BCE Emergis Posts Strong First Quarter Results

Revenue Exceeds Targets: Up 97% Over Last Year;

Positive Cash Baseline Earnings at $0.14 per Share;

eHealth and U.S. Business Units Show Solid Progression;

Key Sales Agreements Position Emergis for Market Leadership



Apr 24, 2001, 01:00 ET from BCE Emergis

    MONTREAL, April 24 /PRNewswire Interactive News Release/ -- Emergis Inc.
 (Toronto: IFM), a leading provider of e-commerce services and exchanges, today
 announced record first quarter results.
     Revenue for the first quarter of 2001 reached $143.3 million, up 97% over
 the corresponding quarter in 2000, when revenue stood at $72.7 million.  Cash
 baseline earnings* for the quarter were $13.0 million, or $0.14 per share,
 compared to a loss of $1.7 million, or $0.02 per share for the same period in
 2000.
     For the 38th consecutive quarter, the company increased its recurring
 revenues. Emergis continued to build in the U.S., where revenues accounted for
 39% of total revenues for the quarter, compared to 8% last year.  In terms of
 earnings before interest, taxes, depreciation and amortization (EBITDA), the
 company generated $26.3 million for the quarter, up from $5.0 million in the
 corresponding period last year.
     "We are extremely pleased by the results that we have generated this
 quarter, and particularly by the drivers of this progress, as all three
 business units have contributed strongly to our results.  In particular, the
 eHealth business unit has increased its revenue to over $70.3 million,
 compared to $65.5 million last quarter and $18.2 million in the first quarter
 of 2000.  Both our Canadian and U.S. business units have shown similar
 progress, when you factor out revenue from assets that have since been
 divested.  The U.S. business unit, while being essentially in a startup phase,
 has demonstrated great progress in generating revenue and signing up major
 accounts," stated Brian Edwards, Vice Chairman and CEO of BCE Emergis. He
 noted that at a time when companies are struggling to meet expectations and
 their revised forecasts, Emergis has met or exceeded all analysts' forecasts
 for revenue, EBITDA and cash baseline earnings.
     Christian Trudeau, President & COO further added, "These results point to
 the strength of the Company in its markets, both in Canada and the U.S.  We
 announced several key breakthrough agreements during the quarter, including
 J.P. Morgan Chase and BankOne in the financial services sector and the e-
 claims exchange established with Clarica in the eHealth area. These agreements
 will continue to build our recurring revenue level which drives approximately
 85% of revenues."
     The Company pointed to its unique business model as a driver of these
 strong results.  Its dual strategy of layering leading-edge technology for
 multiple drivers of revenue growth, and of seeking out large industry players
 who are both customers and channels in a manner so as not to compete, has
 facilitated its sales agreements.  In addition, the business model, focused on
 recurring revenue, is attractive to potential customers who pay as they use
 rather than incur significant up-front license fees.  The Company has also
 benefited from the continuing strong support, as a core asset, of the BCE
 family.
     Including acquisition-related amortization costs and future income tax
 benefits, BCE Emergis recorded a net loss of $115.0 million, or $1.23 per
 share for the first quarter ended March 31, 2001, compared to a loss of $41.1
 million or $0.46 per share for the corresponding period in 2000.  Included in
 the quarterly result is a one-time write-down of $22.4 million or $0.24 per
 share related to the decreased value of marketable securities held by the
 Company.  These securities were acquired as partial consideration for assets
 previously divested by the Company.
 
     Business outlook
     For the second quarter 2001, the Company is targeting revenue between $147
 million and $159 million.  The Company did note the difficulty in predicting
 the impact and effect of any economic slowdown on the business going forward.
 As a result, the Company is being cautious about its spending in an effort to
 maintain its earnings profile.
 
