Tier Announces Arizona State Retirement System Contract Award; Tier to Provide Core Team.
Tier Technologies, Inc. (Nasdaq: TIER) announced a contract award from the Arizona State Retirement System (ASRS) for the implementation of various technology components identified by ASRS in its Public Employees Retirement Information System (PERIS) Application Development Plan.
Tier will provide consultants who will work with ASRS staff to implement these components. Services will include the development and implementation of an array of automated processing activities for member statements, benefit estimate statements, fiscal and calendar year end processing, pension payroll and contribution posting. The contract award is for one year with four one-year option renewal periods. Tier estimates that the contract value for the first year will be approximately $1.5 million for the core team with additional revenue from the provision of skilled development staff.
ASRS membership includes the state, three state universities, ten community colleges, 14 out of 15 counties, and most cities and school districts in the state. ASRS, with approximately $20 billion in assets, has a membership of nearly 365,000, which includes over 60,500 retirees who receive monthly pension payments of approximately $73.9 million. ASRS anticipates that their retiree population will increase by 75% or more by the year 2010.
PERIS is a component of an aggressive five-year IT plan which ASRS is currently implementing. The plan aims to increase customer service through the creation of a secure infrastructure to conduct regular and instantaneous business with its members and employers via the Internet, telephone and videoconferencing; the creation of a computer system that can readily respond to legislative requests for enhancements or changes; and increased staff productivity levels. The project direction being provided by Tier as part of the PERIS project may carry over into the implementation of all aspects of the IT plan.
"This award highlights the important demographic trends we see driving the pension market," noted James L. Bildner, Tier's Chairman and Chief Executive Officer. "As we have seen with our other pension clients, we anticipate continued market growth in this sector due to the aging U.S. population combined with membership and employer demands for immediate, frequent and secure information."
Tier is a vertically-focused consulting firm that provides business and information technology consulting, systems design and integration, transaction processing, business process outsourcing and business process reengineering for its clients primarily in the state and local government, healthcare, insurance and utilities markets. Tier brings specific industry knowledge, proven delivery capability and proprietary applications to its client relationships. The combination of domain expertise and technical capability allow Tier to provide solutions that link increased operating efficiencies with systems and technology improvements. Tier serves Fortune 1000 companies and government entities.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding services to be provided and their anticipated results, statements regarding the development of and demand for our services and other statements regarding matters that are not historical facts.
Such forward-looking statements involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could affect actual results include risks associated with the failure to obtain contract renewals; failure to achieve anticipated gross margin levels with respect to individual contracts; availability of continued funding for its government clients; revisions to mandated statutes, including changes to the timing of required compliance; adverse economic conditions in the vertical and geographic markets that the Company serves; the possible termination of projects by clients; unanticipated claims as a result of project performance; variations in the timing, initiation or completion of client assignments; unanticipated costs incurred in fixed-price projects and warranty periods; the Company's ability to recruit, train and retain consultants and key personnel; the Company's ability to effectively manage growth and acquisitions; risks associated with rapid technological advances and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K for the year ended September 30, 2001 and most recent Quarterly Report on Form 10-Q. The forward-looking statements contained in this press release are made as of the date hereof, and the Company does not assume any obligation to update these statements or the reasons why actual results could differ materially from those projected in these statements.
Tier...Expect A Lot(SM)