HTE Announces Better Than Expected 4th Quarter 2001 Profit and Projects An EPS of $0.50 For 2002.Business Editors/Technology Writers LAKE MARY Lake Mary may refer to:
HTE HTE Hírközlési És Informatikai Tudományos Egyesület (Hungary) HTE High Temperature Electronics HTE HazMat Trucking Enforcer (software) HTE HighTech Engineering HTE High Tension Electrode HTE High Turnover of Employees Inc. (Nasdaq:HTEI), a leading provider of enterprise-wide software solutions for public sector organizations and utilities worldwide, today announced operating results for the fourth quarter ended December 31, 2001 and gave financial guidance for 2002. HTE recorded 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.13 for the fourth quarter ended December 31, 2001, compared to diluted EPS of ($0.03) for the third quarter ended September 30, 2001. The Company recorded a net income of $1,704,000 during the fourth quarter 2001 (included in net income for the fourth quarter 2001 is a gain on sale of asset of $98,000 described in a press release issued July 8, 2001, and a tax benefit of $406,000 related to the sale of a subsidiary described in a press release issued October 10, 2001) compared to a net loss of ($533,000) for the third quarter 2001. (Third quarter results include a one-time, non-recurring charge of $1,950,000 before tax, related to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of software development costs, certain accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , employee termination and other costs related to exiting or aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. several under-performing lines of business, as described in a press release issued October 10, 2001.) Operating EPS for the fourth quarter 2001, excluding the fourth quarter one-time gains described above, was $0.09, which exceeds previously communicated Operating EPS guidance of $0.08, compared to third quarter 2001 operating EPS of $0.04, excluding third quarter one-time, non-recurring charges described above. Revenues for the fourth quarter 2001 were $16,802,000 compared to $16,143,000 for the third quarter 2001. HTE recorded diluted EPS of $0.05 and a net income of $865,000 for the year ended December 31, 2001. Included in net income is $3,173,000 related to one-time, non-recurring charges or gains related to the impact of the Onvia acquisition of Demandstar.com, the gain on sale of assets, both of which are described in a press release issued April 16, 2001, write-off of software development costs, certain accounts receivable, employee and other costs, described in a press release issued October 10, 2001. 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 year, excluding the one-time, non-recurring charges described above, was $4,266,000, compared to previously communicated guidance of $3,300,000, and operating EPS for the year was $0.16 compared to previously communicated guidance of $0.12. HTE's Chief Executive Officer, Joe Loughry, said, "The year 2001 marked an exceptional year of financial improvements and closes the chapter on two years of Company repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. . We finished the year with 30% better than expected operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (excluding one-time charges and gains described above) and equally important, consistent achievement of our guidance to investors. Furthermore, in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of our financial repositioning, we were able to develop and introduce innovative products and services for our customers. We now have an n-tier architecture See n-tier. , browser-enabled application user interface, Internet-enabled citizen access solutions, state-of-the-art mobile public safety products and extensive Internet-based customer support capabilities. None of these existed two years ago. HTE's employees should take a great deal of pride in our accomplishments in redirecting our business. "This is now the Company's fifth consecutive quarter of improved operating profits (excluding one-time charges and gains described above). We delivered operating profits for 2001 of $4,266,000 compared to previously communicated operating profit of $3,300,000. Revenue growth, excluding hardware, from year-to-year is 7%, but below our original expectations of 9-11%. In 2002, we expect to continue exploring ways to deliver additional revenue growth, which include continued expansion of products and services to our customer base. We also may consider one or more strategic non-dilutive acquisitions." Loughry further stated, "With a strong balance sheet (more than $10,500,000 in cash and no debt), an energized workforce and a large customer base, we are positioned to continue to improve financial performance in 2002. During 2002, we expect to deliver revenue growth of between 5-8%, with an annual operating income of $9,400,000, net income of $5,734,000 and an EPS of $0.50 for the year with $0.09, $0.12, $0.14, $0.15 EPS projected for the first through fourth quarters, respectively. This EPS guidance for 2002 represents the best financial performance of the Company's history." Common Stock Redemption Disclosure As described in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. and Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission on October 29, 2001 and November 13, 2001, respectively, the Company redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. 5,618,952 shares of its common stock (the "Redeemed Shares") from Tyler Technologies, Inc. ("Tyler") for a purchase price of $7,304,637.60 (the "Redemption"). Tyler purchased the Redeemed Shares in 1999 in a control shares acquisition, as defined in Florida's control shares statute. The Company effected the Redemption in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the requirements of Florida's control shares statute. The Redemption reduced the number of the Company's issued and outstanding shares of common stock from 16,960,557 to 11,341,605 as of October 29, 2001. Tyler subsequently sent a letter to the Company and issued a press release on October 30, 2001 asserting as·sert tr.v. as·sert·ed, as·sert·ing, as·serts 1. To state or express positively; affirm: asserted his innocence. 