PRESS RELEASE Back to Press ReleasesSystems Xcellence Announces Second Quarter ResultsRevenues up 19%; Eighth Consecutive Quarter of ProfitabilityMILTON, Ontario (October 19, 2000) -- Systems Xcellence Inc. (TSE: SXC) announced today results for the three and six months ended August 31, 2000. Sales in the second quarter rose 19.2% to $6.7 million from $5.6 million last year producing net income of $310,390 or $0.01 per share compared to $409,278 or $0.02 per share in the second quarter of fiscal 2000. For the first six months of the year, sales increased 19.3% to $13.1 million resulting in net income of $641,455 or $0.03 per share compared to $1,026,647 or $0.05 per share last year. Sales through the first six months of the fiscal year have benefited from the Company's strategy to expand its presence in the high-growth US market. New and extended contracts have been announced with a number of key health benefits management providers, including First Health Corporation, PlanetRx.com, a U.S. based health claims processor and a national retail pharmacy chain, among others. With these new contracts the company contracted sales order back log was $26.3 million as at August 31, 2000. Expenses in the quarter and year-to-date periods increased as a result of the Company's ongoing investment in future growth. Product development costs have risen as initiatives were funded to introduce new products and support the web-enablement of the Company's full suite of health benefit management solutions. Costs have also increased through the first six months as the Company has expensed approximately $1.1 million to establish new facilities and hire staff related to the start-up of HxBenefit Inc., the Company's Application Service Provider initiative located in Scottsdale, Arizona. "Our sales pipeline and backlog continue to build, and we anticipate continued growth going forward," stated Gordon Glenn, President and CEO. "Looking ahead, we anticipate that the launch of HxBenefit Inc. in the fourth quarter will significantly enhance our stream of recurring revenues. In addition, we are continuing to expand the scope and breadth of our web-enabled product suite while prudently evaluating acquisitions that expand our presence in the global healthcare technology marketplace." Financial Highlights (complete unaudited statements follow)
Revenue Breakdown
Systems Xcellence is headquartered in Milton, Ontario, and provides advanced online transaction processing solutions for the healthcare benefits management industry. The Company combines web-enabled, real-time transaction processing technology with business consulting expertise, technical services and custom solution development to deliver patient-centric software solutions to the healthcare industry. The Company provides solutions specifically designed for health benefit management organizations including eCommerce providers, pharmacy benefit management organizations, Blue Cross Blue Shield plans, Managed Care Organizations and retail pharmacy chains. 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. Link to Financial Statements (PDF Format)
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