Melita International Reports Record Fourth Quarter Results Revenue Up
43%
EPS Up 50%
NORCROSS, Ga.--(BUSINESS WIRE)--Feb. 5, 1998--Melita(R) International Corporation (NASDAQ: MELI - news),
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 fourth quarter and twelve months ended December 31, 1997.
For the fourth quarter ended December 31, 1997, Melita reported revenue of $18.7 million or a 43.1% increase, compared to
$13.0 million for the same period in 1996. Operating income for the quarter grew to $3.4 million or 18.3% of total revenue,
compared to 1996 operating income of $1.9 million, or 14.3% of total revenue. Net income nearly doubled to $2.4 million in
the quarter over the prior year's pro forma results. Pro forma diluted earnings per share increased to $0.15 from $0.10 for the
same period in 1996.
For the twelve months ended December 31, 1997, Melita reported total revenue of $65.8 million, or a 38.4% increase, as
compared to $47.5 million for the same period in 1996. For the year, operating income increased to $11.4 million, or 17.4%
of total revenue from operating income of $7.4 million in 1996, or 15.5% of total revenue - a 55% improvement. Pro forma
net income increased 59.1% to $7.6 million compared to pro forma net income of $4.8 million in 1996. Pro forma diluted
earnings per share increased to $0.53 from $0.39 for the same period in 1996. Pro forma income tax provisions are calculated
using a full year effective tax rate of 37% in 1997 and 1996.
The company continues to have a strong balance sheet, with $30 million in cash and short-term investments. In each quarter
since its initial public offering Melita has grown the business and improved profitability.
Aleksander Szlam, chairman and chief executive officer of Melita, commented, ''We are extremely pleased with our strong
results, which reflect our ability to successfully execute the growth and profit improvement strategy outlined during our IPO.
This impressive growth was primarily due to continued market demand for our call center products and services. In addition,
we continued to add major new customers in both the telemarketing and collections segments, allowing us to grow faster than
the industry average. And, as planned, we began shipping our Year 2000 compliant PhoneFrame(R) Explorer in the fourth
quarter.
''I'm proud of our achievements in 1997. We won two Call Center magazine awards: for MAGELLAN(tm), our customer
interaction management software application for call centers, and for WebContact, our new product that allows consumers
browsing a website to request an immediate or scheduled call back. This is the second year in a row that Melita has won a
Product of the Year award.''
Commenting on the outlook for 1998, Mr. Szlam continued, ''We are excited about the market's initial acceptance of the
newest member of our product line, PhoneFrame Explorer, a call center solution based on open, world standards-based,
distributed architecture, driving Melita into the next millenium. In January we entered into a multi-year agreement with WilTel
Communications, LLC, under which WilTel will distribute Melita's solutions throughout the U.S. and Canada. This relationship
will capitalize on WilTel's established customer relationships and utilize its well-developed distribution model. Continuing our
international sales efforts, in the fourth quarter we created a new global accounts organization to provide a comprehensive
solution for our multi-national customers. These developments bode well for 1998.''
This week Melita publicly launched 2000NOW(tm), a unique program with a two-fold objective: enable Year 2000
compliance today, while providing the software platform designed to support new applications well into the 21st century. The
2000NOW program includes new products based on Melita's new modular, scalable architecture as well as product
upgrades, providing both investment protection for new customers and a migration path for existing customers. Through
2000NOW Melita again demonstrates its continued product leadership and customer commitment.
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'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.
This press release contains forward-looking statements relating to anticipated benefits of certain distribution relationships,
market penetration, operating results, product 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 Registration
Statement Form S-1 and on its most recent Form 10-Q, on file with the SEC. |
