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TSE Symbol: INP |
May 30, 2002 |
WINNIPEG, MB, May 30 /CNW/ - Infocorp Computer Solutions Ltd. (TSE: INP) ("Infocorp" or "the Company"), a leader in the design and delivery of point-of-service cashiering and multi-channel revenue management solutions for e-Government and integrated retail management solutions for retailers, today announced year-end financial results for the twelve-month period ended December 31, 2001.
First quarter 2002 revenue totaled $1.08 million, an increase of 95% over the corresponding period in 2001. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $260,570 or 24% of revenue, compared to ($571,524) over the same quarter last year. Net income for the first quarter of 2002 was $155,418 or $0.01 per share, compared to a loss of $650,396 or ($0.05) per share during the first quarter of 2001.
During the first quarter of 2002, operating activities generated $202,449 compared to using ($13,588) of cash over the same period in 2001. The Company has been able to successfully renegotiate the payment terms of its term debt and, based on contracts obtained, expects to be able to operate with positive cash flow in 2002.
"Thanks to successful restructuring efforts enacted in 2001, Infocorp is well on the way to becoming a profitable, growth-oriented enterprise," said Infocorp CEO Dwayne Mathers. "We met our targets in the first quarter of 2002, achieving both positive earnings and cash flow. Going forward, our goal is to keep this positive momentum growing. Specifically, our strategy for the remainder of the year is to further build-out our direct sales and marketing infrastructure, to continue introducing upgrades to our existing software in order to keep pace with market needs, and of course to bring new product features to market."
After deducting the direct costs of installation, which includes hardware, third-party software, travel, consultants, and other related products and services of $28,765, the Company's margin in the first quarter of
2002 was $1.05 million, compared to $535,609 in the same period in 2001.
General and administrative expenses were $274,445 in the first quarter, compared to $292,330 in the corresponding period of 2001. Expenses are expected to continue at these levels.
Research and development (R&D) expenses decreased to $234,707 in the first quarter of 2002 from $461,778 in the first quarter of 2001, as a result of the Company's strategy to develop a team in India to carry out the development of its JAVA Access2Gov. As future product development will be done primarily offshore, R&D expenses are expected to continue at these lower levels.
Selling and marketing expenses decreased slightly to $224,191 in the first quarter of 2002, compared to $247,150 in the first quarter of 2001. The Company remains focused on building a strong, qualified pipeline from which to generate revenue. Expenses are expected to continue at these levels.
Together with its strategic partner Covansys Corporations (NASDAQ: CVNS), Infocorp announced its second contract in 2002 with the State of Tennessee. Infocorp and Covansys will provide the State with software solutions that will ultimately enable Tennessee drivers to register and license their motor vehicles via the Internet. The two contracts signed with Digimarc ID Systems and Covansys Corporation, are expected to generate in excess of $2 million over the course of the year.
A member of the SLMsoft.com Group of Companies, Infocorp (TSE: INP) is a
leader in the design and delivery of state-of-the-art revenue management solutions
for governments and specialty retailers. Infocorp's solutions enable product
and service delivery, workflow automation, and payment transaction processing
through multiple delivery channels including over-the-counter, Internet and
kiosks. Its core e-government product, Access2Gov (formerly POS+), has been
installed in a variety of state, provincial and municipal departments, and
is a key component of electronic service delivery solutions. Its core retail
product, Softwear/P.O.S., is installed on over 10,000 workstations in retail
organizations around the world, and is a fully integrated retail management
system, from point-of-sale to customer relationship management and back office
automation. Infocorp's offices are located in Canada and USA.
http://www.infocorpnow.com
Founded in 1986, SLMsoft.com (TSE Symbols: ESP.A
and ESP.B)
is a leading developer of electronic payment systems and transaction processing
solutions, including e-commerce applications with a focus on the financial
services industry. SLMsoft.com provides real-time end-to-end e-banking solutions
that include Internet banking, interactive voice recognition (IVR), debit
and credit card issuing, automated teller machines and point-of-sale network
management, retail branch management, and e-CRM enabling technology. SLMsoft.com
also provides investment brokerage client and portfolio management applications
for the brokerage industry; e-health solutions which enable health insurance
claims to be evaluated at the point of service, processed and settled in real
time; and e-government solutions, which enable consumers to pay fees for government
services in person, at kiosks, through IVR or the Internet.
http://www.slmsoft.com
For information contact:
Daniel Rankin
V.P. Sales
Tel: +1-416-787-0171 x2564
Email: danielr@infocorpnow.com
Investor Relations Contact
Dave Mason
The Equicom Group Inc.
Tel: +1-416-815-0700 ext 237 , Fax: 1+ 416-815-0080
Email: dmason@equicomgroup.com
*Indicates trademark or registered trademark of International Business Machines. All other trademarks are the properties of their respective companies.
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