Carreker-Antinori Reports Record Fourth Quarter and Fiscal Year 1998 Financial Results.DALLAS--(BUSINESS WIRE)--March 22, 1999-- Doubles Fourth Quarter Net Income on 29% Rise in Revenues Carreker-Antinori (Nasdaq: CANI CANI Constant And Never-ending Improvement ) today announced financial results for the fourth fiscal quarter and fiscal year ended January January: see month. 31, 1999. The Company also announced the completion of its merger with Genisys Operation (Genisys). This press release will present financial results both before and after accounting for this transaction. Financial highlights excluding the Genisys transaction: Excluding the financial results of Genisys, revenues for the fourth quarter of fiscal 1998 increased 29.1% to $14.5 million compared to revenues of $11.3 million for the same period in 1997. Net income for the fourth quarter was $1.7 million or $.10 per 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. share compared to net income of $885,000 or $.06 per diluted share in fiscal 1997. Gross profit increased to $8.3 million, or 57.3% of revenues in the fourth quarter of fiscal 1998, compared to $6.3 million, or 56.1% of revenues in the fourth quarter of fiscal 1997, reflecting continued strength in software license sales and value-priced consulting engagements. Income from operations for the fourth quarter increased to $2.2 million, or 15.2% of revenues, compared to 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. of $1.5 million, or 12.9% of revenues a year ago. For the fiscal year ended, total revenues increased 29.3% to $52.4 million for fiscal 1998 from $40.5 million in fiscal 1997. For the same period, income from operations increased 50.7% to $7.6 million in fiscal 1998 from $5.0 million in fiscal 1997. Net income increased 78.9% to $5.5 million, or $0.34 per diluted share for fiscal 1998 from $3.1 million, or $0.23 per diluted share in fiscal 1997. "Banking industry consolidation continues as a major contributor to the strong demand we see for our business. Our high level relationships at the majority of Tier I banks in the U.S. allow us to cross-sell new offerings to existing customers, while expanding our presence in Tier III banks and other markets, such as in the UK and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. banks. Our profitability growth continues to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, our revenue growth, reflecting our commitment to controlling costs and enhancing shareholder value. We are confident in our business model and in our ability to continue delivering this type of consistent and profitable growth," said J. D. "Denny Denny may refer to:
Financial highlights including the Genisys transaction accounted for as a pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free : Revenues for the fourth quarter for fiscal 1998 increased 28.7% to $15.2 million compared to revenues of $11.8 million for the same period in fiscal 1997. Net income for the fourth quarter of fiscal 1998 was $1.4 million or $.08 per diluted share compared to net income of $763,000, or $.05 per share in fiscal 1997. Gross profit increased to $8.8 million, or 57.9% of revenues in the fourth quarter of fiscal 1998, compared to $6.6 million, or 56.1% of revenues in the fourth quarter of 1997. Income from operations for the fourth quarter of fiscal 1998 increased to $1.8 million, or 11.7% of revenues, compared to operating income of $1.3 million, or 10.7% of revenues a year ago. The shift in operating income as compared to results which exclude Genisys relates to a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. merger related expense of $485,000, or $0.03 per diluted share for the fourth quarter. For the fiscal year ended, total revenues increased 28.6% to $55.0 million in fiscal 1998 from $42.8 million in fiscal 1997. For the same period, income from operations increased 44.4% to $7.2 million in fiscal 1998 from $5.0 million in fiscal 1997. Net income increased 72.1% to $5.2 million, or $0.30 per diluted share for fiscal 1998 from $3.0 million, or $0.21 per diluted share in fiscal 1997. To facilitate this growth, consulting and management services fees for fiscal 1998 increased to $26.3 million, or 47.9% of revenues, compared to $21.3 million, or 49.8% of revenues for fiscal 1997. Software license fees for fiscal 1998 increased to $16.3 million, or 29.7% of revenues, compared to $11.2 million, or 26.2% of revenues for fiscal 1997. Software maintenance fees for fiscal 1998 increased to $5.0 million, or 9.1% of revenues, compared to $4.3 million, or 10.0% of revenues for fiscal 1997. Software implementation fees for fiscal 1998 increased to $6.6 million, or 11.9% of revenues, compared to $4.1 million, or 9.6% of revenues for 1997. Hardware and other sales for fiscal 1998, which fluctuate from quarter to quarter depending on customer demand for software and hardware packages, decreased to $775,000, or 1.4% of revenues, compared to $1.9 million, or 4.4% of revenues for fiscal 1997. Fourth Quarter Highlights: -- Genisys Merger: The company merged with Genisys Operation, Inc. (Genisys), a leading provider of track and trace software solutions to financial institutions. The transaction