Here's the report...
( BW)(SAVILLE)(SAVLY) Saville Announces 1998 Second Quarter Results; Record Second Quarter Revenue Increases 68% Over Prior Year Results
ÿÿÿÿBusiness/Technology Editors
ÿÿÿÿBURLINGTON, Mass.--(BUSINESS WIRE)--July 28, 1998--Saville Systems PLC (NASDAQ:SAVLY), a leading provider of convergent billing and customer care software solutions for the telecommunications industry, today announced record second quarter revenue of $42.9 million representing a 68% increase over the same period in the previous year.
ÿÿÿÿNet income for the quarter ended June 30, 1998, before a one-time charge for purchased in-process research and development, was $8.7 million, or $0.21 per diluted share, compared to $5.4 million, or $0.14 per diluted share for the quarter ended June 30, 1997. Including the one-time charge of $17.7 million (net of an associated tax benefit of $1.1 million), which relates to the amount paid to BHA Pty Ltd and Cap Gemini for certain technology under development at the time of acquisition and associated acquisition costs and expenses, the company reported a net loss for the quarter ended June 30, 1998 of $9.0 million, or ($0.22) per diluted share. For the six months ended June 30, 1998 net income was $0.2 million, or $0.01 per diluted share, on revenue of $80.9 million, compared to $9.8 million, or $0.25 per diluted share, on revenue of $45.6 million, for the comparable period of 1997. During the first six months of 1998, cash and short-term investment balances have increased 16% to $79.5 million from $68.8 million at December 31, 1997.
ÿÿÿÿJack Boyle, Saville's Chairman and CEO commented: "We are pleased with the combination of new customers added during the second quarter. A record number of contracts were signed, which included first-ever revenue from our Latin America and Asia-Pacific regions and two new competitive local exchange carrier (CLEC) sales in the U.S. The Latin American contract represents a license of our Convergent Billing Platform (CBP(R)) for Oracle(R) product, and our success in the Asia-Pacific region includes our first license of billing technology purchased in the BHA acquisition. We also agreed to the transfer of the production system developed for EnergyOne to Exelon Energy, a subsidiary of PECO Energy Company, which entered into a license agreement for our CBP for DB2/400 product. We are very excited to add Exelon to our growing customer base and, with this transaction, we re-affirm our commitment to provide CBP-based billing and customer care solutions to the rapidly deregulating energy marketplace."
ÿÿÿÿBoyle added, "We continue to invest heavily in the development of our product lines and service delivery capabilities in order to enhance the breadth of our products and services. Recently, we not only launched our CBP Quickstart program, designed to deliver a pre-configured, lower-cost billing solution to smaller telephony providers seeking an accelerated implementation, but also focused our sales efforts on expanding our service bureau program. Because of these initiatives, and some uncertainty regarding the effect of mergers and consolidations in the telecommunications industry on our North American customer base, we expect revenue and pre-charge earnings to maintain current levels in the near term. However, we are confident that we have positioned ourselves well to meet not only the specific demands of our present customers in the telecommunications and energy markets, but also the worldwide market demand we see through our global sales pipeline."
ÿÿÿÿFounded in 1982, Saville is a leading provider of convergent billing and customer care solutions for the telecommunications industry. Saville operates globally with offices in the U.S., Canada, Ireland, Australia, Singapore, U.K. and Germany, and has more than 1,400 employees worldwide. Saville is a publicly held company, traded on the Nasdaq National Market (US) market under the symbol SAVLY. For more information, Saville can be reached at www.savillesys.com, or call (+1) 781-270-6500.
ÿÿÿÿThis press release contains forward-looking statements, as that term is used in Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. These forward-looking statements include Mr. Boyle's comments on market demand, sales opportunities and expected revenue and earnings levels. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the company's periodic reports and registration statements filed with the Securities and Exchange Commission, including in Item 2 of the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 1998, which risks include those associated with the company's acquisition strategy, customer concentration, intense competition, product development, the management of rapid operations expansion and the availability of favorable tax treatment. |
