Enghouse Releases First Quarter Results and Announces Dividend
Markham, Ontario – (March 7, 2007) – Enghouse Systems Limited (TSX:ESL) today announced its
unaudited first quarter financial results for the period ended January 31, 2007.
First quarter revenue was $13.4 million, compared to $16.8 million reported in the same period last year. Net income for the first quarter was $1.8 million or $0.07 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 decline in revenue and profit was primarily a result of a decreased number of licenses being ordered by one customer.
Operating expenses decreased to $7.1 million from $8.1 million in the prior year’s first quarter and reflects foreign exchange gains of $0.5 million in the quarter compared to foreign exchange losses in the prior year’s first quarter of $0.3 million. Also included in the operating expenses are non-cash amortization charges of $1.5 million compared to $1.3 million in the prior year’s first quarter related to the amortization of software and other intangibles including those recorded as part of the Apropos acquisition. Both quarters include $0.1 million in non-cash compensation expense related to stock options.
The Company generated cash flows from operations of $5.1 million in the first quarter compared to $3.4 million in the prior year’s first quarter as a result of strong cash collections, closing the quarter with over $105 million in cash and short-term investments. The Company continues to have no longterm debt.
At its meeting held today, the Board of Directors authorized the payment of a quarterly dividend of $0.025 per share. The first quarterly dividend shall be payable on May 31, 2007 to shareholders of record at the close of business on May 14, 2007. The Chairman of the Board, Stephen Sadler, said “Our decision to pay a regular quarterly dividend was taken to provide an ongoing return to shareholders as we continue activities to increase overall value. The Company remains committed to its strategy of seeking further acquisitions to continue to diversify its revenue stream and expand its market presence.”
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.
About Syntellect
Syntellect, headquartered in Phoenix, Arizona, helps customers create, maintain and continuously improve superior end-to-end service. Syntellect’s personalized service values its customers’ preferences from the way they contact a business, to the level of help desired. Success is measured by the ability to implement and continuously support solutions for customers. With more than 20 years of pioneering leadership and thousands of solutions deployed globally, Syntellect is a premier provider of enterprise-class contact center solutions for the high-technology, financial services, help desk, utilities, government and consumer products industries.
For information about Syntellect, visit www.syntellect.com or call 800.788.9733.