     Other financial highlights:
     -  In comparing revenues from Q1/2001 to either last quarter or the first
        quarter last year, the Company noted that direct comparisons are not
        meaningful as these latter quarters included revenue from since
        divested activities, including the transportation vertical and the
        document management unit, or did not include acquired revenue for
        entire quarters.
        *  The eHealth sector remains the largest segment, registering $70.3
           million in revenue for the quarter, compared to $65.5 million and
           $18.2 million in the fourth and first quarters of 2000,
           respectively.  The first quarter of 2000 included only one week of
           UP&UP operations.
        *  Canadian business unit revenue stood at $66.0 million, compared to
           $68.1 million and $49.0 million in the fourth and first quarters of
           2000, respectively. Similarly, revenue from the U.S. business unit
           totaled $7.0 million compared to $7.4 million and $5.5 million in
           the fourth and first quarters of 2000.  For both these units, prior
           year quarters included revenue from assets that have since been
           divested.
        *  U.S. activities accounted for 39% of revenue, compared to 39% in the
           fourth quarter and 8% in the first quarter of last year. When
           revenue from divested activities is factored out from the fourth
           quarter of last year, both revenue from the U.S. business unit, as
           well as the percentage of overall U.S. revenue, are up this quarter.
        *  Recurring revenues for the quarter were approximately 85% of total
           revenue
     -  EBITDA reached the $26.3 million mark for the first quarter, up
        significantly from $5.0 million in the corresponding quarter last year.
     -  Compared to the corresponding quarter last year, cash flow from
        operations increased $10.3 million, primarily due to the strong growth
        in operations that resulted in a $21.3 million increase in EBITDA.
     -  The Company had $69.6 million of cash and temporary cash investments
        and $ 45.9 million of marketable securities at quarter end, compared to
        $79.1 million and  $18.0 million, respectively, in the comparable
        quarter last year.
        *  The Company continued in its strong asset management, including
           accounts receivable, which stood at 55 days outstanding at March 31,
           2001.
 
     1st Quarter customer and operational highlights
     -  A milestone agreement with J.P. Morgan Chase that will implement e-
        Invoicing, Emergis' electronic invoice presentment and payment (EIPP)
        enablement solution for use with its treasury services clients globally
        and as a service offering to its wholesale banking clients -- including
        corporate, middle market, financial institution, and net marketplace --
        for use with their trading partners.  The roll-out of this initiative
        began during the quarter.
     -  An agreement with BankOne to offer EIPP to more than 40,000 accounts in
        its U.S. commercial customer base.  Through this agreement, BankOne
        will immediately expand its offering of electronic banking products to
        include BCE Emergis' e-Invoicing product.
     -  The announcement with Clarica Life Insurance Company of the creation of
        a unique, integrated health and dental claims exchange that will offer
        claims processing of benefits over the web.  Through this innovative
        exchange, health insurance companies will provide their group plan
        customers with extensive Web-based claims capabilities. Individual plan
        members will be able to easily access and complete forms
        electronically; securely submit the completed claims forms for
        eligibility verification, processing and adjudication; receive
        explanation of benefits; and, confirm payment to their personal bank
        account.
     -  Emergis has reached another milestone with e-route inc., as the
        consortium launched webdoxs(TM), its on-line document presentment
        service that allows consumers to receive bills and other documents from
        participating businesses directly through selected banking web sites.
        e-route announced the addition of several major billers such as Bell
        Canada, Bell Mobility, Ford Credit Canada, Chevron Canada and Videotron
        to the electronic service.  The number of banking customers signed up
        surpassed 180,000 at quarter end.
     -  Procuron, Canada's premiere B2B online marketplace was launched during
        the quarter following the successful completion of its four-month pilot
        program. To date, 200 businesses and organisations have registered with
        Procuron. The portal offers corporate customers and suppliers access to
        better prices, reduced order processing costs and strategic purchasing
        advice.
     -  An agreement with ScotiaBank, Canada's leading provider of automotive
        financing, to provide the first fully integrated Web service of its
        kind in Canada for Auto Dealers.  This service will simplify and
        accelerate customer credit approvals and provide one stop processing of
        business office tasks.  Under a five-year agreement, ScotiaBank will
        offer the service to more than 3,000 automotive dealerships.
     -  An agreement was signed with Grand & Toy, for the use of Emergis' e-
        Invoicing solution. This five-year agreement for Emergis(TM) e-
        Invoicing, will round out the company's Internet ordering systems.
        Grand & Toy is Canada's premier office products company.
     -  A technology partnership was signed with Netegrity, the leading
        provider of e-commerce infrastructure solutions for secure portal
        management.  Under this agreement, BCE Emergis will use Netegrity's
        SiteMinder(R) platform as the engine of its new managed portal security
        service called Emergis(TM) Centralized Privilege Management Services
        (CPM) and will bundle the SiteMinder platform within its suite of e-
        commerce services.
 
