Business process outsourcing solutions BISYS Group, Inc. reported the results of its fiscal fourth quarter and fiscal year ended June 30, 2004.
BISYS reported net income of $63.6 million or $0.53 per diluted share for the year ended June 30, 2004 as compared to net income of $98.2 million or $0.81 per diluted share for the year ended June 30, 2003.
Results for the year ended June 30, 2004 include restructuring, impairment and other charges of $23.5 million or $0.19 per diluted share net of tax, primarily for the integration, consolidation, and reorganization of certain business operations, particularly in the Company’s European Fund Services division and the Insurance and Education Services group.
Excluding restructuring, impairment and other charges, pro forma net income for the year ended June 30, 2004 was $87.1 million or $0.72 per diluted share as compared to pro forma net income of $105.8 million or $0.87 per diluted share for the same period last year. BISYS’ fiscal 2004 annual revenue increased to $1,037.3 million, up 11% over fiscal 2003 annual revenue of $933.6 million. Cash from operations for fiscal 2004 was $204.3 million, an increase of $33.1 million, or 19 percent, over the previous fiscal year.
For the fiscal fourth quarter, BISYS reported net income of $18.0 million or $0.15 per diluted share, as compared to net income of $31.0 million or $0.26 per diluted share for the same period in fiscal 2003. Revenue for the quarter was $267.2 million, an increase of 8% from $247.4 million in the same period last year. Cash from operations for the quarter reached a record-high of $65.1 million.
Reported results for the fourth quarter of fiscal 2004 include restructuring and other charges of $2.2 million or $0.02 per diluted share net of taxes, primarily for the integration, consolidation, and reorganization of certain business operations, particularly in the Company’s European Fund Services division and the Insurance and Education Services group. Excluding restructuring and other charges, pro forma net income was $20.2 million or $0.17 per diluted share for the fourth quarter of fiscal 2004.
“During our fourth fiscal quarter, we generated solid internal revenue growth of five percent compared to the year ago period, and strong cash flow. Our largest business group, Investment Services, experienced strong revenue growth compared to the year ago period, and improved operating earnings on a sequential basis compared to our third fiscal quarter ended March 31, 2004. Our Information Services group performed well during the quarter, but was impacted, as expected, by the loss of a large client in the last quarter,” according to Russ Fradin, BISYS’ president and CEO. “While our Insurance and Education Services group has underperformed, principally because of the performance of our Life Insurance Services division, we are continuing to take the actions necessary to position the division for future growth. For the company in total, we believe that our continued revenue growth and strong cash flows demonstrate the fundamental strength of our business, and that our sound strategic positioning will provide opportunities for future growth.”
“We are also pleased to report that today we filed our amended Form 10-K for the 2003 Fiscal Year, and the required amended 10-Q filings. These filings complete the restatement of our financial results. We look forward, with these filings behind us, to continuing to focus on growing our businesses and serving our customers throughout fiscal 2005.”