CFI Proservices Inc., the banking software firm, said last week that its fourth-quarter revenues grew by 22%, although acquisition costs resulted in a net loss for the period.
CFI, which develops branch automation and electronic banking systems, said a strong order flow for software helped the company record $11.3 million in revenues for the fourth quarter, compared to $9.3 million in year-earlier period.
Company officials added that a pretax charge of $4.5 million - largely due costs of acquiring branch systems developer Culverin Corp. - resulted in a net loss of $1.7 million in the quarter.
Without the one-time charge, associated with writeoffs of Culverin's in- process research and development and severance payments, CFI had net income of $1.2 million, 24 cents per share, a 20% rise from the corresponding quarter in 1994. Wall Street analysts had expected the company to earn TK cents per share before the restructuring charge, according to First Call Corp.
"We finished a tough year on a high note, with record quarterly software orders and sales backlog," said Matt Chapman, CFI's chairman and chief executive officer. "The strong fourth quarter revenues are due, in large part, to excellent quarterly sales of our core products to core markets.
"We also made good progress with our Personal Branch home banking product, with fourth quarter revenues exceeding $800,000 compared to $217,000 for the same quarter last year," Mr. Chapman said. He added that during the quarter Culverin licensed branch automation software to New York-based Chemical Bank and Banco Santander in Puerto Rico. "We expect Culverin to contribute profits in the first quarter" of 1996, he noted.
"The financial services industry is healthy and very competitive as we enter 1996, providing us with good opportunity for growth," Mr. Chapman said. "We strengthened our processes and steadily improved our performance in 1995, and we expect this to continue in 1996."