Citation Computer Systems reports fourth-quarter and full-year fiscal 1997 results.ST. LOUIS--(BUSINESS WIRE)--May 8, 1997--CITATION Computer Systems, 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 : CITA CITA Committee for the Implementation of Textile Agreements CITA Canadian Institute for Theoretical Astrophysics CITA Center for Information Technology Accommodation (US; now the GSA IT Accommodation Division) ) today announced fourth quarter and full year results for its 1997 fiscal year. For its fiscal fourth quarter, which ended March 31, 1997, CITATION Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. reported break-even 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. from ongoing operations, excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and UK operations, compared with operating income of $1.6 million on the same basis a year ago. Full-year 1997 operating income from ongoing operations was $1.2 million, compared with $4.2 million in the prior year. The 1997 fourth quarter included charges, net of tax, totaling $0.50 a share related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and ultimate disposal of CITATION's operations in the United Kingdom. The company closed the sale of those operations to Health Systems Limited on March 17, 1997. The 1996 fourth quarter included a special charge of $0.05 a share related to the costs associated with the consolidation of the company s Madison, Wisconsin Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison. The 2006 population estimate of Madison was 223,389, making it the second largest city in Wisconsin, after Milwaukee, and office into its St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. operation. Including these restructuring charges, CITATION had a net loss in its fiscal 1997 fourth quarter of $1.9 million, or $0.50 per share, compared with net income of $0.8 million, or $0.20 a share a year ago. Excluding revenues from the United Kingdom operation, fourth- quarter 1997 revenues were $4.9 million, compared with a record $7.0 million in revenues in the prior year. Including UK revenues, total revenues were $5.0 million, compared with $8.3 million in the fourth quarter of fiscal 1996. J. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Copper, CITATION's chairman and chief executive officer, said: "While this wasn't was·n't Contraction of was not. wasn't was not wasn't be a rewarding quarter from a financial perspective, we did meet expectations by breaking even on an operating basis. More importantly, we have now put the volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the and drain One side of a field effect transistor. When the gate is pulsed, current flows from the source to the drain, or vice versa depending on the design. See collector. (jargon) drain of our United Kingdom operations behind us and we re now positioned to operate more productively in the international marketplace. Further, our restructured sales force is showing good progress, closing 14 contracts in the quarter, including eight to new customers and two that involve sales of comprehensive systems. And we ve rebuilt our sales pipeline, with $20 million in qualified business at year end, compared with just $3 million in November November: see month. ." For the full 1997 fiscal year, operating income, excluding $3.7 million (after tax) in charges related to the UK restructuring and operating results, was $1.2 million, compared with $4.2 million before office consolidation and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. charges and UK operating results a year ago. Net income before the charges was $0.7 million, or $0.19 a share, compared with $2.6 million, or $0.69 a share, in the prior year. Including the charges, CITATION had a net loss of $3.3 million, or $0.87 a share, in fiscal 1997, compared with net income of $1.4 million, or $0.37 per share, in fiscal 1996. The company also announced that total revenues from ongoing operations for its 1997 fiscal year were $21.1 million, down 4 percent from $22.0 million in fiscal 1996. Including the results of UK operations, fiscal 1997 revenues from sales and service of information management systems were $22.0 million, down 12 percent from $25.1 million in fiscal 1996. Revenue from the sales of systems declined 20 percent, from $16.2 million in fiscal 1996 to $13.0 million in fiscal 1997, due to lower UK system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. as well as a smaller percentage of larger comprehensive system sales in the current year. Service revenue increased from $8.8 million in fiscal 1996 to $9.0 million in fiscal 1997. "As much as anything, our results reflect a general downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the healthcare information systems industry," Copper said. "However, the signs are good that we ve weathered the storm. We ve revitalized re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. our sales force, and we re bringing new products to market." CITATION provides comprehensive client/server An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). information systems for clinical areas, financial/administrative areas, and a community- wide registration system. CITATION has 600 systems in more than 450 healthcare facilities throughout 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. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the United Kingdom, Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and other countries. CITATION has its headquarters in St. Louis, Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. .The preceding discussions of expected future results constitute 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. . Actual results could differ from expected results due to various factors, including whether final costs exceed estimates and other factors discussed in company filings with the Securities and Exchange Commission. -0-
CITATION -- The Best Information Systems Value in Healthcare
CITATION Computer Systems, Inc.
