IT
Scan
June
9, 2003
Concerto profits for sixth consecutive quarter
NEW DELHI -- Concerto Software, Inc. has successfully
met its financial expectations for the sixth consecutive
quarter. In its recently announced financial results
for Q1, which ended March 31, 2003, the company attributed
the positive results to factors such as growing adoption
of its unified contact center platform EnsemblePro,
continued demand for its long-time flagship product
Unison, and a sustained focus on sound fiscal management.
Revenue
increased 9 percent to 25.6mn in Q1-03, as against
23.3mn during Q1-02. However, it dropped 1 percent
from $25.9 million for Q4-02. Product revenue for
Q1-03 rose by 4 percent to $11.0 million as against
$10.6mn during Q1-02. However, it dipped 9 percent
from $12mn during Q4-02. Its EnsemblePro unified contact
center solution, available since last December, accounted
for $2.1mn of the product revenue for Q1-03.
Pro
forma net income for the first quarter of 2003 was
$0.8mn or pro forma diluted EPS of $0.07, compared
to pro forma net income of $22,000 or pro forma diluted
EPS of $0.00 for the same period in 2002. The pro
forma results for both periods exclude $0.4mn of amortisation
expense associated with purchased intangible assets
from the CELLIT merger and the Q1of 2002 also excludes
$5.1mn of non-recurring merger and restructuring charges
from the January 2002 merger with CELLIT, Inc.
On
a basis in accordance with generally accepted accounting
principles (GAAP), net income for Q1-03 was $0.5mn
or earnings per diluted share of $0.04, compared to
a net loss of $4.1mn or $0.33 per diluted share for
the same period in 2002. The reconciliation of GAAP
net income to pro forma net income and diluted EPS
to pro forma diluted earnings per share is set forth
in the attached consolidated statements of operations.
In
Q2-03, Concerto expects sequential quarterly improvement
with minimum total revenue of $26mn and GAAP diluted
EPS of $0.04-$0.05. For the FY03, the company expects
a total revenue of approximately $105.0mn and GAAP
diluted EPS of approximately $0.19. Its GAAP diluted
EPS guidance of $0.19 includes $1.8mn of amortisation
expense for FY03 related to the CELLIT purchased intangible
assets and is the most directly comparable measure
to its previous 2003 pro forma diluted EPS guidance
of $0.30.
At
the end of Q1-03, cash and short-term investments
totaled $28.6mn, a decrease of $6.4mn from the previous
quarter. The decrease in cash and short-term investments
was primarily the result of the manufacturing administration
and management systems, Inc. litigation settlement
and related fees totaling $2.5mn, the utilisation
of approximately $1.6mn to repurchase 262,200 shares
of the company's common stock pursuant to its stock
repurchase program, $1.3mn for capital expenditures
and the utilisation of approximately $0.4mn for restructuring
payments. Days sales outstanding (DSO) increased 6
days from 61 in Q4 to 67 days in Q1, still remains
below the industry average.
James
D. Foy, president and CEO, said: "Concerto Software
is focused on working closely with our customers to
understand their needs and deliver solutions that
anticipate and address those needs. Our solid financial
performance this quarter, despite today's politically
and economically uncertain environment, is a result
of this focus and another critical proof point on
our path to success."
Contact:
Concerto Software
