PRESS RELEASE  Back to Press Releases

Systems Xcellence Posts Record Fourth Quarter and Annual Revenues & Profits

Company Reports 56% Increase in Revenue and 618% Increase in Net Income From Operations for the Quarter

MILTON, Ontario (May 12, 1999) -- Systems Xcellence Inc. (TSE:SXC), a leading supplier of patient-centric electronic transaction processing software for the healthcare information technology industry, today reported strong financial results for the fourth quarter of fiscal 1999. Significant increases in profits and revenues, accompanied by a dramatic improvement in earnings per share, reflect the company’s ongoing ability to execute its growth strategy and continue to gain momentum in the marketplace.Total revenues for the fourth quarter increased to $6.9 million from $4.4 for the same quarter last year, an increase of 56%.Revenues for the year ending February 28, 1999 were $19.3 million, a 50% increase from last year’s revenue of $12.8 million.

The company’s revenue breaks down as follows:

  Three Months Ended February 28,1999 Three Months Ended February 28, 1998 Year Ended February 28, 1999 Year Ended February 28, 1998
         

Software Product

$5,364,162

$2,609,315

$12,460,852

$ 7,842,444

Services

$1,037,392

$1,444,264

$ 4,977,221

$ 3,097,804

Maintenance

$ 481,340

$ 371,240

$ 1,888,929

$ 1,903,563
         

Total

$6,882,894

$4,424,819

$19,327,002

$12,843,811
         

Net income from operations (income before restructuring and income taxes) for the quarter was $1.6 million, or $0.08 per share, compared with net income of $0.2 million, or $0.01 per share, for the same quarter last year. Net income from operations for the year ended February 28, 1999 was $1.2 million, or $0.06 per share, compared with a net loss of ($1.2) million, or ($0.07) per share for the prior year.

Net income for the quarter was $1.5 million, or $0.08 per share, up from $0.4 million or $0.02 per share for the same quarter last year. Net income for the year ended February 28, 1999 was $0.5 million, or $0.03 per share, compared with a net loss of ($0.5) million, or ($0.03) per share for the prior year.

Quarterly highlights include:

  • Awarded ISO 9001 certification.

  • Received a multi-million dollar contract extension by PCS Health Systems Inc.

  • Completed a multi-million dollar software license with ProVantage Health Services Inc., a ShopKo Stores subsidiary.

  • Mr. Bob Nagar, formerly Director of Product Development for Systems Xcellence, was promoted to the position of Vice President of Product Management.

  • Partnered with ProVantage Health Services Inc. to market their Decision Support System under the name HX-Eval.

  • Signed two contracts with well known US Healthcare providers. For competitive reasons, we are not able to disclose the names or individual values of the contracts.

  • The combined value of the contracts signed in the quarter exceeds $18.7 million.

  • Mr. Mike Bennof joined Systems Xcellence as Senior Vice President of Systems Implementation.

"We are extremely pleased with our results for the quarter and fiscal 1999", said Gordon Glenn, President and CEO. "Not only has the Company delivered on its revenue and net income targets for the 1999 fiscal year, but we are entering fiscal year 2000 with a record order backlog of $17.2 million. Our strategic plan calls for continued growth as we move forward into fiscal 2000. We plan on capitalizing on the strength of our product offering, staff, management team and our balance sheet to ensure a very prosperous future for Systems Xcellence."

Systems Xcellence will be hosting a conference call this morning at 11:00 a.m. to discuss the company’s fourth quarter and year-end financial results. Interested parties are invited to participate by calling the conference operator at 1-888-209-3787. The call will be recorded and a re-broadcast may be heard until Wednesday, May 19, 1999 by dialing 1-800-558-5253 and entering reservation # 1344728.

Systems Xcellence, headquartered in Milton, Ontario, is a leading supplier of patient-centric electronic transaction processing software for the healthcare information technology industry. Systems Xcellence combines robust software products, business expertise, and services to deliver superior solutions to the demanding managed care sector.