Condensed Summary of Operations
(In thousands, except per share amounts)
Three Months Ended
3/31/97 3/31/96
(Unaudited)
Net system sales and service revenues
System sales $2,741 $6,071
Service revenue 2,216 2,243
Total revenues 4,957 8,314
Cost of products and services sold
System costs 2,043 2,894
Service costs 567 566
Total costs of products and services sold 2,610 3,460
Gross profit 2,347 4,854
Research and development 609 356
Selling and administrative expense 1,944 2,956
Office consolidation and relocation - 322
Restructuring costs and loss on sale of UK operations 2,831 -
Operating income (loss) (3,037) 1,220
Other income (expense) 16 40
Secondary offering expense - -
Income (loss) before income taxes (3,021) 1,260
Provision (benefit) for income taxes (1,125) 490
Net income (loss) ($1,896) $ 770
Net income (loss) per share - fully diluted ($0.50) $ 0.20
Weighted average shares outstanding - fully diluted 3,797 3,910
CITATION Computer Systems, Inc.
Condensed Summary of Operations
(In thousands, except per share amounts)
Twelve Months Ended
3/31/97 3/31/96
(Audited)
Net system sales and service revenues
System sales $12,972 $16,216
Service revenue 9,033 8,835
Total revenues 22,005 25,051
Cost of products and services sold
System costs 8,337 8,532
Service costs 2,313 2,538
Total costs of products and services sold 10,650 11,070
Gross profit 11,355 13,981
Research and development 3,268 1,672
Selling and administrative expense 8,516 8,711
Office consolidation and relocation - 1,380
Restructuring costs and loss on sale of UK operations 4,298 -
Operating income (loss) (4,727) 2,218
Other income (expense) (10) 95
Secondary offering expense (543) -
Income (loss) before income taxes (5,280) 2,313
Provision (benefit) for income taxes (2,006) 901
Net income (loss) ($3,274) $1,412
Net income (loss) per share - fully diluted ($0.87) $ 0.37
Weighted average shares outstanding - fully diluted 3,773 3,780
CITATION Computer Systems, Inc.
Proforma Condensed Summary of Operations -
with UK Shown Separately (Note 1)
(In thousands, except per share amounts)
Three Months Ended
3/31/97 3/31/96
(Unaudited)
Total revenues $4,885 $6,956
Total costs of products and services sold 2,407 2,378
Gross profit 2,478 4,578
Research and development 609 332
Selling and administrative expense 1,884 2,669
Operating income (loss) (15) 1,577
Other income (expense), net 16 40
Income before income taxes from ongoing operations 1 1,617
Provision for income taxes - 630
Net income from ongoing operations 1 987
Restructuring costs, operating results and loss
on sale of UK operations, net (1,897) (21)
Office consolidation and relocation, net - (196)
Secondary offering expense, net - -
Net income (loss) as reported ($1,896) $770
Earnings per share:
Ongoing operations - $0.25
Restructuring/operations - UK ($0.50) -
Restructuring charge - Madison - (0.05)
Secondary offering expense - -
Total E.P.S. - income (loss) ($0.50) $0.20
Weighted average shares outstanding - fully diluted 3,797 3,910
(Note 1) Proforma presentation deconsolidates the results of
operations of the UK and presents UK results/loss, office
consolidation and relocation, and secondary offering
expenses as single line items for all periods presented.
CITATION Computer Systems, Inc.
Proforma Condensed Summary of Operations -
with UK Shown Separately (Note 1)
(In thousands, except per share amounts)
Twelve Months Ended
3/31/97 3/31/96
(Unaudited)
Total revenues $21,097 $21,983
Total costs of products and services sold 9,260 8,730
Gross profit 11,837 13,253
Research and development 3,106 1,512
Selling and administrative expense 7,558 7,511
Operating income (loss) 1,173 4,230
Other income (expense), net (10) 95
Income before income taxes from ongoing operations 1,163 4,325
Provision for income taxes 442 1,687
Net income from ongoing operations 721 2,638
Restructuring costs, operating results and loss
on sale of UK operations, net (3,658) (384)
Office consolidation and relocation, net - (842)
Secondary offering expense, net (337) -
Net income (loss) as reported ($3,274) $1,412
Earnings per share:
Ongoing operations $0.19 $0.69
Restructuring/operations - UK ($0.97) (0.10)
Restructuring charge - Madison - (0.22)
Secondary offering expense (0.09) -
Total E.P.S. - income (loss) ($0.87) $0.37
Weighted average shares outstanding - fully diluted 3,773 3,780
(Note 1) Proforma presentation deconsolidates the results of
operations of the UK and presents UK results/loss, office
consolidation and relocation, and secondary offering
expenses as single line items for all periods presented.
CONTACT: CITATION Rick Neece, 314/579-7900 or Ned Maniscalco, 314/982-1700 |
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