     Additional financial information is available on the BCE Emergis web site
 at http://www.emergis.com .
 
     *Note: "Cash baseline earnings" is defined as reported net earnings before
 "Acquisition-related costs" (amortization of intangibles and the option on
 convertible debenture), one-time gains and charges, and future income tax
 benefits.
 
     BCE Emergis is a premier e-commerce infrastructure provider, strategically
 focusing on market leadership in the transaction-intensive eHealth and
 financial services sectors. By layering technologically advanced e-commerce
 services on existing Internet-based platforms, Emergis offers its customers
 increasing value in their e-commerce adoption and ever-increasing levels of
 sophisticated services. These scalable solutions electronically transform
 business processes, such as buying, selling, invoicing and payment, and enable
 companies to succeed in the web-centric, cost-driven, and highly competitive
 global Internet economy. BCE Emergis' customers include leading North American
 banks and insurance companies. The Company's shares are included in the TSE
 100 composite index.
 
     This news release contains forward-looking statements which are subject to
 a number of risks, uncertainties and assumptions.  Actual results and events
 may vary significantly.
     Factors which could cause actual results or events to differ materially
 from current expectations include, among other things: uncertainty as to
 whether BCE Emergis' strategies will yield the expected benefits and growth
 prospects, the current negative trends in North American economic conditions,
 BCE Emergis' ability to expand its operations in the United States
 particularly in the eHealth and financial sectors, the extent of its
 customers' use of its exchanges and services and the ability to integrate
 efficiently new acquisitions. For additional information with respect to
 certain of these and other factors, see the Management annual Information Form
 of the Company filed with securities commissions.  THE FORWARD-LOOKING
 STATEMENTS CONTAINED IN THIS PRESS RELEASE REPRESENT BCE EMERGIS EXPECTATIONS
 AS AT APRIL 24, 2001 AND, ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE.
 HOWEVER BCE EMERGIS DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE
 ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
 EVENTS OR OTHERWISE.
 
     CONTACT:  Sylvia Morin, Director, Corporate Communications, 514-868-2358,
 or sylvia.morin@emergis.com; or John Gutpell, Director, Investor Relations,
 514-868-2232, or john.gutpell@emergis.com, both of BCE Emergis.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X50372090
 
 

SOURCE BCE Emergis
    MONTREAL, April 24 /PRNewswire Interactive News Release/ -- Emergis Inc.
 (Toronto: IFM), a leading provider of e-commerce services and exchanges, today
 announced record first quarter results.
     Revenue for the first quarter of 2001 reached $143.3 million, up 97% over
 the corresponding quarter in 2000, when revenue stood at $72.7 million.  Cash
 baseline earnings* for the quarter were $13.0 million, or $0.14 per share,
 compared to a loss of $1.7 million, or $0.02 per share for the same period in
 2000.
     For the 38th consecutive quarter, the company increased its recurring
 revenues. Emergis continued to build in the U.S., where revenues accounted for
 39% of total revenues for the quarter, compared to 8% last year.  In terms of
 earnings before interest, taxes, depreciation and amortization (EBITDA), the
 company generated $26.3 million for the quarter, up from $5.0 million in the
 corresponding period last year.
     "We are extremely pleased by the results that we have generated this
 quarter, and particularly by the drivers of this progress, as all three
 business units have contributed strongly to our results.  In particular, the
 eHealth business unit has increased its revenue to over $70.3 million,
 compared to $65.5 million last quarter and $18.2 million in the first quarter
 of 2000.  Both our Canadian and U.S. business units have shown similar
 progress, when you factor out revenue from assets that have since been
 divested.  The U.S. business unit, while being essentially in a startup phase,
 has demonstrated great progress in generating revenue and signing up major
 accounts," stated Brian Edwards, Vice Chairman and CEO of BCE Emergis. He
 noted that at a time when companies are struggling to meet expectations and
 their revised forecasts, Emergis has met or exceeded all analysts' forecasts
 for revenue, EBITDA and cash baseline earnings.
     Christian Trudeau, President & COO further added, "These results point to
 the strength of the Company in its markets, both in Canada and the U.S.  We
 announced several key breakthrough agreements during the quarter, including
 J.P. Morgan Chase and BankOne in the financial services sector and the e-
 claims exchange established with Clarica in the eHealth area. These agreements
 will continue to build our recurring revenue level which drives approximately
 85% of revenues."
     The Company pointed to its unique business model as a driver of these
 strong results.  Its dual strategy of layering leading-edge technology for
 multiple drivers of revenue growth, and of seeking out large industry players
 who are both customers and channels in a manner so as not to compete, has
 facilitated its sales agreements.  In addition, the business model, focused on
 recurring revenue, is attractive to potential customers who pay as they use
 rather than incur significant up-front license fees.  The Company has also
 benefited from the continuing strong support, as a core asset, of the BCE
 family.
     Including acquisition-related amortization costs and future income tax
 benefits, BCE Emergis recorded a net loss of $115.0 million, or $1.23 per
 share for the first quarter ended March 31, 2001, compared to a loss of $41.1
 million or $0.46 per share for the corresponding period in 2000.  Included in
 the quarterly result is a one-time write-down of $22.4 million or $0.24 per
 share related to the decreased value of marketable securities held by the
 Company.  These securities were acquired as partial consideration for assets
 previously divested by the Company.
 
