Cover-All Technologies Inc. Reports Year-end and Fourth Quarter 2005 Operating Results.FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , 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 revenues and earnings from operations for the year and quarter ended December December: see month. 31, 2005. Net (loss) income for the twelve months ended December 31, 2005 and 2004 was $(1,434,000), or $(.09) per share, and $767,000, or $0.05 per share, respectively. Revenues for the twelve months ended December 31, 2005 were $7,255,000 as compared to $9,274,000 in the same period in 2004. Net (loss) income for the three months ended December 31, 2005 was $(395,000), or $(0.03) per share, compared to $1,275,000, or $0.08 per share, in the same quarter of 2004. Revenues for the three months ended December 31, 2005 were $1,817,000 compared to $3,813,000 in the same period in 2004. 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: "After four consecutive years of profitability, we are very disappointed in our financial results for 2005. We are focused on returning to profitability in 2006 and leveraging our other 2005 accomplishments to expand and grow. "We continue as a company to focus on strengthening our relationships with our customers for both new services and products. Our 2005 services revenues (i.e., maintenance, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. 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). ) were up slightly over 2004. Our 2005 license revenues, however, were significantly below 2004. In the fourth quarter of 2004, we had a significant license sale of almost $2 million that was fully recognizable in 2004. While we did add a large new account in the fourth quarter of 2005, only a portion of the license revenue with respect to this account was recognized in 2005, consistent with our revenue recognition policies. Total expenses for 2005 were up less than 3% over 2004 in total. Expenses were reduced in virtually all categories but these savings were more than offset by a decrease in capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. development, increased costs of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance and third party software costs. "With virtually all our existing customers converted to our new software, we are focused on delivering exciting new services and capabilities to our customers. We are also leveraging the strength of our existing customer relationships to attract new customers. We have also totally revamped our sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. and have a number of new opportunities that are emerging based upon these successful implementations of My Insurance Center. It is a very busy time for us and we are working very hard to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. these activities into significantly improved financial results in 2006." The Company has scheduled a conference call for 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Tuesday Tuesday: see week. , April 4, 2006, at which time it will review results for the fourth quarter and year ended December 31, 2005. Teleconference Information: To participate in the Tuesday teleconference, dial 877-669-3047 (domestic) and 706-679-7418 (international). The conference ID # is 7515184. 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 our extensive insurance knowledge, our experience and our 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, My Insurance Center (MIC) and Insurance Policy Database (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 of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders. 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, 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 the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, filed with the SEC on March 31, 2006, copies of which are available from the SEC or may be obtained upon request from the Company. The following is a summary of operating highlights for the three and twelve months ended December 31, 2005 and 2004.
Cover-All Technologies Inc. and Subsidiaries
Operating Highlights
Three months ended Twelve months ended
December 31, December 31,
---------------------- ------------------------
2005 2004 2005 2004
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Revenues:
Licenses $473,000 $2,408,000 $1,323,000 $3,435,000
Maintenance 795,000 994,000 3,637,000 4,356,000
Professional Services 208,000 257,000 1,064,000 866,000
Application Service
Provider Services 341,000 154,000 1,231,000 617,000
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Total Revenues 1,817,000 3,813,000 7,255,000 9,274,000
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Costs and Expenses:
Cost of Sales 1,286,000 1,355,000 5,087,000 4,836,000
Research and
Development 170,000 253,000 809,000 760,000
Sales and Marketing 232,000 337,000 1,222,000 1,257,000
General and
Administrative 483,000 472,000 1,431,000 1,404,000
Provision for
Doubtful Accounts -- 22,000 -- 22,000
Other Expense
(Income), Net (4,000) -- (39,000) (17,000)
Interest Expense, Net 45,000 50,000 179,000 196,000
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Total Costs and
Expenses 2,212,000 2,489,000 8,689,000 8,458,000
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Income (Loss) Before
Income Taxes $(395,000) $1,324,000 $(1,434,000) $816,000
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Income Tax Expense -- 49,000 -- 49,000
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Net (Loss) Income $(395,000) $1,275,000 $(1,434,000) $767,000
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Basic (Loss) Earnings
Per Common Share $(0.03) $0.08 $(0.09) $0.05
---------- ----------- ------------ -----------
Diluted (Loss)
Earnings
Per Common Share $(0.03) $0.07 $(0.09) $0.04
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