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Open Solutions Reports Strong Fourth Quarter and Year-end 2003 Results

Friday 27 February 2004 16:56 CET | News

Open Solutions has reported financial results for the three months and full year ended December 31, 2003. Revenue for the fourth quarter 2003 increased 57 percent to $20.5 million, from $13.0 million for the fourth quarter of 2002.

Revenues for the full year 2003 increased 44 percent to $63.8 million, from $44.3 million in the prior year. Pro forma net income (non-GAAP) was $2.9 million, or $0.20 per diluted share, for the fourth quarter 2003, compared to $0.6 million, or $0.06 per diluted share, for the fourth quarter in 2002. Pro forma net income was $4.8 million, or $0.43 per diluted share, for the full year 2003, compared to a net loss of $2.9 million, or $1.18 per diluted share, in the prior year. The pro forma net income excludes the effect of the charges of $3.2 million and $3.4 million for the fourth quarter and the full year 2003, respectively, related to the shares of restricted stock issued to certain employees of the Company as a result of the Companys initial public offering in the fourth quarter of 2003 and the effect of the $31.5 million non-cash charge for the conversion of certain of the Companys preferred stock to common stock in connection with the Companys initial public offering. A reconciliation of non-GAAP pro forma results to GAAP results is provided as part of this press release. Under GAAP, including both of these charges, the net loss for the fourth quarter of 2003 was $3.94 per diluted share compared to a net income of $0.25 per diluted share for the fourth quarter of 2002. The net loss for the full year 2003 was $7.74 per diluted share compared to a net loss of $1.18 per diluted share in the prior year. The Company is providing non-GAAP financial measures, as the Company believes that these figures are helpful in allowing individuals to more accurately assess the ongoing financial performance of the business. The Company believes that the non-GAAP disclosure is useful because the effect of the two charges resulting from the Companys initial public offering are not expected to recur in the future and, therefore, are not reflective of the Companys past or future financial performance. The Company uses the presented non-GAAP financial measures internally to focus management on period-to-period changes in the Companys core business. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. 2003 Highlights -- The Company continued to expand its technology product and service offering through new product launches (including cView - CRM/business intelligence, automated loan decisioning, item processing and premium overdraft) and new releases of its core software, Internet banking, cash management, imaging, financial accounting, asset liability, profitability and loan origination offerings. -- Completed the acquisition of Liberty FiTECH Systems, Inc., a provider of core data processing software and related services to credit unions. -- Expanded the Companys strategic relationship with BISYS Inc., whereby BISYS became the Companys non-exclusive reseller to provide data processing services to banks and thrifts in the United States using the Companys core processing technology and complementary products through BISYS outsourcing centers. The expanded relationship also provides for certain minimum sales requirements and payment of non-refundable quarterly minimum license fees. -- Strengthened Open Solutions senior management team with the appointment of a senior vice president and general manager of the Companys banking group. -- Completed the Companys initial public offering in the fourth quarter raising proceeds, net of expenses, of approximately $86.4 million. -- Generated $10.1 million of net cash provided by operating activities for the full year 2003. -- Signed contracts valued at $16.5 million in the fourth quarter of 2003 compared to $13.8 million in the same quarter of the prior year. We define contract value as total revenues to be received over the life of the contract for all


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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech