CSG Systems International, Inc. Provides Updated Financial Guidance for 2001; Company Raises Earnings Per Diluted Share Guidance

Apr 25, 2001, 01:00 ET from CSG Systems International, Inc.

    ENGLEWOOD, Colo., April 25 /PRNewswire/ -- CSG Systems International, Inc.
 (Nasdaq:   CSGS), a leader in customer care and billing solutions, today updated
 its guidance for the Company's expected financial performance for 2001.
     "Based on our performance this quarter, we are raising our earnings per
 diluted share guidance for 2001," Peter Kalan, Chief Financial Office for CSG
 Systems, Inc., said.  "Our new earnings per diluted share expectations are
 $2.04 to $2.11.  This takes into account our first quarter performance and the
 reduction of diluted shares as a result of the stock buyback program.
 
     The changes in the earnings per diluted share for 2001 are as follows:
 
      Previous Guidance                New Guidance
      $1.98 to $2.05                   $2.04 to $2.11
 
     "In addition, we are updating our conversion guidance for 2001 to take
 into consideration the addition of new customers being added to our conversion
 backlog," Kalan added.
 
     The changes in the conversion schedule (number of customers expected to be
 converted onto CSG's processing system) for 2001 are as follows:
 
      Quarter   Previous Guidance             New Guidance
      Second    1.2 million to 1.4 million    1.2 million to 1.4 million
      Third     1.4 million to 1.6 million    1.7 million to 1.9 million
      Fourth    1.6 million to 1.9 million    1.6 million to 1.9 million
 
     In addition, Kalan reiterated the previous financial guidance provided in
 January 2001 relative to revenues remains unchanged.
 
     CSG anticipates 2001 total revenues to grow to $475.0 million to
 $495.0 million.  Processing revenues are expected to make up 70 to 75 percent
 of the total 2001 revenues, with the remaining amount expected to come from
 software and services revenues.
 
     Finally, the company provided guidance on the number of diluted shares
 outstanding.
 
      Quarter               Diluted Shares Outstanding Range
      First                         55.1 million (actual)
      Second                        54.6 - 54.9 million
      Third                         54.9 - 55.2 million
      Fourth                        55.2 - 55.5 million
 
     Based in Denver, Colorado, CSG Systems International, Inc., is the parent
 company of CSG Systems, Inc., which provides customer care and billing
 solutions worldwide for the converging communications markets, including cable
 television, direct broadcast satellite, telephony, on-line services and
 others.  The Company offers its clients a full range of processing services,
 software and support services that automate customer management functions,
 including billing, sales support and order processing, invoice calculation and
 production, management reporting and customer analysis for target marketing.
 CSG Systems, Inc. provides its services to over one-third of the households in
 the United States.
     Information about CSG Systems, Inc. and its products can be found on the
 worldwide web at http://www.csgsys.com.
 
     This news release contains forward-looking statements that are based on
 assumptions about a number of important factors and involve risks and
 uncertainties that could cause actual results to differ materially from what
 appears in this press release.  These factors include, but are not limited to,
 the following:  1) the continued acceptance of CCS and related products and
 services; 2) CSG's ability to continue to perform satisfactorily under the
 terms of its contract with AT&T, which is set to expire in 2012, as well as
 the level of cooperation between CSG and AT&T on the opportunities and
 obligations presented by the contract; 3) CSG's ability to timely enhance
 current products and develop new technology that will retain existing
 customers and capture new market share; 4) significant forays into new
 markets, which may prove costly and unprofitable; 5) the degree to which CSG's
 expectations of market penetration and consumer acceptance of broadband
 services prove true -- and even if realized, CSG may be unable to meet the
 special billing and customer care needs of that market; 6) customer
 consolidation has decreased the number of potential buyers for many of the
 company's products and services; 7) CSG's ability to sell additional software
 products and services into its existing and new customers; and 8) the Company
 currently has scheduled approximately 4.8 million customers to be converted
 onto its system during 2001, the majority of which are AT&T customers.  If for
 any reason CSG is unable to convert the vast majority of these customers onto
 its system in the targeted timeframe, it may have an adverse impact on the
 Company's growth objectives.
     This list is not exhaustive and readers are encouraged to review the
 additional risks and important factors described in the Company's Report to
 Stockholders on Forms 10-K and 10-Q and other filings made with the SEC.
 
