rss icon

Category Archives:

MIC Blog

Aug 11 2011
0

Cover-All Announces Revenue Growth of 20.6% and Earnings Growth of 46.7%, for YTD 2011

Added by admin

FAIRFIELD, NEW JERSEY (August 11, 2011) – Cover-All Technologies Inc. (NYSE Amex: COVR), a Delaware corporation (“Cover-All” or the “Company”), today announced financial results for the quarter ended June 30, 2011.

Operational Highlights:

  • Cover-All was listed on the NYSE Amex stock exchange on May 25, 2011.
  • For the six months ended June 30, 2011 revenue was $10.2 million compared to $8.4 million for the comparable period in 2010, an increase of 20.6%. The $10.2 million in revenue was the highest first-half revenue total in Cover-All’s history.
  • License revenue for the six months ended June 30, 2011 was $3.8 million, up 165.7% compared to $1.4 million for the same period in 2010.
  • Support Services revenue for the six months ended June 30, 2011 was $4.2 million, up 5.8% compared to $4.0 million in the same period in 2010. The Company combined two of its revenue categories, “Maintenance” and “Application Service Provider (“ASP”) services,” on the statements of operations in the first quarter of 2011 and 2010 and will be reporting these revenue categories as “Support Services” going forward.
  • Net Profit for the six months ended June 30, 2011 was $1.9 million, or $.07 per fully diluted share, up 46.7% compared to $1.3 million, or $.05 per fully diluted share in the comparable period in 2010.
  • Revenue for Q2, 2011 was $5.0 million, the third best quarter in Cover-All history, up 6.4% over Q2, 2010.
  • Net Profit for Q2, 2011 was $.7M, or $.03 per fully diluted share, up 20.4% over Q2, 2010
  • The Company’s balance sheet remains strong with stockholders’ equity at a record $17.4 million as of June 30, 2011. The Company completed the first half of 2011 with $4.0 million in cash, $5.6 million in working capital and no long-term debt.
  • Cover-All announced general availability and first customer delivery of its NexGen Business Intelligence Suite, which can be implemented either as an integrated component of My Insurance Center Business Acquisition Platform or as a stand-alone solution that can leverage data from virtually any insurance source system.
  • Cover-All delivered its new My Insurance Center NexGen Commercial Package Product as promised to the first two customers and is now available for general release.

John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, “Cover-All continues to execute on our aggressive product rollout and growth strategy while delivering record revenues and operating income.  These year-to-date and quarterly results represent a very successful continuation of the strong start we reported in our first quarter of 2011. We remain focused on expanding our business profitably. The second quarter was our third best revenue quarter ever, and in the first six months of this year, we grew revenues 20.6% compared to last year’s first six months. We grew operating and net income by 30.5% and 46.7%, respectively, year-to-date over last year, which demonstrates the increasing flexibility in our business model. Year-to-date EPS of $0.07 per diluted share is a new record, exceeding any first six month period by 40%.”

Financial Results for the Six Months Ended June 30, 2011

Total revenues for the six months ended June 30, 2011 were $10.2 million compared to $8.4 million for the same period in 2010, an increase of 20.6%. License revenue was up 165.7% to $3.8 million compared to $1.4 million for the same period in 2010. Support Services (formerly Maintenance and ASP revenue, which together represent contracted continuing revenue), was $4.2 million for the six months ended June 30, 2011, up 5.8% from $4.0 million in the same period in 2010. Professional Services revenue for the six months ended June 30, 2011 was $2.1 million, down 29.3% compared to $3.0 million for the same period in 2010.

 

Total expenses (cost of revenue and operating expenses) for the six months ended June 30, 2011 were $8.3 million, up 18.6% compared to $7.0 million in the comparable period of 2010. Operating income for the six months ended June 30, 2011 was $1.9 million up 30.5% compared to $1.5 million in the comparable period in 2010. Net income for the six months ended June 30, 2011 was up 46.7% to $1.9 million, or $0.08 per basic and $0.07 per diluted share (based on 25.1 million basic and 26.4 million diluted weighted average shares, respectively), compared to $1.3 million, or $0.05 per basic and diluted share (based on 24.8 million basic and 25.6 million diluted weighted average shares, respectively), in the same period of 2010. The first quarter of 2010 included $285,000, or approximately $0.01 per share, in expenses related to the Business Intelligence asset acquisition.

Financial Results for the Three Months Ended June 30, 2011

Total revenues for the three months ended June 30, 2011 were $5.0 million compared to $4.7 million for the same period in 2010, an increase of 6.4%. License revenue was up 375.6% to $1.9 million compared to $396,000 for the same period in 2010. Support Services (formerly Maintenance and ASP revenue, which together represent contracted continuing revenue), was $2.1 million for the three months ended June 30, 2011, compared to $2.0 million in the same period in 2010. Professional Services revenue for the quarter was $1.0 million, down 55.6%, compared to $2.3 million for the same period in 2010.

