The Company reported revenue of $39.2 million, an 82.3% increase from $21.5 million reported for the first quarter of 2000. Pro forma operating margin in the first quarter of 2001 was 23.0% as compared to 19.2% in the same period of 2000. On a pro forma basis, net income for the 2001 first quarter increased 140.2% year-over-year to $8.2 million compared to $3.4 million, and pro forma diluted earnings per share increased 108.1% to $0.21 from $0.10 in the year-ago quarter, exceeding the consensus estimate of $0.16.

Pro forma net income and diluted earnings per share for the stated periods exclude amortization of goodwill and other intangible assets and transition related expenses.

As reported net income and earnings per share on a fully diluted basis for the 2001 first quarter were $4.5 million and $0.11, respectively, compared to as reported net income and earnings per share of $2.5 million and $0.07, respectively, for the same period last year.

Software license revenue increased 74.8% to $19.5 million for the three months ended March 31, 2001, from $11.1 million in the first quarter of 2000. Maintenance and services revenue was $17.4 million, a 90.8% increase from $9.1 million in the year-ago quarter. Hardware sales for the quarter were $2.3 million as compared to $1.2 million in the prior year period.

Roys Poyiadjis, AremisSoft’s Co-CEO and President of the US Group, stated, AremisSoft has now demonstrated nine consecutive quarters of excellent financial performance. Our strong results demonstrate that our business remains solid and has not been negatively affected by current market conditions conditions that are proving to be challenging for many technology companies who heavily participated in the technology hyper cycle of the past few years in the US and Western Europe. We have not experienced a slow down in business activity in the emerging markets where we participate and our US and UK based businesses achieved plan. Moreover, our pipelines in the US remain strong.

Our strong, consistent growth is a direct result of the soundness of our business model. Our fundamental strategy is based upon diversification of business and a balanced approach to risk, which has enabled us to successfully sell multiple products into multiple markets. We look to continue expanding our geographic presence and product portfolio in emerging markets as well as moving forward our business in the US and Western Europe. Overall, we are very pleased with our performance and remain confident in our outlook.