Pro forma earnings per share were $.06, also in line with guidance, and $.01 better than the consensus forecast for the company. Operating cash flow was $8 million, the best cash flow results since the quarter ending September 30, 1999. In addition, the company announced that William E. Fisher, Chairman and CEO, will step down from both of his current positions.
Larry G. Fendley, a current board member, will assume the role of interim CEO during an executive search period, effective immediately. Gregory J. Duman has been appointed as Chairman of the Board.
Overall, we are pleased with our results this quarter, said Dwight G. Hanson, chief financial officer. In what continues to be a tough market, we were able to meet our objectives for the quarter. Revenue for our Consumer e-Payments business was up 6 percent over the prior year and new orders in that unit were up substantially from the year ago period. We increased our share by adding eight significant new Consumer e-Payment customers, and saw a sequentially higher number of transaction volume upgrades from our existing customers.
During the quarter, we began to aggressively market our new M-Bill and M-Statement products, brought on board through the MessagingDirect acquisition, added Hanson. We see a strong interest in our secure document delivery and payment solutions, and we signed the first contract for our electronic statement delivery solution since completing the acquisition. In addition, we launched our e-series initiative, wherein we are offering an integrated set of epayment processing solutions targeted at new channels like the Web and wireless. Over 50 customers have already implemented some facet of our e-series solution suite, in areas such as secure e-commerce, mobile commerce, chip-based applications and secure electronic document delivery. Twenty-two new e-series contracts were signed in the second quarter. TSA is rapidly becoming the e-payment software provider of choice for the new economy. The R&D we committed to throughout the Y2K timeframe is beginning to pay off.
We were gratified that Mizuho bank, soon to be the largest financial institution in the world, selected the high-value e-payments solution from our Corporate Banking e-Payments business unit, added Hanson. In addition, we announced a number of technology partnerships in the Insession Technologies business unit designed to more fully leverage our broad reach and proven capability to bring enterprise e-infrastructure products to market.
We were able to generate over $8 million in operating cash flow, our best cash performance since the fourth quarter of fiscal 1999, said Hanson. A benefit of this performance on the cash front is that our DSO and DBO levels declined markedly. Finally, we continue to watch our expense levels very closely. Our results reflected a 3 percent sequential decrease in pro forma operating expenses, even after absorbing the MessagingDirect acquisition. Pro forma results are computed by excluding acquisition-related charges (amortization of goodwill and software) and non-recurring items. The pro forma results of operations are computed using an effective tax rate of 39 percent. Pro forma results for the quarter exclude $5.6 million of software and goodwill amortization from the acquisitions of SDM International, Inc., nsession Inc., Hospital Health Plan Corporation, WorkPoint Systems, Inc. and MessagingDirect, Ltd.
The Company completed the second quarter of fiscal 2001 with $187 million in backlog, consisting of $55 million in non-recurring backlog and $132 million in recurring backlog. This compares to the backlog of $184 million at the end of the first quarter of fiscal 2001. Nonrecurring backlog is composed of fees specified in software and services contracts that the company expects to recognize in the next 12 months. Recurring backlog includes all monthly license fees, maintenance fees and facilities management fees that the company expects to recognize over the next 12 months.
TSA announced it has initiated an external search for a new chief executive officer. I have decided to step down from my position at TSA, said Fisher. I agreed to come back into the CEO position about a year ago, and feel that we have made excellent progress on a number of fronts. The Board and I have agreed that it is now time for a new leader to take TSA to the next level. As we embark on a search for a new CEO, I believe that the company will be in excellent hands under Larry s direction. Larry understands our business, and will do the things necessary to ensure that the next CEO inherits a thriving enterprise. I have enjoyed my 14 years at TSA, and will greatly miss the business, the customers and most of all the people. I look forward to seeing great things from TSA in the future.
Mr. Fisher will be available on an advisory basis to assist with the search and transition process as needed.
SOURCE: COMPANY PRESS RELEASE
