Broadway & Seymour Reports Fourth Quarter and Year-end 1998 Operating Results.CHARLOTTE, N.C.--(BUSINESS WIRE)--Feb. 18, 1999--Broadway & Seymour Seymour. 1 Town (1990 pop. 14,288), New Haven co., SW Conn., on the Naugatuck River; settled c.1678, inc. 1850. The town's manufacturing industries decline since the mid-1900s, but cable and wire, electronic components and hardware, car racks, and , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BSIS BSIS Bureau of Security and Investigative Services (California, USA) BSIS Battlefield Strategic Information System ) reported a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net loss of $2.2 million, or $0.27 per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), on revenue of $18.3 million for the fourth quarter ended December December: see month. 31, 1998. For the same period of 1997, the Company reported net income of $801,000, or $0.09 per share, on revenue of $21.3 million. For the year ended December 31, 1998, the Company reported a consolidated net loss of $7.6 million, or $0.86 per share (basic and diluted), on revenue of $69.0 million. For fiscal year 1997, the Company reported consolidated net income of $2.9 million, or $0.32 per share, on revenue of $79.6 million. Fourth quarter 1998 revenue decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14% when compared to the fourth quarter of 1997. Consolidated revenue for fiscal year 1998 decreased approximately 13.1% from 1997 levels. Elite Information Systems, Inc. ("Elite"), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Company, reported an increase of 87%, to $12.6 million, in fourth quarter 1998 revenue, when compared with the fourth quarter of 1997. For fiscal year 1998, revenue increased to $41.7 million, or 34%, when compared to 1997. Elite's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 29% during the year, to $3.2 million, or 7.7% of revenue. Fourth quarter 1998 revenue for the Company's Customer Relationship Management ("CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ") operation decreased $.3 million when compared to third quarter levels, while annual revenue decreased by approximately 43%, to $24.0 million, when compared to 1997. CRM posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for 1998 of $11.0 million, compared to operating income of $5.9 million in 1997. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Alan Stanford Alan Stanford is an Irish actor and director Early Career As a director Alan Stanford began his career at the Project Arts Centre where his productions included works by Shaw, Arbuzov, Graham Greene, Brecht, Dürrenmatt and Shakespeare. remarked, "Our 1998 consolidated financial results are disappointing as the strong financial performance of Elite was, and continues to be, diluted by the early-stage nature of our CRM operation. On a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." basis, Elite had a strong quarter and year. Elite is enjoying excellent success in its legal market while it expands into new industry verticals and international markets with its leading-edge technology for time tracking, billing and office automation. For CRM, we continue to invest in our two-year old TouchPoint Touchpoints are all of the physical, communication and human interactions audiences experience over their relationship with an organization.[1] Touchpoint examples: Physical
Stanford continued, "Today we are also releasing segment data that will allow shareowners to better evaluate the financial performance of each of the Company's businesses on a stand-alone basis. We are committed to resolving the conflict between our two dissimilar businesses in order to improve shareholder value while continuing to successfully address the needs of our customers and employees." Also commenting on the results, Keith Keith may refer to: People with the given name Keith:
The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $26 million, an increase of 84.1% over 1997. Elite's margin also improved during the fourth quarter, increasing to 46% from 42.1% in the third quarter." "Fourth quarter 1998 results for the Company's CRM operation were similar with third quarter levels. However, the recently announced agreement with Chase Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). is expected to improve the operating results of this unit beginning in the first quarter of 1999. Consequently, the Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. & Seymour quarterly loss per share is expected to be reduced by about 50% in the near term." Mr. Hall concluded, "The Company's balance sheet remains strong. Through our cost reduction efforts, cash remained above $15 million, similar to the end of the third quarter. We expect cash to remain in the $15 million range during the first half of the year. Working capital stands at $14.1 million and the Company continues to be without debt." Broadway & Seymour also announced today that Mr. Christopher K. Poole Poole, town (1991 pop. 122,815), Dorset, S England, on the north side of Poole Harbour. Poole has shipbuilding, pottery-making, and other industries. It is a naval supply station and a seaplane base with considerable coastal trade. There is also a technical