Melita International Announces Record Results
First Quarter Revenue Up 39%, Net Income Up 79%, EPS Up 46%
NORCROSS, Ga.--(BUSINESS WIRE)--April 23, 1998-- Melita(R) International (Nasdaq: MELI - news), a leading
provider of integrated customer interaction and intelligent call management solutions for call centers, today announced record
revenues, operating income and earnings per share for the quarter ended March 31, 1998.
For the quarter ended March 31, 1998, Melita reported revenue of $20.4 million, or a 38.9% increase compared to $14.7
million for the same period in 1997. Operating income for the quarter grew to $3.7 million, or 18.2% of total revenue
compared to first quarter 1997 operating income of $2.4 million, or 16.3% of total revenue. Pro forma net income increased
to $2.5 million, or a 78.6% increase compared to $1.4 million in the year ago period. Pro forma diluted earnings per share
increased 45.5% to $0.16 from $0.11 for the same period in 1997.
Melita achieved sequential quarterly revenue growth of 9.2%, which it attributes to strong product demand. The Company
shipped 45 new systems in the quarter, the majority of which were PhoneFrame(R) Explorers, compared to 100 new systems
shipped in all of 1997. This demonstrates Melita's successful transition to volume shipment of its new Year 2000 compliant
PhoneFrame Explorer, which was introduced in the fourth quarter of 1997. PhoneFrame Explorer provides call centers with
powerful new capabilities to meet today's increased-productivity pressures, on a platform designed to meet tomorrow's
business demands.
Among Melita's new PhoneFrame Explorer customers are Cox Enterprises, Inc. (Atlanta) and Marin Credit Card Services
(Las Vegas). Late in 1997, the Atlanta Journal-Constitution ordered Melita systems for direct marketing and circulation. On
the newspaper's recommendation, its sister company, Cox Communications, ordered seven systems for cable operations, to
be used for welcome calls, satisfaction surveys and collections activities. At Marin Credit, Melita's new release of
UltraPACT(TM), a CTI Platform, replaces a competitor's system in a tightly integrated software-only environment using the
existing ACD switching infrastructure.
During the quarter the Company announced two new product solutions, Melita OpenClient Access and PhoneFrame Explorer
TeleSuite, and the 2000NOW program. OpenClient Access, a software development kit, gives customers open access to the
Melita system services, facilitating integration with other application environments. This is part of Melita's strategy to provide
best-of-class outbound and call blending solutions to customers and other business partners. TeleSuite is a PhoneFrame
Explorer solution targeted at the teleservices and telemarketing industries. This solution consists of a suite of applications,
including agent coaching, conferencing and same agent callback. 2000NOW is a migration program designed to simplify
customers' implementation of Year 2000 compliant call center solutions.
The Company continued to expand its distribution network. In January, Melita announced a new North American distribution
agreement with Williams Communications Solutions, formerly known as WilTel. Under the agreement, Melita shipped three
systems in the first quarter. Through Melita's UK-based distribution partner, Cable & Wireless, the Company shipped two
systems. In South America, Melita signed distribution agreements with Lucent Technologies companies for distribution in
Argentina, Brazil, Colombia and Ecuador, and Lucent's master distributor in Chile, Belltech S.A. Melita also strengthened its
direct sales infrastructure by opening new offices in Paris, and Los Angeles.
''Our excellent first quarter financial results and activities reinforce Melita's leadership position in the outbound call center
marketplace,'' said Aleksander Szlam, chairman and chief executive officer of Melita International. ''Our solutions, which are
built on a flexible, open, standards-based software architecture, continue to enjoy a premium position in the marketplace. As
we grow, each new product and partnership furthers our commitment to help our customers communicate more effectively
with their customers. This is the essence of our core philosophy, Enhancing People to People Communication(TM).''
About Melita
Melita International is a leading provider of integrated customer interaction and intelligent call management systems that enable
businesses to automate their call center activities, enhance telephony-based customer commerce and provide a superior level
of Customer Care(R). Melita International's worldwide customers include, among others, leading organizations in the financial
services, retail, media and communications and service bureau industries. The Company began operations in 1983 and issued
its initial public offering in June 1997. Melita International's web address is melita.com.
NOTE TO EDITORS: This press release contains forward-looking statements relating to certain distribution relationships,
market penetration, operating results, product functionality and acceptance, staffing and infrastructure. Such statements are
made based on management's belief as well as assumptions made by, and information currently available to management,
pursuant to the 'safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. While these statements reflect
our best current judgment, they are subject to risks and uncertainties that could cause a change in focus and direction. A
discussion of certain risk factors that may cause actual results to differ from these forward-looking statements can be found in
Melita's report on Form 10-K for the fiscal year ended December 31, 1997, on file with the SEC. |
