Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: SMALL FRY who wrote (68454)	10/28/1999 1:15:00 PM
From: Susan G	Read Replies (1) \| Respond to of 120523

Anyone have an opinion on MBRS? It got slammed on a decent earnings report and is moving back up. MemberWorks First Quarter Revenues Up 61% to a Record $71.7 Million; EPS Up 86% to $0.13 Per Share Business Wire - October 27, 1999 16:23 STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 27, 1999--MemberWorks Incorporated (NASDAQ:MBRS), a leading provider of innovative membership programs, announced today record financial results for the first quarter of fiscal 2000 which ended September 30, 1999. Revenues for the first quarter ended September 30, 1999, increased 61% to $71.7 million compared to $44.5 million for the same period in fiscal 1999. Net income more than doubled to $2.3 million for the first quarter of fiscal 2000 versus $1.1 million for the first quarter of fiscal 1999, before the effect of an accounting change reported last year. On a diluted per share basis, net income for the quarter was $0.13 in fiscal 2000, compared to $0.07 in fiscal 1999, before the effect of an accounting change reported last year. "These results underscore the growth we're experiencing across all areas of our business," said Gary Johnson, President and Chief Executive Officer of MemberWorks. "From our core membership program business, to MemberLink, to our emerging international presence, to the Internet, we're reaching new milestones and taking advantage of new opportunities for growth." Mr. Johnson added, "This quarter we worked diligently with our client partners to establish industry standards that safeguard consumer privacy. Our effort is ongoing as we focus on creating the highest level of standards for the benefit of our members and client partners." MemberWorks reported on October 8, 1998 that the SEC staff's review of its revenue recognition practices was completed in connection with the reporting of its operations for fiscal 1998 and the SEC staff had not objected to the Company's decision to presently continue to follow the revenue recognition practices consistently followed since its initial public offering in 1996. As the Company reported in its Annual Report for 1998, the SEC issued a press release on September 28, 1998 stating that the "SEC will formulate and augment new and existing accounting rules and interpretations covering revenue recognition, restructuring reserves, materiality, and disclosure" for all publicly-traded companies. Until such time as the SEC staff issues such interpretative guidelines, it is unclear what, if any, impact such interpretative guidance will have on the Company's current accounting practices. However, the potential changes in accounting practice being considered by the SEC staff could have a material impact on the manner in which the Company recognizes revenue. Any such changes would have no effect on reported cash flow or the economic value of the Company's memberships. Certain matters discussed in the news release are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements include statements regarding intent, belief or current expectations of the Company and its management. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that may cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: uncertainty as to new and existing accounting rules and interpretations; uncertainty as to the Company's future profitability; the Company's ability to develop and implement operational and financial systems to manage rapidly growing operations; competition in the Company's existing and potential future lines of business; the Company's ability to integrate and operate successfully acquired businesses and the risks associated with such businesses; the Company's ability to obtain financing on acceptable terms to finance the Company's growth strategy and for the Company to operate within the limitation imposed by financial arrangements; uncertainty as to the future profitability of acquired businesses; the ability of the Company and its vendors to complete the necessary actions to achieve a Year 2000 conversion for its computer systems and applications; and other factors. Other factors and assumptions not identified above were also involved in the derivation of these forward-looking statements, and the failure of such other assumptions to be realized as well as other factors may also cause actual results to differ materially from those projected. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements. Headquartered in Stamford, Connecticut, MemberWorks is a leader in bringing value to consumers by designing innovative membership programs that offer services and discounts on everyday needs in healthcare, personal finance, insurance, travel, entertainment, computing, fashion, and personal security. As of September 30, 1999, 5.5 million members nationwide are enrolled in MemberWorks programs, gaining convenient access to thousands of service providers and vendors. MemberWorks is the trusted marketing partner of leading consumer-driven organizations, and offers them effective tools to enhance their market presence, to strengthen customer affinity, and to generate additional revenue.