     Business outlook
     For the second quarter 2001, the Company is targeting revenue between $147
 million and $159 million.  The Company did note the difficulty in predicting
 the impact and effect of any economic slowdown on the business going forward.
 As a result, the Company is being cautious about its spending in an effort to
 maintain its earnings profile.
 
     Other financial highlights:
     -  In comparing revenues from Q1/2001 to either last quarter or the first
        quarter last year, the Company noted that direct comparisons are not
        meaningful as these latter quarters included revenue from since
        divested activities, including the transportation vertical and the
        document management unit, or did not include acquired revenue for
        entire quarters.
        *  The eHealth sector remains the largest segment, registering $70.3
           million in revenue for the quarter, compared to $65.5 million and
           $18.2 million in the fourth and first quarters of 2000,
           respectively.  The first quarter of 2000 included only one week of
           UP&UP operations.
        *  Canadian business unit revenue stood at $66.0 million, compared to
           $68.1 million and $49.0 million in the fourth and first quarters of
           2000, respectively. Similarly, revenue from the U.S. business unit
           totaled $7.0 million compared to $7.4 million and $5.5 million in
           the fourth and first quarters of 2000.  For both these units, prior
           year quarters included revenue from assets that have since been
           divested.
        *  U.S. activities accounted for 39% of revenue, compared to 39% in the
           fourth quarter and 8% in the first quarter of last year. When
           revenue from divested activities is factored out from the fourth
           quarter of last year, both revenue from the U.S. business unit, as
           well as the percentage of overall U.S. revenue, are up this quarter.
        *  Recurring revenues for the quarter were approximately 85% of total
           revenue
     -  EBITDA reached the $26.3 million mark for the first quarter, up
        significantly from $5.0 million in the corresponding quarter last year.
     -  Compared to the corresponding quarter last year, cash flow from
        operations increased $10.3 million, primarily due to the strong growth
        in operations that resulted in a $21.3 million increase in EBITDA.
     -  The Company had $69.6 million of cash and temporary cash investments
        and $ 45.9 million of marketable securities at quarter end, compared to
        $79.1 million and  $18.0 million, respectively, in the comparable
        quarter last year.
        *  The Company continued in its strong asset management, including
           accounts receivable, which stood at 55 days outstanding at March 31,
           2001.
 
