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SpatialNews.com Press Release
Enghouse Releases Third Quarter Results
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MARKHAM, ONTARIO--(CCNMatthews - Sept. 1, 2005) - Enghouse Systems Limited
(TSX:ESL) today announced its unaudited third quarter financial results for the
quarter ended July 31, 2005.
Third quarter revenue was $13.0 million, compared to $16.5 million reported in
the same period last year. On a year to date basis, revenue was $36.9 million
compared to $44.4 million in fiscal 2004. Net income for the third quarter was
$1.4 million or $0.05 per share on a diluted basis compared to the prior year's
third quarter net income of $3.1 million or $0.12 per share. On a year to date
basis, net income was $4.1 million or $0.15 per share compared to $8.3 million
or $0.32 per share in the prior year.
Operating expenses decreased to $6.6 million in the third quarter from $7.2
million in the prior year's third quarter. The third quarter results include
$1.0 million in non-cash amortization charges compared to $0.9 million in the
third quarter of fiscal 2004 as a result of additional software amortization
charges related to the acquisition of TranSched Systems Limited in February
2005. Both quarters include $0.1 million in non-cash compensation expense
related to stock options. On a year to date basis, operating expenses were
$19.2 million compared to $20.3 million in the prior year. Operating income for
the third quarter was $1.5 million, compared to $4.5 million in the prior
year's third quarter and was $4.5 million on a year to date basis compared to
$10.8 million in the prior year.
The Company generated cash flows from operations of $7.5 million on a year to
date basis compared to $6.7 million in the prior year. Enghouse closed the
quarter with $96.3 million in cash and short-term investments and continues to
have no long-term debt. Deferred revenue was $13.9 million compared to $13.2
million at October 31, 2004.
As the majority of the Company's revenues are earned in U.S. dollars, the
continued weakness of the U.S. dollar compared to the Canadian dollar has
negatively impacted the reported revenue as compared to the same quarter last
year. The third quarter's results reflect more normalized operating results
than in the prior year's third quarter, which reflected significant software
license and maintenance contributions from a major customer. During the quarter
the Company continued the integration of the operations of TranSched. Enghouse
continues to invest in TranSched, and their improving revenue has resulted in a
reduced loss when compared to the prior quarter.
Enghouse continues to remain cash flow positive and has retained its
substantial cash balance to position the Company to pursue acquisitions which
will add to shareholder value.
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 www.enghouse.com.
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