college. , President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Elite, has been elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to the Company's Board of Directors. The date of the Annual Meeting of Stockholders is set for 10:00 a.m., Thursday Thursday: see week. , May 27, 1999. The record date for the determination of stockholders entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to vote at the Annual Meeting will be April 16, 1999. Broadway & Seymour, Inc. (NASDAQ:BSIS) is a software product and services company, providing integrated solutions to the financial, legal and professional services markets. The Company operates Elite Information Systems, Inc., a wholly owned subsidiary located in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Elite offers a leading integrated time tracking, invoicing in·voice n. 1. A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill. 2. The goods or services itemized in an invoice. tr.v. , general ledger General Ledger A company's accounting records. This formal ledger contains all the financial accounts and statements of a business. Notes: The ledger uses two columns: one records debits, the other has offsetting credits. accounting and other office management software products to the legal and professional services industries. The Company's Customer Relationship Management business, located in Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. , offers leading software products and services, including TouchPoint(tm), CRISP 1. CRISP - A Lisp-like language and compiler for the IBM 370 written by Jeff Barnett of SDC, Santa Monica, CA, USA in the early 1970s. It generalised Lisp's two-part cons nodes to n-part nodes. 2. crisp - (Or "discrete") The opposite of "fuzzy". (tm) and BANCStar(R), for banks and other financial institutions. Note: This press release may contain certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 27A of the Securities Act of 1933, as amended, that represent the Company's expectations or beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Factors that could influence the matters discussed in certain forward-looking statements include the timing and amount of revenue that may be recognized by the Company, continuation continuation - continuation passing style of current expense trends, absence of unforeseen changes in the Company's markets, continued acceptance of the Company's services and products and general changes in the economy. These factors of risk are also detailed from time to time in the Company's SEC report, including the Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997, and the annual report to shareholders. Actual results may vary materially. ---FINANCIAL TABLES FOLLOW--- -0-
Broadway & Seymour, Inc.
Consolidated Balance Sheet
(In thousands)
Dec. 31, Dec. 31,
1998 1997
--------- --------
Assets
Current assets:
Cash and cash equivalents $ 15,273 $ 17,965
Receivables 28,417 29,372
Deferred income taxes 6,131 2,945
Other current assets 1,930 2,128
----- -----
Total current assets 51,751 52,410
Property and equipment 5,167 5,154
Software costs 3,309 3,630
Intangible assets 4,782 6,064
Other assets 87 85
------ ------
$ 65,096 $ 67,343
====== ======
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and current portion of
long-term debt $ - $ 138
Accounts payable-trade 5,070 6,325
Accrued compensation 3,974 2,295
Estimated liabilities for contract losses 439 1,162
Other accrued liabilities 4,319 3,807
Deferred revenue 22,710 11,732
Income taxes payable 1,169 2,379
------ ------
Total current liabilities 37,681 27,838
Deferred income taxes 1,392 1,435
Other Liabilities 1,004 697
Stockholders' equity:
Common stock 92 92
Paid-in capital 38,696 38,518
Accumulated deficit (8,342) (745)
------ ------
30,446 37,865
Less treasury stock, at cost (5,427) (492)
------ ------
25,019 37,373
------ ------
$ 65,096 $ 67,343
====== ======
Broadway & Seymour, Inc.
Consolidated Statement of Operations
(In thousands, except per share data)
Three months Twelve months
ended ended
Dec. 31, Dec. 31,
1998 1997 1998 1997
(unaudited)
------------------------- -------
Net revenue $18,345 $21,344 $69,035 $79,559
------- ------- ------- -------
Operating expenses:
Cost of revenue 12,432 13,066 50,485 49,794
Research and
development 2,198 1,618 7,502 5,868
Sales and marketing 4,294 2,929 13,234 11,101
General and
administrative 2,848 2,584 11,088 10,151
Restructuring charge
(credit) 639 (706)
------- ------- ------- -------
Total operating
expenses 21,772 20,197 82,948 76,208
------- ------- ------- -------
Operating income (loss)
(3,427) 1,147 (13,913) 3,351
Gain on disposition of
non-strategic units 155 1,917 1,155
Interest income, net 127 251 857 832
------- ------- ------- -------
Income (loss) before
income taxes (3,145) 1,398 (11,139) 5,338
Provision (benefit) for
income taxes (924) 597 (3,542) 2,399
------- ------- ------- -------
Net income (loss) ($2,221) $ 801 ($7,597) $2,939
======= ======= ======= =======
Net income (loss) per common
and common equivalent shares:
Earnings (loss) Per
Share - Basic ($0.27) $ 0.09 ($0.86) $ 0.32
======= ======= ======= =======
Earnings (loss) Per
Share - Diluted ($0.27) $ 0.09 ($0.86) $0.32
======= ======= ======= =======
Broadway & Seymour, Inc.
