ProsoftTraining.com Reports Second Quarter Fiscal 2001 Results
(EMAILWIRE.COM, March 01, 2001 ) Austin, Texas –- ProsoftTraining.com (Nasdaq: POSO), the global leader for Internet certification, training and courseware, today reported financial results for the second quarter ending January 31, 2001.
Revenues for the second quarter of fiscal year 2001 were $9.15 million, a 129% increase over revenues of $4.00 million for the previous year’s second quarter. Net income for the second quarter of fiscal year 2001 was $0.54 million, compared to $0.02 million for the second quarter of fiscal year 2000. Net income per share on a fully diluted basis was $.02 for the second quarter of fiscal year 2001, compared to zero cents for the previous year’s second quarter.
Income before income taxes, amortization and depreciation for the second quarter of fiscal year 2001 was $1.24 million or $.05 per share, compared to $0.21 million or $.01 per share for the second quarter of fiscal year 2000.
Revenues for the first six months of fiscal year 2001 were $18.6 million, a 139% increase over revenues of $7.8 million for the previous year’s first six months. Net income for the first six months of fiscal year 2001 was $1.68 million, compared to $0.08 million for the first six months of fiscal year 2000. Net income per share on a fully diluted basis was $.07 for the first six months of fiscal year 2001, compared to zero cents for the previous year’s first six months.
Income before income taxes, amortization and depreciation for the first six months of fiscal year 2001 was $2.95 million or $.12 per share, compared to $0.46 million or $.03 per share in the first six months of fiscal year 2000.
Courseware revenue for the second quarter of fiscal year 2001 increased to $6.70 million, a 370% increase over courseware revenue for the same quarter the previous year. Certification revenue for the second quarter of fiscal year 2001 was $1.02 million, an increase of 125% when compared to $0.45 million for the same quarter of the previous year. Service revenues for the second quarter of fiscal year 2001 declined 33%, to $1.43 million when compared to $2.12 million for the second quarter of the previous fiscal year.
Gross profit, defined as total revenue less costs of revenue, for the second quarter of fiscal year 2001 was $5.14 million compared to $1.96 million for the previous year’s second quarter, an increase of 162%. Gross profit as a percentage of revenue increased to 56% for the second quarter of fiscal year 2001, compared to 49% for the same quarter of the previous fiscal year. The improvement in gross profit margin resulted from the increase in higher-margin courseware revenue as a percentage of total revenue. Sales and marketing expenses for the second quarter of fiscal year 2001 increased as planned as a percentage of revenue to 19%, compared to 9% for the previous year’s second quarter. General and administrative expenses for the second quarter of fiscal year 2001 were 19% of revenue, down slightly from 24% for the same period of the previous year.
Net cash provided by operating activities for the first six months of fiscal year 2001 was $1.83 million compared to $0.03 million for the same period the previous year. Days sales outstanding (DSOs) held steady at 57 days, which was consistent with the prior quarter.
“Strong revenue growth in January, a focus toward courseware and certification revenue and adjustments to discretionary spending enabled us to achieve our planned quarterly profit level despite a sharper decline in quarterly services revenue than expected,” Jerry Baird, Chairman and CEO of ProsoftTraining.com observed. “Looking forward, we are encouraged about the outlook for calendar 2001 because of positive trends we see in our core business metrics and acceptance of our programs. Our testing revenue continues to grow sequentially and the number of CIW certificates earned now exceeds 15,000. The CIW Authorized Training Provider network continues to expand and we have certified more than 2,000 channel sales personnel as CIW Sales Specialists.”
Other developments in the second quarter of fiscal year 2001 are as follows:
· In December, Novell announced that it would merge its Certified Internet Professional (CIP) program with CIW. Novell will also facilitate a mail campaign about CIW to its 150,000-member CNE and Master CNE population.
· In cooperation with Intel, an i-Accelerate program tailored for Intel certification members was developed and released.
