Precis Smart Card Systems Inc. Reports a First Quarter Profit

Apr 23, 2001, 01:00 ET from Precis Smart Card Systems, Inc.

    NORMAN, Okla., April 23 /PRNewswire Interactive News Release/ --
 Precis Smart Card Systems Inc. (Nasdaq:   PCIS) today reported the unaudited
 results of its first quarter of calendar year 2001 (see table).
     For the quarter ended March 31, 2001, the company had net income of
 $129,343 on revenues of $2,354,159.  Net income applicable to common
 stockholders was $69,343 or $0.02 per share.  This compares to no revenue in
 the first quarter of the prior year and a net loss of $240,743 or a loss of
 $0.12 per share, for the same period last year.
     The Company's increase in revenues and earnings was attributable to its
 transition to a membership marketing company as a result of the merger-
 acquisition of Foresight, Inc.  As previously reported, the Company has also
 entered into a definitive agreement to acquire The Capella Group, a healthcare
 solutions provider that markets a national healthcare membership program under
 the name Care Entree.  The acquisition is contingent on shareholder approval.
     Paul A. Kruger, Chairman of the Board of Precis commented, "The Foresight
 acquisition has been totally integrated into our operations, and we are
 pleased with our first quarter progress.  The company is now well positioned
 to become a leader in the membership marketing industry.  We look forward to
 completing The Capella Group acquisition and continued growth throughout the
 year."
     Precis is a national membership marketing solutions company.  Through its
 wholly owned subsidiary, Foresight, Inc., the company provides product
 enhancements in the form of club benefits to financial institutions, rental
 purchase dealers, consumer finance companies, retail outlets, employee groups
 and member-based associations.  For more information on Precis, its subsidiary
 Foresight, Inc., or Care Entree, visit www.precis-scs.com,
 www.foresightclub.com and www.careentree.com respectively.
 
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  These statements are based on current expectations and
 involve certain risks and uncertainties.  Actual results might differ
 materially from those projected in the forward-looking statements due to a
 variety of factors, including failure to obtain regulatory approvals, failure
 to meet other closing conditions of the proposed transaction and risks
 associated with acquisitions.  Additional factors are described in the
 company's publicly available filings with the Securities and Exchange
 Commission.  Readers are cautioned not to place undue reliance on these
 forward-looking statements, which speak only as of the date hereof.
 
 
                                                      For the Three Months
                                                         Ended March 31,
                                                       2001           2000
      Product and service revenues                 $ 2,354,159    $       ---
      Total operating expenses                       2,215,569        258,822
      Operating income (loss)                          138,590       (258,822)
      Other expense (income):
        Interest income and expense (net)              (62,222)       (18,079)
        Amortization of goodwill                        44,954            ---
          Total other expense (income)                 (17,268)       (18,079)
      Income (loss) before income taxes                155,858       (240,743)
      Provision for income taxes                        26,515            ---
      Net income (loss)                                129,343       (240,743)
      Preferred stock dividends                         60,000            ---
      Net income (loss) applicable
       to common stockholders                      $    69,343    $  (240,743)
      Net income (loss) per share of common stock  $      0.02    $     (0.12)
      Weighted average number of common
       shares outstanding                            2,850,000      1,967,000
 
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SOURCE Precis Smart Card Systems, Inc.
    NORMAN, Okla., April 23 /PRNewswire Interactive News Release/ --
 Precis Smart Card Systems Inc. (Nasdaq:   PCIS) today reported the unaudited
 results of its first quarter of calendar year 2001 (see table).
     For the quarter ended March 31, 2001, the company had net income of
 $129,343 on revenues of $2,354,159.  Net income applicable to common
 stockholders was $69,343 or $0.02 per share.  This compares to no revenue in
 the first quarter of the prior year and a net loss of $240,743 or a loss of
 $0.12 per share, for the same period last year.
     The Company's increase in revenues and earnings was attributable to its
 transition to a membership marketing company as a result of the merger-
 acquisition of Foresight, Inc.  As previously reported, the Company has also
 entered into a definitive agreement to acquire The Capella Group, a healthcare
 solutions provider that markets a national healthcare membership program under
 the name Care Entree.  The acquisition is contingent on shareholder approval.
     Paul A. Kruger, Chairman of the Board of Precis commented, "The Foresight
 acquisition has been totally integrated into our operations, and we are
 pleased with our first quarter progress.  The company is now well positioned
 to become a leader in the membership marketing industry.  We look forward to
 completing The Capella Group acquisition and continued growth throughout the
 year."
     Precis is a national membership marketing solutions company.  Through its
 wholly owned subsidiary, Foresight, Inc., the company provides product
 enhancements in the form of club benefits to financial institutions, rental
 purchase dealers, consumer finance companies, retail outlets, employee groups
 and member-based associations.  For more information on Precis, its subsidiary
 Foresight, Inc., or Care Entree, visit www.precis-scs.com,
 www.foresightclub.com and www.careentree.com respectively.
 
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  These statements are based on current expectations and
 involve certain risks and uncertainties.  Actual results might differ
 materially from those projected in the forward-looking statements due to a
 variety of factors, including failure to obtain regulatory approvals, failure
 to meet other closing conditions of the proposed transaction and risks
 associated with acquisitions.  Additional factors are described in the
 company's publicly available filings with the Securities and Exchange
 Commission.  Readers are cautioned not to place undue reliance on these
 forward-looking statements, which speak only as of the date hereof.
 
 
                                                      For the Three Months
                                                         Ended March 31,
                                                       2001           2000
      Product and service revenues                 $ 2,354,159    $       ---
      Total operating expenses                       2,215,569        258,822
      Operating income (loss)                          138,590       (258,822)
      Other expense (income):
        Interest income and expense (net)              (62,222)       (18,079)
        Amortization of goodwill                        44,954            ---
          Total other expense (income)                 (17,268)       (18,079)
      Income (loss) before income taxes                155,858       (240,743)
      Provision for income taxes                        26,515            ---
      Net income (loss)                                129,343       (240,743)
      Preferred stock dividends                         60,000            ---
      Net income (loss) applicable
       to common stockholders                      $    69,343    $  (240,743)
      Net income (loss) per share of common stock  $      0.02    $     (0.12)
      Weighted average number of common
       shares outstanding                            2,850,000      1,967,000
 
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 SOURCE  Precis Smart Card Systems, Inc.