Cover-All Technologies Inc. Announces Third Quarter 2009 Financial Results.Company Reports 11(th) Consecutive Profitable Quarter Continuing Revenue Increases 15.7% Year-to-Date FAIRFIELD, N.J. -- Cover-All Technologies Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : COVR.OB), a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. ("Cover-All" or the "Company"), today announced financial results for the third quarter ended September 30, 2009. Operational Highlights: * Continuing revenue (maintenance and ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). revenue from contracts) for the first nine months of 2009 was $5.3 million, up 15.7% compared to the $4.6 million in the prior-year period. Continuing revenue for the third quarter of 2009 was $1.8 million, up 10.5% from $1.6 million in the same period in 2008. * Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenue for the first nine months of 2009 was $2.6 million, up 16.5% compared to $2.2 million in the same period in 2008. Professional services revenue for the third quarter of 2009 was $599,000, down 5.6% compared to $635,000 for the same period in 2008. * Total expenses (cost of revenue and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ) for the first nine months of 2009 were flat at $7.7 million, compared to $7.7 million in the same period in 2008. * Net income for the nine months ended September 30, 2009 was $650,000, or $0.03 per share, compared to $2.6 million, or $0.11 per share, in the same period of 2008. Net income for the three months ended September 30, 2009 was $21,000, or $0.00 per share, compared to $1.7 million, or $0.07 per share, in the same quarter of 2008. * The Company's balance sheet remains strong with stockholders' equity at a record $8.0 million as of September 30, 2009. The Company completed the third quarter of 2009 with $3.7 million in cash, $4.8 million in working capital and no debt. John Roblin John Roblin (June 3 1774-February 28 1813) was a farmer and political figure in Upper Canada. He was born in New Jersey in 1774. After the American Revolution, he settled in Adolphustown Township. He was elected to the 5th Parliament of Upper Canada for Lennox and Addington. , Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "Cover-All maintained its profitability and expanded its continuing, or 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. , revenue base, setting the stage for continued success. The third quarter of 2008 was particularly strong, with $2.6 million in non-recurring license revenues booked, creating a challenging comparison for both the quarterly and year-to-date periods this year. However, we remain confident that we are on the right path." Year-to-Date Financial Results Total revenues for the nine months ended September 30, 2009 were $8.4 million, compared to $10.3 million for the same period in 2008, a decrease of 19%. License revenue was $484,000, compared to $3.5 million for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $5.3 million for the first nine months of 2009, up 15.7% from $4.6 million in the same period in 2008. Professional services revenue for the first nine months of 2009 was $2.6 million, up 16.5% compared to $2.2 million for the same period in 2008. Total expenses (cost of revenue and operating expenses) for the first nine months of 2009 were flat at $7.7 million compared to $7.7 million for the same period in 2008. Net income for the nine months ended September 30, 2009 was $650,000, or $0.03 per share (based on 25.0 million weighted average 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. shares), compared to $2.6 million, or $0.11 per share (based on 24.3 million weighted average diluted shares), in the same period of 2008. Third Quarter Financial Results Total revenues for the three months ended September 30, 2009 were $2.6 million, compared to $4.8 million for the same period in 2008, a decrease of 46.8%. License revenue was $178,000, compared to $2.6 million for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $1.8 million for the third quarter of 2009, up 10.5% from $1.6 million in the same period in 2008. Professional services revenue for the third quarter of 2009 was $599,000, down 5.6% compared to $635,000 for the same period in 2008. Total expenses (cost of revenue and operating expenses) for the three months ended September 30, 2009 decreased 19.6% to $2.5 million from $3.1 million for the three months ended September 30, 2008. Net income for the three months ended September 30, 2009 was $21,000, or $0.00 per share (based on 25.2 million weighted average diluted shares), compared to $1.7 million, or $0.07 per share (based on 25.1 million weighted average diluted shares), in the same quarter of 2008. "We continue to execute our strategic plan and increase the long-term earnings power of the Company," added Mr. Roblin, "Simultaneously, we are leveraging our strong financial position and consistent profitability to continue investments in research and development with the goal of broadening our product offering. As a result of our efforts, the independent analyst firm, Celent, gave our My Insurance Center[TM] product an extremely positive review in a recent report widely circulated within the insurance industry. This industry acclaim is helping our marketing efforts and has resulted in a notable increase of inquiries from potential customers, validating our confidence going forward." Balance Sheet Stockholders' equity was $8.0 million as of September 30, 2009 compared to $7.8 million as of December 31, 2008. Total assets decreased to $10.5 million as of September 30, 2009 compared to $11.0 million as of December 31, 2008. As of September 30, 2009, the Company had $3.7 million in cash, $4.8 million in working capital and no debt. Conference Call Information Management will conduct a live teleconference to discuss its third quarter 2009 financial results at 4:30 p.m. ET on Thursday, November 12, 2009. Anyone interested in participating should call 877-941-8418 if calling from 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 480-629-9809 if dialing internationally. A replay will be available until November 19, 2009, which can be accessed by dialing 800-406-7325 within the United States and 303-590-3030 if dialing internationally. Please use passcode 4181228 to access the replay. In addition, the call will be webcast and will be available on the Company's website at www.cover-all.com or by visiting http://viavid.net/dce.aspx?sid=00006CBF CBF Chesapeake Bay Foundation CBF Cerebral Blood Flow CBF Cooperative Baptist Fellowship CBF Confederação Brasileira de Futebol CBF Core Binding Factor CBF Chicagoland Bicycle Federation CBF Coronary Blood Flow CBF cubic feet . About Cover-All Technologies Inc. Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry - first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value. With extensive insurance knowledge, experience and commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize rev·o·lu·tion·ize tr.v. rev·o·lu·tion·ized, rev·o·lu·tion·iz·ing, rev·o·lu·tion·iz·es 1. To bring about a radical change in: Television has revolutionized news coverage. 2. the way the property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com. Cover-All[R], My Insurance Center[TM] (MIC) and Insurance Policy Database[TM] (IPD IPD Institut für Programmstrukturen und Datenorganisation IPD Investment Property Databank (UK) IPD Integrated Product Development IPD Intellectual Property Department IPD Invasive Pneumococcal Disease IPD Implicit Price Deflator ) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders. Forward-looking Statements Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor 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. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks which may cause the Company's actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company's control. Those and other risks are described in the Company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on March 30, 2009, and the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009, filed with the SEC on August 13, 2009, copies of which are available from the SEC or may be obtained upon request from the Company. [TABLE OMITTED] [TABLE OMITTED] |
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