Press Release
- Date:
- Thursday, January 15, 2004
- Contact:
- Mark Funston
- Phone:
- (301) 731-2300
- Email:
- mark_funston@g1.com
Group 1 Software Announces Preliminary
Fiscal Third Quarter Results
Revenue Including Sagent Acquisition Up 15%, Reaching New Record of $30.6 Million
Lanham, MD — Group 1 Software (Nasdaq: GSOF) today announced preliminary results for its third fiscal quarter ended December 31, 2003. The Company expects to report third quarter revenue of approximately $30.6 million, an increase of 15% over the prior year's third quarter revenue of $26.7 million. Net income for the quarter, excluding one-time charges related to the acquisition of assets of Sagent Technology during the quarter, will be approximately $1.0- $1.3 million compared with $2.3 million reported in the third quarter of the prior fiscal year. The decline in earnings was attributable to dilution from Sagent operations in the quarter.
Earnings per share are expected to be in the range of $0.06-$0.08, compared with $0.16 reported in the prior year. The earnings per share decrease reflects both the decline in net earnings and the substantially higher diluted share count in the current year due to the higher stock price.
“License fees from the newly-acquired Sagent products came in below our initial expectations due to the three month delay in closing the transaction and the resulting weakness in sales pipelines when we took over,” said Bob Bowen, CEO of Group 1 Software. “On the other hand, our experience during the quarter has reinforced our belief that the Sagent products, people and distribution networks will add significant strength to Group 1 as the rebuilding process continues.”
License fees from Enterprise Solutions products rose vs. both last year's third quarter and prior quarters this fiscal year. DOC1 license fees remained down from the prior year's third quarter and in the same range as prior quarters this year. DOC1 remains the market leader in the customer communications market, sales pipelines are strong, and the next generation of DOC1 products is hitting the market now. These are primarily replacement products, however, purchases of which continue to be postponed while IT budgets remain tight.
“We remain enthusiastic about the Company's long term potential opportunities across all of our product lines including the Sagent products, particularly as the economy improves,” continued Bowen. “Group 1 continues to offer the broadest array of industry-leading technology to enable organizations of all to types to maximize the value of their customer data.”
More information on Group 1's third quarter results will be available on January 28, 2004 when the company anticipates reporting its final results and hosting a conference call to discuss those results.
Group 1 Software (Nasdaq: GSOF ) is a leading provider of solutions that help over 3,000 organizations worldwide maximize the value of their customer data. Group 1 provides industry-leading technologies that allow businesses to cleanse and enrich their corporate data, generate personalized customer communications and integrate and deliver data across the enterprise. These technologies are essential components of enterprise applications including customer relationship management (CRM), enterprise resource planning (ERP) and business intelligence systems. Founded in 1982 and headquartered in Lanham, Maryland, Group 1 offers solutions utilized by leaders in the financial services, banking, GIS/mapping, retail, telecommunications, utilities, insurance and other industries. The company's customer base includes such recognized names as Charles Schwab, Entergy, GEICO, L.L. Bean, QVC, Siemens, Wal-Mart and Wells Fargo. For more information about Group 1, visit the company's Web site at http://www.g1.com.