· New Horizons Learning Centers announced that its CIW-related sales during calendar year 2000 grew to $17 million. It also laid claim to being the organization with the largest number of CIW Authorized Training Provider locations.
· iGeneration announced its endorsement of CIW in February and opened its TalentLink database to CIW members.
The popular entry-level A certification for PC technicians updated its exams on January 31, 2001, causing Prosoft and other A courseware suppliers to update their course offerings. Prosoft invested in an innovative curriculum solution that was released in February and has already received good reviews from customers. A constitutes an important component of the Prosoft courseware revenue mix, exceeded only by CIW courseware.
Prosoft continues to strengthen many of the product lines acquired as part of the ComputerPREP acquisition. In February, Prosoft won a significant bid to supply the Northwest Center for Emerging Technologies and the Washington State Office of Superintendent for Public Instruction with courseware to prepare Washington State secondary school teachers for the Microsoft Office User Specialist certification.
The company encourages all interested investors to join an upcoming conference call, during which company management will discuss fiscal year 2001 second quarter results and comment on future expectations. The call is scheduled for 5:00 p.m. EST/4:00 p.m. CST on February 28, 2001. The phone number for the call is 801/303‑7411, pass code 300. This is a “listen-only” phone number. Re-broadcast will be available for two weeks at 402/220-1490, PIN 1090. For more information, and to view the accompanying Web presentation, see the company's Web site at www.prosofttraining.com.
Except for historical information contained herein, the matters discussed in this press release are statements of a forward-looking nature that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, without limitation, the Company’s dependence on the timely development, introduction and acceptance of courses and products, the impact of competition and downward pricing pressures, the effect of changing economic conditions, the Company’s ability to attract and retain key management and other personnel, risks in technology development, continued adoption of Internet technologies, and the other risks and uncertainties outlined in the Company’s filings with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10K. The Company undertakes no obligation to update this forward-looking information.
# # #
Investor Relations: Jim Stapleton
ProsoftTraining.com
512-225-6792
jimst@prosofttraining.com
Revenues for the second quarter of fiscal year 2001 were $9.15 million, a 129% increase over revenues of $4.00 million for the previous year’s second quarter. Net income for the second quarter of fiscal year 2001 was $0.54 million, compared to $0.02 million for the second quarter of fiscal year 2000. Net income per share on a fully diluted basis was $.02 for the second quarter of fiscal year 2001, compared to zero cents for the previous year’s second quarter.
Income before income taxes, amortization and depreciation for the second quarter of fiscal year 2001 was $1.24 million or $.05 per share, compared to $0.21 million or $.01 per share for the second quarter of fiscal year 2000.
Revenues for the first six months of fiscal year 2001 were $18.6 million, a 139% increase over revenues of $7.8 million for the previous year’s first six months. Net income for the first six months of fiscal year 2001 was $1.68 million, compared to $0.08 million for the first six months of fiscal year 2000. Net income per share on a fully diluted basis was $.07 for the first six months of fiscal year 2001, compared to zero cents for the previous year’s first six months.
Income before income taxes, amortization and depreciation for the first six months of fiscal year 2001 was $2.95 million or $.12 per share, compared to $0.46 million or $.03 per share in the first six months of fiscal year 2000.
Courseware revenue for the second quarter of fiscal year 2001 increased to $6.70 million, a 370% increase over courseware revenue for the same quarter the previous year. Certification revenue for the second quarter of fiscal year 2001 was $1.02 million, an increase of 125% when compared to $0.45 million for the same quarter of the previous year. Service revenues for the second quarter of fiscal year 2001 declined 33%, to $1.43 million when compared to $2.12 million for the second quarter of the previous fiscal year.
