FDP Announces 27% Increase in Revenues and 71% Increase in Operating Income for the First Quarter.MIAMI--(BUSINESS WIRE)--March 20, 1998--FDP Corp. (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 :FDPC FDPC Full Duplex Packet Cascading (Vtrails) FDPC Federal Data Processing Center(s) FDPC Frequency-Dependent Phase Compensation ) Friday announced the financial results for the first quarter ended Feb. 28, 1998. Revenues for the quarter increased 27% to $9,190,000 versus $7,262,000 in last year's comparable quarter. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter rose 71% to $837,000 as compared to $490,000 for the prior year. Net earnings for the first quarter increased 38% to $729,000 or $.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share ($.12 per basic share) versus $529,000 or $.09 per diluted share ($.10 per basic share) a year ago. Driving the revenue growth for the first quarter was a 31% increase in software revenues. Revenues related to FDP's Home Office division systems, FDP/COMPASS and FDP/CLAS, for the first quarter increased by 66% to $4.8 million as compared to $2.9 million in the prior year. First quarter revenues for FDP/COMPASS, the company's group pension administration system, increased 68% due to revenues derived from a new contract with the second largest insurance company in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Revenues for FDP/CLAS, the company's life insurance administration system, grew 62%. In addition, the Pension Partner division software revenues increased 30% to $1.4 million due to sales of the new Windows(r)-based systems. "The first quarter of 1998 began another successful year for FDP FDP fibrin (fibrinogen) degradation product. . Our strong international growth related to our Home Office Division products continues to drive our improved results," said Michael C. Goldberg, chairman and chief executive officer. "During the quarter we continued to implement our Home Office systems in leading insurance companies worldwide and entered into negotiations with additional companies for the licensing of the FDP/COMPASS system. The release of our new Pension Partner Windows(r) systems also resulted in higher revenues for the division. We also continued development of our products under the FDP/VISION strategy moving towards providing an enterprise solution for our clients. This strategy will offer us the ability to cross-sell our products to the existing client base as well as to open new market opportunities for company growth," added Goldberg. About FDP FDP Corp. develops and sells a variety of application software systems that facilitate the sales, marketing and administration functions of life insurance companies and employee benefit administrators. FDP/VISION represents the integration of these software systems into a suite of products under the Windows 95, Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. and UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). operating environments In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . FDP software systems are currently sold worldwide including the United Kingdom, Australia, South Africa, Netherlands, Russia and Canada. The publicly held (NASDAQ:FDPC) company's world headquarters are located in Miami. "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. " Statement under 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. Statements in this release concerning the company's future prospects 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. " under the federal securities laws which represent the company's expectations and beliefs concerning future events, including, but not limited to, statements regarding growth in sales of the company's products, profit margins and the sufficiency of the company's cash flow for the company's future liquidity and capital resource needs. The company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those forward looking statements, including, without limitation, the following: decline in demand for the company's software products; and the effect of general economic conditions generally and factors affecting the life insurance, employee benefits and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries. These statements by their nature involve substantial risks and uncertainties and actual events or results may differ as a result of these and other factors. -0-
FDP CORP.
Selected Financial Data
Three Months Ended
Feb. 28,
(In thousands except per share data)
1998 1997
Revenue $ 9,190 $ 7,262
Operating Profit $ 837 $ 490
Earnings Before Income Taxes $ 1,121 $ 814
Net Earnings $ 729 $ 529
Weighted Average Shares 5,839 5,526
Plus: Incremental Shares from
Assumed Conversions
Stock Options 297 314
Adjusted Weighted Average Shares 6,136 5,840
Basic Earnings Per Share $ .12 $ .10
Diluted Earnings Per Share $ .12 $ .09
Feb. 28,
1998 1997
Cash & Marketable Securities $ 18,372 $ 19,292
Stockholders' Equity $ 28,933 $ 24,169
Total Assets $ 35,099 $ 30,024
CONTACT: FDP Corp., Miami Mark Silverman, Senior Vice President Chief Financial Officer 305/858-8200 |
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