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CCH REPORTS FIRST QUARTER FINANCIAL RESULTS

 CCH REPORTS FIRST QUARTER FINANCIAL RESULTS
 RIVERWOODS, Ill., April 23 /PRNewswire/ -- Commerce Clearing House,


Inc. (NASDAQ: CCLR) today reported revenues and earnings for the three months ended March 31, 1992.
 Net earnings of $19,137,000 decreased $6,456,000 (25.2 percent) from $25,593,000 for the first quarter of 1991. Net earnings per share of $0.55 decreased $0.18 as compared to $0.73 per share in 1991. Total revenues of $204,027,000 decreased $13,522,000 (6.2 percent) from $217,549,000 recorded for the comparable 1991 period.
 Declines in consolidated revenues were attributable to continuing revenue losses in the computer processing services segment that more than offset modest revenue gains in the publishing and legal information services segments.
 Operating earnings of $31,236,000 decreased $10,931,000 (25.9 percent) from $42,167,000. The computer processing services segment contributed significantly to the decline in operating earnings. Cost containment efforts could not keep pace with the revenue declines. Publishing and legal information services segments experienced declining operating margins of a smaller magnitude. Publishing results include costs associated with electronic product introduction and costs incurred in connection with the company's strategic planning initiative.
 Declining revenue in the computer processing services segment will continue. Customers are migrating from service bureau tax return processing toward "in-office" tax processing applications to reduce costs. while many customers select our prosystem fx or 1040 solutions product offerings, the company receives significantly less revenue than from service bureau processing.
 As part of our strategic planning initiative, the company is identifying and evaluating changes in operations that will be necessary to maintain the profitability of the tax return processing business. Development and approval of operating plans are scheduled to be finalized during the second quarter. At that time, the company anticipates recording a major restructuring charge to cover the costs associated with the decision including the effect of any impairment in the value of long-lived tangible and intangible assets.
 Due to the highly seasonal nature of computer tax return processing business, in which the greatest portion of revenue is realized in the first two calendar quarters, the first quarter results are not indicative of total calendar year operations.
 COMMERCE CLEARING HOUSE, INC.
 Consolidated Summary of Operations
 (Unaudited) (In thousands, except share data)
 Three Months Ended March 31: 1991 1992
 Revenues:
 Publishing $ 106,056 $ 105,268
 Computer Processing Services 73,996 88,614
 Legal Information Services 23,975 23,667
 $ 204,027 $ 217,549
 Operating Profits:
 Publishing $ 8,873 $ 10,695
 Computer Processing Services 21,547 30,280
 Legal Information Services 816 1,192
 31,236 42,167
 Other Income, Net 1,982 1,956
 Earnings Before Income Taxes 33,218 44,123
 Income Taxes 14,080 18,530
 Net Earnings $ 19,138 $ 25,593
 Earnings Per Share of Common Stock $.55 $.73
 Average Number of Shares Outstanding 34,836,404 35,022,178
 -0- 4/23/92
 /CONTACT: Mort J. Sullivan of Commerce Clearing House News Bureau, 708-940-4600/
 (CCLR) CO: Commerce Clearing House Inc. ST: Illinois IN: FIN SU: ERN


TQ -- NY111 -- 2046 04/23/92 15:32 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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