Computer Software Innovations, Inc. Reports Third Quarter and Nine Months 2006 Financial Results.EASLEY, S.C. -- Computer Software Innovations, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CSWI): * Third Quarter Software Applications Segment Revenues Increase 40% to $1.45 Million * Nine Months Revenues Increase 24% to $22.7 Million from $18.3 million for 2005 Computer Software Innovations, Inc. (OTCBB: CSWI), CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International Technology Outfitters[TM] ("CSI") today announced its financial results for the three and nine months ended September 30, 2006. CSI posted revenue of approximately $7.1 million for the quarter ended September 30, 2006, a 2.5% increase over the $7.0 million for the comparable period ended September 30, 2005. For the three months ended September 30, 2006, software applications revenues increased 40% due to increases in reoccurring revenue generated from our software support agreements coupled with increased sales of third party software. Higher gross profit in the software applications segment was not only the result of the increased revenues, but were also achieved with a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix and effective cost management. The technology solutions segment revenues decreased 4.0%. A significant portion of this decrease was due to large technology sales of primarily Internet-protocol telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. product in prior periods not reoccurring in the current period, partially offset by increased sales of engineering services and third party service agreements. Gross profit for the quarter was approximately $1.7 million, an increase of 16.7% over the prior year third quarter. The increase in gross profit can be attributed to the improvements in software applications gross profit partially offset by the decline in technology solutions gross profit. 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. for the quarter was approximately $186,000, a slight increase over the same period in the prior year. CSI posted a Net Loss for the quarter ended September 30, 2006 of approximately $39,000 or $0.01 loss per basic share, compared to net income of approximately $778,000 and $0.06 earnings 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 for the same period last year. The change in Net Income was due primarily to a $1.2 million ($715,000 net of tax) unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on warrants recorded in the prior year which did not recur in the current year. For the nine month period ended September 30, 2006, revenues were $22.7 million, up 23.6% from approximately $18.3 million for the comparable period a year ago. Gross profit for the nine months was approximately $5.4 million, an increase of 4.8% over the prior year nine months. Operating income was approximately $332,000 for the nine month period ended September 30, 2006, down from the $384,000 for the comparable nine month period ended September 30, 2005. Net Loss was $67,905 as compared to the Net Loss of $1.1 million for the nine months ended September 30, 2005. For the nine months ended September 30, 2006, increased software sales volumes and product mix contributed to the growth in revenues, coupled with an increase in technology sales. The decrease in Operating income for the nine month period resulted primarily from decreases in the technology solutions gross profit, coupled with increased non-cash, stock based compensation costs and increases in professional and legal compliance related costs primarily associated with Sarbanes-Oxley compliance work in 2006. "We are pleased to see the continued growth of our software applications segment, which continues to show strong margins. The focus on greater software sales penetration has helped in offsetting the changes in product mix within our technology business. These improvements in our software applications segment have also helped to offset the decreases in E-Rate related revenues we have experienced in 2006. We are hopeful we will see additional E-Rate funding in the fourth quarter, but can give no assurance that E-Rate related revenue will improve by year end. We are committed to improving our technology solutions segment sales by focusing on geographic expansion in connection with our recently announced proposed acquisition as well as with sell through opportunities within our existing client base. We remain focused on securing new accounts in each segment of our business by expanding product offerings and delivering greater long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues via our software and engineering services," said Nancy Hedrick, 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. . Conference Call Announcement The conference call to discuss our third quarter and related nine month operating results will take place at 11:00 a.m. Eastern, on Monday, November 20, 2006. Anyone interested in participating should call 888-222-2994 if calling within 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. , or 913-905-1084 if calling internationally and enter pass code 4282521, approximately five to ten minutes prior to the 11:00 a.m. call. There will be a playback Playback could mean:
The call is also being webcast and may be accessed via CSI's website at www.csioutfitters.com . The webcast replay will be available through December 20, 2006. About Computer Software Innovations, Inc. Computer Software Innovations, Inc. (OTCBB:CSWI), CSI Technology Outfitters[TM], is a full service company providing software and technology solutions primarily to public sector organizations. The software solutions include financial management, billing and revenue management, school activity accounting, lesson planning and automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. . The technology solutions include IP telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. , IP video surveillance, visual communications, interactive classrooms, network security and traffic monitoring, infrastructure design, wireless solutions, network management, engineering services and hardware solutions. CSI's client base includes school districts, higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , municipalities, county governments, and other non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. . Currently, more than 400 public sector organizations utilize CSI's software systems and network integration services. Additional information on CSI can be obtained through its website at www.csioutfitters.com. Forward-Looking and Cautionary Statements Certain information contained in this news release includes 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. that involve substantial risk and uncertainties. Any statement in this news release that is not a statement of an historical fact constitutes a "forward-looking statement." Among other things, these statements relate to our financial condition, results of operations and business. When used in this news release, these forward-looking statements are generally identified by the words or phrases "may," "expect," "anticipate," "plan," "believe," "seek," "estimate," "project" or words of similar import. These forward-looking statements are not guarantees of future performance. These statements are based on management's expectations that involve a number of business risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date that we make them. For more information on factors that could affect expectations, see the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005, and other reports from time to time filed with or furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. to the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion