Total revenues for the second quarter ended June 30, 2001 were $36.4 million, an increase of 20.4% over revenues of $30.3 million for the same period in 2000. Total revenues for the six months ended June 30, 2001 were $70.4 million, an increase of 12.4% over revenues for the same period in 2000 of $62.7 million. Net income for the second quarter ended June 30, 2001, was $1.0 million, or $0.03 per diluted share, an increase of $400,000, or $0.01 per diluted share, compared to net income of $600,000, or $0.02 per diluted share, for the same period in 2000. Net income for the six months ended June 30, 2001, was $1.4 million, or $0.05 per diluted share, a decrease of $1.8 million, or $0.06 per diluted share, over net income before extraordinary item of $3.2 million, or $0.11 per diluted share, for the same period last year.
Mr. Erez Goren, the Company’s Chief Executive Officer, commented, We are pleased with our financial performance in the face of an evolving product line and business model. We have signed contracts with a number of companies across our markets, both domestically and internationally, and we believe these contracts and the success of our solutions will drive growth in revenues and profitability in the years ahead.
Mr. Goren continued, The acquisition of Breeze Software Pty Ltd and our agreeement to acquire certain assets of HotelTools, Inc. position us to better serve and market our solutions internationally and to the hotel industry, respectively. Both of these markets should contribute to our growth in future years.
Mr. John Heyman, the Company’s Chief Financial Officer, commented, These acquisitions are important for our long-term growth prospects. In the short-term, we expect these acquisitions to be slightly dilutive, with the impact on earnings per share approximating $0.01 to $0.02 per quarter for the remainder of this year. We believe this dilution is short-term and that these acquisitions will be at least breakeven by the first quarter of 2002. We view this dilution as insignificant relative to the contributions we believe these acquisitions will make to our Company’s strategic efforts.
For 2001, the Company continues to expect revenues of between $150 and $160 million and earnings before non-recurring charges of between $0.15 to $0.19 per share. Additionally, for 2002 the Company currently preliminarily projects revenues between $180 and $210 million, and earnings of between $.40 and $.60 per share. The statements in this paragraph are forward-looking statements and are based upon current economic conditions and assumptions involved with our operations.
SOURCE: COMPANY PRESS RELEASE
