Annual revenue for the fiscal year just ended at Lanham, MD-based Group 1 Software Inc., a provider of customer relationship management services to major retailers, declined 5% to $89.4 million from $94.2 million last year, the company reported today. Net income totaled $4.4 million, down from $8.8 million a year ago.
Group 1 said the decline in net income for the fiscal year was attributable primarily to the reduced revenue resulting from difficult economic and market conditions. In addition, net income was reduced by $2.2 million by operating and interest expenses in excess of revenue associated with the acquisitions during the year of Vision-R Technologies, HotData Inc. and TriSense Software Ltd. The company says the reduction in net income was consistent with business plans for those acquisitions.
Group 1 said its cash position continued to grow reaching $47.6 million at March 31, up from the $43.8 million on Dec. 31 and $44.1 million at March 31, 2001.
The company said demand remained strong in its CRM division.
"While the year was very challenging for Group 1 and other applications software vendors, the fundamental strength of the company enabled us to remain solidly profitable, make three significant acquisitions, fully integrate the exciting new technology from these acquisitions, and still increase our cash position," said Bob Bowen, CEO. "We enter the current fiscal year with a number of important new product offerings, the result of both internal development efforts and the integration of acquired technology.”
Group 1 expects revenue to increase 10% this year.
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