BISYS said it had net income of $3.2 million or $0.03 per diluted share in the third quarter, compared to net income of $32.5 million or $0.27 per diluted share for the same period in fiscal 2003.
Revenue for the quarter was $272.3 million, an increase of 11.2 percent from $244.8 million in the same period last year.
Actual results for the third quarter of fiscal 2004 include an additional provision in the Life Insurance division of $15.5 million or $0.13 per diluted share net of tax for a change in estimated losses in the commissions receivable portfolio and restructuring, impairment and other charges of $6.8 million or $0.06 per diluted share net of tax. That adjustment was 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, a spokesman for the company said.
Included in the $6.8 million charge is $3.1 million net of tax, for estimated additional contractual obligations in the Life Insurance division. Excluding the additional loss provision and the restructuring, impairment and other charges, pro forma net income was $25.5 million or $0.21 per diluted share for the third quarter of fiscal 2004.
“During our fiscal third 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 second fiscal quarter ended December 31, 2003,” said Russ Fradin, BISYS’ president and CEO.
“Our Information Services group grew both revenue and operating earnings compared to the year ago period. While our Insurance and Education Services group has underperformed, principally because of the performance of our Life Insurance Services division, we are taking the actions necessary to position the division for future growth, and we expect our Life Insurance results to improve in fiscal year 2005,” Fradin said.
BISYS reported net income of $28.0 million or $0.23 per diluted share for the nine months ended March 31, 2004, as compared to net income of $78.0 million or $0.64 per diluted share for the nine months ended March 31, 2003. BISYS’ nine months revenue increased to $773.0 million, up 9.6 percent over fiscal 2003 nine months revenue of $705.2 million. Net cash provided by operating activities for the nine months ended March 31, 2004 was $139 million, an increase of more than 18 percent from $119 million in the same period last year.
Actual results for the nine months ended March 31, 2004 include the additional provision in the Life Insurance division of $15.5 million or $0.13 per diluted share net of tax for a change in estimated losses in the commissions receivable portfolio and restructuring, impairment, and other charges of $21.3 million or $0.18 per diluted share net of tax. Actual results for the nine months ended March 31, 2003 include restructuring charges of $7.5 million or $0.06 per diluted share net of tax, related to the integration, consolidation, and relocation of certain business operations, primarily as a result of acquisition activity.
Excluding the additional loss provision and the restructuring, impairment, and other charges, pro forma net income for the nine months ended March 31, 2004 was $64.8 million or $0.54 per diluted share, as compared to pro forma net income of $85.6 million or $0.70 per diluted share for the same period last year, the spokesman said.