Cover-All Technologies Inc. Announces Third Quarter 2009 Financial Results
Company Release – 11/12/2009 16:01
Company Reports 11th Consecutive Profitable Quarter
Continuing Revenue Increases 15.7% Year-to-Date
FAIRFIELD, N.J.–(BUSINESS WIRE)– Cover-All Technologies Inc. (OTC Bulletin Board: COVR.OB), a Delaware corporation (“Cover-All” or the “Company”), today announced financial results for the third quarter ended September 30, 2009.
Operational Highlights:
– Continuing revenue (maintenance and ASP revenue from contracts) for the
first nine months of 2009 was $5.3 million, up 15.7% compared to the
$4.6 million in the prior-year period. Continuing revenue for the third
quarter of 2009 was $1.8 million, up 10.5% from $1.6 million in the same
period in 2008.
– Professional services revenue for the first nine months of 2009 was $2.6
million, up 16.5% compared to $2.2 million in the same period in 2008.
Professional services revenue for the third quarter of 2009 was
$599,000, down 5.6% compared to $635,000 for the same period in 2008.
– Total expenses (cost of revenue and operating expenses) for the first
nine months of 2009 were flat at $7.7 million, compared to $7.7 million
in the same period in 2008.
– Net income for the nine months ended September 30, 2009 was $650,000, or
$0.03 per share, compared to $2.6 million, or $0.11 per share, in the
same period of 2008. Net income for the three months ended September 30,
2009 was $21,000, or $0.00 per share, compared to $1.7 million, or $0.07
per share, in the same quarter of 2008.
– The Company’s balance sheet remains strong with stockholders’ equity at
a record $8.0 million as of September 30, 2009. The Company completed
the third quarter of 2009 with $3.7 million in cash, $4.8 million in
working capital and no debt.
John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, “Cover-All maintained its profitability and expanded its continuing, or recurring, revenue base, setting the stage for continued success. The third quarter of 2008 was particularly strong, with $2.6 million in non-recurring license revenues booked, creating a challenging comparison for both the quarterly and year-to-date periods this year. However, we remain confident that we are on the right path.”
Year-to-Date Financial Results
Total revenues for the nine months ended September 30, 2009 were $8.4 million, compared to $10.3 million for the same period in 2008, a decrease of 19%. License revenue was $484,000, compared to $3.5 million for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $5.3 million for the first nine months of 2009, up 15.7% from $4.6 million in the same period in 2008. Professional services revenue for the first nine months of 2009 was $2.6 million, up 16.5% compared to $2.2 million for the same period in 2008.
Total expenses (cost of revenue and operating expenses) for the first nine months of 2009 were flat at $7.7 million compared to $7.7 million for the same period in 2008. Net income for the nine months ended September 30, 2009 was $650,000, or $0.03 per share (based on 25.0 million weighted average diluted shares), compared to $2.6 million, or $0.11 per share (based on 24.3 million weighted average diluted shares), in the same period of 2008.
Third Quarter Financial Results
Total revenues for the three months ended September 30, 2009 were $2.6 million, compared to $4.8 million for the same period in 2008, a decrease of 46.8%. License revenue was $178,000, compared to $2.6 million for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $1.8 million for the third quarter of 2009, up 10.5% from $1.6 million in the same period in 2008. Professional services revenue for the third quarter of 2009 was $599,000, down 5.6% compared to $635,000 for the same period in 2008.
Total expenses (cost of revenue and operating expenses) for the three months ended September 30, 2009 decreased 19.6% to $2.5 million from $3.1 million for the three months ended September 30, 2008. Net income for the three months ended September 30, 2009 was $21,000, or $0.00 per share (based on 25.2 million weighted average diluted shares), compared to $1.7 million, or $0.07 per share (based on 25.1 million weighted average diluted shares), in the same quarter of 2008.
“We continue to execute our strategic plan and increase the long-term earnings power of the Company,” added Mr. Roblin, “Simultaneously, we are leveraging our strong financial position and consistent profitability to continue investments in research and development with the goal of broadening our product offering. As a result of our efforts, the independent analyst firm, Celent, gave our My Insurance Center(TM) product an extremely positive review in a recent report widely circulated within the insurance industry. This industry acclaim is helping our marketing efforts and has resulted in a notable increase of inquiries from potential customers, validating our confidence going forward.”
Balance Sheet
Stockholders’ equity was $8.0 million as of September 30, 2009 compared to $7.8 million as of December 31, 2008. Total assets decreased to $10.5 million as of September 30, 2009 compared to $11.0 million as of December 31, 2008. As of September 30, 2009, the Company had $3.7 million in cash, $4.8 million in working capital and no debt.
Conference Call Information
Management will conduct a live teleconference to discuss its third quarter 2009 financial results at 4:30 p.m. ET on Thursday, November 12, 2009. Anyone interested in participating should call 877-941-8418 if calling from the United States, or 480-629-9809 if dialing internationally. A replay will be available until November 19, 2009, which can be accessed by dialing 800-406-7325 within the United States and 303-590-3030 if dialing internationally. Please use passcode 4181228 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=00006CBF.
About Cover-All Technologies Inc.
Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry – first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value.
With extensive insurance knowledge, experience and commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way the property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com.
Cover-All(R), My Insurance Center(TM) (MIC) and Insurance Policy Database(TM) (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, 2008, filed with the SEC on March 30, 2009, and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009, filed with the SEC on August 13, 2009, copies of which are available from the SEC or may be obtained upon request from the Company.
