Cover-All Technologies Inc. Reports Second Quarter Results.Business/Technology Editors FAIR LAWN Fair Lawn, borough (1990 pop. 30,548), Bergen co., NE N.J., across the Passaic River from Paterson; inc. 1924. It is residential with light industries. , N.J.--(BUSINESS WIRE)--Aug. 14, 2001 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 and PHLX-CVA) (the "Company") today announced results for the quarter ended June June: see month. 30, 2001. Net income (loss) for the three-month period ended June 30, 2001 was $621,000, or $0.04 per share, compared to $(998,000), or $(0.06) per share, in the same quarter of 2000. Net income (loss) for the six months ended June 30, 2001 was $524,000, or $0.03 per share, compared to $(1,776,000), or $(0.10) per share, in the same period of 2000. These results include an extraordinary gain on the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of $804,000 (net of income taxes of $536,000), or $.05 per share, that was recognized in the quarter ended June 30, 2001. Total operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the three-month period ended June 30, 2001 was $1,497,000 compared to $1,555,000 in the same period in 2000. For the six months ended June 30, 2001 total revenue was $3,191,000 as compared to $3,834,000 in the same period of 2000. 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, President and Chief Executive Officer of the Company, stated, "Cover-All's improved results for the second quarter and six months reflect the continuing effect of our expense reduction and balance sheet strengthening initiatives. Expenses declined by 13% in the second quarter and 29% for six months compared to 2000. Our results also include the significant impact of the early retirement of our $3,000,000 12.5% debentures at a discount that was announced previously. "Our 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. (maintenance) revenue increased in 2001 over 2000 by 18% for the quarter and 11% for the six months ended June 30, 2001. New license revenues, however, were disappointing reflecting a general slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in business spending on technology. Our continued focus and spending on marketing has identified a number of potential new customers looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. technology solutions. However, their decision processes are being lengthened length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length  en·er n. as they balance business priorities and
budgetary pressures. We believe that Cover-All is very competitive in
this difficult market and can deliver the benefits and value that the
marketplace is demanding."
Utilizing the latest thin client and relational database relational database Database in which all data are represented in tabular form. The description of a particular entity is provided by the set of its attribute values, stored as one row or record of the table, called a tuple. technology, Cover-All Technologies Inc. specializes in providing Internet-enabled strategic policy and premium software solutions in the property and casualty insurance industry. More information may be obtained from the Company's web site at www.cover-all.com. Statements in this press release, other than statements of historical information, are 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 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, risk associated with increased competition, customer decisions, delays in productivity programs and new product introductions, 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, copies of which are available from the SEC or may be obtained upon request from the Company. The following is a summary of unaudited operating highlights for the three and six months ended June 30, 2001 and 2000.
Cover-All Technologies Inc. and Subsidiaries
Operating Highlights
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Revenues:
Licenses $ 64,000 $ 196,000 $ 232,000 $ 1,016,000
Maintenance 1,126,000 952,000 2,234,000 2,009,000
Professional
Services 307,000 407,000 725,000 809,000
Total
Revenues 1,497,000 1,555,000 3,191,000 3,834,000
Cost and
Expenses
Cost of Sales 1,271,000 1,647,000 2,558,000 3,932,000
Research and
Development 80,000 224,000 206,000 389,000
Sales and
Marketing 391,000 212,000 671,000 400,000
General and
Administrative 385,000 417,000 704,000 924,000
Allowance for
Doubtful
Accounts -- (25,000) (83,000) (165,000)
Other Income -- -- (225,000) --
Interest
Expense, Net 89,000 78,000 176,000 130,000
Total Costs
and Expenses 2,216,000 2,553,000 4,007,000 5,610,000
Loss Before
Income Tax
Benefit $ (719,000) $ (998,000) $ ( 816,000) $(1,776,000)
Income Tax
(Expense)
Benefit 536,000 -- 536,000 --
Loss Before
Extraordinary
Items (183,000) (998,000) (280,000) (1,776,000)
Extraordinary
Item - Gain on
Extinguishment
of Debt (Net
of Income
Tax of
$536,000) 804,000 -- 804,000 --
Net Income
(Loss) $ 621,000 $ (998,000) $ 524,000 $(1,776,000)
Basic and
Diluted
Earnings
(Loss) Per
Common Share
Before
Extraordinary
Items $ (.01) $ (.06) $ (.02) $ (.10)
Basic and
Diluted
Earnings
(Loss) Per
Common Share $ .04 $ (.06) $ .03 $ (.10)
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