Revenue Sets An All-Time Quarter Record
SCT (Nasdaq: SCTC) today announced
its financial results for the second quarter of fiscal 1999, which ended
March 31, 1999.
Revenue for the quarter increased 22% to $117,078,000, and was an all-time
record, compared with $96,084,000 in the second quarter of fiscal 1998.
Income before taxes was $7,585,000, compared with $12,322,000 for the second
fiscal quarter of 1998. Net income for the period was $4,172,000, versus net
income of $7,301,000 for the same period last year.
Second quarter 1999 diluted earnings per share were $.13. For the same
quarter last year, diluted earnings per share were $.20.
During the quarter, SCT repurchased 1,260,000 shares at an average price
per share of $9.20. With a total of 1,080,000 shares repurchased in the first
fiscal quarter at an average price per share of $9.60, the Company has
repurchased 2,340,000 shares since October, 1998.
The Company's backlog of business under contract at the end of the second
quarter was approximately $719 million, compared with approximately
$697 million a year ago.
"While the traditional enterprise application software market has shown
considerable slowdown in anticipation of Y2K, we have grown our revenue to an
all-time quarterly record," said Michael J. Emmi, SCT's chairman and CEO.
"We are especially pleased with the on-time delivery this quarter of a
beta version of Campus Pipeline internet software to nine pilot schools," he
continued. "Just as importantly, the overwhelming response to Campus Pipeline
among SCT's higher education clients continues, lending support to our belief
that this first higher education internet enterprise information portal is an
extremely powerful proposition."
SCT's education systems business achieved record revenues, reflecting
significant new accounts, release of the Web for Executives product, and
strong demand from universities for SCTservices to help align their processes
and information systems to deliver greater value in key relationships with
students, faculty, parents and alumni. New business signed in the quarter
included the Board for Higher Education/Concordia University System with 13
sites across the country, El Paso Community College, and St. Louis Community
College, totaling more than $12 million in software and service fees.
"Our courts and justice applications software business set a second
quarter revenue record," Emmi continued. "We signed a significant internet
court case management software agreement with Fulton County, Georgia, which
encompasses the City of Atlanta. Fulton joins Cobb and DeKalb counties as SCT
clients that make up the greater Atlanta metropolitan area. "This contract
reinforces SCT's ability to serve the needs of large, complex courts as they
provide more court customers with improved delivery of justice than ever
before," Emmi said.
"In addition, another major development this quarter was the signing of
the first E-filing pilot project for courts systems in Orange County,
California, with the county utilizing SCT's market-leading case management
systems as part of a strategic alliance with the West Group, a leading
provider of information to the legal profession."
"Our utility systems business continued the fast pace of taking utilities
live with customer information systems that are critical to growth and
competitiveness as they enter a deregulated market. We had seven utilities in
this quarter achieve operational status, for a total of fifteen in the first
fiscal half of 1999," Emmi said.
"We have named Stuart Young, an experienced SCT executive, as managing
director of SCT International, now headquartered in London. This quarter we
signed a large contract for ADAGE ERP software with a major French food
processing company, Cofigeo. In addition, a major utility client in the
Netherlands began processing in a production environment," said Emmi.
"In another milestone for the quarter, we held our first combined user
group meeting -- SCT Summit -- partnering our Education Systems and
Manufacturing & Distribution Systems business units clients. It was extremely
successful, with approximately 5,000 users attending, an increase of nearly
twenty percent," Emmi added.
The matters discussed in this press release that are forward-looking
statements are based on current management expectations that involve risks and
uncertainties that could cause actual results to differ materially from those
anticipated. Potential risks and uncertainties include without limitation,
the continued slowdown in the ERP market; the extent to which demand for the
Company's products and services diminish over time as organizations resolve
the year 2000 problem; continued market acceptance of the Company's products
and services; the timing of the receipt of software licenses; competitive and
pricing pressures in the markets which the Company serves; the Company's
ability to complete fixed price contracts profitably; the timing of the
receipt of services contracts and renewals; the Company's ability to develop
and market innovative products and enhancements cost-effectively and on a
timely basis; the ability of Campus Pipeline to complete and enhance its
product; the Company's ability to attract and retain highly skilled technical,
managerial, sales and marketing personnel; general economic conditions; and
other risks and uncertainties more specifically set forth in the Company's
filings with the Securities and Exchange Commission.
SCT, headquartered in Malvern, Pa., is a leading provider of
client/server, mission critical, enterprise software and a series of
information technology services for utilities, manufacturing & distribution,
government and higher education. SCT provides long-term information
technology solutions and is a recognized leader in outsourcing. SCT has
nearly 3,700 employees and serves approximately 2,500 clients worldwide. For
more information, visit the SCT Web site at sctcorp.com.
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1999 1998
Revenues:
Outsourcing services $34,364 $30,121 $67,876 $58,266
Software sales 17,092 22,449 38,561 44,300
Maintenance and
enhancements 21,028 16,312 38,813 30,658
Software services 43,859 25,907 80,289 46,966
Other, primarily
interest 735 1,295 1,308 3,175
Total Revenues 117,078 96,084 226,847 183,365
Expenses:
Cost of outsourcing
services 26,763 24,564 53,358 47,470
Cost of software sales
and maintenance and
enhancements 22,074 17,829 42,214 32,710
Cost of software
services 30,662 18,223 58,701 34,125
Selling, general, and
administrative 28,784 22,091 55,190 43,937
Interest expense 1,210 1,055 2,355 1,875
Total Expenses 109,493 83,762 211,818 160,117
Income before income
taxes 7,585 12,322 15,029 23,248
Provision for income
taxes 3,413 5,021 6,391 9,502
Net income $4,172 $7,301 $8,638 $13,746
Net income per common
share $0.13 $0.22 $0.26$0.41
Net income per
share-assuming dilution $0.13 $0.20 $0.26 $0.38
Common shares and equivalents
outstanding:
Average common shares 32,291 33,348 32,661 33,222
Avg. common
shares-assuming
dilution 32,921 35,833 33,767 35,867
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, Sept. 30,
1999 1998
Cash & short-term investments $19,624 $78,306
Receivables 147,029 130,457
Prepaid expenses 25,685 13,861
Property & equipment 67,027 55,862
Capitalized software 19,961 18,257
Cost in excess of fair value of
net assets acquired 19,616 17,763
Other assets & deferred charges 17,175 18,448
TOTAL ASSETS $316,117 $332,954
Current liabilities $67,940 $71,607
Long-term debt 78,200 78,425
Shareholders' equity 169,977 182,922
TOTAL LIABILITIES & EQUITY $316,117 $332,954
|
