PRESS RELEASE Back to Press ReleasesSYSTEMS XCELLENCE ANNOUNCES FIRST QUARTER RESULTSMILTON, Ontario (July 19, 2000) -- Systems Xcellence Inc., (TSE: SXC) announced today the results for the first quarter ended May 31, 2000. Revenues in the period rose 19.3% to $6.4 million from $5.4 million last year, as the Company was successful in expanding its base of customers and growing its backlog of orders. Net income was $331,065 or $0.02 per common share in the first quarter of fiscal 2001 compared to $617,369 or $0.03 per share last year. The Company's gross profit margin continues to be strong in the first quarter of this year at 72.8%. During the quarter the Company invested in the start-up of its Application Service Provider initiative, HxBenefit Inc., located in Scottsdale, Arizona. In addition, product development costs have been increased as initiatives were funded to introduce new products and to enhance and web-enable current products. As a result, product development costs have risen in the period compared to last year's first quarter. Selling, general and administrative expenses fell to 27.1% of revenue compared to 29.7% last year as the Company focused on cost efficiencies. "We are on track to achieving our targeted 30% increase in revenue for the current year," stated Gordon Glenn, President and CEO of Systems Xcellence. "We have a record backlog entering the second quarter, as well as a strong pipeline of additional sales opportunities being pursued. As anticipated, the ongoing investment in our ASP and product development initiatives will impact our profitability through the balance of the year." The Company is also actively pursuing synergistic acquisitions that will expand the Company's product line and presence in the global health care technology marketplace, while generating enhanced returns through cross-selling opportunities to the Company's extensive customer base and cost savings synergies. There were a number of highlights achieved during and subsequent to the first quarter:
Financial Highlights (complete unaudited statements follow)
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Systems Xcellence is headquartered in Milton, Ontario, and provides advanced online transaction processing solutions for the healthcare benefits management industry. The Company combines robust software products, business expertise, and services to deliver superior solutions to the ever-changing managed care sector. The Company's shares are traded on the Toronto Stock Exchange under the symbol SXC. Systems Xcellence can be found on the Internet at http://www.sxc.com. This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the Management Discussion and Analysis published in the Company's annual report. Corresponding Documents
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