was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . This acquisition will enrich the value of the functional solutions offered, and the Company expects to take advantage of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the capabilities of the Genisys Internet-enabled products. -- Enterprise IT Services: A new Enterprise IT Services group was created and is being managed by experienced senior IT services executives. This new group will enable Carreker-Antinori to manage and implement larger scale and more far reaching information technology projects across multiple business areas for its clients, including systems implementation, integration, and project management services for enterprise-wide projects. -- Expansion of Best Practices Group: Carreker-Antinori expanded their Best Practices group whose focus is to reduce customers' costs and improve efficiency by helping them optimize optimize - optimisation their back office operations and associated technology investments in a way that will also allow them to better leverage those areas for greater product profitability. -- Expanded Tier III growth opportunities by signing two new alternative marketing channel agreements and launching two new products. Carreker-Antinori, Inc. is a leading provider of integrated consulting and software solutions that enable banks to increase their revenues and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. reduce their costs. The Company's offerings include revenue enhancement revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. , payment systems, and emerging solutions. The Company's customers include 70 of the largest 100 banks in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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. . In addition to historical information contained herein, other matters discussed in the news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, 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 32E of the Securities and Exchange Act of 1934, as amended, and are subject to the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein because of the factors discussed from time to time in the Company's public reports filed with the Securities and Exchange Commission, such as those discussed under "Risk Factors" included in the Company's prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. from its initial public offering dated May 20, 1998.
CARREKER-ANTINORI, INC.
Condensed Consolidated Statements of Operations
Including Genisys Operation, Inc.
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
Jan. 31, Jan. 31,
1999 1998 1999 1998
------- ------- -------- --------
Revenues:
Consulting and management
service fees $ 7,452 $ 4,674 $ 26,328 $ 21,314
Software license fees 4,992 5,100 16,327 11,223
Software maintenance fees 1,377 1,197 5,031 4,274
Software implementation fees 1,360 792 6,556 4,094
Hardware and other sales 56 79 775 1,876
------- ------ -------- --------
Total revenues 15,237 11,842 55,017 42,781
Costs of revenues:
Consulting and management
service fees 4,390 3,203 16,150 12,394
Software license fees 410 363 1,216 1,412
Software maintenance fees 701 486 2,387 1,923
Software implementation fees 889 1,080 3,862 4,156
Hardware and other sales 33 65 560 1,556
------- ------ ------ -------
Total cost of revenues 6,423 5,197 24,175 21,441
------- ------- ------ -------
Gross profit 8,814 6,645 30,842 21,340
------- ------ ------ -------
Operating costs
and expenses:
Selling, general and
administrative 5,182 3,988 18,444 12,777
Merger related costs 485 -- 485 --
Research and development 1,363 1,391 4,763 3,610
------- ------ ------ -------
Total operating costs
and expenses 7,030 5,379 23,692 16,387
Income from operations 1,784 1,266 7,150 4,953
Other income 335 29 925 79
------- ------ ------- -------
Income before provision for
income taxes 2,119 1,295 8,075 5,032
Provision for income taxes 714 532 2,903 2,027
------- ------ -------- --------
Net income $1,405 $ 763 $5,172 $3,005
======= ====== ======== ========
Basic earnings per share $0.08 $0.06 $0.32 $0.24
======== ====== ======== ========
Diluted earnings per share $0.08 $0.05 $0.30 $0.21
======= ====== ======== ========
Shares used in computing basic
earnings per share 17,964 12,796 16,224 12,717
Shares used in computing
diluted earnings per share 18,771 15,060 17,504 14,484
Note: Includes the merger with Genisys Operations, Inc. accounted for
on a pooling of interest basis.
CARREKER-ANTINORI, INC.
Consolidated Condensed Balance Sheets
Including Genisys Operations, Inc. Merger
(In thousands)
Unaudited
ASSETS January 31, January 31,
1999 1998
------------- -----------
Cash and cash equivalents $33,550 $ 2,485
Accounts receivable, net of allowance 27,604 13,270
Total current assets 62,571 17,230
Furniture, equipment, and leasehold
improvements, net 2,673 1,664
Software costs capitalized, net 3,279 2,263
Total assets 68,558 21,486
LIABILITIES AND EQUITY
Accounts payable $ 2,045 $ 2,043
Deferred revenue 5,348 4,879
Total current liabilities 10,808 9,708
Deferred income taxes 603 982
Common stock subject to put -- 2,000
Stockholders' equity 57,147 8,796
Total liabilities and stockholders' equity 68,558 21,486
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