 

Total expenses (cost of revenue and operating expenses) for the quarter ended June 30, 2011 were $4.3 million, up 7.4% compared to $4.0 million in the comparable period of 2010. Operating income for the quarter ended June 30, 2011 was $675,000 compared to $673,000 in the comparable period in 2010. Net income for the quarter ended June 30, 2011 was up 20.5% to $681,000, or $0.03 per basic and diluted share (based on 25.2 million basic and 26.6 million diluted weighted average shares, respectively), compared to $566,000, or $0.02 per basic and diluted share (based on 24.8 million basic and 25.8 million diluted weighted average shares, respectively), in the same period of 2010.

 

Mr. Roblin concluded, “We delivered our new NexGen Commercial Package product in the second quarter to two customers and announced general availability of our NexGen Business Intelligence Suite.  The latter is an important milestone as we have nearly completed transitioning the business model of our Business Intelligence acquisition in 2010 from a professional services-only sales model to a product and support model that can be broadly and quickly implemented, delivering value to customers quickly. Our new Business Intelligence product is fully integrated into our My Insurance Center Business Acquisition Platform and will also be sold as a stand-alone product. This product and the NexGen products are already being actively marketed and sold, and as a result our sales pipeline has reached the highest levels in our company’s history. We are better positioned than ever to meet our aggressive objectives in 2011 and beyond.”

 

Balance Sheet

Stockholders’ equity was $17.4 million as of June 30, 2011 compared to $15.2 million as of December 31, 2010. Total assets increased to almost $21.0 million as of June 30, 2011 compared to $19.5 million as of December 31, 2010. As of June 30, 2011, the Company had $4.0 million in cash, $5.6 million in working capital, up from $5.0 million at December 31, 2010, and up sequentially from $5.5 million at March 31, 2011, and no long term debt.

Conference Call

Management will conduct a live teleconference to discuss its 2011 second quarter financial results at 4:30 p.m. ET on Thursday, August 11, 2011. Anyone interested in participating should call 1-877-941-4775 if calling from the United States, or 1-480-629-9761 if dialing internationally. A replay will be available until August 18, 2011, which can be accessed by dialing 1-877-870-5176 within the United States and 1-858-384-5517 if dialing internationally. Please use passcode 4464112 to access the replay. In addition, the call will be webcast and will be available on the Company’s website at www.cover-all.com or by visiting http://viavid.net/dce.aspx?sid=00008B20.

About Cover-All Technologies Inc.

Cover-All Technologies Inc. is a leader in developing sophisticated software solutions for the property and casualty insurance industry. With our industry leading Business Acquisition Platform – My Insurance Center, and the recently announced Business Intelligence Solution Cover-All continues to expand its growing inventory of business focused, advanced technology solutions. The “New” Cover-all continues to innovate while leveraging its reputation for quality insurance solutions, knowledgeable people and outstanding customer service to enable our customers to achieve superior business results.

Pairing state-of-the-art functionality of My Insurance Center NexGen and the NexGen Business Intelligence Suite with experienced service professionals, who after implementation ensure continued compliance with statutory, regulatory, and market differentiation needs, Cover-All continues its tradition of innovating technology solutions to revolutionize the way the property and casualty insurance business is conducted.

Additional information is available online at.

Cover-All®, My Insurance Center™ (MIC) and Insurance Policy Database™ (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

Forward-looking Statements

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results.  Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control.  Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 24, 2011, and Post-Effective Amendment No. 3 on Form S-3 (File No. 333-156397) filed with the SEC on July 26, 2011 copies of which are available from the SEC or may be obtained upon request from the Company.

Click here for the full press release

 

For information on Cover-All, contact:

Ann Massey

Chief Financial Officer

973/461-5190

amassey@cover-all.com

 

Investor Contact:

Hayden IR

Brett Maas, Principal

(646) 536-7331

Dec 22 2010
0

Making Sense of a Crowded Space

Added by Miguel Edwards

Working with our customers over the years, we have developed a solid and thorough understanding of what factors drive their business – more specifically how they look at the ways to use technology to achieve a sustainable competitive advantage.  The common themes we hear include: expand the distribution channel, broaden and deepen product offerings, improve speed to market, develop and leverage unique insights by combining data internal and external to the organization, and the ability/flexibility to act quickly on the information. 

