Nieuwegein, 16 March 1999. Geac Computer Corporation today announced operating results for the third quarter of fiscal 1999. Revenues amounted to $215.4 million, up 24% over the $174.2 million achieved during the same quarter of last year. Net income for the quarter was $39.9 million ($0.64 per share), down 11% from the $44.8 million ($0.75 per share) earned during the third quarter of fiscal 1998.
For the first nine months of this fiscal year, revenues were $582.9 million, up 22% over the $478.6 million achieved during the same period of fiscal 1998. Net income was $122.4 million ($1.98 per share) up 6% over the $115.7 million ($1.95 per share) earned for the same period of the last fiscal year.
As part of Geac's ongoing review of both its operations and its balance sheet, particularly in the area of intangibles, Geac determined it would expense approximately $5.0 million of development expenditure that would have been historically capitalized in the quarter. This decision reflects an orientation of the development effort toward creating alternate Y2K upgrade paths for customers. In addition, a further $4.0 million was reserved to cover certain anticipated activities as part of Geac's ongoing cost reduction program.
"The wisdom of our focus on secure streams of maintenance revenue is confirmed. Geac continues to report a level of profitability that is well above industry average. More importantly, Geac continues to generate significant cash flows. During this quarter cash flow from operations reached $89.0 million for a total of $123.1 million for the first nine months of fiscal 1999. With quarter end cash balances exceeding $229.0 million and an unused line of credit of $100.0 million, Geac has a healthy war chest to pursue the abundance of well-priced acquisition opportunities we anticipate seeing in the months to come", said William Nelson, chairman and CEO of Geac.
The ongoing efforts of Geac's acquisition and integration team resulted in significant profit contributions in the year to date period. During the third quarter, Geac acquired Vancouver based TWG Technologies, Inc. to further enhance its Networks and Technical Services Operation in western Canada. Geac also acquired the assets of Stowe Computing Australia Pty Ltd. and Stowe Computing NZ Limited, suppliers of municipal government and library management software in Australia and New Zealand.
Founded in 1971, Geac is a provider of mission critical enterprise applications, supplying industry specific software to ten vertical markets as well as cross industry administrative applications comprised of financial, human resources and materials management software. Headquartered in Markham, Canada, Geac has more than 90 offices in 16 countries and serves customers in more than 40 countries worldwide. Geac product and service information is available on the World Wide Web at http://www.geac.com, or through email at email@example.com. Geac is a publicly traded company with its common shares listed on the Toronto Stock Exchange (Symbol: GAC).