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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http://tbutton.prnewswire.com/prn/11690X82283306
SOURCE Precis Smart Card Systems, Inc.
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