CMSI Reports Fourth Quarter Results
ANNAPOLIS JUNCTION, Md., March 4 /PRNewswire/ -- Credit Management
Solutions, Inc. (CMSI) (Nasdaq: CMSS), a service bureau provider for various
credit transactions and a developer and provider of software for automating
the consumer and small business credit analysis, decision-making and funding
process, including Internet online financing, today reported fourth quarter
results.
For the quarter ended December 31, 1998, total revenue was $5.3 million
vs. $5.5 million in the comparable period of 1997. Pretax loss for the fourth
quarter of 1998 was ($3.8) million, or ($.50) per share, compared to a pretax
loss of ($1.4) million, or ($0.18) per share in the fourth quarter of 1997.
The number of shares used in the calculation of diluted EPS for the quarters
ended December 31, 1998 and 1997 were 7,648,797 and 7,615,510, respectively.
Revenues for the twelve months ended December 31, 1998 were $16.9 million,
compared to $17.2 million for the twelve months of 1997. Net loss for the
twelve months was ($9.6) million, or ($1.25) per share on a diluted basis
compared to a net loss of $(3.7) million, or ($0.49) per share on a diluted
basis for the same period in 1997. The number of shares used in the
calculation of diluted EPS for the fiscal year ended December 31, 1998 and
1997 were 7,636,217 and 7,597,368 respectively.
Peter M. Leger, President and COO, commented, "1998 was a disappointing
year from a financial perspective; however, it was a year of restructuring and
investment for 1999 and beyond. While we experienced some significant
one-time charges and events, we believe we are now better positioned to
benefit from the investments made in 1998. Unlike a year ago, our current
sales pipeline for all our business segments is robust, recent sales successes
have replenished our backlog, and we have introduced a more comprehensive and
disciplined budget for 1999 with more strict financial controls to support
identifiable revenue and profit generating programs. We are also entering
into new Internet-related strategic alliances which leverage our E-Commerce
business and technology. Our recent introduction of CreditOnline(R), combined
with our extensive network of approximately thirty-one lenders, has met with
market acceptance as evidenced by our new alliance with LendingTree, Inc., and
the interest shown by lenders, car dealers and the many Internet buying
services at the National Automobile Dealers Association Convention in early
February of this year. In addition, we recently received a patent on our
CreditConnection(R) network and service which we believe strongly positions us
to take advantage of the rapidly growing trends in Internet and other online
consumer financing. Based on the size of the market opportunities for CMSI
products and services, CMSI's strategic and operating plans and strong
business fundamentals, and the relative youth of our new market niches,
especially the Internet, it is the common view of our Board, our senior
management, and several of our significant outside shareholders, that a
prospective sale of CMSI at this time would not be in the best interests of
the shareholders. Consequently, our plan is to remain independent and
aggressively implement our strategic and operational plans to enhance
shareholder value accordingly. CMSI will as a secondary focus, however,
evaluate strategic transactions and opportunities as they may present
themselves." |
