Operating Expenses Weigh On OpenSolutions
GLASTONBURY, Ct. - (10/27/05) -- Credit union outsourcer OpenSolutions Inc. reported Wednesday that a large increase inoperating expenses, 64%, pushed down third quarter earnings by 14%to $3.8 million, or 18 cents a share, compared to the same quarterlast year. The company, which has embarked on more than ahalf-dozen corporate acquisitions over the past two years, saidoperating expenses soared to $20.5 million for the quarter, from$12.5 million in the third quarter last year. At the same time,revenues rose by 74% to $49.2 million, for the quarter. Through thefirst three quarters Opens Solutions reported flat earnings growth,$10.6 million, almost the same as the first nine months last year,despite an 88% surge in revenues to $134 million. The main reasonwas an accompanying 83% surge in operating expenses, to $57.2million.