CSG Systems International, Inc. Reports Second Quarter 2008 Results.Revenues of $116.9 Million; Net Income of $0.40 Per Share ENGLEWOOD, Colo. -- CSG CSG - constructive solid geometry Systems International, Inc. (Nasdaq: CSGS CSGS Computer Systems Group Software ), a leading provider of customer care and billing solutions, today reported results for the quarter ended June 30, 2008. Second Quarter 2008 Highlights: * Results from operations were as follows: total revenues were $116.9 million; 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. was $21.9 million; and net income was $13.3 million, or $0.40 per diluted share. * Cash flows from operations for the quarter were approximately $47 million, and were positively impacted by favorable changes in working capital, primarily as a result of the reduction in the accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying balance. * On April 30, 2008, CSG closed on its acquisition of DataProse, Inc., a privately-held provider of statement presentment and direct mail services headquartered in Oxnard, California Oxnard is the largest city in Ventura County, California in terms of population. It is located at the western edge of the fertile Oxnard Plain, and is one of the world's most important agricultural centers, with its distinction as the strawberry and lima bean capital. . * On July 14, 2008, CSG announced that it had entered into a restated and amended multi-year Master Subscriber Management System Agreement with Comcast, CSG's largest client, which extends CSG's contractual relationship with Comcast through December 31, 2012. * CSG recently signed a contract with Brink's Home Security, which will bring 670,000 new customer statements and letters to our print and mail platform, and further industry diversification to CSG's revenue base. "Today's marketplace is more competitive than ever. As consumers have increasing choices of where to buy, superior customer service has become a requirement," said Peter Kalan, Chief Executive Officer and President of CSG Systems International, Inc. "We continue to deliver innovative solutions that enable our clients to build strong customer relationships, provide compelling products and services, and allow them to more effectively engage and transact An earlier e-commerce system for the Web from Open Market that included order capture and secure order fulfillment using credit cards, ecash and other payment systems. It included customer service and subscription administration capabilities as well as an integrated database for reporting with their customers in intelligent ways." [TABLE OMITTED] Second Quarter 2008 Results From Operations Revenues. Total revenues for the second quarter of 2008 were $116.9 million, which represents an increase of 17 percent when compared to $99.5 million for the same period in 2007, and an increase of three percent when compared to $113.6 million for the first quarter of 2008. * The increase in year-over-year revenues relates primarily to the additional revenues generated from the businesses CSG has acquired over the past twelve months, with the remaining portion of the increase related to organic growth factors. * The sequential quarterly increase relates primarily to the acquisition of DataProse on April 30, 2008. Results of Operations. Net income presented in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") for the second quarter of 2008 was $13.3 million ($0.40 per diluted share), compared to $15.6 million ($0.37 per diluted share) for the same period last year, and $14.8 million ($0.45 per diluted share) for the first quarter of 2008. The increase in year-over-year earnings per diluted share is primarily the result of a lower number of outstanding shares in the second quarter of 2008, due to the completion of CSG's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program in late 2007. [TABLE OMITTED] [TABLE OMITTED] Comcast Renewal On July 14, 2008, CSG announced that it had entered into a restated and amended multi-year Master Subscriber Management System Agreement with Comcast that extends CSG's contractual relationship with Comcast through December 31, 2012. CSG's previous contract with Comcast was scheduled to expire on December 31, 2008. The new agreement is effective July 1, 2008, and the expected scope of the customer care and billing products and services to be utilized by Comcast under the new agreement is consistent with the previous contract. See CSG's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed on July 14, 2008, for additional details and key terms of the new agreement. [TABLE OMITTED] [TABLE OMITTED] Full Year 2008 Financial Guidance A summary of CSG's financial guidance for the full year 2008 is as follows. Overall, CSG's current expectations are consistent with, or slightly better than its previous guidance.
>
2008 Full Year
Revenues >
$470-$475 million
Earnings per Diluted Share >
$1.58-$1.64
Cash flows from Operations >
$115-$120 million
We expect the total of our non-cash items related to depreciation, amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , and stock-based compensation for 2008 to be approximately $45 million. Conference Call CSG will host a one-hour conference call on Tuesday, July 22, at 5 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , to discuss CSG's second quarter results. The call will be carried live and archived on the Internet. A link to the conference call is available at www.csgsystems.com. Additional Information For additional information about CSG, please visit CSG's web site at www.csgsystems.com. Additional information can be found in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the web site. About CSG Systems Headquartered in Englewood, Colorado Englewood is a city in Arapahoe County, Colorado, USA. As of 2005, the city is estimated to have a total population of 32,350.[5] It is part of the Denver-Aurora Metropolitan Area. , CSG is a leading provider of outsourced solutions that facilitate customer interaction management on the behalf of our clients, generating a large percentage of revenues from the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. cable and Direct Broadcast satellite ("DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. ") communications markets. Our solutions also support an increasing number of other industries such as financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , utilities, telecommunications, and home security. Our solutions manage key customer interactions such as set-up and activation of customer accounts, sales support and marketing, order processing, invoice calculation (i.e., customer billing), production and mailing of monthly customer invoices, management reporting, electronic presentment and payment of invoices, automated and interactive messaging, and deployment and management of the client's field technicians to the customer's home. Our unique combination of solutions, services, and expertise ensure that our clients can rapidly launch new service offerings, improve operational efficiencies, and deliver a high-quality customer experience in a competitive and ever-changing marketplace. For more information, visit our website at www.csgsystems.com. 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. This news release contains forward-looking statements as defined under the Securities Act of 1933, as amended, that are based on assumptions about a number of important factors and involve risks and uncertainties that could cause actual results to differ materially from what appears in this news release. These factors include, but are not limited to: 1) the concentration of approximately two-thirds of CSG's revenues with four clients; as a result, the loss of business from any one of those clients could potentially have a material adverse impact to CSG's financial results; 2) continued market acceptance of CSG's Advanced Convergent Platform (ACP (Associate Computing Professional) The award for successful completion of an examination in computers offered by the ICCP. It is geared to newcomers in the computing field. For more information, visit www.iccp.org. ACP - Algebra of Communicating Processes ) and related products and services; 3) CSG's ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner; 4) CSG's dependency on the North American communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. ; as a result, key market factors such as further industry consolidation, new market entrants that may not be clients of CSG, economic conditions, and/or the financial status of CSG clients may affect CSG's ability to maintain and expand market share; 5) increasing competition in our market from companies of greater size and with broader presence in the communications sector, thus exerting greater influence over client buying decisions; 6) CSG's ability to successfully integrate and manage acquired businesses, technology or assets to achieve the expected strategic, operating and financial goals established for such acquisitions; 7) CSG's continued ability to protect its intellectual property rights; and 8) CSG's dependency on a variety of computing environments and communications networks, thus subjecting CSG to the risks of extended interruptions, outages, unauthorized access and corruption of data. This list is not exhaustive and readers are encouraged to review the additional risks and important factors described in CSG's reports on Forms 10-K and 10-Q and other filings made with the SEC. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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