These themes have been central to the evolution of our solution set over the past ten years, and were a driving force in a re-architecture of our platform which began four years ago and continues to add new capabilities.  But with so many vendors in the “Policy Administration” space, all using the same buzz words, all claiming to offer “the key” to your business, how does one select the right partner? Frankly, there isn’t a one-size fits all answer that would end your selection process today.  However, with more than a few implementations and successful partnerships under our belt, we’d like to offer the following three points for you to consider as you search for a partner/solution:

What are your objectives, and what enablers do you need to achieve them?
Early in your analysis, it is important to define exactly what the organizational objectives are.  Only then can you determine what capabilities you will need to reach those objectives.  As you consider the features of the ideal solution, it is important to remember how those new enablers will impact the organization.  With the overarching goals in mind and looking to take full advantage of these new capabilities, what changes will be required to process, and how will roles need to be redefined?  Without this critical step, you could be simply replacing your current solution with a shinier one, but ultimately unable to reap the any significant benefit.   As an aside, this is a great opportunity to innovate.  Don’t be constrained by former processes, convoluted work-arounds, or confusing products.  Leverage the expertise of your experienced vendor partner to explore new means to new ends – always challenging the status quo.

Rules and Tools vs. Full Service
Lack of flexibility, poor turn-around times, and exorbitant costs associated with homegrown and legacy vendor technologies, gave rise to the rules and tools based products on the market today.  The idea was that customers could maintain their product set more effectively and efficiently than a vendor.  There are potential issues with this line of thinking, however:

  • The total cost of ownership for “Rules and Tools” is not always well understood or measured. Internal resource allocation mechanisms often hide the true cost of system development, sometimes misrepresenting the overall cost of the project and subsequent maintenance. Further, very few internal organizations are willing or able to provide their businesses with service level standards. How will you ensure that your various business units will enjoy consistent service, even as organizational priorities shift?
  • The learning curve of “Rules and Tools” based solutions is often underestimated.  Even in the case of non-standard lines, internal resources can spend months learning not just the vendor’s product, but the nuances of translating business requirements into functional specifications for that particular technology set.  What was anticipated as being a more efficient process can result in even longer delays and more constraints, adding to your opportunity cost and potentially, your reputational cost as you risk compliance. 

Just ask the customers.
The optimum vendor should have a robust client base comprised of both long-time and new customers, as well as customers of varying sizes. But most importantly, customers should be leveraging business models and product offerings similar to those of your organization.  Those customers’ testimonials are the best gauge of what type of relationship you can expect. Prepare a detailed set of questions that look to substantiate the claims the vendor has made, as well as questions that address your concerns.  Also be sure to speak with customers who are leveraging the specific version of technology being considered.   New untested technology presents a set of risks you need to knowingly accept.

Mar 08 2010
0

An Alternative to the Big Bang Approach

Added by Miguel Edwards

So you’d like a streamlined technology solution that incorporates all your business processes, but the money isn’t there for it? Too often businesses think that technology is an all-or-nothing approach. Not so. If you consider a multi-year technology implementation plan, your business could see benefits before you’re able to adopt a full-scale solution.

Click Here To Read More »

Feb 23 2010
0

Going Horizontal

Added by Miguel Edwards Tagged with , .

Imagine investing in a technology solution that not only gives you a significant advantage in your market, but allows you to add and remove functionality and capacity as and when you see fit. That is a major advantage when you implement horizontally scalable technology, which allows you to expand on the base product’s capabilities. When you invest a technology solution that allows for such flexibility, you’re investing the ability to customize that product to adapt to your ever changing business needs.

Click Here To Read More »

Feb 03 2010
0

Making the Case for Real-time Information

Added by Miguel Edwards

These days the talk is about leveraging data to transform business. And it may be true that data has its place in the improvement of a company’s profitability. But data is static and its benefits to your company are limited. The real untapped source of success is information. Here’s why.

Your underwriting process is only as good as the data in front of you. That data has a shelf life, much like most data gathered in the research and benchmarking processes. The truth is businesses evolve and markets change constantly, sometimes quite rapidly. Today’s reports are current – well, today. Tomorrow could be another story as market factors, economic influences, and claims figures change.

Click Here To Read More »

Jan 08 2010
0

Compliance: Is Your Solution Up-to-date?

Added by Miguel Edwards

All too often we see companies whose insurance technology solutions have left them with critical gaps in compliance. It’s easy to understand why. Handling ISO and NCCI compliance in one market can be challenging, but if you’re a multi-state operation, it quickly becomes unwieldy. With constant changes within the regulatory realm, maintaining adherence to bureau, state and federal regulations requires a full-time staff and full-time attention to detail. Often, companies will ensure paper compliance, but make missteps within their automated processes, causing efficiency to suffer.

Click Here To Read More »

Jan 04 2010
0

Putting Technology in the Right Hands

Added by Miguel Edwards

True story: Once upon a time, a third part administrator hired an IT staff and tasked it with building a comprehensive system that automated and integrated all current TPA business functions. The goal: to consolidate customer data, field nurse case information, and claims processing information into one central repository. The product took six years to build and two years to test. By the time the system was launched, the TPA staff transitioned from one legacy system right into another. While the systems were indeed consolidated, the trouble of sending and receiving data from the company’s automated system to the clients’ newer, more efficient systems caused no end of IT woes and workflow interruptions.

Click Here To Read More »