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THE CONTINUUM COMPANY, INC. ANNOUNCES QUARTERLY AND ANNUAL RESULTS

 THE CONTINUUM COMPANY, INC. ANNOUNCES QUARTERLY AND ANNUAL RESULTS
 AUSTIN, Texas, April 27 /PRNewswire/ -- The Continuum Company, Inc. (NYSE: CNU) announced today improved earnings for the quarter ended March 31, 1992 compared to the same quarter last year and compared to the preceding quarter of the current fiscal year, caused by substantial license sales.
 For the fourth fiscal quarter ended March 31, 1992 compared to a year earlier, net income increased 27 percent to $4,297,000 and earnings per share increased from $.33 to $.40. License revenue increased from $2,787,000 to $5,235,000, more than offsetting decreased service margins and increased marketing and administrative expenses.
 Net income nearly doubled during the fourth fiscal quarter compared to the third fiscal quarter due to increased license revenue. Net income increased from $2,332,000 or $.22 per share to $4,297,000 or $.40 per share.
 W. Michael Long, chief executive officer, noted, "We are pleased that new product licenses are occurring across both our life insurance and property and casualty product lines in North America and Europe, including the first two licenses of our COLOSSUS (TM) product."
 THE CONTINUUM COMPANY, INC.
 Service Revenue Profitability
 (000 omitted)
 Quarter ended Mar. 31, Dec. 31, Mar. 31,
 1992 1991 1991
 Service revenue $30,306 $31,466 $34,517
 Service expenses 20,616 21,366 24,482
 Service gross profit $ 9,690 $10,100 $10,035
 Service gross profit percent 32 pct. 32 pct. 29 pct.
 Compared to a year earlier, service revenue decreased 12 percent with the decrease in service revenue almost matched by a 16 percent decrease in service expenses. Service gross profit decreased only $345,000 and improved as a percent of service revenue from 29 percent to 32 percent.
 Compared to the third quarter of fiscal 1992, service revenue and gross profit decreased slightly.
 Customer Geography
 U.S. customers accounted for 41 percent of fourth quarter service revenue and European customers accounted for 39 percent. Australian and Japanese customers accounted for the remainder.
 Service Revenue by Product
 Approximately 42 percent of the fourth quarter revenue was related to Continuum's CCA (TM) software product and 25 percent was related to Continuum's other life insurance products, LIFE-COMM (R), LIFE/70 (R) and CLOAS (TM). The remaining 33 percent of revenue was primarily related to COGEN and COLOSSUS, systems for property and casualty insurance companies.
 Advanced Development Program Revenue
 ADP revenue for the fourth quarter of fiscal 1992 was approximately $700,000 less than the third quarter and $1,000,000 less than the same quarter last year. Delivery of the CCA2 products resulting from the ADP has begun and will continue throughout the remainder of the fiscal year.
 Marketing and Administrative Expenses
 Marketing and administrative expenses for the fourth fiscal quarter were $7,779,000 or 22 percent of total revenue, compared to a year ago when they were $6,621,000 or 18 percent of revenue. Continuum has continued to invest heavily in growth strategies to increase its presence outside of the United States and outside of the life insurance industry. Continuum has also recently increased investments and emphasis on its U.S. marketing activities including outsourcing.
 Cash Increases
 At March 31, 1992, cash balances were almost $37,000,000, an increase of $11,000,000, during the fourth fiscal quarter.
 Personnel
 Continuum employment in the United States at March 31, 1992 was 624, a decrease of six during the fourth fiscal quarter. Worldwide, it was 1080, a decrease of three.
 Fiscal 1992 Compared to Fiscal 1991
 Revenues for fiscal 1992 totaled $127,404,000 compared to $112,664,000 for fiscal 1991. License revenue increased 11 percent and service revenue increased 12 percent.
 Service gross profit increased due to the growth in service revenue, but the increase was offset by increases in marketing and administration expenses, which grew from $20,919,000 for fiscal 1991 to $27,452,000 for fiscal 1992.
 Net income for fiscal 1992 was $8,649,000, approximately the same as fiscal 1991 net income of $8,931,000.
 Earnings per share for the year decreased from $.93 in fiscal 1991 to $.81 in fiscal 1992, reflecting the shares issued by Continuum to acquire Computations in October 1990.
 The Continuum Company, Inc. is an international consulting and computer services firm based in Austin, serving the needs of life insurance, property and casualty insurance and other financial services companies for computer software and services.
 THE CONTINUUM COMPANY, INC.
 Condensed Consolidated Statements of Income
 Three Months Ended Year Ended
 March 31, March 31,
 1992 1991 1992 1991
 Revenue:
 Software systems
 licensing $ 5,235,000 $ 2,787,000 $ 7,998,000 $ 7,198,000
 Service
 revenues 30,306,000 34,517,000 117,926,000 105,466,000
 Interest income 335,000 -- 1,480,000 --
 Total 35,876,000 37,304,000 127,404,000 112,664,000
 Expenses:
 Service expenses 20,616,000 24,482,000 85,094,000 76,307,000
 Marketing and
 administration 7,779,000 6,621,000 27,452,000 20,919,000
 Total 28,395,000 31,103,000 112,546,000 97,226,000
 Income before
 provision for
 income taxes 7,481,000 6,201,000 14,858,000 15,438,000
 Provision for
 income taxes 3,184,000 2,819,000 6,209,000 6,507,000
 Net income $ 4,297,000 $ 3,382,000 $ 8,649,000 $ 8,931,000
 Earnings per
 common share $ 0.40 $ 0.33 $ 0.81 $ 0.93
 Average common
 shares
 outstanding 10,745,000 10,638,000 10,718,000 9,650,000
 -0- 4/27/92
 /CONTACT: John L. Westermann III of Continuum Company, Inc., 512-345-5700/
 (CNU) CO: Continuum Company ST: Texas IN: CPR SU: ERN


AH -- NY117 -- 3453 04/27/92 18:19 EDT
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Date:Apr 27, 1992
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