quarter. Sophisticated decisioning technology is still new to the credit union market and HTI is a leading provider of consulting services to credit unions;
a 237-per-cent increase in loan applications processed by ProLender, HTI's Web-based loan origination system, from 16,083 loans in the first nine months of 2002 to 54,131 loans in the first nine months of 2003. In addition, loans processed in the quarter increased by 40 per cent from 17,862 in the second quarter of 2003 to 25,052 in the third quarter; and
a 26-per-cent increase in on-line banking sessions processed by its HomeBanking solution over the same period in 2002. From 1,561,847 sessions in the first nine months of 2002 to 1,973,311 sessions in the first nine months of 2003. Quarter-over-quarter HomeBanking growth shrank by 1 per cent reflecting the maturing of this market. |