Gross profit, defined as total revenue less costs of revenue, for the second quarter of fiscal year 2001 was $5.14 million compared to $1.96 million for the previous year’s second quarter, an increase of 162%. Gross profit as a percentage of revenue increased to 56% for the second quarter of fiscal year 2001, compared to 49% for the same quarter of the previous fiscal year. The improvement in gross profit margin resulted from the increase in higher-margin courseware revenue as a percentage of total revenue. Sales and marketing expenses for the second quarter of fiscal year 2001 increased as planned as a percentage of revenue to 19%, compared to 9% for the previous year’s second quarter. General and administrative expenses for the second quarter of fiscal year 2001 were 19% of revenue, down slightly from 24% for the same period of the previous year.
Net cash provided by operating activities for the first six months of fiscal year 2001 was $1.83 million compared to $0.03 million for the same period the previous year. Days sales outstanding (DSOs) held steady at 57 days, which was consistent with the prior quarter.
“Strong revenue growth in January, a focus toward courseware and certification revenue and adjustments to discretionary spending enabled us to achieve our planned quarterly profit level despite a sharper decline in quarterly services revenue than expected,” Jerry Baird, Chairman and CEO of ProsoftTraining.com observed. “Looking forward, we are encouraged about the outlook for calendar 2001 because of positive trends we see in our core business metrics and acceptance of our programs. Our testing revenue continues to grow sequentially and the number of CIW certificates earned now exceeds 15,000. The CIW Authorized Training Provider network continues to expand and we have certified more than 2,000 channel sales personnel as CIW Sales Specialists.”
Other developments in the second quarter of fiscal year 2001 are as follows:
· In December, Novell announced that it would merge its Certified Internet Professional (CIP) program with CIW. Novell will also facilitate a mail campaign about CIW to its 150,000-member CNE and Master CNE population.
· In cooperation with Intel, an i-Accelerate program tailored for Intel certification members was developed and released.
· New Horizons Learning Centers announced that its CIW-related sales during calendar year 2000 grew to $17 million. It also laid claim to being the organization with the largest number of CIW Authorized Training Provider locations.
· iGeneration announced its endorsement of CIW in February and opened its TalentLink database to CIW members.
The popular entry-level A certification for PC technicians updated its exams on January 31, 2001, causing Prosoft and other A courseware suppliers to update their course offerings. Prosoft invested in an innovative curriculum solution that was released in February and has already received good reviews from customers. A constitutes an important component of the Prosoft courseware revenue mix, exceeded only by CIW courseware.
Prosoft continues to strengthen many of the product lines acquired as part of the ComputerPREP acquisition. In February, Prosoft won a significant bid to supply the Northwest Center for Emerging Technologies and the Washington State Office of Superintendent for Public Instruction with courseware to prepare Washington State secondary school teachers for the Microsoft Office User Specialist certification.
The company encourages all interested investors to join an upcoming conference call, during which company management will discuss fiscal year 2001 second quarter results and comment on future expectations. The call is scheduled for 5:00 p.m. EST/4:00 p.m. CST on February 28, 2001. The phone number for the call is 801/303‑7411, pass code 300. This is a “listen-only” phone number. Re-broadcast will be available for two weeks at 402/220-1490, PIN 1090. For more information, and to view the accompanying Web presentation, see the company's Web site at www.prosofttraining.com.
Except for historical information contained herein, the matters discussed in this press release are statements of a forward-looking nature that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, without limitation, the Company’s dependence on the timely development, introduction and acceptance of courses and products, the impact of competition and downward pricing pressures, the effect of changing economic conditions, the Company’s ability to attract and retain key management and other personnel, risks in technology development, continued adoption of Internet technologies, and the other risks and uncertainties outlined in the Company’s filings with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10K. The Company undertakes no obligation to update this forward-looking information.
# # #
Investor Relations: Jim Stapleton
ProsoftTraining.com
512-225-6792
jimst@prosofttraining.com
Contact Information:
ProsoftTraining.com
Joseph Nchor
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ProsoftTraining.com
Joseph Nchor
Tel:
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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