     1st Quarter customer and operational highlights
     -  A milestone agreement with J.P. Morgan Chase that will implement e-
        Invoicing, Emergis' electronic invoice presentment and payment (EIPP)
        enablement solution for use with its treasury services clients globally
        and as a service offering to its wholesale banking clients -- including
        corporate, middle market, financial institution, and net marketplace --
        for use with their trading partners.  The roll-out of this initiative
        began during the quarter.
     -  An agreement with BankOne to offer EIPP to more than 40,000 accounts in
        its U.S. commercial customer base.  Through this agreement, BankOne
        will immediately expand its offering of electronic banking products to
        include BCE Emergis' e-Invoicing product.
     -  The announcement with Clarica Life Insurance Company of the creation of
        a unique, integrated health and dental claims exchange that will offer
        claims processing of benefits over the web.  Through this innovative
        exchange, health insurance companies will provide their group plan
        customers with extensive Web-based claims capabilities. Individual plan
        members will be able to easily access and complete forms
        electronically; securely submit the completed claims forms for
        eligibility verification, processing and adjudication; receive
        explanation of benefits; and, confirm payment to their personal bank
        account.
     -  Emergis has reached another milestone with e-route inc., as the
        consortium launched webdoxs(TM), its on-line document presentment
        service that allows consumers to receive bills and other documents from
        participating businesses directly through selected banking web sites.
        e-route announced the addition of several major billers such as Bell
        Canada, Bell Mobility, Ford Credit Canada, Chevron Canada and Videotron
        to the electronic service.  The number of banking customers signed up
        surpassed 180,000 at quarter end.
     -  Procuron, Canada's premiere B2B online marketplace was launched during
        the quarter following the successful completion of its four-month pilot
        program. To date, 200 businesses and organisations have registered with
        Procuron. The portal offers corporate customers and suppliers access to
        better prices, reduced order processing costs and strategic purchasing
        advice.
     -  An agreement with ScotiaBank, Canada's leading provider of automotive
        financing, to provide the first fully integrated Web service of its
        kind in Canada for Auto Dealers.  This service will simplify and
        accelerate customer credit approvals and provide one stop processing of
        business office tasks.  Under a five-year agreement, ScotiaBank will
        offer the service to more than 3,000 automotive dealerships.
     -  An agreement was signed with Grand & Toy, for the use of Emergis' e-
        Invoicing solution. This five-year agreement for Emergis(TM) e-
        Invoicing, will round out the company's Internet ordering systems.
        Grand & Toy is Canada's premier office products company.
     -  A technology partnership was signed with Netegrity, the leading
        provider of e-commerce infrastructure solutions for secure portal
        management.  Under this agreement, BCE Emergis will use Netegrity's
        SiteMinder(R) platform as the engine of its new managed portal security
        service called Emergis(TM) Centralized Privilege Management Services
        (CPM) and will bundle the SiteMinder platform within its suite of e-
        commerce services.
 
     Additional financial information is available on the BCE Emergis web site
 at http://www.emergis.com .
 
     *Note: "Cash baseline earnings" is defined as reported net earnings before
 "Acquisition-related costs" (amortization of intangibles and the option on
 convertible debenture), one-time gains and charges, and future income tax
 benefits.
 
     BCE Emergis is a premier e-commerce infrastructure provider, strategically
 focusing on market leadership in the transaction-intensive eHealth and
 financial services sectors. By layering technologically advanced e-commerce
 services on existing Internet-based platforms, Emergis offers its customers
 increasing value in their e-commerce adoption and ever-increasing levels of
 sophisticated services. These scalable solutions electronically transform
 business processes, such as buying, selling, invoicing and payment, and enable
 companies to succeed in the web-centric, cost-driven, and highly competitive
 global Internet economy. BCE Emergis' customers include leading North American
 banks and insurance companies. The Company's shares are included in the TSE
 100 composite index.
 
     This news release contains forward-looking statements which are subject to
 a number of risks, uncertainties and assumptions.  Actual results and events
 may vary significantly.
     Factors which could cause actual results or events to differ materially
 from current expectations include, among other things: uncertainty as to
 whether BCE Emergis' strategies will yield the expected benefits and growth
 prospects, the current negative trends in North American economic conditions,
 BCE Emergis' ability to expand its operations in the United States
 particularly in the eHealth and financial sectors, the extent of its
 customers' use of its exchanges and services and the ability to integrate
 efficiently new acquisitions. For additional information with respect to
 certain of these and other factors, see the Management annual Information Form
 of the Company filed with securities commissions.  THE FORWARD-LOOKING
 STATEMENTS CONTAINED IN THIS PRESS RELEASE REPRESENT BCE EMERGIS EXPECTATIONS
 AS AT APRIL 24, 2001 AND, ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE.
 HOWEVER BCE EMERGIS DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE
 ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
 EVENTS OR OTHERWISE.
 
     CONTACT:  Sylvia Morin, Director, Corporate Communications, 514-868-2358,
 or sylvia.morin@emergis.com; or John Gutpell, Director, Investor Relations,
 514-868-2232, or john.gutpell@emergis.com, both of BCE Emergis.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X50372090
 
 SOURCE  BCE Emergis