MARKHAM, ONTARIO — (Marketwire) — 03/06/12 — Enghouse Systems Limited (TSX: ESL) today announced its unaudited first quarter financial results for the period ended January 31, 2012.
First quarter revenue was $30.5 million, compared to $28.6 million in the first quarter last year. Results from operating activities for the quarter were $7.6 million compared to $6.6 million in the prior year-s first quarter, an increase of 15%. Net income for the first quarter increased by 33% to $4.1 million or $0.16 per share on a diluted basis compared to the prior year-s first quarter net income of $3.1 million or $0.12 per share. The increase in revenue was primarily a result of incremental revenue contributions from acquisitions. Revenue reflects hosted and maintenance services contributions of $16.0 million in the quarter, an increase of 19% over last year.
Operating expenses increased to $14.9 million from $13.5 million in the prior year-s first quarter and include incremental operating costs related to the acquisition of CosmoCom Inc. on April 1, 2011. Non-cash amortization charges were $2.4 million and include amortization charges for acquired software and customer relationships from acquired operations.
Enghouse closed the quarter with $101.5 million in cash, cash equivalents and short-term investments. The Company continues to have no long-term debt and did not repurchase any shares in the quarter. The Company-s first quarter financial statements reflect the adoption of International Financial Reporting Standards.
The Board of Directors also announced today a 30% increase in its eligible quarterly dividend to $0.065 per common share, payable on May 31, 2012 to shareholders of record at the close of business on May 17, 2012. Enghouse has increased its dividend in each of the past four years.
On March 1, 2012, the Company acquired CustomCall Data Systems, Inc., a provider of billing, provisioning and workflow solutions to telecommunications service providers for a cash purchase price of approximately U.S. $7.3 million. CustomCall-s solutions expand the end-to-end product suite provided to the telecommunications market by the Company-s Networks division. The acquisition underscores Enghouse-s commitment to diversify its revenue stream and accelerate its expansion into new markets. The Company continues to seek further acquisitions to grow its market share.
About Enghouse
Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of distinct vertical markets. Its strategy is to build a larger and more diverse software company through strategic acquisitions and managed growth. Enghouse shares are listed on the Toronto Stock Exchange under the symbol “ESL”. Further information about Enghouse may be obtained from the Company-s web site at .
Non-IFRS Measures
The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses results from operating activities as a measure of operating performance. Therefore, results from operating activities may not be comparable to similar measures presented by other issuers. Results from operating activities are calculated as net income before amortization of acquired software and customer relationships, finance income, finance expenses, other income, and the provision for income taxes. Management uses results from operating activities to evaluate operating performance as it excludes amortization of software and intangibles which is an accounting allocation of the cost of software and intangible assets arising on acquisition, and does not represent the allocation of the cost of an asset that must be replaced as is the case with depreciation of property and equipment.
Contacts:
Enghouse Systems Limited
Stephen Sadler
Chief Executive Officer
(905) 946-3200
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