Enghouse Releases Fourth Quarter and Year-end Results
Markham, Ontario (December 14, 2006)
Enghouse Systems Limited (TSX:ESL) today announced its unaudited fourth quarter and year-end financial results for the period ended October 31,2006.
Fourth quarter revenue was $15.8 million, compared to $11.5 million reported in the same period last year, a 38% increase in revenue, mainly attributable to the incremental contributions of Apropos Technology, Inc. ( Apropos ), which was acquired on November 28, 2005. Net income for the fourth quarter was $2.81 million or $0.11 per share on a diluted basis compared to the prior year s fourth quarter net income of $1.85 million or $0.07 per share, a 52% increase over the prior year. For the fiscal year just ended revenue was $62.5 million compared to $48.4 million in the prior year, while net income was $11.0 million compared to $5.9 million in the prior fiscal year, an 86% increase.
Operating expenses increased to $7.6 million from $6.1 million in the prior year s fourth quarter and were $30.4 million for the fiscal year compared to $25.3 million in the prior year as a result of the inclusion of the operating costs of Apropos. Also included in the operating expenses are non-cash amortization charges of $1.5 million compared to $1.0 million in the prior year s fourth quarter which are related to the amortization of software and intangibles including those recorded as part of the Apropos acquisition. For the fiscal year just ended, amortization expense was $5.7 million compared to $3.7 million in the prior year. Non-cash compensation expense related to stock options was $0.1 million in each of the comparative fourth quarters and was $0.5 million for the fiscal year. Operating income for the fourth quarter was $3.3 million, an increase of 140% over the fourth quarter of fiscal
2005 and was $13.7 million for the year ended October 31, 2006 compared to $5.9 million in the prior year.
The Company generated cash flows from operations of $3.1 million in the quarter compared to $0.9 million in the prior year s fourth quarter. For the fiscal year, the Company generated operating cash flows of $19.9 million compared to $8.4 million in the prior year, closing the year with $98.9 million in cash and short-term investments and no long-term debt. This is after funding the acquisition of Apropos as well as the re-purchase of 179,600 common shares for $1.4 million under the Company's Normal Course Issuer Bid.
The Company remains committed to its acquisition strategy and continues to pursue and investigate acquisition opportunities to further diversify its revenue streams 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.