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SOURCE CSG Systems International, Inc.
    ENGLEWOOD, Colo., April 25 /PRNewswire/ -- CSG Systems International, Inc.
 (Nasdaq:   CSGS), a leader in customer care and billing solutions, today updated
 its guidance for the Company's expected financial performance for 2001.
     "Based on our performance this quarter, we are raising our earnings per
 diluted share guidance for 2001," Peter Kalan, Chief Financial Office for CSG
 Systems, Inc., said.  "Our new earnings per diluted share expectations are
 $2.04 to $2.11.  This takes into account our first quarter performance and the
 reduction of diluted shares as a result of the stock buyback program.
 
     The changes in the earnings per diluted share for 2001 are as follows:
 
      Previous Guidance                New Guidance
      $1.98 to $2.05                   $2.04 to $2.11
 
     "In addition, we are updating our conversion guidance for 2001 to take
 into consideration the addition of new customers being added to our conversion
 backlog," Kalan added.
 
     The changes in the conversion schedule (number of customers expected to be
 converted onto CSG's processing system) for 2001 are as follows:
 
      Quarter   Previous Guidance             New Guidance
      Second    1.2 million to 1.4 million    1.2 million to 1.4 million
      Third     1.4 million to 1.6 million    1.7 million to 1.9 million
      Fourth    1.6 million to 1.9 million    1.6 million to 1.9 million
 
     In addition, Kalan reiterated the previous financial guidance provided in
 January 2001 relative to revenues remains unchanged.
 
     CSG anticipates 2001 total revenues to grow to $475.0 million to
 $495.0 million.  Processing revenues are expected to make up 70 to 75 percent
 of the total 2001 revenues, with the remaining amount expected to come from
 software and services revenues.
 
     Finally, the company provided guidance on the number of diluted shares
 outstanding.
 
      Quarter               Diluted Shares Outstanding Range
      First                         55.1 million (actual)
      Second                        54.6 - 54.9 million
      Third                         54.9 - 55.2 million
      Fourth                        55.2 - 55.5 million
 
     Based in Denver, Colorado, CSG Systems International, Inc., is the parent
 company of CSG Systems, Inc., which provides customer care and billing
 solutions worldwide for the converging communications markets, including cable
 television, direct broadcast satellite, telephony, on-line services and
 others.  The Company offers its clients a full range of processing services,
 software and support services that automate customer management functions,
 including billing, sales support and order processing, invoice calculation and
 production, management reporting and customer analysis for target marketing.
 CSG Systems, Inc. provides its services to over one-third of the households in
 the United States.
     Information about CSG Systems, Inc. and its products can be found on the
 worldwide web at http://www.csgsys.com.
 
     This news release contains forward-looking statements that are based on
 assumptions about a number of important factors and involve risks and
 uncertainties that could cause actual results to differ materially from what
 appears in this press release.  These factors include, but are not limited to,
 the following:  1) the continued acceptance of CCS and related products and
 services; 2) CSG's ability to continue to perform satisfactorily under the
 terms of its contract with AT&T, which is set to expire in 2012, as well as
 the level of cooperation between CSG and AT&T on the opportunities and
 obligations presented by the contract; 3) CSG's ability to timely enhance
 current products and develop new technology that will retain existing
 customers and capture new market share; 4) significant forays into new
 markets, which may prove costly and unprofitable; 5) the degree to which CSG's
 expectations of market penetration and consumer acceptance of broadband
 services prove true -- and even if realized, CSG may be unable to meet the
 special billing and customer care needs of that market; 6) customer
 consolidation has decreased the number of potential buyers for many of the
 company's products and services; 7) CSG's ability to sell additional software
 products and services into its existing and new customers; and 8) the Company
 currently has scheduled approximately 4.8 million customers to be converted
 onto its system during 2001, the majority of which are AT&T customers.  If for
 any reason CSG is unable to convert the vast majority of these customers onto
 its system in the targeted timeframe, it may have an adverse impact on the
 Company's growth objectives.
     This list is not exhaustive and readers are encouraged to review the
 additional risks and important factors described in the Company's Report to
 Stockholders on Forms 10-K and 10-Q and other filings made with the SEC.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X37475185
 
 SOURCE  CSG Systems International, Inc.