Segment Statement of Operating Income (Loss)
For the three months ended December 31, 1998
(In thousands, unaudited)
Reconciling Consoli-
Elite CRM TMC Hqtrs(1) Items(2) dated
Revenue $ 12,585 $4,862 $ 748 $ - $ 150 $ 18,345
Cost of revenue 6,745 4,392 605 690 - 12,432
-------------------------------------------------
Gross margin 5,840 470 143 (690) 150 5,913
Research and
development 1,058 1,140 - - - 2,198
Sales and marketing 2,977 1,317 - - - 4,294
General and
administrative 635 1,072 37 1,104 - 2,848
------------------------------------------------
Operating income
(loss) $1,170 $(3,059)$ 106 $(1,794) $ 150 $ (3,427)
-------------------------------------------------------
------------------------------------------------
Broadway & Seymour, Inc.
Segment Statement of Operating Income (Loss)
For the three months ended December 31, 1997
(In thousands, unaudited)
Reconciling Consoli-
Elite CRM TMC Hqtrs(1) Items(2) dated
Revenue $ 6,746 $ 13,813 $ 630 $ - $ 155 $ 21,344
Cost of revenue 4,410 7,645 507 504 - 13,066
-------------------------------------------------
Gross margin 2,336 6,168 123 (504) 155 8,278
Research and
development 484 1,134 - - - 1,618
Sales and marketing 1,683 1,246 - - - 2,929
General and
administrative 447 832 46 1,259 - 2,584
-------------------------------------------------
Operating income
(loss) $ (278)$ 2,956 $ 77 $(1,763) $ 155 $ 1,147
-------------------------------------------------
(1) Headquarters includes the non-allocated costs such as
professional fees, property and casualty insurance, directors' and
officers' insurance, the costs of the corporate executive and internal
legal departments, restructuring charges and amortization expense
associated with the excess costs over fair market value of assets
acquired in the Elite and TMC purchase transactions.
(2) Reconciling items include the results of operations from
disposed business units.
Broadway & Seymour, Inc.
Segment Statement of Operating Income (Loss)
For the twelve months ended December 31, 1998
(In thousands, unaudited)
Reconciling Consoli-
Elite CRM TMC Hqtrs(1) Items(2) dated
Revenue $ 41,693 $ 23,973 $ 2,805 $ - $ 564 $ 69,035
Cost of revenue 24,161 21,804 2,266 2,254 - 50,485
-------------------------------------------------
Gross margin 17,532 2,169 539 (2,254) 564 18,550
Research and
development 3,059 4,443 - - - 7,502
Sales and marketing 8,901 4,333 - - - 13,234
General and
administrative 2,368 4,413 191 4,116 - 11,088
Restructuring - - - 639 - 639
------------------------------------------------
Operating income
(loss) $ 3,204 $(11,020) $ 348 $(7,009) $ 564 $(13,913)
------------------------------------------------
Broadway & Seymour, Inc.
Segment Statement of Operating Income (Loss)
For the twelve months ended December 31, 1997
(In thousands, unaudited)
Reconciling Consoli-
Elite CRM TMC Hqtrs(1) Items(2) dated
Revenue $ 31,086$ 42,270 $ 2,847 $ - $ 3,356 $ 79,559
Cost of revenue 19,430 24,087 2,337 2,016 1,924 49,794
------------------------------------------------
Gross margin 11,656 18,183 510 (2,016) 1,432 29,765
Research and
development 1,470 3,415 - - 983 5,868
Sales and marketing 5,933 4,720 23 - 425 11,101
General and
administrative 1,778 4,110 215 4,048 - 10,151
Restructuring - - - (706) - (706)
------------------------------------------------
Operating income
(loss) $ 2,475 $ 5,938 $ 272 $(5,358) $ 24 $ 3,351
------------------------------------------------
(1) Headquarters includes the non-allocated costs such as
professional fees, property and casualty insurance, directors' and
officers' insurance, the costs of the corporate executive and internal
legal departments, restructuring charges and amortization expense
associated with the excess costs over fair market value of assets
acquired in the Elite and TMC purchase transactions.
(2) Reconciling items include the results of operations from
disposed business units.
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