2. To defend or maintain (one's rights, for example). that it continued to be a shareholder of the Company and that the Redemption was not valid and contrary to Florida law The jurisprudence of this state offers major differences from doctrines prevailing in the United States at either the federal level or that of the various states. Homestead exemption from forced sale, the dangerous instrumentality doctrine, the right to privacy, and the Williams . The Company reaffirms that under Florida law, the Redeemed Shares are no longer considered issued and outstanding and all rights with respect to them have ceased. Accordingly, in order to legally confirm the Redemption, the Company filed an action for a Declaratory Judgment declaratory judgment In law, a judgment merely declaring a right or establishing the legal status or interpretation of a law or instrument. It is binding but is distinguished from other judgments or court opinions in that it includes no executive element (an order that , which is now pending before the Federal District Court for the Middle District of Florida in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. . The financial information presented herein for the fourth quarter 2001 and forward is based on the number of outstanding shares of the Company's common stock after the Redemption of the Redeemed Shares. The Company and its legal counsel believe the Redemption will be confirmed by the Court; in the event it is not, the financial information presented herein would be impacted as follows: i) outstanding shares of the Company's common stock would increase by 5,618,952 shares; ii) fourth quarter 2001 Diluted EPS would be $0.10, Diluted EPS for the year ended December 31, 2001 would be $0.05, Operating EPS (excluding one-time charges and gains as described above) would be $0.07 for the fourth quarter 2001 and $0.15 for the year ended December 31, 2001, respectively; iii) the ending cash balance would increase by $7,305,000; and, iv) 2002 EPS Guidance would be $0.33 for the year with, $0.05, $0.08, $0.10, $0.10 EPS projected for the first through fourth quarters, respectively. HTE Inc. HTE Inc., a proven leader in government information technologies, provides a broad range of innovative software solutions to more than 2,200 government offices, agencies and utility companies throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The company's products address the wireless computing computing - computer requirements of a rapidly changing public sector market and support the end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. delivery of e-government access to citizens and businesses. Founded in 1981, the company is headquartered near Orlando, Florida. Additional information is available at http://www.hteinc.com or by calling HTE Marketing Services at 1.800.727.8088. This press release contains "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. " within the meaning 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 that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those expected are the following: business and general economic conditions; competitive factors, such as pricing, new products and marketing efforts of rival companies; the timing and magnitude of software sales; customer acceptance of new or enhanced product offerings; integration of new technologies; delays in product delivery; the ability to recruit and retain qualified personnel; the above described Redemption either not being confirmed by the Court, or being confirmed by the Court, but at a higher redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. for the Redeemed Shares; and other factors discussed from time to time in reports filed by HTE with the Securities and Exchange Commission, including risks summarized in HTE's latest Annual Report on 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. . HTE undertakes no obligation to update or revise any forward-looking statement for events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date on which such statement is made.
H.T.E., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
---------------------- --------------------
2001 2000 2001 2000
------ ------ ------- ------
(Unaudited)
REVENUES:
Software licenses $ 3,281 $ 3,139 $12,891 $11,259
Professional
services 3,454 2,843 13,580 14,947
Hardware 247 924 1,930 3,725
Maintenance and
other 9,434 8,018 35,738 31,605
Resource management 386 431 1,681 1,955
------ ------ ------- ------
Total revenues 16,802 15,355 65,820 63,491
------ ------ ------- ------
EXPENSES:
Cost of software
licenses 1,178 1,333 5,033 5,380
Cost of professional
services 2,380 2,199 9,364 11,719
Cost of hardware 53 678 1,272 3,178
Cost of maintenance
and other 2,368 1,965 9,299 9,315
Cost of resource
management 158 141 571 1,168
Research and
development 3,188 3,442 13,405 14,189
Sales and marketing 2,164 2,395 9,681 12,170
General and
administrative 3,339 3,087 13,264 13,469
Contract judgment
and settlement,
employee termination
benefits and other
costs (98) - 1,030 (1,131)
------ ------ ------ ------
Total expenses 14,730 15,240 62,919 69,457
------ ------ ------ ------
INCOME (LOSS) FROM
OPERATIONS 2,072 115 2,901 (5,966)
OTHER INCOME (EXPENSE):
Interest, net 54 185 429 423
Loss on investment - - (1,888) -
------ ------ ------ ------
Total other
income
(expense) 54 185 (1,459) 423
------ ------ ------ ------
INCOME (LOSS) BEFORE
PROVISION (BENEFIT) FOR
INCOME TAXES 2,126 300 1,442 (5,543)
PROVISION (BENEFIT)
FOR INCOME TAXES 422 117 577 (2,162)
------ ------ ------ ------
NET INCOME (LOSS) $ 1,704 $ 183 $ 865 $(3,381)
====== ====== ====== ======
NET INCOME (LOSS) PER SHARE:
BASIC $ 0.13 $ 0.01 $ 0.05 $ (0.19)
====== ====== ====== ======
DILUTED $ 0.13 $ 0.01 $ 0.05 $ (0.19)
====== ====== ====== ======
NET INCOME (LOSS) PER SHARE
(excluding the effect of
the non-recurring charges):
BASIC $ 0.09 $ 0.16 $ (0.25)
====== ====== ======
DILUTED $ 0.09 $ 0.16 $ (0.25)
====== ====== ======
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