CFI PROSERVICES REPORTS RECORD NINE-MONTH REVENUES AND EARNINGS; THIRD QUARTER REVENUES INCREASE 58 PCT. AND NET INCOME JUMPS 121 PCT.
PORTLAND, Ore., Oct. 19 /PRNewswire/ -- CFI PROSERVICES Inc. (NASDAQ: PROI) a leading supplier of software-based compliance products and services for the financial services industry, today reported third quarter earnings doubled, contributing to record nine-month revenues and earnings. Revenues for the third quarter ended Sept. 30, 1993, increased 58 percent to $6.5 million compared to $4.1 million for the third quarter of 1992. Earnings more than doubled to $558,000 or 16 cents per share compared $253,000 or 11 cents per share in the like quarter a year ago. Per share comparison reflect the 1.5 million additional shares issued in the company's initial public offering on Aug. 18, 1993. CFI ProServices reported record revenues and earnings for the first nine months of 1993. Revenues increased 79.4 percent to $19.6 million compared to $10.9 million in the first nine months of last year. Net earnings for the first nine months of 1993 were $1.3 million or 42 cents per share compared to the $248,000 or 10 cents per share earned in the like period of 1993. "Thus far, 1993 has been a banner year for us. Some of this growth can be attributed to the tremendous demand in the second quarter for Deposit Pro, (our new account opening software) created by the Truth-in-Savings Act," stated Ken Olsen, president and chief operating officer. "The new law, which became effective June 21, 1993, substantially increases disclosure for deposit accounts. Our products continue to be in demand as banks seek ways to cost-effectively comply with a multitude of federal and state regulations. In addition the growing trend toward multi-state lending induces bank managers to more closely control their lending policies and processes," Olsen said. "As we discussed in our offering prospectus, we expected third quarter revenues to decline from the extraordinary $8.0 million generated in the second quarter. We were pleasantly surprised in the moderate decline, which we attribute to a boost in third quarter Laser Pro (our loan processing software system) shipments. To fulfill the last minute demand for Deposit Pro in the second quarter, we moved some Laser Pro shipments into the third quarter," Olsen said. "We do not currently foresee any similar near-term drivers to sales and expect a return to a more normalized growth pattern for our business for the next few quarters." In the third quarter software licensing fees were $3.5 million, or 53 percent of total revenue. Service and support fees amounted to $2.4 million, or 37 percent of total revenue, and other revenues (primarily supplies and forms) totaled $620,000 in the third quarter this year. In the third quarter a year ago, software licensing fees totaled $2.0 million, or 48 percent of total revenue, service and support fees were $1.7 million, or 43 percent of total revenue, and other revenues totaled $370,000. Service and support income includes a fee for each loan transaction processed, training, telephone compliance and technical support, and yearly maintenance where CFI provides periodic regulatory product updates," Olsen explained. Of the company's two major product lines Laser Pro continued to account for the bulk of the software license fee revenues contributing 81 percent in the third quarter of 1993 and 54 percent year to date, compared to 87 percent and 90 percent for the like periods in 1992. Deposit Pro accounted for substantially all the remaining license fee revenues in all the periods presented. CFI PROSERVICES, founded in 1978, develops and markets electronic banking, lending, operations and regulatory compliance software management systems to financial institutions nationwide. CFI PROSERVICES has provided over 5,000 successful Laser Pro and Deposit Pro software installations and provides on-going service to a customer base of approximately 2,600 banks, savings and loan, and credit unions. CFI PROSERVICES INC. FINANCIAL HIGHLIGHTS (Unaudited, in thousands except per share) Third quarter ended Nine months ended Sept. 30, 1993 1992 1993 1992 Revenue $6,490 $4,104 $19,618 $10,936 Cost of revenue 1,631 1,026 5,598 2,723 Sales, general & administrative 3,097 1,781 8,547 5,236 Product development 838 738 2,412 1,867 Income before taxes 965 557 3,113 1,074 Net income applicable to common shareholders 558 253 1,313 248 Earnings per share $ 0.16 $ 0.11 $ 0.42 $ 0.10 Weighted average shares outstanding 3,612 3,049 3,113 3,000 Sept. 30, 1993 Dec. 31, 1992 Cash and short-term investments $10,198 $1,629 Current assets $15,986 $6,415 Total assets $19,325 $9,449 Current liabilities $ 6,055 $5,442 Total liabilities $ 6,246 $5,767 Shareholders' equity $12,325 ($2,384) Total liabilities & equity $19,325 $9,449 /CONTACT: Ken Olsen, chief operating officer, of CFI ProServices, 503-274-7280/ (PROI)
CO: CFI ProServices Inc. ST: Oregon IN: CPR SU: ERN
JH -- SE012 -- 3718 10/19/93 07:52 EDT
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|Date:||Oct 19, 1993|
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